Schwab as a one stop shop

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Jmh04j
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Schwab as a one stop shop

Post by Jmh04j » Sun Aug 04, 2019 12:32 pm

I have read the “Fidelity as a one stop shop” thread with much intrigue. I am currently trying all of the various Brokers to see who I like best and have it narrowed down to Fidelity and Schwab as candidates that can provide a one-stop-shop experience.

I understand the Fidelity one stop shop option but want to know who uses Schwab as a one stop shop and why? How has your experienced been?

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Re: Schwab as a one stop shop

Post by Sandtrap » Sun Aug 04, 2019 12:50 pm

Jmh04j wrote:
Sun Aug 04, 2019 12:32 pm
I have read the “Fidelity as a one stop shop” thread with much intrigue. I am currently trying all of the various Brokers to see who I like best and have it narrowed down to Fidelity and Schwab as candidates that can provide a one-stop-shop experience.

I understand the Fidelity one stop shop option but want to know who uses Schwab as a one stop shop and why? How has your experienced been?
Shop for the low cost, zero fee, family of "in house" funds that you need within each brokerage. Figure out which one meets most or all of your needs. Picking a brokerage like this is one way of doing things.

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Re: Schwab as a one stop shop

Post by YoungBogle » Sun Aug 04, 2019 1:16 pm

IMO,

Pro’s of schwab compared to fidelity:
-they have a separate banking branch, Charles schwab bank, as opposed to a CMA w/Fido
-schwab debit card has no foreign transaction fees (non-factor because I wouldn’t use a debit card for purchases abroad)

Cons of schwab “:
-affiliated no AF credit card earns 1.5% vs Fido’s 2%
-schwab cc has foreign transaction fees of 2.7%, Fido is 1%
-many 401ks use fidelity net benefits

Difference of the two, you decide if pro or con:
-schwab cc is AMEX, Fido is a Visa serviced through Elan

For me, the tough thing about 1 stop shops is that you’ll always be foregoing optimization to some extent. For my situation now, I like the Chase UR credit card ecosystem, yet don’t want to have my checking, savings, investments there. Thus, defeating the purpose of attempting to consolidate.
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Re: Schwab as a one stop shop

Post by CRTR » Sun Aug 04, 2019 1:24 pm

Neither worked for me a few years ago because I had a solo-401k and neither offered a Roth 401k option. Don't know if that's still the case. I ended up with ETrade for that reason. I also prefer Vanguard funds and ETrade has almost the complete lineup of Vanguard funds as NTF.

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Re: Schwab as a one stop shop

Post by LadyGeek » Sun Aug 04, 2019 2:34 pm

This thread is now in the Personal Finance (Not Investing) forum (checking, saving, credit / debit card, investing all in one spot).

The Fidelity thread is here: Fidelity as a one stop shop
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Re: Schwab as a one stop shop

Post by Nate79 » Sun Aug 04, 2019 2:47 pm

We use Schwab for banking and investing. We moved form Vanguard and Wells Fargo and couldn't be happier. We use a variety of credit cards so don't consider that in the total offering.

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Re: Schwab as a one stop shop

Post by indexfundfan » Sun Aug 04, 2019 3:11 pm

At Fidelity, you can put your day-to-day cash (aka checking) in their money market fund to earn a decent return: they are automatically liquidated to satisfy debits.

This option is not available at Schwab. You can only earn the checking yield, which is a lot lower than the money market funds.
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Re: Schwab as a one stop shop

Post by arf30 » Sun Aug 04, 2019 3:16 pm

Schwab was excellent but their checking account lacks transaction alerts (or did at the time) which is a deal breaker for us. Customer service was very knowledgeable.

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Re: Schwab as a one stop shop

Post by tj » Sun Aug 04, 2019 3:18 pm

I opened Schwab for a free $100, but I've never used it. The no-fee withdrawals at international ATMs would be useful if you don't have another financial institution that provides that. I can't see a reason to use Schwab over Fidelity unless you prefer their ETFs over IShares and Fidelity's mutual funds, want to use the Schwab robo advisor, etc. pretty much flip a coin between the two. Both Fidelity nad Schwab's websites are much more user friendly than Vanguard, though Fidelity's seems a bit more modern.

