topic Re: Schwab checking as primary account? in Personal Finance

Schwab checking as primary account?

Anonymous — Fri, 29 Mar 2019 09:06:00 GMT

I’ve been doing a lot of reading up on this forum and changing my finances and finance accounts around that I had before getting Into the community.

I’m currently using a BOTW account as a primary and I have a schwab investor checking that I fund by direct debits from my BOTW checking as a way to squirrel away alittle money with every paycheck.

Ive been considering switching completely just because my Local BOTW branch employees are pretty much useless and are very clueless other than deposit and withdraws.

Does anyone use schwab investor checking as their primary account?

Re: Schwab checking as primary account?

Kforce — Sat, 30 Mar 2019 01:45:31 GMT

Do not have Schwab.

However all online banks have pros and con's compared to brick and mortar institutions. Most online banks have nice bill pay services, large ATM networks, lower fees and better interest rates. They also have no in-person-assistance. Hard or impossible to deposit cash. Do not support wire transfers or let you have a safe deposit box. Free notary services, coins to checking machines, etc.

Depending on you and your needs, you might be Ok.

There are very good credit unions in most areas that cost less, and have better service than major banks.

I like having both, but did move to a CU from a bank.

I also have a family that needs the coin machine, cash deposits, etc.

Re: Schwab checking as primary account?

wasCB14 — Sat, 30 Mar 2019 02:54:55 GMT

I use a Schwab checking account for bill pay and direct deposit. I like the CC ebills feature which most issuers support (but not Chase or Cap1).

Hard to really call it a checking account when I still have check 1001 after five years! I did write a few checks from a Chase account, though.

I rarely receive or spend cash. Fidelity has me on a $500k mobile check deposit limit, so I don't really need a brick and mortar bank for that.

The interest rate is quite low, but ~2% elsewhere isn't so great, either, and I like to have the funds available for investment. It's also nice to earn a little interest without micromanaging brokerage/checking/savings accounts across several banks. I gradually closed my other checking and savings accounts to simplify (Chase, Citi, Discover, Wells).

Re: Schwab checking as primary account?

Revelate — Sat, 30 Mar 2019 04:25:30 GMT

I haven't used them recently but previously I had zero problems with using Schwab as my primary financial clearing house.

They're solid, if you don't need to deposit cash regularly should be fine, and their debit card is still one of the best in the world if you travel... so much so Chase copied it for their Sapphire/CPC benefits.

Re: Schwab checking as primary account?

Anonymous — Sat, 30 Mar 2019 04:32:39 GMT

I have a Schwab account and really like it.

Only downside is depositing cash. If this isn’t a frequent need, no big deal then. There are several work arounds for this problem - open a free account with a local bank for cash deposits and ACH the cash to Schwab or get a money order and then deposit it electronically through the Schwab app.

Re: Schwab checking as primary account?

creditfan — Sat, 30 Mar 2019 05:06:59 GMT

remember!

HP to open checking and brokage one accounts

Re: Schwab checking as primary account?

Anonymous — Sat, 30 Mar 2019 11:36:25 GMT

Thanks for all the replies. While I do have a schwab branch near me it seems they aren’t super common. I may just end up switching to DCU since their co-ops and ATMs are virtually everywhere

Re: Schwab checking as primary account?

Revelate — Sat, 30 Mar 2019 14:54:45 GMT

@Anonymous wrote:
Thanks for all the replies. While I do have a schwab branch near me it seems they aren’t super common. I may just end up switching to DCU since their co-ops and ATMs are virtually everywhere

Don't get me wrong as I like DCU too and co-op may be a thing if you need to deposit cash, but the ATM bit is irrelevant: Schwab debit cards are feeless basically used literally anywhere that supports Visa.

I'd argue as a result Schwab ATM access dwarves the CU co-op network.

Re: Schwab checking as primary account?

wasCB14 — Sat, 30 Mar 2019 16:44:57 GMT

@Revelate wrote:
@Anonymous wrote:
Thanks for all the replies. While I do have a schwab branch near me it seems they aren’t super common. I may just end up switching to DCU since their co-ops and ATMs are virtually everywhere
Don't get me wrong as I like DCU too and co-op may be a thing if you need to deposit cash, but the ATM bit is irrelevant: Schwab debit cards are feeless basically used literally anywhere that supports Visa.

I'd argue as a result Schwab ATM access dwarves the CU co-op network.

Is it a Schwab branch that offers banking services? Or just brokerage customer service?

A lot of discount brokerage branches don't accept deposits.

Re: Schwab checking as primary account?

