Charles Schwab Referral Bonus - Really Need to Keep for a Year?

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Defiance
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Charles Schwab Referral Bonus - Really Need to Keep for a Year?

Post by Defiance » Sun Oct 27, 2019 10:17 pm

So I recently opened a CS account and deposited basically my life savings into it: ~$25k. (I'm a grad student, so yeah..) The reason for this deposit is because I got a referral bonus of $200 for depositing between $25k - $50k. My original intention after receiving this bonus was to then move the majority of my money back into my high-yield savings account at Vio Bank. However, I recently read that it is suggested to keep the net deposit in my CS account for up to a year, or else CS might remove my $200 bonus.

I realize the incentive here is to invest my money, and then hopefully it will grow past the 2.3% APY that Vio Bank currently offers. However, I have had a pretty bad history with investing -- I've only spent ~$1200k investing, but over the past two years, I've lost over $400. Therefore, I'd rather hold off on that for now, as I would be quite upset if I also lost ~35% on my life's savings.

So, my question is, will CS actually remove my $200 bonus? What if I keep, say, $1500 in the bank -- will CS only remove $100 then? (Between $1k - $24.9k, the bonus is $100.)

(I also want to move my money because I get paranoid that if I lose my debit card, someone can immediately wipe out a lot of my funds. I believe the daily minimum is $1k, but that is still a lot to me. I travel a bit and have almost been pick-pocketed before.)

I hope my concern makes sense. Thank you for your time,

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indexfundfan
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Re: Charles Schwab Referral Bonus - Really Need to Keep for a Year?

Post by indexfundfan » Sun Oct 27, 2019 10:27 pm

What did the terms of the offer say? If you don't follow the terms to the letter, Schwab could remove the bonus they paid you.
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student
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Re: Charles Schwab Referral Bonus - Really Need to Keep for a Year?

Post by student » Sun Oct 27, 2019 10:44 pm

Just for reference. Mine said I need to keep it for a year.

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LilyFleur
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Re: Charles Schwab Referral Bonus - Really Need to Keep for a Year?

Post by LilyFleur » Mon Oct 28, 2019 2:08 am

Your Charles Schwab debit card will not charge you a foreign transaction fee when you travel, and you can use any ATM, and the ATM charges will be refunded to you at the end of the month.

If you are THAT concerned about your debit card, I'd like to suggest you use one of these passport holders when you travel to keep your debit card in:
https://www.amazon.com/Blocking-Passpor ... 3547&psc=1

typical.investor
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Re: Charles Schwab Referral Bonus - Really Need to Keep for a Year?

Post by typical.investor » Mon Oct 28, 2019 3:23 am

Defiance wrote:
Sun Oct 27, 2019 10:17 pm

(I also want to move my money because I get paranoid that if I lose my debit card, someone can immediately wipe out a lot of my funds. I believe the daily minimum is $1k, but that is still a lot to me. I travel a bit and have almost been pick-pocketed before.)
How do they get your pin? Do you put it on a sticky attached to the card?

A few errors and Schwab will lock the card.

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SlowMovingInvestor
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Re: Charles Schwab Referral Bonus - Really Need to Keep for a Year?

Post by SlowMovingInvestor » Mon Oct 28, 2019 8:20 am

They can remove it if terms say 1 year. Whether they will remove it is unknown.

If you ACH everything out, they might not even know about it. if you have to do an account transfer, they will know about it and may remove the bonus. Since it's cash, you can ACH.

aednichols
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Re: Charles Schwab Referral Bonus - Really Need to Keep for a Year?

Post by aednichols » Mon Oct 28, 2019 8:41 am

Defiance wrote:
Sun Oct 27, 2019 10:17 pm
I also want to move my money because I get paranoid that if I lose my debit card, someone can immediately wipe out a lot of my funds. I believe the daily minimum is $1k, but that is still a lot to me.
You can lock the debit card in the Schwab app or on the web. In the app, it’s located at More > Client Service > Manage Cards

mptfan
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Re: Charles Schwab Referral Bonus - Really Need to Keep for a Year?

