Author Topic: Multiple banks / Schwab?  (Read 1505 times)

Anniemaygo

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Multiple banks / Schwab?
« on: January 21, 2018, 08:48:21 AM »
Hi All,
Currently have all investments at Fidelity (they hold my 401k, so I open IRA's and brokerage acct there for simplicity.  I bank at a local credit union that has a high interest checking and keep my emergency fund there in a 12 month cd ladder.

I am looking to add more CDs to my portfolio to balance risk and was evaluating opions - considering Vanguard since that seems to be the most recommended for low fees and customer service. 

I recently opened a Schwab account to use for a vacation fund because I am going to Europe with kids for a few weeks this summer and wanted to take advantage of their worldwide no-fee ATM account to get cash out while traveling.  I noticed they also had CDs available with some very good rates.  I am extremely organized with spreadsheets so I don't worry about loosing track, and it seems easy to move money around.

What have been peoples experiences in banking with multiple banks? 
Anyone have experience with Schwab?  I have been really impressed with the on boarding process for opening the first account, but don't hear much with the exception of the no-fee ATM.

AMG

ShoulderThingThatGoesUp

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Re: Multiple banks / Schwab?
« Reply #1 on: January 22, 2018, 07:43:14 AM »
They have equivalent funds to Vanguard. I have always used them, but I have family members who switched from Vanguard after a bad customer service experience.

Schwab also has physical locations where you can go for help when setting things up.

ooeei

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Re: Multiple banks / Schwab?
« Reply #2 on: January 22, 2018, 08:25:19 AM »
I've had Schwab as my main bank and investment provider for about 5 years, no complaints so far. I've transferred to/from Ally, a local credit union, and a few credit card/utility companies with no issues. I also rolled over a 401k from a previous employer into an IRA no problem.

Not only are there no international ATM fees, but no access fees either. Those $5 fee ATMs at festivals or whatever are fair game with a Schwab account because they refund all fees. I've called customer service a couple times about things I don't remember, but do know I had a good experience. Their ERs are really close to Vanguard, I think last time I checked they were lower than standard share fees but higher than admiral share fees (depending on the fund, and it's by .02% or something like that).

Only downside is you can't deposit cash, and the physical branches don't deal with banking, only investments. Banking is online/phone only, or at least it was a year or two ago when I went in with my girlfriend to help setup her IRA there.

The big strength of Schwab is for those starting out, as their minimums for investments are way lower than Vanguard (again, they were a year or two ago things may have changed). Vanguard has something like a $1000 or $3000 minimum for most investments, and admiral shares are $10,000. Schwab is around $100 minimum and lower than Vanguard's standard share ER. Having your paycheck go straight to your Schwab checking also makes it easier to transfer some to an IRA or investment account. There's no waiting for 2-3 days for a transfer to go from Ally to Vanguard or wherever. Not a big deal, but a small convenience.

The checking account is most likely a loss leader to get you into their investments (they make you open an investment account when you open a checking account, even if you never put money in it). It's a great deal, and I'm surprised more people don't use it.
« Last Edit: January 22, 2018, 08:31:18 AM by ooeei »

Rubic

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Re: Multiple banks / Schwab?
« Reply #3 on: January 23, 2018, 08:55:22 AM »
The checking account is most likely a loss leader to get you into their investments (they make you open an investment account when you open a checking account, even if you never put money in it). It's a great deal, and I'm surprised more people don't use it.

I opened an investment account with Schwab (got a $100 bonus) and
put in some cash for use with international ATMs.  Since all I use it for
is to extract cash with their debit card, I don't even bother with a checking
account.  I've also used my Schwab Amex Platinum card to convert $2700
worth of Membership Rewards points into my account.

Recently they just offered an additional $300 bonus for existing customers
to transfer funds, which I took advantage of this month.

My father has had a Schwab account for decades and he's been completely
satisfied with their service.

bugbaby

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Re: Multiple banks / Schwab?
« Reply #4 on: January 24, 2018, 05:57:55 AM »
I've been with Schwab 5.5 yrs, including 1.5 yrs in rural Africa.

No problem even with remote ATMs, in fact access was easier than local banks because of no max withdrawal and no fees.

I transferred an IRA into Schwab easily. Low cost funds. Great customer service. I've been lucky to have local branches near the 2 US locations I've lived in and had a great experience when I needed to go in.

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MishMash

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Re: Multiple banks / Schwab?
« Reply #5 on: January 24, 2018, 06:37:03 AM »
We have 7 different accounts that we spread our money over, including one at Schwab.  They aren't bad, low minimums, they are starting to get into indexing a bit.  For individual stocks their research platform is far and wide above Vanguard and their recent site overhaul has made a difference. 

If you are looking at CDs though, you're better off going with an internet bank like Synchrony that's offering a 2% 1 year CD at the moment.  We've kept cash with them for a few years and their customer service was good, they offer travel perks (never used them), are fast to increase their APRs after the fed raises rates, and generally has some of the highest CD rates around.

Meesh

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Re: Multiple banks / Schwab?
« Reply #6 on: January 24, 2018, 10:25:26 AM »
We have a ton of bank accounts each opened for a different purpose, including Schwab. I have considered consolidating, and I might eventually but I'm fine for now.

We use Chase because it's easy to use and transfer money to other accounts, Ally for emergencies, Capital One for a food and gas checking account and irregular savings (opened Capital One bc I had problems adding my non-citizen DH to the Ally account but the Cap1 online interface is horrible, I'll probably consolidate these two someday). And Schwab for international visits, non-necessary spending and cash.

It's a lot but it helps me categorize everything. Emergencies, Bills, non-bill necessary, and non-necessary. Because all transfers are automatic I actually rarely look at my accounts. It all moves around without me. My only non-automatic bill is the water bill. I guess it's my version of cash envelopes *shrugs*