In a survey of over 4,200 Kiplinger readers earlier this year, Charles Schwab was the overwhelming favorite among respondents for internet banks. It’s won the annual Kiplinger Readers’ Choice Awards in this category three times and it’s not hard to see why readers love it.
“Schwab bank is perfect,” raved one Kiplinger reader, adding that the internet bank “goes above and beyond and is absolutely the best in customer service hands down.”
Whether you’ve been considering Schwab bank specifically or you’re just exploring your options for moving your money away from your current bank, find out why Kiplinger readers voted Charles Schwab the best internet bank for the third time.
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1. Manage all of your wealth in one place
One of the most cited reasons Kiplinger readers keep choosing Schwab as their favorite internet bank: the convenience of being able to manage all of their accounts at one institution.
“I like housing our checking, savings, brokerage and IRAs in the same place,” wrote one reader. Alongside all the typical checking and savings account options you expect from any bank, Charles Schwab also offers various loan products, retirement accounts, brokerage accounts, money market funds and even a trading platform.
With all of your finances on one dashboard, it’s easy to move money around and monitor your complete financial picture.
2. No unnecessary fees
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No one likes getting nickel-and-dimed by their bank. At a time when just about every major financial institution seems to be charging everything from “maintenance fees” to ATM withdrawal fees, Schwab’s fee-free checking accounts are a breath of fresh air.
A Schwab account “costs nothing and works well,” said one reader. Not only will you not have to worry about getting hit with maintenance or inactivity fees at Schwab, but the internet bank also covers fees you might be charged elsewhere.
“They pay any fee on any ATM that I use,” said one enthusiastic Kiplinger reader. Schwab is one of the few banks to offer unlimited ATM fee rebates. That’s a relief when you need cash. There’s no need to track down a Schwab location for a withdrawal. You can head to whatever machine is closest to you and grab the cash you need without worrying about fees.
Those fee rebates apply to any ATM fee anywhere in the world. Between that and the zero transaction fees, Schwab checking accounts are just as great for travelers as they are investors.
3. FDIC insurance and robust security features
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When it comes to your cash, you don’t want to cut corners with security. That’s one area that sets Schwab apart from others. Many internet banks are technically fintech companies that partner with brick and mortar banks to offer banking services. As the 2024 bankruptcy of Synapse Financial Technologies revealed, fintech companies aren’t FDIC insured because they aren’t technically banks. That can leave your money vulnerable if the company goes under.
You don’t have to worry about that here because Charles Schwab is a true member FDIC bank, so your checking account is insured up to the standard $250,000.
In addition to being FDIC insured, Schwab accounts come with other security features like fraud alerts, travel notifications and the ability to quickly and easily lock or unlock your debit card as needed to prevent theft.
Where you bank is just one piece of your financial picture. If you’re looking for help bringing your savings, investments and retirement strategy together, a financial adviser can help you build a plan around your goals.
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