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Looking for New Checking Account? 4.25% at Charles Schwab

By Patrick on Apr 28, 2007 in Investing

Charles Schwab Corp. just announced their new checking account would have 4.25% interest rate, along with other goodies. The most notable are free checking, free on-line bill pay, and free rebates on any ATM fees anywhere in the world.

Other banks with high-yield checking: There are several other companies offering high-yield interest rates for their checking accounts, including E-Trade (3.25%) and ING (4%), but their checking accounts have limitations. E-Trade requires a $5,000 minimum and ING does not offer paper checks.

Checking account is linked to a Brokerage Account: The Charles Schwab checking account also automatically links each checking account to a brokerage account, allowing for super easy trading and investing. Those with checking accounts are not required to trade within the linked brokerage account.

My personal take is that they are offering such a great interest rate on the checking account in order to get more customers into their brokerage house. It’s a great move.

Note: This is not an advertisement; I’m just passing on some interesting information. I personally love my bank and have no plans to change.