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Re: Schwab as a one stop shop

Post by dollar_elbow » Sun Aug 04, 2019 3:22 pm

arf30 wrote:
Sun Aug 04, 2019 3:16 pm
Schwab was excellent but their checking account lacks transaction alerts (or did at the time) which is a deal breaker for us. Customer service was very knowledgeable.
Schwab now has debit card transaction alerts or you can enroll the debit card in Visa alerts. They still don’t have account transactions, e.g. direct deposit notifications, though.

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Re: Schwab as a one stop shop

Post by cncm » Sun Aug 04, 2019 6:11 pm

I've been with Schwab for 10+ years, and can recommend them whole-heartedly. I first opened an account with them for the free ATM withdrawal benefit (extremely useful when traveling...no need to carry USD cash to convert...just take it directly out of the ATM for better exchange rate and more security). Now I have a bunch of accounts with them, including checking, brokerage, roth IRA, and now an Amex Platinum card (you get $100 off the annual fee if you have over $250k with them which essentially makes the card free with all other benefits you get). Customer service have always been very good and you don't have to jump through hoops to talk to a real person.

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Re: Schwab as a one stop shop

Post by HawkeyePierce » Sun Aug 04, 2019 6:15 pm

I use Schwab as my primary checking account and my employer uses it for our RSU and ESPP programs.

As a bank, they're great. Their debit card is hands-down the best option for travel.

As a brokerage, I have some misgivings. Their handling of RSU and ESPP taxes has been bizarre and complicated (though supposedly will be better for tax year 2019). Hundreds of people at my company received CP2000 notices from the IRS because we were misled by Schwab. Their equity award center website has been in a state for transition for years now with some features only on the old site and some only on the new. It's a pain. Granted, that's a niche concern that most won't have.

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Re: Schwab as a one stop shop

Post by aednichols » Sun Aug 04, 2019 6:51 pm

Some other factors I haven’t seen mentioned yet:

- Schwab does not offer an HSA
- Compared to Fidelity and Vanguard, Schwab seems to be quite open to doing business with Americans residing overseas (based on posts on this forum and conversations with Schwab reps)
- The commission-free ETF program seems to include a lot of dregs (expensive, niche, and/or low AUM) that would not interest Bogleheads. Fortunately, the first-party ETF offering is first-class.

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Re: Schwab as a one stop shop

Post by aednichols » Sun Aug 04, 2019 6:59 pm

Oh, and one oddly specific detail the matters little but impressed me nonetheless: direct deposits post to my Schwab Bank account the evening before payday, which I’ve never seen with previous banks.

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Re: Schwab as a one stop shop

Post by Gadget » Mon Aug 05, 2019 9:32 am

aednichols wrote:
Sun Aug 04, 2019 6:59 pm
Oh, and one oddly specific detail the matters little but impressed me nonetheless: direct deposits post to my Schwab Bank account the evening before payday, which I’ve never seen with previous banks.
Fidelity does this too.

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Re: Schwab as a one stop shop

Post by Jmh04j » Wed Aug 07, 2019 9:13 pm

Nate79 wrote:
Sun Aug 04, 2019 2:47 pm
We use Schwab for banking and investing. We moved form Vanguard and Wells Fargo and couldn't be happier. We use a variety of credit cards so don't consider that in the total offering.
Do you keep cash in money markets or bond funds then sell and move the funds into the Schwab Bank account to pay bills?

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Re: Schwab as a one stop shop

Post by Nate79 » Wed Aug 07, 2019 9:58 pm

Jmh04j wrote:
Wed Aug 07, 2019 9:13 pm
Nate79 wrote:
Sun Aug 04, 2019 2:47 pm
We use Schwab for banking and investing. We moved form Vanguard and Wells Fargo and couldn't be happier. We use a variety of credit cards so don't consider that in the total offering.
Do you keep cash in money markets or bond funds then sell and move the funds into the Schwab Bank account to pay bills?
I keep money in checking for ~1.5 months of expenses (I could probably trim this down) and the remainder of emergency fund is in their money market fund and short term bond funds. I sell the MMF whenever a big expense is coming a few days ahead of time. I also buy individual treasuries for additional emergency funds.

