Charles Schwab has no monthly maintenance fee, no minimum balance requirement, and no per-check charges

Charles Schwab's checking account—called the Schwab Bank Investor Checking account—costs nothing to open or maintain. There is no monthly fee, no minimum balance you must keep, and no charge per check you write. You also will not pay fees for overdrafts, stop payments, or account closures. This is the core structure: the account itself is free.

That said, "free" does not mean you pay nothing in every scenario. Schwab makes money from you in other ways, and certain actions do carry charges. Understanding which fees apply and which do not matters before you deposit your first dollar.

Key Takeaways

  • The Schwab Bank Investor Checking account has no monthly maintenance fee, no minimum balance, and no per-check charges.
  • You will pay a fee if you use an out-of-network ATM without reimbursement or if you request a wire transfer, cashier's check, or expedited delivery.
  • Schwab reimburses all domestic ATM fees at the end of each month, regardless of how many ATMs you use or which bank owns them.
  • International transactions and foreign ATM withdrawals carry conversion fees and per-transaction charges that vary by service type.
  • The account earns interest on your balance, though the rate changes with market conditions and is typically low.

ATM fees: reimbursed domestically, charged internationally

Schwab reimburses all ATM withdrawal fees charged by other banks' machines within the United States. If you withdraw $200 from a Bank of America ATM and they charge you $3, Schwab credits that $3 back to your account at the end of the month. There is no limit on how many ATMs you can use or how many reimbursements you can receive. This applies to any ATM in the US that is not owned by Schwab itself.

International ATM withdrawals are different. If you withdraw cash from an ATM outside the United States, Schwab charges a flat fee per transaction—currently $2.50 per withdrawal—plus a foreign exchange conversion fee on top of the amount you withdraw. The conversion fee is Schwab's markup on the exchange rate, and it varies depending on the currency and the time of day. You will see both charges on your statement.

Wire transfers, cashier's checks, and expedited services

Sending money by wire transfer costs $15 for a domestic wire (within the US) and $45 for an international wire. These are one-time charges per wire, not monthly fees. If you send one wire per month, you pay $15 that month. If you send five wires, you pay $75.

Ordering a cashier's check through Schwab costs $10 per check. This is less common than it once was, but some landlords, car dealers, and government agencies still require them. Schwab can mail the check to you or to a third party, and the $10 fee applies either way.

If you need a check or other document delivered faster than standard mail, Schwab charges for expedited shipping. The cost depends on the service level you choose—overnight, two-day, or priority—and ranges from roughly $15 to $30. Standard mail delivery is free.

Foreign exchange and currency conversion

Any transaction in a foreign currency—whether you swipe your Schwab debit card in a restaurant abroad or pay an online vendor in euros—triggers a conversion fee. Schwab currently charges 1% of the transaction amount as a foreign exchange markup. If you spend $100 in a foreign currency, Schwab adds $1 to the charge. This is on top of whatever the merchant charges and any fees your credit card network (Visa or Mastercard) applies.

This fee applies to debit card purchases, online purchases from foreign merchants, and transfers to accounts outside the United States. It does not apply to domestic transactions, even if the merchant is a foreign-owned company with a US address.

Overdraft protection and returned-check fees

Schwab does not charge an overdraft fee if your account goes negative. If you spend more than you have, the transaction may be declined, or Schwab may cover it and let your balance go into the red. Either way, you will not see a $35 overdraft charge like you would at many other banks. However, if Schwab does cover an overdraft, you are borrowing money from them at their overdraft interest rate, which you will owe back.

There is also no fee for a returned check—a check that bounces because you did not have enough money to cover it when the recipient tried to cash it. The check simply comes back unpaid, and you owe the recipient the money.

Interest earned and account features

The Schwab Bank Investor Checking account earns interest on your balance. The rate changes regularly based on Federal Reserve decisions and market conditions. Currently, the rate is low—typically under 0.5% annually—but it is higher than many traditional checking accounts offer. You earn interest on every dollar in the account, with no minimum balance required to start earning.

Interest is deposited into your account monthly. If your balance is $10,000 and the annual rate is 0.4%, you earn roughly $3.33 per month. The exact amount depends on the daily balance in your account and the number of days in the month.

Fees you will not pay

Schwab does not charge for closing the account, even if you close it the day after opening it. There is no inactivity fee if you stop using the account for months. You will not pay for balance inquiries, account statements, or copies of old checks. Transferring money between your Schwab checking account and other Schwab accounts (savings, brokerage, etc.) is free. Receiving wire transfers is also free—only sending them costs money.

If you link your Schwab checking account to a brokerage account or investment account with Schwab, you will not pay extra for that connection. The checking account is designed to work alongside Schwab's other products without additional fees.

Frequently Asked Questions

Will I pay a fee if I use a Schwab ATM?

No. Schwab does not charge for withdrawals at its own ATMs. You also will not pay a fee at ATMs owned by other banks within the US, because Schwab reimburses those charges. The reimbursement happens automatically at the end of each month.

What happens if my account goes negative?

Schwab will not charge you an overdraft fee. However, if your account goes negative and Schwab covers the overage, you will owe interest on the borrowed amount at Schwab's overdraft rate. If the transaction is declined instead, there is no charge and no interest.

Do I have to keep a minimum balance?

No. There is no minimum balance requirement. You can open the account, deposit $1, and keep it there indefinitely without paying any monthly fee or losing the account.

What is the foreign exchange fee?

Schwab charges 1% of the transaction amount when you use your debit card or make a purchase in a foreign currency. If you spend $500 in euros, Schwab adds $5 to the charge. This fee does not apply to domestic transactions.

Can I get my money back if I close the account?

Yes. Closing the account is free, and you can withdraw or transfer your balance at any time. There is no penalty for closing early or for keeping the account inactive.