Charles Schwab Checking + Brokerage Account

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tj
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Re: Charles Schwab Checking + Brokerage Account

Postby tj » Wed Jul 20, 2016 6:57 pm

RyeWhiskey wrote:
mptfan wrote:
RyeWhiskey wrote:I'm not sure if you can transfer funds from a credit union (or bank) checking account into a brokerage account...

Yes, you can. I have transferred funds from my Schwab brokerage account directly to my credit union checking account. The brokerage account and the checking account are connected to the same ACH system.


I'm aware that you can do so from Schwab; I'm saying the inverse: moving cash from a credit union checking account INTO Schwab brokerage.



You absolutely can do it FROM the Credit Union checking. When you log into your Schwab account, there's an account number and routing numberr. (they use JP Morgan Chase). I ACHed from Alliant to Schwab, no problem.

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RyeWhiskey
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Re: Charles Schwab Checking + Brokerage Account

Postby RyeWhiskey » Wed Jul 20, 2016 7:00 pm

tj wrote:
RyeWhiskey wrote:
mptfan wrote:
RyeWhiskey wrote:I'm not sure if you can transfer funds from a credit union (or bank) checking account into a brokerage account...

Yes, you can. I have transferred funds from my Schwab brokerage account directly to my credit union checking account. The brokerage account and the checking account are connected to the same ACH system.


I'm aware that you can do so from Schwab; I'm saying the inverse: moving cash from a credit union checking account INTO Schwab brokerage.



You absolutely can do it FROM the Credit Union checking. When you log into your Schwab account, there's an account number and routing numberr. (they use JP Morgan Chase). I ACHed from Alliant to Schwab, no problem.


Great news; thanks! I wonder, can you bill pay out of the brokerage account as well? This is to say, what are the only features that the checking account provides that are not provided by the brokerage account?
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mptfan
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Re: Charles Schwab Checking + Brokerage Account

Postby mptfan » Thu Jul 21, 2016 9:32 am

RyeWhiskey wrote:Great news; thanks! I wonder, can you bill pay out of the brokerage account as well?

Yes, you can. My understanding is that Schwab has the capability of setting up the bill pay features on either the brokerage account or the bank account, but they do not allow you do set it up on both accounts at the same time, so essentially you have to pick whether you want to use bill payer on your checking account or your brokerage account.

I am coming to the conclusion that there is very little or no difference between the cash management and bill paying features of the brokerage account compared to the checking account. It seems to me that Schwab offers a checking account that is linked to the brokerage account simply because there are so many people (including me) that just naively assume that you need to have a "checking" account to manage and transfer cash and money and pay bills, even though that is no longer true. So the vast majority of people go shopping for a "checking" account to handle their cash and bill paying, and if Schwab did not offer or market a "checking" account, they would lose the vast majority of that business.
I eat risk for breakfast. :)

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8foot7
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Re: Charles Schwab Checking + Brokerage Account

Postby 8foot7 » Thu Jul 21, 2016 10:15 am

mptfan wrote:
RyeWhiskey wrote:Great news; thanks! I wonder, can you bill pay out of the brokerage account as well?

Yes, you can. My understanding is that Schwab has the capability of setting up the bill pay features on either the brokerage account or the bank account, but they do not allow you do set it up on both accounts at the same time, so essentially you have to pick whether you want to use bill payer on your checking account or your brokerage account.

I am coming to the conclusion that there is very little or no difference between the cash management and bill paying features of the brokerage account compared to the checking account. It seems to me that Schwab offers a checking account that is linked to the brokerage account simply because there are so many people (including me) that just naively assume that you need to have a "checking" account to manage and transfer cash and money and pay bills, even though that is no longer true. So the vast majority of people go shopping for a "checking" account to handle their cash and bill paying, and if Schwab did not offer or market a "checking" account, they would lose the vast majority of that business.


I believe a big difference is that the brokerage account will not give you ATM fee refunds. The checking account will.

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in_reality
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Re: Charles Schwab Checking + Brokerage Account

Postby in_reality » Thu Jul 21, 2016 10:37 am

8foot7 wrote:
mptfan wrote:
RyeWhiskey wrote:Great news; thanks! I wonder, can you bill pay out of the brokerage account as well?