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Re: Schwab as a one stop shop

Post by indexfundfan » Thu Aug 08, 2019 6:41 am

Nate79 wrote:
Wed Aug 07, 2019 9:58 pm
I sell the MMF whenever a big expense is coming a few days ahead of time.
This is one disadvantage of using Schwab (compared to the other one stop shop). You have to micromanage the withdrawals if you want to get the higher yield in the MMF. Otherwise you only earn the low yield in Schwab checking (currently 0.31% APY).
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Re: Schwab as a one stop shop

Post by Cactuscoug » Thu Aug 08, 2019 7:25 am

Another disadvantage of Schwab . . . The cutoff time for selling Vanguard funds, is one-hour BEFORE the market close. A lot can happen in an hour. If I am doing any selling, I try to do it in the final 15-minutes of the market day.

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Re: Schwab as a one stop shop

Post by tj » Thu Aug 08, 2019 1:12 pm

indexfundfan wrote:
Thu Aug 08, 2019 6:41 am
Nate79 wrote:
Wed Aug 07, 2019 9:58 pm
I sell the MMF whenever a big expense is coming a few days ahead of time.
This is one disadvantage of using Schwab (compared to the other one stop shop). You have to micromanage the withdrawals if you want to get the higher yield in the MMF. Otherwise you only earn the low yield in Schwab checking (currently 0.31% APY).
Well it's the same with Vanguard, no? I have to sell my Treasury Money Market and put it in the Federal Money Market Fund before i can buy something else unless I'm exchanging into a Vanguard mutual fund.

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Re: Schwab as a one stop shop

Post by indexfundfan » Thu Aug 08, 2019 1:16 pm

tj wrote:
Thu Aug 08, 2019 1:12 pm
indexfundfan wrote:
Thu Aug 08, 2019 6:41 am
Nate79 wrote:
Wed Aug 07, 2019 9:58 pm
I sell the MMF whenever a big expense is coming a few days ahead of time.
This is one disadvantage of using Schwab (compared to the other one stop shop). You have to micromanage the withdrawals if you want to get the higher yield in the MMF. Otherwise you only earn the low yield in Schwab checking (currently 0.31% APY).
Well it's the same with Vanguard, no? I have to sell my Treasury Money Market and put it in the Federal Money Market Fund before i can buy something else unless I'm exchanging into a Vanguard mutual fund.
Vanguard is not a one stop shop.

If you use Fidelity, it automatically liquidates the MMF for you to pay for debits. You don't have to micromanage it.
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Re: Schwab as a one stop shop

Post by gpburdell » Thu Aug 08, 2019 1:24 pm

tj wrote:
Thu Aug 08, 2019 1:12 pm
Well it's the same with Vanguard, no? I have to sell my Treasury Money Market and put it in the Federal Money Market Fund before i can buy something else unless I'm exchanging into a Vanguard mutual fund.
With Fidelity you don't have to manually sell your money market fund, it's done automatically when you have a debit if there isn't enough cash to cover a transaction.

With Fido, I can initiate an external transfer and lets say pull money from my Capital One account and it is immediately available for use. Not sure if Schwab does this.

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Re: Schwab as a one stop shop

Post by stlutz » Thu Aug 08, 2019 1:36 pm

gpburdell wrote:
Thu Aug 08, 2019 1:24 pm
With Fido, I can initiate an external transfer and lets say pull money from my Capital One account and it is immediately available for use. Not sure if Schwab does this.
Just to clarify for folks--it's immediately available for trading. The hold period can vary for withdrawal.

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Re: Schwab as a one stop shop

Post by edge » Thu Aug 08, 2019 1:38 pm

Fidelity wins because of the Cash Manager and convenience of getting MMF yields in checking.

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Re: Schwab as a one stop shop

Post by Jmh04j » Thu Aug 08, 2019 9:24 pm

stlutz wrote:
Thu Aug 08, 2019 1:36 pm
gpburdell wrote:
Thu Aug 08, 2019 1:24 pm
With Fido, I can initiate an external transfer and lets say pull money from my Capital One account and it is immediately available for use. Not sure if Schwab does this.
Just to clarify for folks--it's immediately available for trading. The hold period can vary for withdrawal.
The funds are not available to trade at Schwab in this scenario unless you apply for margin. I discussed this at length with a rep. You would not be charged margin interest in that scenario though. I have not enabled margin in my Schwab account so I haven’t tried it yet. Fidelity has the funds immediately available which is nice.

