I wouldn't worry too much about Charles Schwab going under since if you guys didn't know, Charles Schwab at one point was the largest shareholder of Bank of America Corporation. That's the reason they were able to be bought by Bank of America in the 1980's and then buy itself back from Bank of America 2 years later and then the company went public. This is the same reason that when you deposit a check drawn at Charles Schwab & Co., Inc. (the brokerage) from a Bank of America account, it will post on the same day.

Charles Schwab Bank, NA is based in Reno, Nevada only which is the only branch and company owned ATM is available.
I've been with Schwab since 1997 and have been through the SchwabOne Access which later was known as Schwab Access before they started having Schwab Investor Checking through their bank about almost 2 years ago. As for the daily limits, the Schwab Investor Checking comes with a Platinum Check Card and according to my booklet from 2005, it says the daily cash limit is $2,000 while the Point of Sale limit is $15,000. Now, since we're on the subject of Charles Schwab, does anyone here successfully transfer money between E*Trade and Charles Schwab Bank? I've been successfully able to transfer money with Charles Schwab from all my other accounts except E*Trade since the trial deposits from E*Trade just disappear and Schwab does not acknowledge receiving it and E*Trade doesn't know what happened either.

And there is a way to ACH to/from Charles Schwab & Co., Inc. (the brokerage) externally. They use JP Morgan & Chase for this and basically the routing number is 071000013 with the account number as 593853800XXXXXXXX where the X's are your 8 digit Charles Schwab Brokerage account number.

Almighty1 said:I wouldn't worry too much about Charles Schwab going under since if you guys didn't know, Charles Schwab at one point was the largest shareholder of Bank of America Corporation. That's the reason they were able to be bought by Bank of America in the 1980's and then buy itself back from Bank of America 2 years later and then the company went public.

I dont know everything in the statement above is completely wrong.Link or here. I can link many more sources on the subject.

All of them tell a very different story than yours.Source

BankAmerica was dealt huge losses in 1986 and 1987 due to the placement of a series of bad loans in the Third World, particularly in Latin America. The company fired its CEO, Sam Armacost, although Armacost blamed the problems on his predecessor, A.W. (Tom) Clausen, who was then appointed to replace Armacost. The losses resulted in a huge decline of BankAmerica stock, making it vulnerable to a hostile takeover.

First Interstate Bancorp of Los Angeles (which had originated from banks once owned by BofA), launched such a bid in the fall of 1986, although BankAmerica rebuffed it, mostly by selling its FinanceAmerica subsidiary to Chrysler and by selling the brokerage firm Charles Schwab and Co. back to Mr. Schwab. On the day of the 1987 stock market crash, BankAmerica was trading at $8 per share, although by 1992 it had rebounded mightily to become one of the biggest gainers of that half-decade. The selling of the corporate headquarters building in downtown San Francisco to raise capital was a symbolic blow to the bank.

Now if you look at Schwabs web page source above.

The sale to BankAmerica may have provided needed capital, but it also fettered the company with banking regulations. Schwab wanted to offer new, proprietary lines of investments including Charles Schwab mutual funds. However, federal law at the time forbid banks and their subsidiaries from underwriting such securities. Although Schwab initially sought to challenge the law, as its wording contained some ambiguities, BankAmerica did not want to irritate banking regulators. Tensions between Schwab and its parent were further exacerbated when BankAmerica's stock price began falling, making Schwab's stake in the corporation worth less....

Buyback and Public Offering in 1987

In 1987 Charles Schwab and a group of investors bought the company back from BankAmerica for $280 million. Seven weeks later, he announced plans to take the company public. The buyback had resulted in a debt of $200 million, and the initial public offering (IPO) was partly designed to eliminate some of this debt. It was also intended to raise money for further expansion. Schwab wanted to increase the number of branches to 120, including offices in Europe. The September 1987 IPO created a new holding company, The Charles Schwab Corporation, with Charles Schwab & Co., Inc. as its principal operating subsidiary.

Neither Schwab nor BOA story come even close to your totally made up story. If you believe Schwab he sold to BOA because he was almost broke and need cash and then they wanted to do stuff banks were not allowed to do which is why Schwab and BOA got into fight and agree to sell Schwab back to him at a nice profit or if you believe BOA version of the story then because BOA was under a hostial take over bid and need cash they sold Schwab raise cash. But still no were near what your story claims either.

Dman081 said:One thing I don't think has been mentioned...Fidelity accounts are not FDIC insured, only SIPC. In reality not much of a difference. But, its still nice to have.

That was your statement. You can break it up anyways you want. You claimed there was "not much of difference between SIPC and FDIC" which is clearly not true. You made the same claim in the Fidelity thread. While I agree investing in MMF is pretty much risk free. The fact you have SIPC has no impact on how safe your money is invested in MMF. The fact very few MMF have ever lost money is has nothing to do with SIPC vs FDIC is directly responsible for depositors in banks having never lost money as long as they maintained less than the insurance limits.

If you dont understand the difference I am sorry your long and twisted post has little to no relevance. And nothing more than desperate attempt to retract your own statement and spin in a positive way.

dolmar said:Almighty1 said:I wouldn't worry too much about Charles Schwab going under since if you guys didn't know, Charles Schwab at one point was the largest shareholder of Bank of America Corporation. That's the reason they were able to be bought by Bank of America in the 1980's and then buy itself back from Bank of America 2 years later and then the company went public.

I dont know everything in the statement above is completely wrong.Link or here. I can link many more sources on the subject.