Yes, you can. My understanding is that Schwab has the capability of setting up the bill pay features on either the brokerage account or the bank account, but they do not allow you do set it up on both accounts at the same time, so essentially you have to pick whether you want to use bill payer on your checking account or your brokerage account.

I am coming to the conclusion that there is very little or no difference between the cash management and bill paying features of the brokerage account compared to the checking account. It seems to me that Schwab offers a checking account that is linked to the brokerage account simply because there are so many people (including me) that just naively assume that you need to have a "checking" account to manage and transfer cash and money and pay bills, even though that is no longer true. So the vast majority of people go shopping for a "checking" account to handle their cash and bill paying, and if Schwab did not offer or market a "checking" account, they would lose the vast majority of that business.


I believe a big difference is that the brokerage account will not give you ATM fee refunds. The checking account will.


The brokerage account states "Use your Schwab Visa debit card at any ATM in the world, and Schwab will refund the fees."
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radiowave
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Re: Charles Schwab Checking + Brokerage Account

Postby radiowave » Thu Jul 21, 2016 5:08 pm

mptfan wrote:
thepommel wrote:Keep in mind that you can simply open up a Schwab One brokerage account and enable the cash management features. These features include a debit card, free checks, and bill pay.

Thank you for pointing this out. My views on banking and cash management has evolved recently...

Not long ago I questioned if I really needed a brick and mortar bank or credit union, and I switched to using Schwab online bank, and I have been very happy so far.

Now, my views are evolving even more as it seems to me that the differences between a "checking" account and a "brokerage" account from the standpoint of using them as cash management accounts are few and fading away. I am starting to wonder if a "checking" account is really necessary at all as separate from a brokerage account with cash management features. Why not just use a brokerage account with cash management features? What is the point of transferring money back and forth between a brokerage account and a checking account if the brokerage account has the same cash management features of the checking account?


Another thing to consider is complexity. If you have a separate brokerage and cash management account and possibly a second, that's 3 accounts to deal with. From a cash management standpoint, if you have your income check deposited in one account then need to move some money to another cash management account and a brokerage, that's a lot to deal with. On the other hand, isolating your core cash from brokerage and other cash account has some benefit from a security standpoint, e.g. if someone hacks your debit card, and you only have a few hundred in your ATM/cash management account, that is less impact than say someone hacking a few thousand. Yes, (hopefully) you'll get your money back but it's not the same as getting your credit card hacked as no money is taken from your account.

Maybe I'm just getting paranoid in my old age :)

NancyABQ
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Re: Charles Schwab Checking + Brokerage Account

Postby NancyABQ » Sat Oct 08, 2016 2:49 pm

Just wanted to say thanks for this thread!

Since I am already a Schwab brokerage customer, adding the checking account ATM card for foreign ATM transactions is perfect for me!

I received the card today, and following the advice on this thread, I have already called them to set the cash withdrawal daily limit to $505 (it was $1000), and to limit the debit limit to $.01 (effectively disabling it).

I also confirmed that the overdraft protection would automatically pull cash (but only cash) from my brokerage account -- apparently that is the default setting. That is fine for me. I don't plan to need the overdraft, and don't usually have significant cash in my brokerage account, but if something weird happened, I'd rather go ahead and pull the cash than pay an overdraft fee that I would have to get sorted out.

I will use this card only to access cash from ATMs when traveling -- it seems ideal for that purpose.

Anyway, thanks again for the tips on this thread!

mptfan
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Re: Charles Schwab Checking + Brokerage Account

Postby mptfan » Wed Oct 19, 2016 2:37 pm

radiowave wrote:On the other hand, isolating your core cash from brokerage and other cash account has some benefit from a security standpoint, e.g. if someone hacks your debit card, and you only have a few hundred in your ATM/cash management account, that is less impact than say someone hacking a few thousand. Yes, (hopefully) you'll get your money back but it's not the same as getting your credit card hacked as no money is taken from your account.