Post by mptfan » Mon Oct 28, 2019 9:02 am

aednichols wrote:
Mon Oct 28, 2019 8:41 am
Defiance wrote:
Sun Oct 27, 2019 10:17 pm
I also want to move my money because I get paranoid that if I lose my debit card, someone can immediately wipe out a lot of my funds. I believe the daily minimum is $1k, but that is still a lot to me.
You can lock the debit card in the Schwab app or on the web. In the app, it’s located at More > Client Service > Manage Cards
Thank you for that, I didn't know about that. I always seem to learn something new from the Bogleheads. :)

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Defiance
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Re: Charles Schwab Referral Bonus - Really Need to Keep for a Year?

Post by Defiance » Mon Oct 28, 2019 10:05 am

SlowMovingInvestor wrote:
Mon Oct 28, 2019 8:20 am
They can remove it if terms say 1 year. Whether they will remove it is unknown.

If you ACH everything out, they might not even know about it. if you have to do an account transfer, they will know about it and may remove the bonus. Since it's cash, you can ACH.
I just wanted to ACH most of it out -- I will probably leave around $1.5k. I just didn't want to leave it with only 0.3% APY when I can be getting 2.3% somewhere else.

So, you think doing an ACH transfer will be alright?

fabdog
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Re: Charles Schwab Referral Bonus - Really Need to Keep for a Year?

Post by fabdog » Mon Oct 28, 2019 10:07 am

no reason to settle for .3% at Schwab... they have purchased money market solutions you can use.

If you leave your money in the default account the interest is very low

Mike

chw
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Re: Charles Schwab Referral Bonus - Really Need to Keep for a Year?

Post by chw » Mon Oct 28, 2019 10:39 am

I don't believe CS will claw back the bonus if you remove your funds from them. I did something similar a year ago after getting a 4 figure bonus from CS for rolling over a 401k to an IRA with CS. I ended up rolling over that IRA to another plan for tax planning purposes a few months later (this hadn't been intended when the initial rollover took place). I contacted my CS consultant and offered to return the bonus- he said not to worry about paying it back, but that he would not be able to pay another bonus in the near future if I was to make a large deposit with CS.

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Re: Charles Schwab Referral Bonus - Really Need to Keep for a Year?

Post by whodidntante » Mon Oct 28, 2019 12:39 pm

chw wrote:
Mon Oct 28, 2019 10:39 am
I don't believe CS will claw back the bonus if you remove your funds from them. I did something similar a year ago after getting a 4 figure bonus from CS for rolling over a 401k to an IRA with CS. I ended up rolling over that IRA to another plan for tax planning purposes a few months later (this hadn't been intended when the initial rollover took place). I contacted my CS consultant and offered to return the bonus- he said not to worry about paying it back, but that he would not be able to pay another bonus in the near future if I was to make a large deposit with CS.
This is a useful data point. I've read data points that fidelity will make you ineligible for future promotions if you didn't hold up your end of the deal on a prior promotion.

OP, if possible I would leave the money in. It's what you agreed to do.

student
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Re: Charles Schwab Referral Bonus - Really Need to Keep for a Year?

Post by student » Mon Oct 28, 2019 12:53 pm

fabdog wrote:
Mon Oct 28, 2019 10:07 am
no reason to settle for .3% at Schwab... they have purchased money market solutions you can use.

If you leave your money in the default account the interest is very low

Mike
I agree. OP can buy CD from Schwab or he/she can buy money market fund.

student
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Re: Charles Schwab Referral Bonus - Really Need to Keep for a Year?

Post by student » Mon Oct 28, 2019 12:54 pm

Defiance wrote:
Mon Oct 28, 2019 10:05 am
SlowMovingInvestor wrote:
Mon Oct 28, 2019 8:20 am
They can remove it if terms say 1 year. Whether they will remove it is unknown.

