Charles Schwab is one of the global leaders in banking, wealth management, and investing. But before you decide to count on them for any of these services, a vital question needs to be answered: can you deposit cash at Charles Schwab?
This may come as a surprise, but you cannot deposit cash into a Charles Schwab bank. Your cash has to be first converted into a check or a money order. You can also deposit cash to a third-party financial institution and transfer it when needed. This might take more time, though.
In this article, I’m going to help you understand how the Schwab checking and savings account work and how you can deposit to them.
How Does the Charles Schwab Checking Account Work?
Let’s start with the basics… A checking account is a bank account in which you can withdraw and deposit money. It tends to be very liquid and you can access it with checks, automated teller machines, electronic debits, and more. It sets itself apart from other types of bank accounts by allowing many withdrawals and unlimited deposits.
With that explained, let’s talk business. Charles Schwab’s High Yield Investor Checking Account offers a 0.03% interest rate, which compared to other banks is quite high. On the other hand, the overdraft fee, which is what the bank charges you every time you withdraw money is $25 and can be charged up to four times a day. Charles Schwab also offers overdraft protection that carries no additional fees and can be linked to a brokerage, credit, or savings account.
The High Yield Investor Checking Account will allow for unlimited ATM fee rebates with no additional cost for foreign transactions. I should also mention that there are no monthly service fees or minimums.
Schwab also offers:
- free standard checks
- mobile check deposits
- online and mobile Bill Pay4
- Visa Platinum debit card, and
- mobile wallets such as Samsung Pay, Apple Pay, Microsoft Wallet5, and Android Pay.
How to Deposit to your High Yield Investor Checking Account?
Here are the many ways you can deposit to your High Yield Investor Checking account:
- Use the Schwab Mobile Deposit app
- Use your Schwab One brokerage account to move your money to your checking account.
- Deposit your money to your High Yield Investor Checking account in person.
- Easily transfer your funds to Schwab from another financial institution.
- Send a check to a Schwab branch.
- Transfer your funds to your account from another bank.
What Other Benefits Does My High Yield Investor Checking Account Include?
Upon opening an account you will receive a Schwab Bank Visa Platinum Debit Card. It will be automatically and conveniently mailed to your address. You can use the card anywhere that accepts Visa and withdraw cash from ATMs worldwide.
On top of that, when opening a new High Yield Investor Checking account, Schwab will automatically also open a Schwab One brokerage account. Each will come with a separate account number. What’s best is that you will be able to see both accounts with a single login. They come with no monthly fee and allow you to easily transfer funds between them for free.
Are My Funds Insured?
Fortunately, yes. Both the High Yield Investor Checking and Saving accounts are insured up to $250,000 by the Federal Deposit Insurance Corporation (FDIC), an insurance agency of the US government.
So even if the bank goes bust, your funds are in the safe hands of Uncle Sam (provided that you have less than $250,000 deposited).
How does the Charles Schwab Saving Account Work?
You can, of course, also decide to deposit your money in a savings account. The Schwab Bank High Yield Investor Savings accounts pay a 0.05% annual yield, which again is more than you can expect from other major banks.
The account has no minimum opening deposit, minimum balance, or monthly fee. So it’s ideal for clients who won’t be making a lot of transactions and are just looking for a place with a relatively attractive yield to store their money.
How to deposit to your High Yield Investor Savings account?
Similarly to the checking account, there are several ways to deposit to your High Yield Investor Savings account:
- Transfer your money to your saving account with a Schwab One brokerage account or through your High Yield Investor Checking account.
- With a direct deposit to your account.
- Use the Schwab Mobile Deposit app to easily and quickly deposit funds anywhere you are.
- Mail your check to a Schwab Bank with a free postage-paid envelope.
- Wire transfer your funds to your account from another bank.
You cannot deposit cash into your Charles Schwab Bank account, which is a bummer. But fortunately, they offer some great alternatives. Your cash can be easily converted into a check or a money order.
Customers should know how their bank works, which is easier said than done. But Once you break it down, it’s not that complicated. So, don’t get scared by the complicated jargon. Always be informed of what you are getting into. Never subscribe to anything, let alone a bank without doing your research.