Personal Finance 26 Apr 2007 07:52 am

Schwab Offers New High-Interest Checking Account

by Sean Hackbarth

Earning interest on your checking account no longer requires you to have tons of money sitting in the bank. (That whole “you need money to make money” vicious circle.) Charles Schwab is offering a no-fee checking account paying 4.25% no matter what your balance is.

Moving to a new checking account can be a pain. If you have direct deposit–and why not?–you have to make sure your paycheck gets into the new account. Then if you do electronic bill paying or have automatic withdrawals you have to change those. That will keep Schwab from stealing a lot of customers from traditional banks. If you’re about to change banks take a look at what Schwab is offering. Now, if you’re a Schwab customer you have a way to earn some interest on your non-invested funds while having greater liquidity.

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3 Responses to “Schwab Offers New High-Interest Checking Account”

  1. on 01 May 2007 at 6:11 am 1.TJP said …

    Who’s your account with? Unfortunately, my Bank of America Campus checking pays 0%, but I can’t ditch it just yet. It’s the only national bank on my college campus.

  2. on 01 May 2007 at 7:19 am 2.Sean Hackbarth said …

    My primary bank account is with a local SE Wisconsin bank that has lots of ATMs. My IRA is under Fidelity because I was in a hurry to roll over an old 401(k) and I have a dormant account with TD Ameritrade. When I have the time some serious consolidation is in order.

  3. on 11 Dec 2008 at 11:03 am 3.Antwan Love said …

    I must admit, it is very attractive. The flip side is that you have to open a brokerage account along with the high interest checking. This is perhaps the best kept secret of the deal. The customer service has been very poliet and helpful. The Schawb site gives loads of information. I am still wondering is Schawb and Citibank under the same entity.

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