Schwab One Custodial Account
The Schwab One® Custodial Account is a brokerage account that allows you to make a financial gift to a minor and help teach them about investing. It is set up and managed by an adult, and turned over to the child when he or she reaches the age of majority.
What are the fees and commissions?
- $0 account open or maintenance fees. Other account fees, fund expenses, and brokerage commissions may apply.1
- Account minimum: $100
- Commissions: $8.95 per online trade;2 $0 per Schwab ETF online trade in your Schwab account2
1. See the Charles Schwab Pricing Guide for details. Employee equity compensation transactions are subject to separate commission schedules.
What are the benefits of a Schwab One Custodial Account?
Every Schwab account comes with investment help and guidance. With this account, you'll also enjoy:
- All the benefits of our popular Schwab One brokerage account
- No contribution limits
- No gift tax for 2014 contributions up to $14,000 ($28,000 per couple) for each beneficiary in a single year
- Withdrawals that can be made at any time and for any purpose, as long as it benefits the beneficiary
- Tax-free earnings on the first $1,000
- A reduced tax rate on earnings over $1,000
- 24/7 service and support
- All assets are held in the child's name.
- 20% of the assets will be considered when applying for financial aid.
- A custodial account is an irrevocable gift and must be turned over to the child when he or she reaches the age of majority, typically 18 or 21, depending on the state.
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2. Restrictions apply: The $8.95 commission does not apply to foreign stock transactions, large block trading transactions requiring special handling, or restricted stock transactions. All broker-assisted and automated phone trades are subject to service charges.
3. Restrictions apply: Online trades of Schwab ETFsTM are commission-free at Charles Schwab & Co., Inc. (member SIPC), while trades of third-party ETFs are subject to commissions. Broker-assisted and automated phone trades are subject to service charges. A minimum deposit of $1,000 is required to open most Schwab brokerage accounts. Waivers may apply. See the Charles Schwab Pricing Guide for details. All ETFs are subject to management fees and expenses.
Investors should consider carefully information contained in the prospectus, including investment objectives, risks, charges, and expenses. You can request a prospectus by calling 800-435-4000. Please read the prospectus carefully before investing.
Investment returns will fluctuate and are subject to market volatility, so that an investor’s shares, when redeemed or sold, may be worth more or less than their original cost. Unlike mutual funds, shares of ETFs are not individually redeemable directly with the ETF.
Schwab ETFs are distributed by SEI Investments Distribution Co. (SIDCO). SIDCO is not affiliated with Charles Schwab & Co., Inc.