This is a very good point and it is the main reason why I still use the separate Schwab checking account for cash management and bill paying even though the brokerage account does have cash management and bill paying features. I have not enabled the cash management features on the brokerage account and I do not have an ATM card linked to that account and I do not have checks drawn on that account. What I do now is transfer a lump sum once a month from the brokerage account to the checking account to pay bills and have cash available for withdrawals. This practice adds a very small extra amount of "complexity" but I have come to like doing it this way because it keeps the brokerage account safe from unauthorized debit or check withdrawals and it keeps the likelihood of hacks against that account very low.
I eat risk for breakfast. :)

miles monroe
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Re: Charles Schwab Checking + Brokerage Account

Postby miles monroe » Wed Oct 19, 2016 2:51 pm

RyeWhiskey wrote:
mptfan wrote:
RyeWhiskey wrote:I'm not sure if you can transfer funds from a credit union (or bank) checking account into a brokerage account...

Yes, you can. I have transferred funds from my Schwab brokerage account directly to my credit union checking account. The brokerage account and the checking account are connected to the same ACH system.


I'm aware that you can do so from Schwab; I'm saying the inverse: moving cash from a credit union checking account INTO Schwab brokerage.


this is as of a couple years ago...

i wanted to xfer funds from my non schwab bank into my schwab brokerage account. i couldn't figure out how to do it online so i called customer service. they said it couldn't be done without filling out paperwork (not online) and mailing it or bringing to a schwab brick and mortar office.

since i don't do this often -- maybe once a year at the most -- i chunked the paperwork and just write a paper check and drop it off at schwab.

i don't understand what the deal is.

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in_reality
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Re: Charles Schwab Checking + Brokerage Account

Postby in_reality » Thu Oct 20, 2016 6:43 am

miles monroe wrote:
RyeWhiskey wrote:
mptfan wrote:
RyeWhiskey wrote:I'm not sure if you can transfer funds from a credit union (or bank) checking account into a brokerage account...

Yes, you can. I have transferred funds from my Schwab brokerage account directly to my credit union checking account. The brokerage account and the checking account are connected to the same ACH system.


I'm aware that you can do so from Schwab; I'm saying the inverse: moving cash from a credit union checking account INTO Schwab brokerage.


this is as of a couple years ago...

i wanted to xfer funds from my non schwab bank into my schwab brokerage account. i couldn't figure out how to do it online so i called customer service. they said it couldn't be done without filling out paperwork (not online) and mailing it or bringing to a schwab brick and mortar office.

since i don't do this often -- maybe once a year at the most -- i chunked the paperwork and just write a paper check and drop it off at schwab.

i don't understand what the deal is.


After logging in, choose:

Transfers and Payments --> External Accounts --> Add External Account (big green hard to miss button) --> Enroll Online (big green hard to miss button)

After adding in your bank info, wait for trial deposits and then enter that amount at:

Transfers and Payments --> External Accounts --> Add External Account (big green hard to miss button) --> Verify Trial Deposits (big green hard to miss button)

They've improved their system recently, but I think that's been possible for a good while now.

Accounts --> External Accounts --> Add External Account (big green hard to miss button) .... works too.
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miles monroe
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Re: Charles Schwab Checking + Brokerage Account

Postby miles monroe » Thu Oct 20, 2016 5:16 pm

in_reality wrote:
miles monroe wrote:
RyeWhiskey wrote:
mptfan wrote:
RyeWhiskey wrote:I'm not sure if you can transfer funds from a credit union (or bank) checking account into a brokerage account...

Yes, you can. I have transferred funds from my Schwab brokerage account directly to my credit union checking account. The brokerage account and the checking account are connected to the same ACH system.


I'm aware that you can do so from Schwab; I'm saying the inverse: moving cash from a credit union checking account INTO Schwab brokerage.


this is as of a couple years ago...

i wanted to xfer funds from my non schwab bank into my schwab brokerage account. i couldn't figure out how to do it online so i called customer service. they said it couldn't be done without filling out paperwork (not online) and mailing it or bringing to a schwab brick and mortar office.

since i don't do this often -- maybe once a year at the most -- i chunked the paperwork and just write a paper check and drop it off at schwab.

i don't understand what the deal is.


After logging in, choose:

Transfers and Payments --> External Accounts --> Add External Account (big green hard to miss button) --> Enroll Online (big green hard to miss button)

After adding in your bank info, wait for trial deposits and then enter that amount at:

Transfers and Payments --> External Accounts --> Add External Account (big green hard to miss button) --> Verify Trial Deposits (big green hard to miss button)

They've improved their system recently, but I think that's been possible for a good while now.