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Re: Schwab as a one stop shop

Post by dardeninvestor » Fri Aug 09, 2019 8:44 pm

Recently moved from Vanguard and Fidelity to Schwab. Experience at Schwab nothing short of excellent. Banking features have been superb. No ATM fees worldwide. Not exactly sure the CMA at Fidelity really offers any major advantage over simply purchasing a treasury MM fund from Schwab.

Both Fidelity and Schwab have excellent customer service over phone and online. Vanguard was pathetic as a custodian. Respect their fund management though.

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Re: Schwab as a one stop shop

Post by Jmh04j » Fri Aug 09, 2019 10:12 pm

dardeninvestor wrote:
Fri Aug 09, 2019 8:44 pm
Recently moved from Vanguard and Fidelity to Schwab. Experience at Schwab nothing short of excellent. Banking features have been superb. No ATM fees worldwide. Not exactly sure the CMA at Fidelity really offers any major advantage over simply purchasing a treasury MM fund from Schwab.

Both Fidelity and Schwab have excellent customer service over phone and online. Vanguard was pathetic as a custodian. Respect their fund management though.
It is my understanding the advantage would be that at Fidelity the CMA account would automatically liquidate the money market fund to cover a withdrawal. My understanding was at Schwab I would have to manually sell a mutual fund, then transfer over to the Schwab bank to pay a bill. Is that not the case at Schwab?

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Re: Schwab as a one stop shop

Post by indexfundfan » Sat Aug 10, 2019 6:45 am

Jmh04j wrote:
Fri Aug 09, 2019 10:12 pm
dardeninvestor wrote:
Fri Aug 09, 2019 8:44 pm
Recently moved from Vanguard and Fidelity to Schwab. Experience at Schwab nothing short of excellent. Banking features have been superb. No ATM fees worldwide. Not exactly sure the CMA at Fidelity really offers any major advantage over simply purchasing a treasury MM fund from Schwab.

Both Fidelity and Schwab have excellent customer service over phone and online. Vanguard was pathetic as a custodian. Respect their fund management though.
It is my understanding the advantage would be that at Fidelity the CMA account would automatically liquidate the money market fund to cover a withdrawal. My understanding was at Schwab I would have to manually sell a mutual fund, then transfer over to the Schwab bank to pay a bill. Is that not the case at Schwab?
I have accounts at both Fidelity and Schwab. I am currently using a Fidelity brokerage account as my checking account; I have never used Schwab for that purpose.

In the Fidelity brokerage account, your money stays in the MMF, earning market rate interest, until the very last day when it is automatically liquidated to pay for a debit (e.g. a check or ACH debit like credit card bill payment).

If you use Scbwab for your checking needs, money in the "purchased" MMF in the brokerage account side is not automatically liquidated to satisfy debits from the checking side. You need to proactively sell the MMF in anticipation of any debits. This means a couple of things. First, you need to have some sort of reminder set for you to remember to do this, second, most people would sell the MMF a couple of days earlier (the MMF settle next business day and you want to take into account holidays), and third, if you are like most people, you don't track the bills to the penny, and you would be selling more MMF than necessary to have a buffer in case this month's credit card bill is higher.

Since the default sweep or checking APY In Schwab is low, you lose interest having money floating around in Schwab's checking account compared to using Fidelity.

Having said that, I think what most people do is to sell the MMF once a month, and let it cover the debits for the coming month. But the effect of earning less interest is the same.

I wanted to correct a point mentioned above. You don't really need to move money from the Schwab brokerage side to the checking if you don't want to, because Schwab checking can overdraft from the brokerage side. But you might want to move the money because, as of now, Schwab checking's APY is 0.31% while that at the brokerage is 0.18%.
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Re: Schwab as a one stop shop

Post by dardeninvestor » Sat Aug 10, 2019 4:25 pm

Correct on the last sentence for rationale moving to checking. Any transfer between the two happen instantly.

And yes to prior poster before that. You have to proactively sell the MMF. But zero expense to sell. Funds available next day (rather than 3). I guess I have never needed a large chunk at that exact moment I couldn’t plan for or put on a credit card temporarily.

All of that said I use high yield savings like Amex for expected cash needs where I know the payment ahead of time (eg mortgage). One transaction into and out the account per month. Easy to plan. Otherwise I use the Schwab checking.

I have no bone to pick with Fidelity CMA though (or it’s customer service), just saying you can essentially achieve similar goal. The Schwab domestic/international ATM feature was what attracted me most rather the cash options.

