Charles Schwab Savings Account Interest Rates

Charles Schwab’s savings account has a slightly higher-than-average APY, but you can find better rates elsewhere

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Charles Schwab Savings Account Rates

Charles Schwab is primarily known as a leading investment and financial services company. Besides its brokerage accounts and investment products, it also offers banking options, including the Schwab Bank Investor Savings account.

Schwab’s savings account interest rates tend to be slightly higher than the national average, and there are no monthly fees or account minimums. However, you can find higher annual percentage yields (APYs) from other financial institutions.?

The APYs listed below are up to date as of the date of publication of this article. We review the bank’s savings account rates every two weeks and update the information below accordingly.

Account Balance for Highest APY APY Range Monthly Fee
Investor Savings $0 0.48% $0

Charles Schwab Savings Accounts: Key Features

Charles Schwab Savings Account Key Features
APY Range 0.48%
Minimum Balance to Earn Highest APY $0
Minimum Deposit $0
Withdrawal Limit None
Monthly Service Fee $0

The Schwab Bank Investor Savings account has no minimum deposit, making it a good choice for those just starting out who may struggle to come up with the high minimum deposits some other banks require. The account doesn’t have any monthly fees either, making it a useful free savings account option.

Interest on the Investor Savings account is compounded daily, and it’s added to your account on the last day of the statement period.

Typically, banks limit you to six withdrawals per month from a savings account. But Schwab indefinitely suspended enforcement of that limit, and the bank won’t take any action against customers that exceed six withdrawals.

If you’re thinking about opening an Investor Savings account, you should know that it has an unusual application process. While other banks allow you to open accounts online or over the phone, Schwab Bank requires you to download a form, fill it out, and submit it through the mail or by fax. The only exception to that rule is if you’re an existing Schwab customer and have an online account; in that case, you can sign into your account and upload the document instead.

Use’s compound interest calculator to find out how your money can grow with one of the best high-yield savings accounts (HYSAs).

About Charles Schwab: Other Savings Options

With Charles Schwab, you can open a savings account, checking account, or credit card, and you can even take out a loan. But it doesn’t offer other savings products like certificates of deposit (CDs) or money market accounts directly—instead, it acts as a brokerage for those account types. 

You can use a Charles Schwab brokerage account to invest in bonds, CDs, and money market funds. You can invest in these securities by opening a taxable investment account, individual retirement account (IRA), or a custodial account. 

Charles Schwab operates over 400 branches nationwide. You can find a branch near you with the locator tool.

Compare Savings Account Rates

Charles Schwab offers many valuable banking products, but rates on its savings account—while higher than the national average—are not very high. Compare Schwab to some of the high-yield savings accounts below to find the right bank (or broker) for you.

Is It Better to Have a Schwab Savings Account or Brokerage Account?

The best account for you depends on your goals and timeline. If you’re building an emergency fund or saving money for a specific goal and hope to accomplish it within a few years, protecting your money is the key priority. In those cases, a savings account is likely the better choice; your money will not lose value, and it earns a little interest over time.?

If your time horizon is longer, such as saving for your retirement in 30 years, a brokerage account is typically a better option. Because you have more time to recover from market fluctuations, investing with a brokerage account can allow you to earn higher returns.?

Is There a Minimum Balance Requirement for Charles Schwab Savings Accounts?

The Schwab Investor Savings account does not have a minimum deposit requirement.

How Often Does Charles Schwab Pay Interest on Savings Accounts?

With the Schwab Investor Savings account, interest on your account is compounded daily. The interest is credited to your account on the last day of the statement period.

What Do You Need to Open a Charles Schwab Savings Account?

To open a savings account with Charles Schwab, you must be at least 18, and you need to download an application. The form asks for the following information:

  • Name
  • Address
  • Social Security number or Taxpayer Identification Number
  • Date of birth
  • Driver’s license, passport, or government-issued ID number, country or state of issuance, issue date, and expiration date
  • Current bank account and routing numbers to transfer funds

After filling out the form, you have to bring it to a Charles Schwab location, fax it to (888) 526-7252, or mail it to one of the following addresses:?

  • Regular Mail (West)
    Charles Schwab & Co., Inc.
    P.O. Box 982600
    El Paso, TX 79998-2600
  • Regular Mail (East)
    Charles Schwab & Co., Inc.
    P.O. Box 628291
    Orlando, FL 32862-8291
Article Sources
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  1. Charles Schwab. "Schwab Bank Investor Savings Account."?

  2. FDIC. "National Rates and Rate Caps."?

  3. Charles Schwab. "Looking for More Ways to Put Your Cash to Work?"?

  4. Charles Schwab. "Corporate Fact Sheet," Page 2.