Solutions for Your Cash
Easily manage your cash for every day, a rainy day, and some day. Do you have a solid plan for the cash you’re holding? Having strategies for your cash—from daily spending needs to the money you’re holding for the next investment opportunity—is an important part of your portfolio and essential to achieving your financial goals.
When deciding which solutions are right for you, first consider why you’re holding cash and how you plan to use it.
It’s helpful to look at your cash in three ways:
This is a great option for your daily spending needs. The Schwab Bank Investor Checking account lets you manage your day-to-day cash, pay bills, and move money between checking and brokerage accounts quickly and easily.
Schwab Bank High Yield Investor Checking®1
Account features include:
- Link to your Schwab One® brokerage account
- Unlimited ATM fee rebates worldwide2
- No minimum balances and no monthly account service charges
- No foreign transaction fees on overseas purchases3
- Check deposits using the Schwab Mobile app for iPhone®, iPad®, and Android™4
- Free online and mobile bill pay
- Schwab Bank Visa® Platinum Debit Card with EMV chip for added security
- FDIC-insured up to $250,0005
Cash that is ready to invest—and that earns a yield or interest while you make an investment decision—and is available for same-day transactions without transfers or having to liquidate a current position.
For the cash you want available to invest immediately, there’s no need to transfer money or liquidate a current position to settle trades. All Schwab brokerage accounts include a sweep or cash feature. Individual Retirement Accounts (IRAs) also include a cash sweep feature.
Schwab One® Brokerage Account
Account features include:
- Schwab Bank Sweep is FDIC-insured and automatically sweeps the cash in your Schwab One brokerage account to an FDIC-insured account at Charles Schwab Bank, where it earns interest.
- Schwab One Interest is SIPC-insured and pays you interest on the uninvested cash in your brokerage account.
- If you have an occasional need to access the cash in your Schwab One account for non-trading purposes, you can add cash management features such as bill pay, checks, and a Visa® Platinum Debit Card to your account.
Learn more about which sweep features you’re eligible for today.
Cash for those planned and unplanned life events, plus options for more immediate liquidity.
Find easy ways to save and preserve capital for those planned or unplanned life events, or to help reduce risk as a part of your overall asset allocation strategy.
Schwab Bank High Yield Investor Savings®
This FDIC-insured account offers a competitive yield regardless of your balance to keep your liquid savings growing. You’ll also have:
- An easy way to access and manage your cash and your investments with a single sign-on
- No minimums or account service fees
- Easy transfers between your Investor Savings and Schwab brokerage accounts
- FDIC-insured up to $250,0005
- Note: As with any savings account, you are limited to six monthly withdrawal transactions.
Schwab Purchased Money Market Funds
If you value next-day liquidity, an SIPC-insured Schwab Purchased Money Market Fund can reduce your portfolio’s volatility and allow you to earn taxable or tax-exempt income. Please note these funds are not FDIC-insured.
Purchased money market funds offer competitive yields and quick access to your money with:
- Easy access to your cash investment (next business day if sold by 4 p.m. ET)
- No transaction fees to buy or sell funds
- Either taxable or tax-free income6
CDs from Schwab CD OneSource®7
Protect your principal and earn a fixed rate of return. If you don’t need your cash for at least one month, certificates of deposit (CDs) offer a way to invest your cash for longer-term returns. Schwab CD OneSource offers you a marketplace of CDs from FDIC-insured banks across the country. You can compare a great selection of competitive rates and maturities and can spread cash across multiple CDs and multiple banks, increasing your FDIC insurance coverage.
Schwab CD OneSource offers:
- Choices: a selection of CDs from a wide range of FDIC-insured banks8
- Convenience: purchase CDs online, view all your CDs on Schwab.com
- Predictability: a locked-in rate for the maturity term you want
Find a cash solution that fits your needs
From your everyday banking to an investment to support your overall asset allocation, take a look at the range of cash solutions from Schwab and Schwab Bank.
If you’re already a Charles Schwab client, log in to see rates.
|Everyday Cash (1 to 90 days)|
|Schwab High Yield Investor Checking||
||Same day||Variable APY9||FDIC-insured|
|Cash Awaiting Investment (90 days to 9 months)|
|Schwab Bank Sweep feature||
||Same day||Variable APY||FDIC-insured|
|Schwab One Interest feature||
||Same day||Variable interest||SIPC coverage (limitations may apply)10|
|Medium- to Longer-term Cash (1 year to multiple years)|
|Schwab High Yield Investor Savings||
Maximum of six withdrawals per monthly statement cycle
|Schwab Purchased Money Market Funds||
||Next business day||Variable (based on portfolio yield)||SIPC coverage (limitations may apply)10|
||Based on term||Fixed APY||FDIC-insured7|
*Limitations may apply.
Money fund investors should carefully consider information contained in the money fund prospectus, including investment objectives, risks, charges, and expenses. You can request a mutual fund prospectus by calling Schwab at 1-800-435-4000. Please read the prospectus carefully before investing.
An investment in a money market fund is neither insured nor guaranteed by the Federal Deposit Insurance Corporation (FDIC). Although the fund seeks to preserve the value of your investment at $1 per share, it is possible to lose money by investing in the fund. Please note that bank certificates of deposit are FDIC-insured up to $250,000 while non-bank investment products have no such guarantees.
1. Schwab Bank High Yield Investor Checking® accounts are available only as linked accounts with Schwab One accounts. The Schwab One brokerage account has no minimum balance requirements, and there is no requirement to fund this account, when it is opened with a linked High Yield Investor Checking account.