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Re: Schwab as a one stop shop

Post by Gadget » Sat Aug 10, 2019 5:03 pm

dardeninvestor wrote:
Sat Aug 10, 2019 4:25 pm
I have no bone to pick with Fidelity CMA though (or it’s customer service), just saying you can essentially achieve similar goal. The Schwab domestic/international ATM feature was what attracted me most rather the cash options.
Fidelity CMA also has free ATM worldwide, so that benefit is a draw.

I think you underestimate how much more convenient it is to not have to sell money market funds before bills. Basically, Fidelity CMA acts as a high yield checking account. I'm fine buying money market funds when I get a direct deposit paycheck. But with all my credit cards autopaying on random days, it would be a pain to sell prior to each bill.

As of today, FZDXX that I use is yielding 2.2% at Fidelity. SPRXX is yielding 2.08%. SPAXX is yielding 1.86% as the core position.

It looks like SWVXX is yielding 2.02% at Schwab as of today. Is that what most people use at Schwab? It appears equivalent to SPRXX at Fido.

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Re: Schwab as a one stop shop

Post by tj » Sat Aug 10, 2019 5:22 pm

Gadget wrote:
Sat Aug 10, 2019 5:03 pm
dardeninvestor wrote:
Sat Aug 10, 2019 4:25 pm
I have no bone to pick with Fidelity CMA though (or it’s customer service), just saying you can essentially achieve similar goal. The Schwab domestic/international ATM feature was what attracted me most rather the cash options.
Fidelity CMA also has free ATM worldwide, so that benefit is a draw.

I think you underestimate how much more convenient it is to not have to sell money market funds before bills. Basically, Fidelity CMA acts as a high yield checking account. I'm fine buying money market funds when I get a direct deposit paycheck. But with all my credit cards autopaying on random days, it would be a pain to sell prior to each bill.

As of today, FZDXX that I use is yielding 2.2% at Fidelity. SPRXX is yielding 2.08%. SPAXX is yielding 1.86% as the core position.

It looks like SWVXX is yielding 2.02% at Schwab as of today. Is that what most people use at Schwab? It appears equivalent to SPRXX at Fido.
How much do you keep in FZDXX? I guess I just can't imagine the extra interest would add up to be that much to use Fidelity instead of a bank or credit union for bill paying, I guess I could see it if you are retired and in the withdrawal stage and need to sell funds to plan your budget and pay bills.

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Re: Schwab as a one stop shop

Post by ThriftyPhD » Sat Aug 10, 2019 6:18 pm

tj wrote:
Sat Aug 10, 2019 5:22 pm
Gadget wrote:
Sat Aug 10, 2019 5:03 pm
dardeninvestor wrote:
Sat Aug 10, 2019 4:25 pm
I have no bone to pick with Fidelity CMA though (or it’s customer service), just saying you can essentially achieve similar goal. The Schwab domestic/international ATM feature was what attracted me most rather the cash options.
Fidelity CMA also has free ATM worldwide, so that benefit is a draw.

I think you underestimate how much more convenient it is to not have to sell money market funds before bills. Basically, Fidelity CMA acts as a high yield checking account. I'm fine buying money market funds when I get a direct deposit paycheck. But with all my credit cards autopaying on random days, it would be a pain to sell prior to each bill.

As of today, FZDXX that I use is yielding 2.2% at Fidelity. SPRXX is yielding 2.08%. SPAXX is yielding 1.86% as the core position.

It looks like SWVXX is yielding 2.02% at Schwab as of today. Is that what most people use at Schwab? It appears equivalent to SPRXX at Fido.
How much do you keep in FZDXX? I guess I just can't imagine the extra interest would add up to be that much to use Fidelity instead of a bank or credit union for bill paying, I guess I could see it if you are retired and in the withdrawal stage and need to sell funds to plan your budget and pay bills.
I'm not who you asked, but for me, a few months of expenses. Paycheck direct deposit comes in, I buy MMF. I queue up bills for the next month, which come out on their due date with the MMF being auto-liquidated. Repeat the next month. Basically 2-3 months of my emergency fund. The difference between 2% and 0.3% might not buy me a car, but it's more than enough money to cause me to bend over and pick it up.

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Re: Schwab as a one stop shop

Post by dardeninvestor » Sat Aug 10, 2019 6:27 pm

Maybe it's a left brain/right brain thing.

