Anyone using Schwab bank?

[muscleman]

It’s checking account is one of the best I can find, but it’s savings sucks. I wonder if anyone is using their brokerage account to park the cash for their rainy day funds, and somehow has a yield similar to a decent savings account? For example, invest in some money market mutual funds that they offer with close to no risk? Right now some good banks like CIT or citibank offer 2.3 APY. But Schwab’s SNSXX (short term treasury money market fund) yield is only 1.7%.

[fareastwarriors]

Why can't you use both Schwab bank and some other internet bank?

 

Use Schwab for checking and regular expenses and internet bank with higher interest rate  for savings/emergency fund.

 

 

[muscleman]

Why can't you use both Schwab bank and some other internet bank?

 

Use Schwab for checking and regular expenses and internet bank with higher interest rate  for savings/emergency fund.

 

 

i want to have the least number of accounts as possible. But I guess if I have to do that, it probably makes sense to do what you said.

 

I currently use Ally bank’s checking and saving accounts, which have been pretty good until recently when they lowered their savings APY.

[Saluki]

I have Schwab but only have about US$3k parked there.  My GF and I both use it when we travel because they reimburse you ATM fees (even international) so it's like getting no-fee ATMs anywhere.  We used it with no problem in Canada, Ireland and France, but in Chile some bank's ATMs accepted it and some did not, so I had to try it a few times.

[dcollon]

Muscleman,

 

I have found that it's easiest to use Schwab for most of what I do, but then again I'm likely lazy.  I move money back and forth between my brokerage account and checking account.  I move any excess cash to my brokerage account and buy short-term higher yielding securities.  It allows me to pick-up about 100-200 bps on excess cash.

 

 

[bookie71]

You can buy cd's from other banks on Schwab.  They are insured up to 250,000 per bank, per account.

 

[muscleman]

You can buy cd's from other banks on Schwab.  They are insured up to 250,000 per bank, per account.

 

Interesting! I'll check it out.

Well.... I took a quick glance and the yields are worse than some of the best online banks.

https://www.schwab.com/public/schwab/investing/accounts_products/investment/bonds/certificates_of_deposit

Maturity Ranges ( 9/3/2019 ) Rates up to

1-3 Month CDs 1.964 %APY

4-6 Month CDs 1.909 %APY

7-9 Month CDs 1.804 %APY

10-18 Month CDs 1.9 %APY

1.5-2.5 year CDs 1.9 %APY