Charles Schwab Referral Bonus Up To $500 (New Requirements)

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 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  • Net deposits are assets deposited into the enrolled account minus assets withdrawn from the account and transferred out of Schwab.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

Update: Now a soft pull

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Frogger
Frogger

How does this make the best bonus. Deposit 25k to get $100?

Ken
Ken

Be careful on this. Even though my wife clicked through my referral link the offer was never attached to her account. And when I asked why the bonus never posted they claim to be asking the promotion team if it’s allowed and she’s still waiting. So be sure to chat them up to make sure the promotion is attached to your account.

Bertha
Bertha

Second this.
3/7 P2 clicked through my referral link
Today still no bonus. Chatted to ask about this. CSR said “Ok, it looks like there was no referral code entered, however, there were deposits made to the account. Can you retrieve your original referral code, and we can submit that for an exception.” I copied the referral link into the chat. CSR said “Let me submit this. It will take 1-2 business days to be reviewed, and then a qualifying bonus would be paid out within one week following.”

Ken
Ken

Did you ever get the bonus deposited? They claimed they’d also send a message, but that hasn’t shown up either and it’s been nearly a month..

Bertha
Bertha

The chat happened just today. I’m hoping I’ll see the bonus in a week. Will report back when bonus posted. So sorry it’s been a long time for you. Thank you for your first post that prompted me to chat and inquired for P2. Mine posted promptly as their promised timeline.

Ken
Ken

Three weeks later today and still no message form the “promotion department” that they promised.

Just chatted again. Apparently I had a Schwab company account with them in 2013. I left that company in 2014. So the account remained open with a $0 balance for 6+ years unbeknownst to me. He can’t even close that account either, only the plan administrator can, and he sold the business several years ago. What a mess.

He did throw $50 my way for the hassle, so I’ll take this as a win. Also, he said due to tax time things are busy so it can take days to receive messages back. Cross your fingers.

Bertha
Bertha

P2 got $100 bonus posted, 2 days after chat w CSR

Orin
Orin

William Charles you state in the verdict section that it is a hard pull , but I believe it changed to a soft pull about a year ago. I understand this is an updated post , but should update that section too

John
John

That’s a shame they upped the requirement for $100. I would always recommend Charles Schwab to friends because I had it as well and it came with an easy $100 bonus for them.

VK
VK

I have a zero balance dormant account. If I open a new account from a referral, will I qualify for the bonus? Requirements says “new user to Schwab”, but does anyone have a data point?

GengisKhan
GengisKhan

Why do they even bother to require a referral? Would they not get more deposited by not having that requirement?

Orin
Orin

Not all things make sense in this world

E
E

Does a 401 through disqualify for the bonus?

TravelBloggerBuzz

U sure? That Redditor now says:

“I got a message about it in my app… but not seeing it now. Maybe I misread it or something… going to delete my post until I can figure out whether I’m wrong.”

Tony
Tony

+1; this is a make or break QUESTION: do BOTH get bonus now, or not?

lilurbanachiever
lilurbanachiever

I think it was a mistake – no bonus for the referrers. The reddit post was indeed deleted.

Chuck

Let me update, thanks

SamL
SamL

From this language “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.” I was wondering if there would be a similar clawback for IRAs (and some including me hve asked this in this thread).

I found a DP that suggests there is not such a clawback for IEAs
https://www.bogleheads.org/forum/viewtopic.php?p=5717991&sid=9bbde02bb7da6b04a91217af594d22a2#p5717991

SamL
SamL

*IRA not IEA (typo).

Ms069279
Ms069279

Is this a bonus for the brokerage account or for the checking account?

ShawntheShawn

This bonus is for the brokerage account. Ms069279

beat2def
beat2def

I have a brokerage account I opened for the bonus and I opened a Roth afterwards. Can I move the money from my brokerage to my Roth without the clawback?