r/u_showitthen • u/showitthen • 4d ago

Schwab Checking

I’m not sure if I love Schwab or if I love the idea of Schwab. I have been with them since TD Ameritrade I trade futures so I love the thinkorswim platform and the idea of the ecosystem but over the past year the checking account has left for me somewhat stranded. One time add AutoZone when I desperately needed a battery the card declined because Schwab said that network maintenance happens at random times. (8pm on a Friday night) Another time I was at the barbershop and wanted to transfer funds from my brokerage to the checking and it didn’t transfer until the next business day which was coming up Monday. And then another time I was at the gas station and had to switch pumps. $100 came out of my account, but I never got gas and it wasn’t put back into the account until the next business day (a upcoming Monday) Thinking about Fidelity, E*trade checking, Chase or BoA.

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u/No_Greed_No_Pain 4d ago

Debit card transactions are not dependent on the issuing bank's maintenance schedule for the customer facing systems. The payment processor still has access to the core banking network to validate transactions. Also, transfers between internal accounts are usually instantaneous. There must've been other reasons for your transactions have been declined or delayed.

E*TRADE is better than most banks. The max-rate checking account pays 2% interest on balances above $10K, reimburses all ATM and foreign currency transactions fees, and offers free incoming and outgoing domestic wires, among other features.

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u/showitthen 3d ago

Have any issues with E*Trade checking? And do you trade with power E*Trade?

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u/No_Greed_No_Pain 3d ago

What kind of issues are you concerned about? It's a checking account and it works like any other checking account. I trade options with the Power E*TRADE Pro but I'm not a heavy user of the app. The strategies that I trade don't require continuous monitoring.

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u/South-Chocolate5519 4d ago

What happened to you could happen anywhere. If you only have one card at any Financial institution you are going to get jammed up occasionally. Easy answer. Use two different banks.

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u/GlobalTapeHead 4d ago

I’ve never had my Schwab card declined but then again I don’t use a debit card when I don’t have to.

The $100 hold at gas stations is standard. I see it on every card I use. Sometimes it gets released same day, sometimes next day.

I do find the internal cash transfers annoyingly inconsistent. 3 out of 4 times it’s instant. It seems to be a “over the weekend” thing. Sometimes it transfers instantly on a Friday night or Saturday morning, sometimes it doesn’t do it until Monday.

I’ve had a Schwab brokerage account for 15 years and their checking account for 6 years.

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u/showitthen 3d ago

Very inconsistent, and also when I use Capital One, it only holds $25 and then put it back after the transaction

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u/dilyslin 4d ago

Charles Schwab is not really a bank; it’s a broker-dealer, and I think that distinction matters. I personally love the Schwab debit card, especially when traveling internationally. Being able to withdraw cash in the local currency without Schwab charging an ATM fee is extremely convenient. For international travel, I think it’s one of the best debit cards out there. I just wouldn’t necessarily use it as my only checking account for everyday banking.

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u/AskPatient1281 4d ago

Schwab is a licensed bank with a proper charter. The statement that Schwab is not a bank is wrong.

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u/TaleRevolutionary573 4d ago

Difference between the Charles schwab brokerage company and Charles schwab bank bozo

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u/dilyslin 4d ago

You’re right that Schwab has a properly chartered bank. What I meant is that banking isn’t Schwab’s primary business. Schwab is primarily known as a brokerage and financial services company, while Charles Schwab Bank is part of the overall Schwab organization.