Rates at Charles Schwab Bank
Key Findings:
• Schwab pays interest on some deposits in its banking division.
• Loans through Schwab Bank have competitive rates in some cases.
• Mortgage rates available through Schwab vary widely.
Overview of Interest Rates at Schwab Bank
Through its banking subsidiary, Charles Schwab Bank, SSB, The Charles Schwab Corporation offers a variety of banking products with different rates, fees, and minimums. Many of these are in line with industry norms, although there are some exceptions. Let’s have a look.
Interest Rates on Deposit Accounts
Schwab Bank offers two main consumer deposit accounts: Investor Checking and Investor Savings. The former pays a
0.01% interest rate, with a 0.01% APY. The latter earns a 0.15% APY. Both of these rates are rather low by industry standards, especially when compared with rates available from many online banks.
The good news is that fees on these accounts are also very low. Neither account has a minimum-balance requirement or monthly service fee. Investor Checking includes a Schwab Bank Visa Platinum Debit Card with full purchase and ATM access. Investor Savings can also be accessed with the card at ATMs, although the savings account has limited debit-card access. Schwab does not charge an ATM fee and provides unlimited rebates of ATM withdrawal fees worldwide.
Pledged Asset Lines
Through Schwab’s PAL, or Pledged Asset Line, program, clients can borrow money using eligible non-retirement securities as collateral. The published PAL rate schedule begins at % for accounts with $100,000 to less than $250,000 in loan value of collateral and falls to -2% for accounts with at least $2.5 million. Clients with at least $250,000 in qualifying Schwab assets may receive a relationship discount of 0.25% to 1.00%, which can reduce the effective rate below -2%.
The PAL program does not require a $100,000 loan draw. Instead, the pledged account must maintain at least $100,000 in loan value of collateral, and there is no minimum draw requirement. The lower published rate tiers are based on the value of the collateral at origination, while additional relationship discounts are based on qualifying Schwab assets.
Schwab charges no application, account-opening, or maintenance fees for a PAL. The only PAL fee is a $25 late-payment fee when applicable, and customers can apply online through Schwab’s website.
Mortgage Rates
Schwab Bank has partnered with Rocket Mortgage to offer its customers a range of home-loan options. Home loans are provided by Rocket Mortgage and include purchase mortgages, refinances, HELOCs, fixed-rate mortgages, adjustable-rate mortgages, and interest-only loans.
A mortgage obtained from Rocket Mortgage through Schwab will have an interest rate that varies based on a wide range of criteria, including the loan-to-value (LTV) ratio, ZIP code, loan amount, applicant’s credit score, property type, loan type, and points. During our research, we found rates ranging from 5.5% to 7.6%.
For more specific numbers, a good place to begin is
Schwab’s mortgage-rate calculator. Here, you can enter details such as the down payment and property type to receive a customized quote showing the estimated interest rate and points.
Here’s a sample quote we received:
| Mortgage Detail | Quote |
|---|
| Mortgage | 25-Year Fixed |
| Monthly Payment | $2,287.28 |
| Points | 0.75 |
| Closing Costs | $5,446.95 |
| Zip Code | 74074 |
| Property Type | Single family |
| Use | Primary residence |
| Purchase Price | $400,000 |
| Down Payment | 20% |
| Credit Score | Very good (720 to 759) |
| Interest Rate | 7.125% |
| APR | 7.308% |
Interest rates and APRs can vary depending on whether the loan is for a purchase or refinance. During our research, we didn’t see anything above 7.6%.
Adjustable-rate mortgages tend to have lower initial interest rates, at least during the introductory period of the loan. For ARM mortgages, we found interest rates around 5.8% and APRs around 6.5%, depending on the exact details of the loan application.
Charles Schwab Website
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Credit Cards
Schwab offers two American Express card products: the Schwab Investor Credit Card and the Platinum Card from American Express Exclusively for Charles Schwab. The Investor Card is a traditional credit card, while the Platinum Card is a charge card with a Pay Over Time feature. The variable rate formulas are the same for purchases or Pay Over Time balances, cash advances, and penalty APRs. They are as follows:
| Rate or Fee | Amount |
|---|
| APR for Purchases or Pay Over Time | 19.49% to 28.49%* |
| APR for Cash Advances | 28.74% |
| Penalty APR | 29.99% |
| Cash Advance | 5% ($10 minimum) |
*The Schwab Investor Card® carries a 0.00% introductory APR on purchases for the first six months.
Certificates of Deposit
With a brokerage account at Schwab, it’s possible to access brokered CDs. These are time deposits that are generally eligible for FDIC insurance, subject to the applicable limits and requirements. Deposits and CDs held at the same issuing bank in the same ownership category are combined when calculating the $250,000 FDIC limit. It’s easy to log into the website and browse these bank products, which are offered by a variety of banks, including Charles Schwab Bank and many others.
During our probing, we found APYs ranging from 3.95% to 4.5%. Here are some examples:
| Issuer | Coupon | Maturity |
|---|
| Synchrony Bank | 4.5% | 11/03/2033 |
| Morgan Stanley Bank | 4.2% | 06/30/2027 |
| BMO Bank | 4.0% | 05/05/2033 |
To find these and other CDs on Schwab’s platform, click on the Research tab in the top menu and select the link for Bonds, CDs, & Fixed Income.
Treasuries
Besides CDs, Schwab brokerage clients can buy debt securities issued by the U.S. Treasury Department, including Treasury bills, notes, bonds, and TIPS. These securities can be found in the same fixed-income research section as CDs.
During our look underneath the hood, we found Treasuries with yields as high as 5.23%. These securities can be purchased online. A Schwab Bank Investor Checking account is linked to its corresponding Schwab One brokerage account, allowing cash to be transferred between the two accounts in seconds. However, transfers made during weekends or after-hours periods may not become available until the next business day.
Here is a short list of Treasury instruments we found:
| Yield to Maturity | Coupon | Maturity |
|---|
| 4.464% | 4.375% | 05/15/2036 |
| 4.371% | 4.125% | 02/15/2036 |
| 4.994% | 5.000% | 05/15/2056 |
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Updated on 7/27/2026.
Chad Morris has been analyzing investment firms for Brokerage-Review.com since 2015. Backed by FINRA Series 65, 66, and SIE credentials, his work reflects a deep knowledge of the retail brokerage industry and digital trading tools.
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