I use a Brokerage account for Brokerage. That is, I keep almost nothing in cash in the Schwab brokerage account, hence again why the MMF issue at Schwab is not at all inconvenient for me. Most of my brokerage is invested in mutual funds or equities. What little is left over, sits in cash via a money market fund until I decide to buy another stock. The MMF I picked was SNSXX, which is direct short term Treasury investments. Again, I use extremely safe cash/cash equivalents for anticipated cash needs and investments for long term horizons.

As a brokerage, Schwab offers my situation certain advantages over Fidelity. Perhaps not everyone's situation. The $1 additional increment minimums on certain mutual funds I like to continue to hold in my IRA's means that Schwab let's me dial in my allocations very smoothly. Fidelity had mandated minimum additional investments on some of its NTF funds that made such decision making a hassle.

I use Savings accounts for a buffer and anticipated fixed amount payments like a mortgage, insurance payments, loan payments, tuition payments above what's in a 529, (e.g., Amex, though any brand like Marcus, etc. would be just fine) as long as yield > 2%. I do like the idea of 24/7 customer service at Amex (similar to my thoughts on Schwab's customer service) and hence have never bothered to switch for the negible interest rate differences.

Like the above person (1 post back), I use a Checking account for Checking. In this case, I've found Schwab's checking account to be totally adequate for my needs and better than almost all of its peers. I previously used Wells Fargo and paid for checks, outside ATMs, etc., yet I had never visited a physical branch since the bank was First Union (before it was Wachovia or Wells Fargo).

So I guess I'm not entirely Schwab as a one-stop shop but rather Schwab for Brokerage and Checking, American Express for Savings. That would be my caveat to the OP.

With that in mind, I guess I just don't see the advantage of Fidelity's CMA over Schwab when it comes to checking. For the amount of cash we're talking about and the duration my cash spends in a checking account, I'd do better off trying to find pennies at the bottom of the local fountain pool than worrying about the interest in my checking account.

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Re: Schwab as a one stop shop

Post by indexfundfan » Sat Aug 10, 2019 6:39 pm

Your usage pattern is different from mine.

Looking at my past few statements from the Fidelity account which I used as checking, I averaged about $30 in interest a month from FZDXX or maybe about $350 a year. If I had used Schwab, I would have collected $30 a year. $350 compared to $30 is not going to make me rich, but if I see it lying around, I would certainly pick it up.
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Re: Schwab as a one stop shop

Post by HawkeyePierce » Sat Aug 10, 2019 6:48 pm

Gadget wrote:
Sat Aug 10, 2019 5:03 pm
dardeninvestor wrote:
Sat Aug 10, 2019 4:25 pm
I have no bone to pick with Fidelity CMA though (or it’s customer service), just saying you can essentially achieve similar goal. The Schwab domestic/international ATM feature was what attracted me most rather the cash options.
Fidelity CMA also has free ATM worldwide, so that benefit is a draw.
Fidelity CMA charges a 1% foreign transaction fee on international ATM withdrawals. Schwab does not.

From their fine print:
Please note, there is a foreign transaction fee of one percent that is not waived, which will be included in the amount charged to your account.

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Re: Schwab as a one stop shop

Post by indexfundfan » Sat Aug 10, 2019 6:55 pm

HawkeyePierce wrote:
Sat Aug 10, 2019 6:48 pm
Gadget wrote:
Sat Aug 10, 2019 5:03 pm
dardeninvestor wrote:
Sat Aug 10, 2019 4:25 pm
I have no bone to pick with Fidelity CMA though (or it’s customer service), just saying you can essentially achieve similar goal. The Schwab domestic/international ATM feature was what attracted me most rather the cash options.
Fidelity CMA also has free ATM worldwide, so that benefit is a draw.
Fidelity CMA charges a 1% foreign transaction fee on international ATM withdrawals. Schwab does not.

From their fine print:
Please note, there is a foreign transaction fee of one percent that is not waived, which will be included in the amount charged to your account.
This confusion has been discussed many times on Flyertalk.

https://www.flyertalk.com/forum/credit- ... ce-10.html

What is happening is that the Fidelity CMA debit card charges a 1% fee if used in a point-of-sale terminal, but does not charge a fee if used to withdraw cash from an ATM. I have personally verified it myself by using the Fidelity debit and Schwab debit cards one after another in an overseas ATM. The exchange rates obtained from the two cards are identical.