If you ACH everything out, they might not even know about it. if you have to do an account transfer, they will know about it and may remove the bonus. Since it's cash, you can ACH.
I just wanted to ACH most of it out -- I will probably leave around $1.5k. I just didn't want to leave it with only 0.3% APY when I can be getting 2.3% somewhere else.

So, you think doing an ACH transfer will be alright?
Have you looked into Schwab money market fund or CD?

EvelynTroy
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Re: Charles Schwab Referral Bonus - Really Need to Keep for a Year?

Post by EvelynTroy » Mon Oct 28, 2019 1:33 pm

I phoned Schwab a few minutes ago. I was curious about the agreement. I spoke with a representative regarding the rules on the bonus - specifically for a new account deposit of $25K - $50K.
You have agreed to keep your funds at Schwab for 12 months after the deposit is made and your receive the $200.
If you move your money out of the Schwab account prior to 12 months they will deduct the $200 from your total.

I'm very glad they do enforce the agreements - this prevents people from gaming the system. No brokerage company is in the business of handing out free money - they have asked for a reasonable commitment. If the OP isn't happy he should gladly give back the $200 and move his money for a higher interest rate.
I am a Schwab client.

Evelyn

PS - The Schwab money market is paying 1.73% (SWVXX) - CD's are paying very low rates, they just aren't competitive.

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Re: Charles Schwab Referral Bonus - Really Need to Keep for a Year?

Post by isira » Mon Oct 28, 2019 2:03 pm

Defiance wrote:
Sun Oct 27, 2019 10:17 pm
(I also want to move my money because I get paranoid that if I lose my debit card, someone can immediately wipe out a lot of my funds. I believe the daily minimum is $1k, but that is still a lot to me. I travel a bit and have almost been pick-pocketed before.)
Call Schwab and ask them to set the Point of Sale (POS) limit to $0.01. This will turn your debit card into an ATM-only card. I know of no other bank that will do this for you.

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Re: Charles Schwab Referral Bonus - Really Need to Keep for a Year?

Post by jeffyscott » Mon Oct 28, 2019 2:30 pm

student wrote:
Mon Oct 28, 2019 12:53 pm
fabdog wrote:
Mon Oct 28, 2019 10:07 am
no reason to settle for .3% at Schwab... they have purchased money market solutions you can use.

If you leave your money in the default account the interest is very low

Mike
I agree. OP can buy CD from Schwab or he/she can buy money market fund.
Treasuries could be another safe option, especially if the state income tax exemption is of value to the OP. It appears any of these are going to be around 1.7% or so, that plus the $200 bonus gives a 1 year return of about 2.5% on a balance of $25K. Unfortunately for the OP, not much better that the 2.3% bank account.

Money transferred from the bank to the brokerage, in order to invest in money market, CD, or treasury would no longer be accessible via the debit/ATM card, eliminating that concern.
Time is your friend; impulse is your enemy. - John C. Bogle

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Re: Charles Schwab Referral Bonus - Really Need to Keep for a Year?

Post by SlowMovingInvestor » Mon Oct 28, 2019 4:24 pm

whodidntante wrote:
Mon Oct 28, 2019 12:39 pm

This is a useful data point. I've read data points that fidelity will make you ineligible for future promotions if you didn't hold up your end of the deal on a prior promotion.
Fidelity really doesn't give promotions below $5M these days, and are mostly once in a lifetime, so this may be moot anyway.

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SlowMovingInvestor
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Re: Charles Schwab Referral Bonus - Really Need to Keep for a Year?

Post by SlowMovingInvestor » Mon Oct 28, 2019 4:25 pm

Defiance wrote:
Mon Oct 28, 2019 10:05 am
SlowMovingInvestor wrote:
Mon Oct 28, 2019 8:20 am
They can remove it if terms say 1 year. Whether they will remove it is unknown.

