May 4, 2016, 7:42 am
Last edit by: goodeats21
After being announced in early 2015, the long rumored Schwab American Express were available for application on March 21, 2016. Both cards require you to have an eligible Schwab brokerage account in order to apply. From the Schwab website:
Update June 2018 on eligible Schwab account per the Schwab website:
Note that if you are not currently a Schwab Customer, you can still get these cards by opening the Schwab Brokerage Account. To do so, a hard pull is required and most report that pull is with Equifax. There is a $1000 minimum investment to open the brokerage account, but if you open a linked high-yield investor checking account with the brokerage account, the balance requirements are waived.
Schwab Investor Card
This is card is basically a straight 1.5% cashback back card where you cash back can be deposited straight into your Schwab Brokerage Account. You can then choose to either invest money or transfer the cash to another account.
Schwab Platinum Card
This has all the benefits of the standard American Express Platinum Card with two notable advantages:
Link to Charles Schwab card information. Scroll down to read FAQ or to apply:
http://www.schwab.com/public/schwab/...s/credit_cards
An eligible brokerage account means a Schwab One® Account or Schwab General Brokerage Account held in your name or in the name of a revocable living trust where you are the grantor and trustee. Eligibility is subject to change.
An eligible account means (1) a Schwab One® or Schwab General Brokerage Account held in your name or in the name of a revocable living trust where you are the grantor and trustee or (2) a Schwab Traditional, Roth or Rollover IRA that is not managed by an independent investment advisor pursuant to a direct contractual relationship between you and such independent advisor. Eligibility is subject to change.
Schwab Investor Card
This is card is basically a straight 1.5% cashback back card where you cash back can be deposited straight into your Schwab Brokerage Account. You can then choose to either invest money or transfer the cash to another account.
Schwab Platinum Card
This has all the benefits of the standard American Express Platinum Card with two notable advantages:
- You have the ability to cash out membership rewards at a rate of 1.10 cpp [changed from initial 1.25 at inception] into the brokerage account. This is called "Invest with Rewards". There is a separate thread debating the advantages and disadvantages of doing this. You can invest the cash or transfer out of Schwab.
- There is an appreciation bonus in the form of a statement credit if you have significant assets with Schwab (essentially a discount on the annual fee). If you have $250k-$1M, you get a $100 statement credit. If you have $1M+ you get a $200 statement credit. More details are here: http://www.schwab.com/public/schwab/...r_faq_platinum
Link to Charles Schwab card information. Scroll down to read FAQ or to apply:
http://www.schwab.com/public/schwab/...s/credit_cards
American Express to Partner with Schwab. Applications online 3.21.2016.
Apr 19, 2016, 12:49 pm
#76
Join Date: Jun 2004
Posts: 90
Beats me what that term means. You are more than welcome to follow up with Schwab yourself and clarify for the rest of us--you apparently have a very keen eye for detail so I'm sure you can get to the bottom of it!
@gsxsilver, that's an important tidbit of info and just goes to show that what they say and what *actually* occurs are not always aligned.
Apr 19, 2016, 1:06 pm
#77
Moderator
Join Date: Jun 2003
Location: Miami, Mpls & London
Programs: AA & Marriott Perpetual Platinum; DL & HH Gold
Posts: 48,959
Better if someone who has an account and an actual stake in the outcome makes these sorts of inquiries. I do not doubt this is what frontline CSR's are telling people, but Schwab would be an outlier if they actually do think that converting credit card points to cash makes them taxable.
Apr 19, 2016, 6:13 pm
#80
Join Date: May 2002
Location: Arizona
Posts: 5,690
Most card issuers are banks after 2008 and I believe Citibank was issuing 1099s for miles earned opening some checking and other accounts. You will find a thread where people where upset at the high dollar value Citibank placed on the miles when they issued 1099s
You will also find some news where the IRS quickly retreated when it came to taxing miles. I believe the IRS leaked the news on purpose to see the reaction from congress, biz, and the people.
