The Charles Schwab Corporation is a banking & investing company that manages over 7 trillion dollars in assets. It is the only major bank with a free checking account that continues to refund all ATM transaction fees worldwide. There are no hidden fees or requirements to open a Schwab checking account except that it comes with a free brokerage account (you don’t have to use it).
Most major banks offer unlimited ATM fee rebates only to their wealthiest clients (e.g., after investing 300K with them). There are a few other credit unions that offer similar benefits but they are out of reach for many customers. For comparison, the USAA bank only refunds up to $15 of ATM usage fees in the United States (not overseas).
How to Sign-up for a Schwab Checking Account?
Once you click on the “Open a Schwab account” page, click on the “Individual or Joint checking” option under Banking (see image below with red square box). It will take you through various self-explanatory steps (https://www.schwab.com/open-an-account).
Is there a Credit Check Required to Open a Schwab Account?
Opening a Schwab checking account NO LONGER requires a credit check, which is done by several banks.
Can I use Schwab Bank as my Main Bank?
Schwab bank has an excellent user interface (much better than many multi-national banks) and I use it for all my daily banking needs (direct deposit paycheck, sending monthly checks, etc.,).
Does Schwab Bank Accept Mobile Deposits?
Schwab bank does not have many physical branches compared to the other banks, but it has a very good App (iPhone or Android) to electronically deposit checks.
Can I use Zelle with Schwab Bank?
You can use the mobile App to set up Zelle payments, but I heard too many fraud stories about this payment service.
Can I have a Zero Balance in my Schwab Account?
You can also choose to leave zero dollars in the checking account, but after a period of inactivity, the company may send an automatic account closure letter (it happened to my friend). I recommend leaving a small amount of money in there to maintain an open account and in case you forget to transfer funds before a trip.
How do I get the ATM fee Refunds?
Schwab bank refunds ATM fees after the monthly statement closes (see the image from my recent use of a Schwab card in Cortina d’Ampezzo). I used it to withdraw money on 9/4 and the fees were refunded on 9/30.
Does Schwab ATM Card Charge Foreign Transaction fee?
Schwab bank debit card has NO foreign transaction fees and it is the best card to use overseas for purchases when the merchant does not accept credit cards.
Additional Perk: American Express Platinum Card for Schwab
Signing up for a Schwab checking account will also make you qualify for the American Express Platinum Card for Schwab. You can earn 100,000 Membership Rewards points after spending $6,000 in purchases.
Summary
I have many friends who never heard about the worldwide ATM fee rebates offered by Charles Schwab bank. This is a no-brainer ATM card for all Americans (even if you don’t travel overseas) to withdraw money from any ATM without worrying about fees. It will be fun to try this card in Casinos or cruise ships, where they charge a lot more withdrawal fees. I cannot overstate the importance of having the Schwab ATM card in your wallet for overseas trips due to also not having a foreign transaction fee.