Accounts --> External Accounts --> Add External Account (big green hard to miss button) .... works too.


thanks; i'l check it out.

JJP
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Re: Charles Schwab Checking + Brokerage Account

Postby JJP » Thu Oct 20, 2016 5:25 pm

Does it still take 3-4 days for funds from an external bank to clear in their system? That's really the only issue I have.

To avoid that, I just keep the account stocked with a certain amount at all times and refill it when I get back home. Never had a problem doing it that way.

Easy Rhino
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Re: Charles Schwab Checking + Brokerage Account

Postby Easy Rhino » Thu Oct 20, 2016 6:03 pm

JJP wrote:Does it still take 3-4 days for funds from an external bank to clear in their system? That's really the only issue I have.

To avoid that, I just keep the account stocked with a certain amount at all times and refill it when I get back home. Never had a problem doing it that way.


Yep, if you use their ACH to pull in funds from outside, they'll put it on hold for about 4 days.

I've been using the Schwab checking for, geeze, 5+ years now. it's great.

bhzmark
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Re: Charles Schwab Checking + Brokerage Account

Postby bhzmark » Thu Dec 22, 2016 11:04 am

Has anyone regularly used the overdraft feature on the checking acct to essentially keep zero money in the checking acct, and just pull it from the brokerage account through overdraft as needed? So it is either from cash or from margin?

That seems like a good cash management structure if they don't mind repeated overdrafts on their end.

jdouge
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Re: Charles Schwab Checking + Brokerage Account

Postby jdouge » Thu Dec 22, 2016 3:31 pm

Like many posters above, I have had an account for years, have never used the attached brokerage account, and have never incurred any fees or pressure to use the brokerage account.

Great bank.

MisterBill
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Re: Charles Schwab Checking + Brokerage Account

Postby MisterBill » Thu Jan 05, 2017 9:56 pm

Pardon this slightly off-topic post, but I just got a statement in the mail from Schwab today and wanted to post this story.

In 2012, I was using Schwab checking as my main account for depositing checks, since my current bank at the time (Citi) did not have mobile deposit yet and Schwab did, plus the high interest. I would deposit checks (mostly from rebates) and then transfer the money to Citi every month or so, and I wasn't using the brokerage account. One day I got a call from Schwab on my cell phone when I was at my doctor's office asking about deposits I was making. I told the person that they were all legal and didn't have time to talk, and I thought that was it. A few weeks (months?) later, I got Fedex overnight letters from Schwab saying that they were closing all of my accounts, as they had the right to do. I called and wasn't able to get any information as to the reason, just that the terms say they can close my accounts and they were choosing to do so. I was really upset at this not only because I liked their service, but because I had a second account with my son, who was away at college, and it was his primary source of cash (the account was useful for him because of the ATM rebate).

Anyway, they sent me a check for the balances (which as I recall took a couple of weeks) but somehow I ended up with a penny in one of the accounts due to late posting of interest. Every quarter for the past 4 (coming up on 5) years, I have gotten a statement with the penny balance. I get a good chuckle over how much Schwab has wasted mailing me statements, but given how pissed I was (and still am) over what they did to me, I have no interest in contacting them and asking them to stop. I just get a good chuckle over their waste of money and shred it.
Last edited by MisterBill on Thu Jan 12, 2017 11:26 am, edited 3 times in total.

Cyclone
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Re: Charles Schwab Checking + Brokerage Account

Postby Cyclone » Thu Jan 05, 2017 10:02 pm

A bank can decide to close your account without giving you a reason. I'm not saying that makes it right, just that they can. Usually it's because they think you are a risk (check kiting or money laundering most of the time).

MisterBill
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Re: Charles Schwab Checking + Brokerage Account

Postby MisterBill » Fri Jan 06, 2017 12:51 am

Cyclone wrote:A bank can decide to close your account without giving you a reason. I'm not saying that makes it right, just that they can. Usually it's because they think you are a risk (check kiting or money laundering most of the time).

Yes, that's true. I just get a chuckle every 3 months when I get a statement in the mail for a penny.