If you ACH everything out, they might not even know about it. if you have to do an account transfer, they will know about it and may remove the bonus. Since it's cash, you can ACH.
I just wanted to ACH most of it out -- I will probably leave around $1.5k. I just didn't want to leave it with only 0.3% APY when I can be getting 2.3% somewhere else.

So, you think doing an ACH transfer will be alright?
I think they may not notice if you do an ACH transfer, while they may notice if you do an account transfer. Whether you should do this and whether they will enforce it if they notice is hard to tell.

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Re: Charles Schwab Referral Bonus - Really Need to Keep for a Year?

Post by sperry8 » Mon Oct 28, 2019 4:40 pm

Defiance wrote:
Mon Oct 28, 2019 10:05 am
SlowMovingInvestor wrote:
Mon Oct 28, 2019 8:20 am
They can remove it if terms say 1 year. Whether they will remove it is unknown.

If you ACH everything out, they might not even know about it. if you have to do an account transfer, they will know about it and may remove the bonus. Since it's cash, you can ACH.
I just wanted to ACH most of it out -- I will probably leave around $1.5k. I just didn't want to leave it with only 0.3% APY when I can be getting 2.3% somewhere else.

So, you think doing an ACH transfer will be alright?
Since their money market is 1.73%, you'd be missing out on .57%. .57% on 25k is $142.50. Since you received $200 to transfer in - you're ahead of the game (this assumes of course the 1.73% stays around that #). Of course potential rate cuts may lower Schwab's mm % but of course the same holds true for Vio or wherever else you're wanting to put your money. You're going to be ahead of the game as long as you move the $25k into their mm account (and out of their savings acct).
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Re: Charles Schwab Referral Bonus - Really Need to Keep for a Year?

Post by Nate79 » Mon Oct 28, 2019 5:46 pm

Most brokerages and banks will claw back the bonuses - their software catches it. No clue if Schwab will but I wouldn't do the bonus unless you are willing to follow the terms of the deal. In this case use the MM fund.

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Re: Charles Schwab Referral Bonus - Really Need to Keep for a Year?

Post by Workable Goblin » Mon Oct 28, 2019 5:57 pm

isira wrote:
Mon Oct 28, 2019 2:03 pm

Call Schwab and ask them to set the Point of Sale (POS) limit to $0.01. This will turn your debit card into an ATM-only card. I know of no other bank that will do this for you.
Bank of Hawaii lets you do it to their debit card, in their app even. I actually got myself into trouble a while back that way, after I forgot I had made it an ATM-only card (but it was easy to fix, so no harm)

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Re: Charles Schwab Referral Bonus - Really Need to Keep for a Year?

Post by Bluce » Mon Oct 28, 2019 7:23 pm

Defiance wrote:
Sun Oct 27, 2019 10:17 pm
So I recently opened a CS account and deposited basically my life savings into it: ~$25k. (I'm a grad student, so yeah..) The reason for this deposit is because I got a referral bonus of $200 for depositing between $25k - $50k. My original intention after receiving this bonus was to then move the majority of my money back into my high-yield savings account at Vio Bank. However, I recently read that it is suggested to keep the net deposit in my CS account for up to a year, or else CS might remove my $200 bonus.

I realize the incentive here is to invest my money, and then hopefully it will grow past the 2.3% APY that Vio Bank currently offers. However, I have had a pretty bad history with investing -- I've only spent ~$1200k investing, but over the past two years, I've lost over $400. Therefore, I'd rather hold off on that for now, as I would be quite upset if I also lost ~35% on my life's savings.

So, my question is, will CS actually remove my $200 bonus? What if I keep, say, $1500 in the bank -- will CS only remove $100 then? (Between $1k - $24.9k, the bonus is $100.)

(I also want to move my money because I get paranoid that if I lose my debit card, someone can immediately wipe out a lot of my funds. I believe the daily minimum is $1k, but that is still a lot to me. I travel a bit and have almost been pick-pocketed before.)

