Old Dec 10, 08, 2:52 pm
Join Date: Jan 2003
Location: NYC
Posts: 8,296
On the taxability of rebates, the answer is almost certainly not taxable. Here is the best discussion I could find on the web.

Has anybody seen anything about this "at least one trade a year" rule in print? I've been through my SchwabOne documentation and don't see it anywhere. In fact, on this page it even says: "There are no minimum balance requirements, minimum balance charges, or minimum trade requirements in order to open or maintain the Schwab One brokerage account when you also open a linked High Yield Investor Checking account." (emphasis mine)

I find it hard to believe there is an SEC rule dictating a minimum number of trades in an account that somehow goes away simply by opening a bank account to go with the brokerage account. But if there is such a rule without the checking account, you could always open a High Yield Investor Checking account (which has no minimum balance requirements or fees of its own) and just park a penny there to avoid the minimum trade requirements.

My guess, though, is that pgary simply drew a bad spin in his first run at Schwab CSR roulette.
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