Great Card If
- You’re a Charles Schwab customer.
- You want a card that will help you reach your investment and retirement goals.
Don’t Get If
- You don’t invest and bank with Charles Schwab.
- You want a card that offers bonus categories for the items you spend the most on.
Schwab Investor Card: Is It Worth It?
For those who invest with Charles Schwab, the Schwab Investor card offers a convenient way for you to earn 1.5% cash-back on all purchases that is automatically deposited into your eligible Schwab account, with a $0 annual fee.
That said, even for Charles Schwab investors, you might find yourself better off by using a card that earns a flat 2% back on all purchases or a card that offers bonus categories for the items you spend the most on, and then depositing those cash-back rewards into one of your Charles Schwab accounts.
Schwab Investor Card Top Benefits
Here is a look at what perks you can expect by adding the Schwab Investor card to your wallet:
- $0 annual fee: Use your card to earn cash-back rewards without paying an annual fee.
- Car rental loss and damage insurance: Receive secondary coverage of up to $50,000 toward accidental damage or theft of your rental car.
- Purchase protection: Receive up to $1,000 in coverage toward accidental damage or theft of items purchased with your card within 90 days of purchase and up to $50,000 in coverage per calendar year.
- Extended warranty protection: Extends the manufacturer’s warranty by 1 additional year on eligible warranties of 5 years or less.
- Access to Amex Offers: Upon enrollment, earn additional cash-back or statement credits with dozens of select merchants each month.
Best Ways To Earn and Redeem Your Cash-Back Rewards
Of course, the best way to maximize the cash-back you earn with the Schwab Investor card is to use it for as many purchases as you can to take advantage of the 1.5% cash-back rewards.
Schwab deposits all of your cash-back rewards 8 to 12 weeks from the date they are earned into an eligible Schwab account, like a Schwab One or Schwab general brokerage account. Note that you must at least make the minimum payment due on your billing statement in order to receive your cash-back rewards.
Alternative Cards to the Schwab Investor Card
American Express Platinum Card® for Schwab
If you’re a Charles Schwab investor, the Amex Schwab Platinum card is strongly worth considering because it combines the fantastic perks and benefits of The Platinum Card® from American Express with a few unique features exclusive to Schwab customers.
For starters, you can redeem your Amex Membership Rewards points into your eligible Schwab account at a rate of 1.1 cents per point for up to 1 million points per calendar year. Additionally, this isn’t limited to points earned with your Amex Schwab Platinum card, as you can pool your points earned across other personal and business American Express cards that earn Amex Membership Rewards points.
Plus, cardholders can earn a $100 statement credit if your qualifying Schwab holdings are equal to or greater than $250,000, a $200 statement credit if your qualifying holdings are equal to or greater than $1 million, or a $1,000 statement credit if your qualifying holdings are equal to or greater than $10 million.
If you prefer a simple, no-annual-fee cash-back card, the Citi Double Cash card could fit the bill perfectly. It earns an uncapped 2% back on all purchases (1% back when you buy, 1% back when you pay), allowing you to earn 33.3% more cash-back than you’d earn with the Schwab Investor card. Once you redeem your cash-back rewards into your bank account, you can simply deposit those rewards into your Schwab investment accounts.