BTW a couple of years ago someone from their local branch contacted me and invited me to a seminar they were having (I went for the free lunch). I spoke to the guy who invited me while I was there and told him that I had been banned and he claimed he could get the account reopened, but I didn't feel like doing that, only to have my account closed again.
Last edited by MisterBill on Thu Jan 12, 2017 11:26 am, edited 1 time in total.

bhzmark
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Re: Charles Schwab Checking + Brokerage Account

Postby bhzmark » Thu Jan 12, 2017 6:19 am

Has anyone regularly used the overdraft feature on the checking acct to essentially keep zero money in the checking acct, and just pull it from the brokerage account through overdraft as needed?

So checks are paid from cash if available or perhaps more often from margin?

That seems like a good cash management structure to stay fully invested if they don't mind repeated overdrafts on their end.

miles monroe
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Re: Charles Schwab Checking + Brokerage Account

Postby miles monroe » Thu Jan 12, 2017 10:30 am

bhzmark wrote:Has anyone regularly used the overdraft feature on the checking acct to essentially keep zero money in the checking acct, and just pull it from the brokerage account through overdraft as needed?

So checks are paid from cash if available or perhaps more often from margin?

That seems like a good cash management structure to stay fully invested if they don't mind repeated overdrafts on their end.


what if someone hacks your checking account -- do ya really want to cover their checks?

happened to me -- my outgoing mail was stolen from my mailbox and they created checks with their ID and my routing numbers. that was 2-3 years ago and i haven't used my mailbox for outgoing mail since. i shut off overdraft protection immediately -- didn't even know i had it. overdraft protection is (or at least was) the default option on checking accounts.

edit to add: i write like 2 checks a month. i was "lucky" enough to be hit on the one day a month checks were in my mailbox.

mptfan
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Re: Charles Schwab Checking + Brokerage Account

Postby mptfan » Fri Jan 13, 2017 10:57 am

bhzmark wrote:That seems like a good cash management structure to stay fully invested if they don't mind repeated overdrafts on their end.

As miles monroe pointed out, that setup is too risky for my taste, I would be concerned about fraud or someone hacking my checking account and thereby draining my brokerage account using the overdraft "feature." No thanks.
I eat risk for breakfast. :)

rabbitrun
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Re: Charles Schwab Checking + Brokerage Account

Postby rabbitrun » Sat Feb 25, 2017 11:50 pm

Schwab says they will run a credit check when you apply for their checking account. Anyone know if this is a "hard" pull that will show up on a credit report?

tj
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Re: Charles Schwab Checking + Brokerage Account

Postby tj » Sun Feb 26, 2017 12:20 am

rabbitrun wrote:Schwab says they will run a credit check when you apply for their checking account. Anyone know if this is a "hard" pull that will show up on a credit report?



It sure is. Also, if you do the $100 checking offer, they are pretty stubborn and won't give you the big bucks for transferring in brokerage assets:

http://www.schwab.com/public/schwab/nn/ ... award.html

*3!4!/5!
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Re: Charles Schwab Checking + Brokerage Account

Postby *3!4!/5! » Sun Feb 26, 2017 12:48 am

tj wrote:
rabbitrun wrote:Schwab says they will run a credit check when you apply for their checking account. Anyone know if this is a "hard" pull that will show up on a credit report?

It sure is. Also, if you do the $100 checking offer, they are pretty stubborn and won't give you the big bucks for transferring in brokerage assets:
http://www.schwab.com/public/schwab/nn/ ... award.html

I got a hard pull and they wouldn't have even given the $100 checking bonus if I didn't contact them a couple of times. I was going to put something in the brokerage, but decided not to. But I got a really aggressive sales pitch with lots of questions about my assets, and when I didn't feel like being forthcoming, the questions were repeated. What a pain. I really don't think I'll ever use them as a brokerage now. The only feature worthwhile to me is the ATM card for overseas travel, which is very rare for me, so I haven't even got that use yet.

rabbitrun
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Re: Charles Schwab Checking + Brokerage Account

Postby rabbitrun » Sun Feb 26, 2017 10:53 am

Thanks for the replies. I already have a brokerage account with them, and the no ATM fees (even international) is appealing (better than Portfolio checking at WF which only comps "Wells Fargo" ATM fees). Hate to have my credit pulled at a place where I am already a client with taxable and 401k accounts.


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