Last edited by Centurion; Apr 19, 2016 at 6:18 pm
Apr 19, 2016, 8:06 pm
#81
Join Date: May 2015
Location: LAX, BUR
Programs: AS,AA,JB, HH Gold, Starriott Titanium Elite, Hyatt Explorist, Global Entry
Posts: 1,933
There still seems to be some distinction between interest paid on a bank account, and points earned by spending on a credit card refunded as a rebate.
Apr 20, 2016, 4:58 pm
#82
Join Date: Aug 2014
Location: Kirkland, WA, USA
Programs: Marriott Gold; LEGO VIP, Amex Platinum, HHonors Gold
Posts: 563
Here's a surprise.
A few days ago I received my 40K points bonus for spending more than $3K. I've only had the card 2 weeks, and have yet to close out the first month, let alone actually pay the bill!
A few days ago I received my 40K points bonus for spending more than $3K. I've only had the card 2 weeks, and have yet to close out the first month, let alone actually pay the bill!
Apr 26, 2016, 2:20 pm
#85
Join Date: Feb 2008
Posts: 783
Cheers,
PedroNY
Apr 26, 2016, 2:27 pm
#86
Join Date: Feb 2008
Posts: 783
I created a joint account with Schwab, took about 2 days to get it all set up and activated. Got 2 Amex Platinum cards (one for me and one for Mrs. PedroNY), met spent on each card, received bonus 40,000 MR pts per account, transferred all of MR points from our accounts into Schwab (you can do this online), including MR points that came from other cards -- woo hoo! All money showed up within minutes in the Schwab account, it was "settled" next business day, all money was transferred out of that account to my bank.
As for 1099, I'll find out in 2017, but I have low expectation of getting it. Why would we get one from AMEX for this and not redeeming for Gift Cards? The value of a gift card is set, just like this redemption is set. I haven't heard or experienced of 1099 for any kind of Credit Card rebate, cashback, miles, etc. -- only in banking. At least not in last 12 years that I been doing this, and 100s of credit cards from pretty much every bank you can imagine.
This was an amazing deal for us, to cash out MR points at $.0125 -- absolutely loved it, from both of our accounts. I'll fly using miles, so MR for cash is just gravy, if it goes un-taxed, even better.
Cheers,
PedroNY
As for 1099, I'll find out in 2017, but I have low expectation of getting it. Why would we get one from AMEX for this and not redeeming for Gift Cards? The value of a gift card is set, just like this redemption is set. I haven't heard or experienced of 1099 for any kind of Credit Card rebate, cashback, miles, etc. -- only in banking. At least not in last 12 years that I been doing this, and 100s of credit cards from pretty much every bank you can imagine.
This was an amazing deal for us, to cash out MR points at $.0125 -- absolutely loved it, from both of our accounts. I'll fly using miles, so MR for cash is just gravy, if it goes un-taxed, even better.
Cheers,
PedroNY
Apr 26, 2016, 3:49 pm
#87
Join Date: Nov 2009
Location: 6km East of EPAYE
Programs: UA Silver, AA Platinum, AS & DL GM Marriott TE, Hilton Gold
Posts: 9,582
I am a long time Schwab customer, and like this card. If I already have a platinum card do I have to do the apply for 1 then cxl the other routine or can I call and have my card changed? I just recently paid my annual fee, and am not sure of the best way to do this.
Also, if I do not qualify for the $100 statement credit is there any other reason to switch from a regular plat to this card beyond the 2nd sign-up bonus?
Also, if I do not qualify for the $100 statement credit is there any other reason to switch from a regular plat to this card beyond the 2nd sign-up bonus?
Apr 26, 2016, 3:53 pm
#89
Join Date: Sep 2015
Location: SFO
Posts: 3,881
I was told can't product change. Apply for Schwab Plat first then cancel Plat, and do this about 11 months from now before Plat AF is due.
Apr 26, 2016, 4:08 pm
#90
Moderator
Join Date: Jun 2003
Location: Miami, Mpls & London
Programs: AA & Marriott Perpetual Platinum; DL & HH Gold
Posts: 48,959
Q. I already have an American Express Card. Can this Card be converted into The Schwab Investor Card from American Express?
A. No. You will need to apply and be approved for a new Schwab Investor Card™ from American Express account.
A. No. You will need to apply and be approved for a new Schwab Investor Card™ from American Express account.