Charles Schwab offers a competitive interest rate for their online savings account called High Yield Investor Savings. The current interest rate is pegged at 1.05%.

The money in the bank deal may not be that attractive when you look at the interest rate but it has a pack of nice features:

This savings account does not have any check writing privileges. There is also a limit of six non-ATM withdrawals per month.

If you want to take advantage of this online bank offer, you may also take advantage of their brokerage account. You can utilize this so you can use their MoneyLink service to throw fund in and out of your account from other banks. We have feedback that the service is quite good and fast. The MoneyLink option may be more convenient than the EFT facility.

The 1.05% may be a bit low compared to the current interest rates of online savings account from other banks. It is still very competitive though and Schwab might be thinking of keeping this interest rate for a while. This is a good addition if you are already a Schwab client and boost your rates while making use of funds that you don’t immediately need.

Charles Schwab is insured with the FDIC. However, if you will be taking a brokerage account, it will be covered by another company and not insured by the FDIC.