CreditCuriosity — Sat, 30 Mar 2019 21:15:58 GMT

Fidelity cash management account is another option as well and no HP. Free atm use worldwide as well

Re: Schwab checking as primary account?

CreditInspired — Sat, 30 Mar 2019 21:34:25 GMT

@Anonymous wrote:
Thanks for all the replies. While I do have a schwab branch near me it seems they aren’t super common. I may just end up switching to DCU since their co-ops and ATMs are virtually everywhere

I just opened a savings acct at DCU and was pleasantly surprised to find out about the co-ops everywhere.

Re: Schwab checking as primary account?

Anonymous — Sun, 31 Mar 2019 10:14:42 GMT

Is it a Schwab branch that offers banking services? Or just brokerage customer service?

A lot of discount brokerage branches don't accept deposits.

I can't speak for every branch in the country, but the one closest to me does not do banking transactions. (They have an "ATM" running StreetSmart Edge, not giving cash haha)

Re: Schwab checking as primary account?

Namaste7 — Sun, 31 Mar 2019 12:17:29 GMT

If 90% of more of your transactions are electronic (DD, ebill / billpay, and debit and CC purchaser), you can easily replace a national or regional bank account with a cash management account from one of the investment banks.

If you expect to deposit cash frequently or may receive cash in lump sums throughout the year, you could convert the cash to money order and deposit. Alternatively, you may choose to pair the investment account with an account at a credit union, community or regional bank. The ancillary benefit to this pairing is that you may be eligible for favorable rates on car loans, personal loan products and/or mortgages by establishing (or keeping) a relationship with a credit union, community or regional bank.

Re: Schwab checking as primary account?

Anonymous — Sun, 31 Mar 2019 20:42:27 GMT

We use Schwab as primary checking for many years. It works great, photo deposit, plus free postage paid envelopes for a few strange checks that the photo won't capture, absolutely free ATM access. And all the other good things. We still have a zombie account with our old regional bank. With just a little money in it. If it is fee free you might keep your CU acct for cash deposits if you need that feature. But it has been at least a year or two since we visited the little bank.

Re: Schwab checking as primary account?

Green456 — Tue, 16 Apr 2019 14:55:46 GMT

I will never do Schwab. They opened my account then closed it 1-2 weeks later. I wouldnt care much if they denied me up front. However opening an accunt then closing witout any warning is unacceptable. I looked up duckduckgo and found multiple other people with similar issues. Sometimes they have a reason and sometimes they call it "buisness decision."

If you going with Schwab for their ATM access then consider:

Alliant - refunds $20 in fees per month

BECU - refunds $6 in fees per month

Chase - refunds all ATM fees with Saphire checking or Private Client

Re: Schwab checking as primary account?

Anonymous — Fri, 19 Apr 2019 00:37:57 GMT

I'm currently using a Schwab checking account as my main account, I was using Ally, but Schwab offers a higher interest yield + free ATM usage worldwide (0.4% vs 0.1% on checking). As with any online bank, I would suggest trying to get a no-fee bank/credit union account for "local" business (like cash deposits if you need).

Otherwise, my experience has been rather good. The HP didn't bother me much, as I only plan to get one more CC before gardening and they'll fall off in a couple years. I also wanted to try my hand at investing (which of course, the brokerage account is the main thing, checking is an 'addon'), and open a Roth IRA (my company liquidated all their 401Ks about 15 years ago and no longer offers them), their selection of no-fee mutual funds is pretty nice. They are the first, and only bank that has actually called me randomly to just check in on me, make sure everything was going good, see if there was absolutely any questions they could answer for me, and in general be there for me. Currently I use Schwab as my main checking, Ally as my savings, and US Bank as my brick and mortor for deposits (since I can deposit checks/cash at the ATMs, and it's free with my Cash+). I use Google Pay to immediately shuffle my deposits out of my US Bank account into my Schwab account.

Edit: Also to add onto what @Green456 said, Ally reimburses up to $10/mo in foreign ATM fees, and they use the Allpoint network.

Re: Schwab checking as primary account?

Anonymous — Sat, 20 Apr 2019 15:13:31 GMT

I went the other direction. For years I only used Fidelity for all my banking. Debit card refunded ATM fees, so cost was a non-issue. Cash deposits were tough since there were no local branches.

I added Credit Unions to the mix and eventually changed my paycheck direct deposit to one of them. The reason I wanted to do this is because I was not investing enough. I was using my investment accounts more as day to day checking accounts and neglecting the investing part. Having to make a conscious effort to transfer funds into Fidelity to invest is better for me. Psychology.