The Fidelity CMA debit card 1% fee for a POS terminal usage does not bother me because it is much better to use a cash back credit card for that purpose.
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Gleevec
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Re: Schwab as a one stop shop

Post by Gleevec » Sat Aug 10, 2019 8:37 pm

I am thinking more about trying Schwab and was wondering if anyone had donated appreciated shares from Schwab Intelligent Portfolio (robo) for donation to Schwab charitable directly? If so, how was the process?

tj
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Re: Schwab as a one stop shop

Post by tj » Sat Aug 10, 2019 9:55 pm

Gleevec wrote:
Sat Aug 10, 2019 8:37 pm
I am thinking more about trying Schwab and was wondering if anyone had donated appreciated shares from Schwab Intelligent Portfolio (robo) for donation to Schwab charitable directly? If so, how was the process?
You should ask them and report back! I would be curious about the answer as well.

Topic Author
Jmh04j
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Re: Schwab as a one stop shop

Post by Jmh04j » Sun Aug 11, 2019 8:04 am

OP here - I am in sales and get large chunks on cash periodically throughout the year. My original thought process was to put cash into money market then use Fidelity for bill pay. Perhaps it would make more sense to use a short term treasury etf or bond fund? Sell a few days prior to beginning of month then transfer to Schwab bank (same day) to make monthly payments. In this scenario where I use a short term bond/treasury fund it wouldn’t really matter if I was at Schwab or Fidelity to do this. I feel I would rather deal with Schwab that actually owns the bank vs. Fidelity that is using partner banks.

Let me know if I am missing anything here.

Thanks!

dardeninvestor
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Re: Schwab as a one stop shop

Post by dardeninvestor » Sun Aug 11, 2019 8:30 am

SCHO is the ETF I use, but you may find the MMF funds a little easier to dial in exact amounts for negligible differences in yield.

Topic Author
Jmh04j
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Re: Schwab as a one stop shop

Post by Jmh04j » Sun Aug 11, 2019 9:03 am

SCHO is the ETF I use
Good call - I am thinking ISTB (iShares 1-5 year bond) also. It trades commission free at Schwab and has a 30-day SEC yield of 2.39%.

aednichols
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Re: Schwab as a one stop shop

Post by aednichols » Sun Aug 11, 2019 10:01 am

Jmh04j wrote:
Sun Aug 11, 2019 8:04 am
Perhaps it would make more sense to use a short term treasury etf or bond fund?
I have at times used the Schwab Short-Term Bond Index Fund (SWSBX) for this purpose. Same 0.06% ER as ISTB; its index excludes high-yield bonds so it has less risk & lower yield.

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Just sayin...
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Re: Schwab as a one stop shop

Post by Just sayin... » Sun Aug 11, 2019 10:28 am

I use Schwab for my banking and investing, and Fidelity for my HSA. Due to a relationship with two former employers, Fidelity also manages my deferred compensation and pension. If I could choose, I’d move everything to Schwab but, since they don’t offer HSA’s and my deferred compensation and pension accounts are locked, I’ve got both for the foreseeable future.

Gadget
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Re: Schwab as a one stop shop

Post by Gadget » Sun Aug 11, 2019 11:21 am

ThriftyPhD wrote:
Sat Aug 10, 2019 6:18 pm
tj wrote:
Sat Aug 10, 2019 5:22 pm
Gadget wrote:
Sat Aug 10, 2019 5:03 pm
....
How much do you keep in FZDXX? .....
I'm not who you asked, but for me, a few months of expenses. Paycheck direct deposit comes in, I buy MMF. I queue up bills for the next month, which come out on their due date with the MMF being auto-liquidated. Repeat the next month. Basically 2-3 months of my emergency fund. The difference between 2% and 0.3% might not buy me a car, but it's more than enough money to cause me to bend over and pick it up.
I keep about $15-20k in it. Although towards the end of the year it gets closer to $40-50k so I can do 2 backdoor roths and some 529 money in January. All monthly expenses automatically get paid at random days, and it's my first level emergency fund outside of a taxable brokerage account where I'd have to sell stocks. It isn't insignificant interest earned in my mind.

tj
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Re: Schwab as a one stop shop