All of them tell a very different story than yours.Source

BankAmerica was dealt huge losses in 1986 and 1987 due to the placement of a series of bad loans in the Third World, particularly in Latin America. The company fired its CEO, Sam Armacost, although Armacost blamed the problems on his predecessor, A.W. (Tom) Clausen, who was then appointed to replace Armacost. The losses resulted in a huge decline of BankAmerica stock, making it vulnerable to a hostile takeover.

First Interstate Bancorp of Los Angeles (which had originated from banks once owned by BofA), launched such a bid in the fall of 1986, although BankAmerica rebuffed it, mostly by selling its FinanceAmerica subsidiary to Chrysler and by selling the brokerage firm Charles Schwab and Co. back to Mr. Schwab. On the day of the 1987 stock market crash, BankAmerica was trading at $8 per share, although by 1992 it had rebounded mightily to become one of the biggest gainers of that half-decade. The selling of the corporate headquarters building in downtown San Francisco to raise capital was a symbolic blow to the bank.

Now if you look at Schwabs web page source above.

The sale to BankAmerica may have provided needed capital, but it also fettered the company with banking regulations. Schwab wanted to offer new, proprietary lines of investments including Charles Schwab mutual funds. However, federal law at the time forbid banks and their subsidiaries from underwriting such securities. Although Schwab initially sought to challenge the law, as its wording contained some ambiguities, BankAmerica did not want to irritate banking regulators. Tensions between Schwab and its parent were further exacerbated when BankAmerica's stock price began falling, making Schwab's stake in the corporation worth less....

Buyback and Public Offering in 1987

In 1987 Charles Schwab and a group of investors bought the company back from BankAmerica for $280 million. Seven weeks later, he announced plans to take the company public. The buyback had resulted in a debt of $200 million, and the initial public offering (IPO) was partly designed to eliminate some of this debt. It was also intended to raise money for further expansion. Schwab wanted to increase the number of branches to 120, including offices in Europe. The September 1987 IPO created a new holding company, The Charles Schwab Corporation, with Charles Schwab & Co., Inc. as its principal operating subsidiary.

Neither Schwab nor BOA story come even close to your totally made up story. If you believe Schwab he sold to BOA because he was almost broke and need cash and then they wanted to do stuff banks were not allowed to do which is why Schwab and BOA got into fight and agree to sell Schwab back to him at a nice profit or if you believe BOA version of the story then because BOA was under a hostial take over bid and need cash they sold Schwab raise cash. But still no were near what your story claims either.

Since where did I say I made up the story. This was something I read years ago because I remember Charles Schwab & BOA were very close to each other in the 1980's so I did a search. I only said they were the largest BOA shareholder back then. I never said why they were sold back to SCH with all the details.
All the sources you linked to aren't going to give you much detail. The search I found atleast a year ago was something about how Schwab became so successful during some interview and no one really knows what happened except BOA and SCH internally. So you have to first find the story that actually has Schwab talking about the leverage he had first to make BOA buy them since none of the links you posted contained anything other than BOA bought SCH for a x amount of money in 1983. And everyone knew about BOA in trouble financially. But the point I was trying to make is that SCH is not going under anytime soon and not trying to start a flame war or anything. Every company will sell a company for a reason or another. Regardless, Charles Schwab Corporation still exists today which is already 20 years later.

Just a update: The info I read came from some review in 2004-2005 of a book called:
Charles Schwab: How One Company Beat Wall Street and Reinvented the Brokerage Industry.

TheWalL said:Can we escape the hardpull by opening account in-line at one of their stores?

They have only one store and that's in Reno, Nevada. The Charles Schwab branches you see are Charles Schwab & Co., Inc., the brokerage firm and not Charles Schwab Bank, N.A., the bank which has only one branch along with ATM's at that one location. I have 16 accounts each with both the brokerage and the bank and I have never had anything pulled from my credit report from the bank side. The brokerage side did pull it but that was back in the mid-late 1990's when I initially opened each of my accounts. I think with banks, as long as it's in person, they usually don't pull your credit. Even though Schwab Bank Investor Checking is 4.25%, I'm still keeping a $0.00 balance there and just let it overdraft from brokerage as my brokerage is earning 4.73% using SWMXX as the Money Market Fund.

Almighty1 said:TheWalL said:They have only one store and that's in Reno, Nevada. The Charles Schwab branches you see are Charles Schwab & Co., Inc., the brokerage firm and not Charles Schwab Bank, N.A., the bank which has only one branch along with ATM's at that one location.

hmm....but the checking account is coupled with the brokaerage account...so in theory you can still open that account at one of these brokerage firms? No??</blockquote>

Minor point reguarding MoneyLink (the Schwab ACH transfers)

You cannot transfer direct from Schwab checking to another checking account. You have to go through the Schwab one brokerage account. It's on hold for 2 days after you transfer. I called them up and they told me they don't have the feature to go direct checking to checking... kind of a hassle to transfer money but for free ATMs/paper checks and good interest rate it's worth it...

Easy work around would be just initiate the transfer from a none-Schwab savings or checking account like ING

Anyone who lives in Northern NJ, which credit bureau did they pull from??

thanks,
i just cant risk any more Experian pulls, is killing me.

Note that if you get an investor checking account, Schwab will no longer issue you checks that clear directly off the brokerage cash account. And the ability to do ACH pulls out of the brokerage account will be iffy.

Several months ago a CSR told me that the Schwab Bank Investor Checking effetively usurps the brokerage accounts checkwriting ability.

(However, as laid out in my earlier post, you can still keep your money in the brokerage account, and use it as a free and unlimited overdraft source for the Bank account. Also, the MM sweep option in the brokerage account is only available for combined household balances over $500k).

I confirmed the two trial deposits in my external banking account, but apparently it'll take TWO WEEKS for Schwab to verify it? WTH?