Close Schwab Account

How To Close Charles Schwab Account (2024)


How to close a Charles Schwab account online, on mobile app or on the phone. Fee to delete a Schwab brokerage or IRA investment account.


Overview of Closing a Charles Schwab Account


If you have a bank or investment account with Charles Schwab and need to close it, there are several recommendations we have for you before closing it.


Bank versus Investment


Schwab offers both investment and deposit accounts. The former can utilize the ACATS network to transfer assets, while the latter can use the Zelle network to withdraw cash.

A checking account at Schwab must always be linked to a brokerage account, which means closing a connected brokerage account will automatically close the checking account. It’s possible to close the linked bank account without closing the investment account.


First Method to Close Charles Schwab Account


The first way an investment account at Schwab can be closed is by transferring the account to a second brokerage firm through the ACAT (Automated Customer Account Transfer) network, which will automatically close the account at Schwab. A bank account cannot be closed this way, so only a securities account is eligible for this method. And we do mean “securities” account because futures contracts can’t be moved through the ACAT system. Options that expire in under a week should not be moved, either, and some brokerage houses will not accept foreign stocks, which Schwab offers.

If your investment account at Schwab is ready for an ACAT transfer, you can reach out to another firm and request a transfer from Schwab into a new account with the firm. Once the new account at the new firm receives the transfer of assets, the account at Schwab will be closed. Generally speaking, nothing has to be sold in an ACAT transfer, which can be an advantage if you don’t want to exit positions.

Besides self-directed accounts, it’s possible to close an advisory account at Schwab through an ACAT transfer. However, for a robo (Intelligent Portfolios) account, Schwab will sell everything in the account first. It will only move cash out of an automated account.

With any type of investment account at Schwab, there is a $50 ACAT fee for a full transfer. And in order to close the account, the transfer does have to be a full transfer. A partial transfer won’t close it. Some investment firms will reimburse this fee for a transfer of a minimum size, so be sure to do your homework before requesting a transfer.

As an example, see how to Transfer a Charles Schwab Account to Webull.


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Second Method to Close Charles Schwab Account


As already mentioned, a bank account can’t be transferred out of Schwab through the ACAT system. To close a bank account, you can withdraw the cash and then reach out to Schwab to request the account be closed. An investment account can be closed using this second method, too, although securities will have to be sold or transferred out to get the account to a $0 balance.

Once the deposit or brokerage account has been reduced to cash, the cash balance must be withdrawn. This is easy enough to do on Schwab’s website or mobile. There is a user-friendly transfer tool that can send cash from Schwab to an external checking or savings account, and this will reduce the Schwab account to a zero balance. On the website, the transfer tool will be found under the Move Money tab. On the mobile app, it will be found on the More page. Wire and ACH transfers are both possible.


how to close charles schwab account


Once everything has been moved out of the account, it’s time to close it. This can be accomplished over the phone or through online chat, which is available on both the website and mobile app. If you opt for the chat service, you will need to get a human rep on the line. The chat system begins in automated mode, and the AI can’t close an account.

The great advantage of closing an account using this method is the avoidance of Schwab’s outgoing ACAT fee. Most banks charge nothing for Zelle or ACH transfers, both of which can be used to get cash out of a checking or savings account (ACH can be used for an investment account).

Once an account is closed, it will automatically be removed from the list of accounts that shows up after logging in. However, account documents like statements and trade confirmations can still be downloaded.


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Third Method to Close Charles Schwab Account


The third method to close an account is to perform an internal transfer to a second Schwab account and then close the first one. Unlike a full ACAT transfer, an internal transfer won’t automatically close the outgoing account, so you’ll need to contact customer service and request a closure after everything has migrated. There is no charge to perform any type of internal transfer, it occurs instantaneously, and futures contracts can be moved, so there are some important advantages that might make this third option a good choice.


Promotions


If you are transferring your Charles Schwab investment account to another firm, make sure to check whether that company offers promotions for opening a new account. Here is the list of current deals - Stock Broker Promotions »


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Updated on 12/6/2023.


About the Author
Chad Morris is a financial writer with more than 20 years experience as both an English teacher and an avid trader. When he isn’t writing expert content for Brokerage-Review.com, Chad can usually be found managing his portfolio or building a new home computer.