Post by tj » Sun Aug 11, 2019 4:51 pm

Gadget wrote:
Sun Aug 11, 2019 11:21 am
ThriftyPhD wrote:
Sat Aug 10, 2019 6:18 pm
tj wrote:
Sat Aug 10, 2019 5:22 pm
Gadget wrote:
Sat Aug 10, 2019 5:03 pm
....
How much do you keep in FZDXX? .....
I'm not who you asked, but for me, a few months of expenses. Paycheck direct deposit comes in, I buy MMF. I queue up bills for the next month, which come out on their due date with the MMF being auto-liquidated. Repeat the next month. Basically 2-3 months of my emergency fund. The difference between 2% and 0.3% might not buy me a car, but it's more than enough money to cause me to bend over and pick it up.
I keep about $15-20k in it. Although towards the end of the year it gets closer to $40-50k so I can do 2 backdoor roths and some 529 money in January. All monthly expenses automatically get paid at random days, and it's my first level emergency fund outside of a taxable brokerage account where I'd have to sell stocks. It isn't insignificant interest earned in my mind.
Why not use Orion Federal Credit Union? You can get 4% on up to $30k and all you have to do is make 8 debit card purchases per month and $500 in incoming in electronic transfers...

Gadget
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Re: Schwab as a one stop shop

Post by Gadget » Sun Aug 11, 2019 6:22 pm

tj wrote:
Sun Aug 11, 2019 4:51 pm
Why not use Orion Federal Credit Union? You can get 4% on up to $30k and all you have to do is make 8 debit card purchases per month and $500 in incoming in electronic transfers...
I used to do something similar with a local credit union. Then their rates became noncompetitive. Then I did the same thing at a different credit union. Then their rates also became noncompetitive.

I prefer a place that I can be confident will be consistently competitive in rates so I don't have to switch accounts every couple years. I also prefer to not have to do the debit card transactions. It's annoying having to remember how many I've done and if I should be getting credit card points instead.

usagi
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Re: Schwab as a one stop shop

Post by usagi » Sun Aug 11, 2019 7:38 pm

I have been closing my Schwab accounts and migrating to Fidelity. In my experience Schwab has slightly better overall general customer service, but I think Fidelity has a greater range of specialist who are willing to really roll-up their sleeves and dig in to get you specific answers relevant to your circumstances. So to me it depends on your current needs and what you think will be relevant to you in the future. However, in my opinion, you are talking the difference between an A+ and an A where Vanguard (I also have accounts there) is a solid D.

My 401K plan is also at Fido, which was a factor I weighed.

I don't think you would regret either Schwab or Fidelity, I just chose based on my circumstances.

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ChowYunPhat
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Location: Texas

Re: Schwab as a one stop shop

Post by ChowYunPhat » Tue Aug 20, 2019 4:20 am

Does anyone know if you can reconvert Admiral Shares back to Investor Shares without triggering a taxable event? Could use some perspective on this piece with regards to transfers of admiral shares in a VG taxable account over to Fidelity or Schwab. Seemed like you would not be able to buy admiral shares via a Fido or Schwab taxable account. Thanks in advance.
A wise man and his money are friends forever...

typical.investor
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Re: Schwab as a one stop shop

Post by typical.investor » Tue Aug 20, 2019 5:34 am

ChowYunPhat wrote:
Tue Aug 20, 2019 4:20 am
Does anyone know if you can reconvert Admiral Shares back to Investor Shares without triggering a taxable event? Could use some perspective on this piece with regards to transfers of admiral shares in a VG taxable account over to Fidelity or Schwab. Seemed like you would not be able to buy admiral shares via a Fido or Schwab taxable account. Thanks in advance.
Convert the Admiral Shares to ETFs at VG. It's a non-taxable event there for most funds*. Vanguard ETFs are cheaper to trade at Schwab and probably Fido.

*(Four of our bond ETFs—Total Bond Market, Short-Term Bond, Intermediate-Term Bond, and Long-Term Bond—don't allow for conversions.)

UpperNwGuy
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Re: Schwab as a one stop shop

Post by UpperNwGuy » Tue Aug 20, 2019 6:09 am

typical.investor wrote:
Tue Aug 20, 2019 5:34 am
*(Four of our bond ETFs—Total Bond Market, Short-Term Bond, Intermediate-Term Bond, and Long-Term Bond—don't allow for conversions.)
And that's a mighty big exception!

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