Update: Schwab won’t be taking applications for this credit card after March 2010. You can still open an account using this Schwab link.
Update September 2011: We just received a letter that our Schwab card is being replaced by a Bank of America card. It looks like the end of the Schwab card is near. We plan to switch most of our purchases to the American Express 6% Cash Back Credit Card.
Once approved for both accounts, link them together. You can call or go online to link them.
Cash back will be credited to your brokerage account monthly.
Invest the proceeds, or access your cash back by check or debit card.
Credit Card Details
No annual fee.
2% cash back on everything, with no cap.
Card is issued by FIA, which is part of Bank of America.
Brokerage Account Details
Brokerage Minimum. When you open the Schwab credit card (or a high yield investor checking), there is no minimum on the brokerage account. Otherwise the minimum is $1,000.
Fees. There are no monthly fees for the brokerage account.
Accessing Cash. According to Schwab, you can “Access your money easily with fee-free checking, a Visa check card, online bill pay and fund transfers.” I plan to move my money directly to our checking account with Schwab, which is our primary checking account.
Even though we have an old 2% cash back credit card that deposits into our 529 plan, I’m planning to apply for this card. It’s always good to have a back up with the rapidly changing credit card environment.
In addition, it’ll be a nice way to transfer money since we already have our checking account at Schwab, and a portion of my Roth IRA since they announced the lower expense ratios.
You can get my latest articles full of valuable tips and other information delivered directly to your email for free simply by entering your email address below. Your address will never be sold or used for spam and you can unsubscribe at any time.
Advertiser Disclosure: MyDollarPlan.com is an independent, advertising-supported service. The offers that appear on this site are from companies which MyDollarPlan.com receives compensation. This compensation may impact how and where products appear on this site, including, for example. the order in which they may appear within listing categories. Other factors, such as our own proprietary website rules and the likelihood of applicants' credit approval also impact how and where products appear on this site. MyDollarPlan.com does not include the entire universe of available financial or credit offers.
Editorial Note: The editorial content on this page is not provided by any bank, credit card issuer, airlines or hotel chain, and has not been reviewed, approved or otherwise endorsed by any of these entities. Opinions expressed here are author's alone, not those of the bank, credit card issuer, airlines or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.