Perhaps most importantly, it compounds interest on CDs, while Charles Schwab does not.īut Charles Schwab is better for international travelers. It also offers a 12-month no-penalty CD that pays 3.51% APY. But you may prefer Bank of America for CDs - Bank of America CD rates are high on select terms. Bank of America savings rates are low, and you'll earn a higher rate with Schwab. How Charles Schwab Bank ComparesĬharles Schwab and Bank of America both offer investment and bank products. When interest is paid, it goes straight into your Charles Schwab brokerage account. The good news is that Charles Schwab CD rates are some of the highest out there - the bad news is that brokered CDs don't compound interest, which could drastically affect how much you earn if you have a large balance. Instead, Charles Schwab acts as the middleman for you and the bank that owns the CD. Charles Schwab has brokered CDs, meaning Charles Schwab doesn't actually own the CD. Show Pros, Cons, and More chevron down icon An icon in the shape of an angle pointing down.Ĭharles Schwab's CDs are different than what you'll find with most banks. Charles Schwab neither confirmed nor denied these allegations, but the company did settle. The SEC claimed three Schwab investment subsidiaries invested clients' money in ways Schwab's data showed would likely be less profitable for the customers, without telling the customers. In 2022, Charles Schwab paid $187 in a settlement with the Securities and Exchange Commission. A strong BBB rating signifies the company is transparent in how it handles business, responds effectively to customer complaints, and is honest in its advertising.Ĭharles Schwab does have a recent controversy, though. Your Charles Schwab Bank accounts are FDIC insured for up to $250,000, or $500,000 for joint accounts.Ĭharles Schwab has received an A+ rating from the Better Business Bureau. Or you can call an agent Monday through Friday, 4 a.m. You can do all your banking online, though, and the bank's mobile app has received 4.8 out of 5 stars in the Apple store, and 3 stars in the Google Play store.Ĭharles Schwab offers 24/7 customer support via online chat with customer service representatives. Although you may be able to talk with a representative about your bank accounts, the physical locations are mainly for investment services, not banking services. There are over 300 Charles Schwab locations around the US. Branches are mainly for investment services, so you need to be digitally savvyĬharles Schwab is primarily known for its investment services, but it also offers banking products.No monthly service fees on savings or checking account
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