Charles Schwab Referral Bonus Up To $500

Update: Now a soft pull

The Offer

Direct link to offer (this just shows you the offer details. You can’t sign up using this link otherwise you won’t get the bonus. You need to use a referral link)

  • Charles Schwab is offering a referral bonus of up to $500 when you’re referred by a friend with a Charles Schwab account and open a new eligible account. The bonus you receive depends on your net deposit (this must be maintained for one year, minus any market losses):
    • Deposit $1,000-$24,999 and get a $100 bonus
    • Deposit $25,000-$49,999 and get a $200 bonus
    • Deposit $50,000-$99,999 and get a $300 bonus
    • Deposit $100,000 and get a $500 bonus

The Fine Print

  • Offer valid for referred individuals who do not currently have a Charles Schwab & Co., Inc. (“Schwab”) account (other than a Stock Plan Services account) and who open and make a qualifying net deposit into an eligible retail brokerage account within 45 days of enrolling in the offer.
  • Net deposits are assets deposited into the enrolled account minus assets withdrawn from the account and transferred out of Schwab.
  • Only outside assets new to Schwab qualify; assets transferred from affiliates other than Schwab Retirement Plan Services are excluded.
  • Net deposits will be calculated as of the 45th day after enrollment, and the bonus award will be credited to the enrolled account within approximately one week.
  • For taxable accounts, you must maintain the net deposit amount (less any market losses) at Schwab for at least one year or Schwab may charge back the bonus award.
  • Schwab reserves the right to change the offer terms or terminate the offer at any time without notice.
  • This offer is limited to one per account, with no more than one account enrolled per client.
  • It does not apply to accounts managed by independent investment advisors, the Schwab Global Account™, ERISA-covered retirement plans, certain tax-qualified retirement plans and accounts, or education savings accounts.
  • The bonus award, when combined with the value received from all other offers in the last 12 months, may not exceed $5,000 per household, as defined in the Charles Schwab Pricing Guide for Individual Investors.
  • This offer is not transferable, saleable, or valid in conjunction with other offers and is available to U.S. residents only.
  • Employees, contractors, or persons similarly associated with Schwab or a Schwab affiliate; their spouses; and employees of any securities regulatory organization or exchange are not eligible. Other restrictions may apply.
  • Consult with your tax advisor about the appropriate tax treatment for this offer and any tax implications associated with receipt before enrolling. Any related taxes are your responsibility. For taxable accounts, the bonus award will be reported on your Form 1099-INT. IRS guidance may impact your ability to make more than one IRA-to-IRA rollover in a one-year period.

Our Verdict

Previously the bonus was $100, but didn’t have a deposit requirement. Looks like both the checking account and brokerage account are eligible for this offer, opening either account is a hard pull on your credit report but both of the accounts are useful for different reasons (and you can open both and only one hard pull will be done).

Keep in mind you actually need to be referred for this offer, previously it wasn’t required but they are verifying you are verified these days so keep that in mind. The person who refers you doesn’t get anything, so it can be difficult to find somebody to refer you. I’ll add this to our list of the best brokerage bonuses due to the new tiered payout structure.

Do not request a referral in the comments below. You can request a referral in this dedicated thread. 

Hat tip to YCX, nathan, and Tom

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Patrick Spranger
Patrick Spranger

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ritholtz
ritholtz

Planning to open Roth IRA with kid. We can put what ever amount he is earning into his account right?
Thanks

David L Lambert
David L Lambert

I need a referral code. send to 1davidlambert1@gmail.com

Sam
Sam

How would they pull your bonus if you close your account and took your money out? I actually want to keep the account cause the checking is useful but I also want to use some of the cash I put in to get the bonus to begin with.

zeer0
zeer0

8/2 – Opened Schwab account with referral (Brokerage and checking). Deposited $2k into brokerage account.
9/22 – $100 bonus posted to Brokerage account

No hard pull. Will keep account for international travel. I was actually hoping to use it when traveling through Europe this summer but the “checking” account took over 2 WEEKS to open so I did not receive the debit card before leaving. My advice is to open this account way in advance if you plan to use it while traveling.

Sam
Sam

traveling through europe? I feel like your post is in another year….

LJ
LJ

I have a IRA at schwab already. Can I use this offer for myself, to open a regular brokerage account?

Tommy
Tommy

Opened Brokerage and Checking on Aug 15
Deposit $1k into brokerage upon opening
Bonus deposited on Sept 20
No Hard Pull

Ryan
Ryan

In order to get this bonus, you have to open brokerage and checking both? can I just open a brokerage account?

Tommy
Tommy

just the brokerage is ok. the bonus is only on the brokerage side anyway.

Ryan
Ryan

Ok then I want to open an account with this promotion. If you dont mind, would you please send me the referreal link for brokerage account? You can send the link to onhisson at Gmail dot com. Thank you.

Tom
Tom

Only the minimum $1k amount for $100 is worth doing since you have to keep that amount in deposit for 1 year or loose the bonus.

Not bad if you don’t mind tying up $1k for a year. The $100 bonus equates to 9.56897% interest in 1 year on $1k. That interest quickly erodes to less then 0.415873% with a $24k deposit, and much less for the other bonus amounts. So less is best.

$1k, $100, 1yr, equivalent interest: 9.56897%, 10% APY
$25k. $200, 1yr, equivalent interest: 0.797082%, 0.8% APY
$50k, $300, 1yr, equivalent interest: 0.598356%, 0.6% APY
$100k, $500, 1yr, equivalent interest: 0.498858%, 0.5% APY

zeer0
zeer0

Yeah, this is how it typically goes. The higher the bonus tier the lower the actual %.

Ryan
Ryan

Hi, Tom. I want to open an account with this promotion. Could you please send me the referreal link for brokerage account? You can send the link to onhisson at Gmail dot com.

stan
stan

Interesting, esp since I have an Ameritrade account and that Schwab now owns and will be merging in the coming years.

Sam
Sam

Does Schwab actually claw back the award if you transfer out after the promo period?

Tom
Tom

After promo period no. However, you must keep the account open for 1 year with the full amount.
“The bonus you receive depends on your net deposit (this must be maintained for one year, minus any market losses):”