2. Unlimited ATM fee rebates apply to cash withdrawals using the Schwab Bank Visa® Platinum Debit Card wherever it is accepted. ATM fee rebates do not apply to any fees other than fees assessed for using an ATM to withdraw cash from your Schwab Bank account. Schwab Bank makes its best effort to identify those ATM fees eligible for rebate, based on information it receives from Visa and ATM operators. In the event that you have not received a rebate for a fee that you believe is eligible, please call a Schwab Bank Representative for assistance at 1-888-403-9000. Schwab Bank reserves the right to modify or discontinue the ATM fee rebate at any time.
3. If you use your Card to withdraw foreign currency from an ATM, or to pay for a purchase with foreign currency, we charge your account for the U.S. dollar equivalent of the transaction. Depending on the specific arrangements that are in place, the exchange rate and calculation of the U.S. dollar equivalent will be done by the bank at which you conduct the transaction, the network to which the ATM belongs, or Visa®. The bank or network may also charge a fee.
4. Schwab Mobile Deposit service is subject to certain eligibility requirements, limitations and other conditions. Enrollment is not guaranteed. Mobile deposits are subject to the Bank's hold policy. Requires a wireless signal or mobile connection.
5. Funds deposited at Charles Schwab Bank are insured, in aggregate, up to $250,000 based on account ownership type, by the Federal Deposit Insurance Corporation (FDIC). All deposits in your Schwab Bank checking and savings accounts and those deposited at Schwab Bank through the Bank Sweep feature on your Schwab One® brokerage account, held in the same capacity, are added together to determine your total amount of FDIC insurance coverage at Schwab Bank.
6. Tax-free income may be subject to the Alternative Minimum Tax. Capital gains are not exempt from federal income tax.
7. CDs from Schwab CD OneSource are issued by FDIC-insured institutions, and are subject to change and system access. Funds are FDIC-insured up to $250,000 per depositor per insured institution, based on account ownership type. Visit www.fdic.gov for details. For most CDs, there are no additional commission charges when you buy a CD through Schwab CD OneSource. However, there may be costs and market value adjustments associated with early redemption.
8. Funds deposited at an FDIC-insured institution are insured, in aggregate, up to $250,000 per depositor, per insured institution, based upon account type by the Federal Deposit Insurance Corporation (FDIC). The FDIC considers any other deposits you may have with an issuing bank. CDs you purchase from a particular bank are aggregated with any other deposits you may have with the issuing bank for purposes of determining FDIC insurance coverage (e.g., if you already have deposits of $250,000 with a bank, CDs you purchase from the same bank in the same ownership category may not be covered). Because the deposit insurance rules are complex, you may want to use the FDIC’s Electronic Deposit Insurance Estimator (EDIE) to estimate your total coverage at any particular bank.
9. APY: Annual Percentage Yield.
10. Charles Schwab & Co., Inc. is a member of the Securities Investor Protection Corporation (SIPC), which provides up to $500,000 (including $250,000 for claims for cash) of coverage when aggregated with other securities and cash held by you in the same capacity at Charles Schwab & Co., Inc. Money market mutual funds custodied at Schwab are considered securities for SIPC purposes. SIPC insurance does not provide coverage for loss of principal due to market loss.
All Funds with the exception of Schwab Variable Share Price Money Fund: You could lose money by investing in a money market fund. Money market funds seek to preserve the value of your investment at $1.00 per share, but cannot guarantee they will do so. Effective October 14, 2016, all Schwab Money Funds with the exception of Schwab Government Money Fund, Schwab Treasury Money Fund, Schwab Treasury Obligations Fund, Schwab Government Money Market Portfolio, and Schwab Retirement Government Money Fund may impose a fee upon the sale of your shares or may temporarily suspend your ability to sell shares if the fund’s liquidity falls below required minimums because of market conditions or other factors. An investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The money market fund's sponsor has no legal obligation to provide financial support to the fund, and you should not expect that the sponsor will provide financial support to the fund at any time.
Schwab Variable Share Price Money Fund: You could lose money by investing in a money market fund. Because the share price of the fund will fluctuate, when you sell your shares they may be worth more or less than what you originally paid for them. Effective October 14, 2016, the fund may impose a fee upon the sale of your shares or may temporarily suspend your ability to sell shares if the fund’s liquidity falls below required minimums because of market conditions or other factors. An investment in the fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The fund’s sponsor has no legal obligation to provide financial support to the fund, and you should not expect that the sponsor will provide financial support to the fund at any time. Compared to the total return, the seven-day yield more closely reflects the current earnings of the fund.
Charles Schwab & Co., Inc. (“Schwab”) and Charles Schwab Bank are separate but affiliated companies and subsidiaries of The Charles Schwab Corporation (“Charles Schwab”). Brokerage products are offered by Charles Schwab & Co., Inc., Member SIPC. Deposit and lending products and services are offered by Charles Schwab Bank, Member FDIC and an Equal Housing Lender.
The distributor for Schwab Funds® is Charles Schwab & Co., Inc. (“Schwab”). The investment advisor is Charles Schwab Investment Management, Inc. (“CSIM”). Both are affiliates of The Charles Schwab Corporation.
Android™ is a trademark of Google Inc. Use of this trademark is subject to Google Permissions.
iPhone® is a trademark of Apple Inc., registered in the U.S. and other countries.
©2016 Charles Schwab & Co., Inc. All rights reserved. Member SIPC. MKT00000-00 (0416-F78X) (05/16)