Is it just me, or has Charles Schwab been making some pretty consumer friendly moves in the last year? It’s no secret that millennials will soon be the largest group of people, and attracting them is only in their best interest. It seems like them trying to compete with Robinhood and other smaller online brokerages is really what fueled things for them. However, it seems they have made another move that may be
In an interesting move, Charles Schwab has removed the hard pull requirement when signing up for the brokerage/checking account.
This is huge news! While it’s ideal to use your credit card wherever you go to maximize all of the points you can get, there are still plenty of countries and plenty of services that do not take credit. In this case, you would be forced to use cash, or if you’re lucky, they may take debit.
Charles Schwab has been famous for their debit card that does not have an foreign transaction fee when taking cash out, or when using it to buy things directly. All you need to do is open up the Brokerage account, which also opens up an accompanying cash management account. The only thing that stopped me from doing this was the hard inquiry. I know that at the end of the day, hard inquiries aren’t the end of the world, but I couldn’t justify it for a debit card! At least not until I finished collecting all of the credit cards that I am interested in.
In either case, with the Charles Schwab debit card, you can either take cash out at the ATM or directly pay with debit without the foreign transaction fee. If you don’t already have an account with Charles Schwab, and are thinking that you may travel (hopefully we can soon!) sometime in the near future, this could be a good opportunity for you to grab the card.
If you wanted an alternative card, the Fidelity debit card is also a pretty good option too. The only difference is that there is a 1% foreign transaction fee if you use the debit card directly. Otherwise they do not charge you anything for to take money out. Whichever option you choose is definitely a good one and better than being stuck in a situation where you’re getting overcharged for no reason.
What do you think about this move? If you don’t already have the account, would you consider signing up now? Let us know down in the comment section below!