I hope my concern makes sense. Thank you for your time,
Unless I missed it, I didn't notice anyone wondering why you aren't investing in the stock market -- especially being young. Or do you have to leave the money alone for the 12 months? IMO, putting money in MM funds or CDs isn't really "investing."

Also: If you're worried about problems with a debit card, avoid using it in questionable situations. Whenever you do use it, the money instantly comes out of your account. If a mistake is made not in your favor, you have to get the money back. Even though you may be totally in the right, you still have to get it back.

With a credit card you can dispute any charge, and you don't have to pay it until the dispute is settled.

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fortfun
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Re: Charles Schwab Referral Bonus - Really Need to Keep for a Year?

Post by fortfun » Mon Oct 28, 2019 7:29 pm

I only keep $100 in my CS account and my bonus was not taken. I only put money in my CS account when I travel overseas and I want to be 100% reimbursed for all ATM transactions. CS definitely loses a lot of money on me but has never taken my bonus or closed my account, which actually surprises me a little bit.

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Re: Charles Schwab Referral Bonus - Really Need to Keep for a Year?

Post by dknightd » Mon Oct 28, 2019 7:47 pm

Defiance wrote:
Sun Oct 27, 2019 10:17 pm
So I recently opened a CS account and deposited basically my life savings into it: ~$25k. (I'm a grad student, so yeah..) The reason for this deposit is because I got a referral bonus of $200 for depositing between $25k - $50k. My original intention after receiving this bonus was to then move the majority of my money back into my high-yield savings account at Vio Bank. However, I recently read that it is suggested to keep the net deposit in my CS account for up to a year, or else CS might remove my $200 bonus.

I realize the incentive here is to invest my money, and then hopefully it will grow past the 2.3% APY that Vio Bank currently offers. However, I have had a pretty bad history with investing -- I've only spent ~$1200k investing, but over the past two years, I've lost over $400. Therefore, I'd rather hold off on that for now, as I would be quite upset if I also lost ~35% on my life's savings.

So, my question is, will CS actually remove my $200 bonus? What if I keep, say, $1500 in the bank -- will CS only remove $100 then? (Between $1k - $24.9k, the bonus is $100.)

(I also want to move my money because I get paranoid that if I lose my debit card, someone can immediately wipe out a lot of my funds. I believe the daily minimum is $1k, but that is still a lot to me. I travel a bit and have almost been pick-pocketed before.)

I hope my concern makes sense. Thank you for your time,
This is a lesson. Read the fine print! I'd assume CS would claw back the bonus they gave you. And they might even take a service fee! To me $200 bonus on $25k does not seem like much. I'm guessing about what you would have earned if you kept the money in your old bank ;)

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Re: Charles Schwab Referral Bonus - Really Need to Keep for a Year?

Post by student » Mon Oct 28, 2019 8:01 pm

fortfun wrote:
Mon Oct 28, 2019 7:29 pm
I only keep $100 in my CS account and my bonus was not taken. I only put money in my CS account when I travel overseas and I want to be 100% reimbursed for all ATM transactions. CS definitely loses a lot of money on me but has never taken my bonus or closed my account, which actually surprises me a little bit.
Maybe they have wised up since then.

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fortfun
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Re: Charles Schwab Referral Bonus - Really Need to Keep for a Year?

Post by fortfun » Mon Oct 28, 2019 8:18 pm

student wrote:
Mon Oct 28, 2019 8:01 pm
fortfun wrote:
Mon Oct 28, 2019 7:29 pm
I only keep $100 in my CS account and my bonus was not taken. I only put money in my CS account when I travel overseas and I want to be 100% reimbursed for all ATM transactions. CS definitely loses a lot of money on me but has never taken my bonus or closed my account, which actually surprises me a little bit.
Maybe they have wised up since then.
Could be but I racked up several hundred dollars in ATM fees in South America over the summer. My opinion of CS is very good and maybe that's what they are going for. I could see doing business with them in the future.

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