Which Schwab account are people opening to avoid forex fees?
#1
Original Poster
Join Date: Feb 2005
Location: So Cal
Programs: UA Gold/0.756MM, WN ALP, Hyatt Diamond, MR Gold, Hertz PC, National Exec, Avis PC,AA Gold
Posts: 5,575
Which Schwab account are people opening to avoid forex fees?
I've looked at all the Schwab account possibilities and I can't tell enough to make an informed decision, so I'm hoping that other have input.
The accounts I've found are:
The first four are on schwabbank.com and the last is on schwab.com.
The last one is definitely free (no monthly fee), but does require opening a brokerage account at the same time (not a big deal, but not really needed). It is also unclear what transfer methods are available into that account though. Wire transfers are expensive, so being able to initiate free ACH transfers (ala ING Direct) is a nice feature. The first 4 state "Yes" for "Funds Transfer Services" which seems to offer what I want (though there aren't any details).
The last two offer unlimited ATM fee reimbursement. The first 3 offer up to 6 reimbursements with a max of $9 per statement.
The most unclear thing is any fees on the first 4 account types. All of them say "Yes" in the "Ability to Avoid Monthly Service Charge" row. However, there are no details on what those fees are, nor how to avoid them (direct deposit, etc).
If people have experience with any of these accounts, input/experiences would be appreciated.
The accounts I've found are:
- Basic Checking
- Regular Checking
- Interest Checking
- Interest Checking Plus
- High Yield Investor Checking
The first four are on schwabbank.com and the last is on schwab.com.
The last one is definitely free (no monthly fee), but does require opening a brokerage account at the same time (not a big deal, but not really needed). It is also unclear what transfer methods are available into that account though. Wire transfers are expensive, so being able to initiate free ACH transfers (ala ING Direct) is a nice feature. The first 4 state "Yes" for "Funds Transfer Services" which seems to offer what I want (though there aren't any details).
The last two offer unlimited ATM fee reimbursement. The first 3 offer up to 6 reimbursements with a max of $9 per statement.
The most unclear thing is any fees on the first 4 account types. All of them say "Yes" in the "Ability to Avoid Monthly Service Charge" row. However, there are no details on what those fees are, nor how to avoid them (direct deposit, etc).
If people have experience with any of these accounts, input/experiences would be appreciated.
#2
Join Date: May 2005
Location: ONT/NYC
Programs: DL GLD; AA GLD; CO GLD
Posts: 278
Have the High Yield Investor Checking and love it. You can also set up ACH transfers through Schwab, so even if you want to transfer to/from a big bank--BofA, Wells Fargo, etc-- you can do it for free once you set it up through Schwab. That, and their customer service is great, much better than I have received at any other bank. No forex fees while using the Visa Debit abroad, although its a good idea to call ahead and let them know just so they don't freeze your account at an inopportune time. Moreover, I have never had a problem with getting ATM rebates anywhere in the world. Last month, I was refunded a $9.25 ATM fee (!!!) charged in NYC.
#3
Join Date: Nov 2011
Location: Bay Area
Programs: WN A-List, AA good-riddance, Safeway Club Card Extraordinaire
Posts: 3,851
#5
Join Date: Jun 2007
Location: SAN
Programs: PR Premier Elite
Posts: 1,950
#6
Original Poster
Join Date: Feb 2005
Location: So Cal
Programs: UA Gold/0.756MM, WN ALP, Hyatt Diamond, MR Gold, Hertz PC, National Exec, Avis PC,AA Gold
Posts: 5,575
![Confused](https://www.flyertalk.com/forum/images/smilies/confused.gif)
#8
Join Date: Feb 1999
Location: Denver CO
Posts: 3,684
The same $100,000 in Bank Direct earns you 120,000 AAdavantage miles, which can be converted to a round-trip business class ticket to Europe with 20,000 miles left over. The Bank Direct fees for a year would be $144.
$100 taxable or a round-trip to Europe in business class for $144? Your choice.
#9
Join Date: Jun 2007
Location: SAN
Programs: PR Premier Elite
Posts: 1,950
Yes, that is the link for "Schwab One Individual Brokerage plus Schwab Bank Investor Checking". That is the account where everything is free with no minimums, no fees, rebates and all of the benefits everyone here enjoys.
#10
Join Date: Nov 2011
Location: Bay Area
Programs: WN A-List, AA good-riddance, Safeway Club Card Extraordinaire
Posts: 3,851
#11
Join Date: Feb 1999
Location: Denver CO
Posts: 3,684
FTers should also know that Capital One has a money market account paying about 6 times the rate of that Schwab account, plus bonus rates even higher for the first year. I'm not a Cap One fan and Schwab has better service. But I am a money fan and 6x the rate is a whopping difference well worth the occassional hassle. At least to me.
#12
Join Date: Mar 2011
Location: New York, United States
Posts: 222
if the interest is important, use a rewards checking account. Lake Michigan Credit Union offers 3% on balances up to 15,000 ($450 per year). Of course, there are some conditions (using debit card 10 times a month, login online 4 times a month, Direct Deposit, and eStatements). Doesn't hurt to have both accounts and use them for your benefits.
#13
Join Date: Aug 2008
Posts: 24
Sorry to dig up an old thread but I am about to sign up for one of these cards. I am trying to decide between the "Interest Checking Plus" and "High Yield Investor Checking." What is the difference between these 2 accounts? I would rather not have an investor account open that I don't plan on using if it isn't necessary. From what I could tell, both accounts are free with no minimum balances, and unlimited ATM fees anywhere in the world. Is there any benefit the High Yield has that the plus doesn't?
#14
A FlyerTalk Posting Legend
Join Date: Dec 2000
Location: Shanghai
Posts: 43,246
Sorry to dig up an old thread but I am about to sign up for one of these cards. I am trying to decide between the "Interest Checking Plus" and "High Yield Investor Checking." What is the difference between these 2 accounts? I would rather not have an investor account open that I don't plan on using if it isn't necessary. From what I could tell, both accounts are free with no minimum balances, and unlimited ATM fees anywhere in the world. Is there any benefit the High Yield has that the plus doesn't?
-no ATM fees anywhere in the world (there might be a few exceptions in far flung countries, but I've never been charged once)
-no minimum balance
-no fees for inbound wires
-very easy to move money between brokerage and checking (though their systems are down this weekend... the transfer I initiated on Saturday will not post until Monday morning in New York; this is very rare).