Update 12/11/21: Added new $1,000 bonus tier with $500,000 deposit. Hat tip to reader Parts Unknown
Update 3/31/21: Requirements for the $100 bonus are now the same as they were for the $200 bonus and the $200 bonus has been removed entirely. Disappointing to see as it makes the offer far worse.
The Offer
Direct link to offer (READ CAREFULLY: 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 $25,000-$49,999 and get a $100 bonus
- Deposit $50,000-$99,999 and get a $300 bonus
- Deposit $100,000-$499,999 and get a $500 bonus
- Deposit $500,000 and get a $1,000 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- Net deposits are assets deposited into the enrolled account minus assets withdrawn from the account and transferred out of Schwab.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 Accountâ„¢, 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).
- Opening the brokerage account makes you eligible for the Charles Schwab American Express cards.
- The checking account refunds all ATM fees (including international withdrawals) and does not charge any forex fees making it a great option for overseas travel.
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.Â
Hat tip to YCX, nathan, and Tom
Update: Now a soft pull
Does anyone have a recent 2023 datapoint on the bonus working for current TDAmeritrade clients? I ask cos Schwab bought TDAmeritrade and some TD accounts have started the conversion to Schwab. Mine has been converted over yet … wondering if its too late.
I had an account with TD ameritrade a few months back in March and recently opened Schwab about a month ago in late May. I still haven’t received my bonus for the Schwab starter kit, but I talk to support and they said they put in a ticket for me to get the bonus and I’m waiting for it to be resolved. Long story short, if you have a open TD ameritrade account and then decide to open up a Schwab account, without talking to support you will most likely not qualify as it seems they count you as an existing customer. Ill update you to let you know if I get the bonus.
Thanks for the datapoint. I guess I’ll pass on this, better to focus on ones I can qualify for eh 🙂
I might have made a mistake were you talking about the Schwab starter kit bonus where you deposit 50 and get 101, or the referral bonus? I was referring to the Schwab starter kit 101 bonus.
I was asking about the larger bonus but no problem at all. If it won’t work for a $101 bonus then I suspect it wouldn’t for the larger amounts. Thank you for the feedback
I opened a td Ameritrade account on 4/25 and received their promo bonus for transferring assets on 5/10.
I opened the Schwab 101 starter kit on 5/10 and received the bonus on 5/16
This is good news … Thanks for the feedback. I might try the starter kit, decided to go with another broker to guarantee the higher bonus. When that’s done, I might circle back.
If my husband opens a new brokerage account with this starter kit for $101, can he then fund it with more than $5000 to use their Intelligent Portfolios feature?
Schwab’s new $101 bonus is very similar to Fidelity’s starter pack. please make a new post or sticky.
I have had account in the past (which had earned the signup bonus at the time) but closed more than a year ago. Will I still qualify?
I’ve done this multiple times. Should qualify as long as you don’t have an account currently open.
Never trust Charles Schwab, they will find any excuse to not give you the referred bonus. I opened a brokerage account under my friend’s refer on Feb 12. After 45 days, when I asked Charles Schwab about my $500 bonus. They told me that I have an IRA account in TD Ameritrade which was opened 20 years ago, and they already acquired TD Amertrade in 2021, so I am no valid to get the bonus. What a shame on Charles Schwab.
Wtf? Sure I had a TDA account but not a Schwab account. Is that why I never got paid for this? With the $75 transfer fee from my old bank I’m losing money here.
Can we use this and put the money in the Schwab One® account to buy brokered CDs?
How soon do they deposit the bonus into your account? I opened my account around 12/6/2022 by using a referral link and made the deposit shortly after, but I have not seen the bonus deposited yet.
Are existing TD Ameritrade customers eligible for this offer? When I sign up there’s a popup which says “We see that you already have a Schwab account, or a TD Ameritrade account that will move to Schwab.” I’m worried that if I open an account I won’t get the bonus.
Any answer to this question? I’m scheduled to be moved from TD Ameritrade to Schwab next month, but would like to get the bonus. Is it possible, or am I considered an existing account?
I called TD Ameritrade and Schwab. TD said having a Schwab account would not disqualify, but Schwab said having a TD account would disqualify. While yesterday via online chatting Schwab said otherwise. So I guess no one really knows at the moment.
Same situation for me. Whatever I opened the account anyway.
Ready to argue with them in about 8 weeks, per this timeline, “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.”
Is Schwab churnable?
Is a checking account considered a taxable account? (and thus vulnerable to clawbacks?)
Yes.