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dylan
dylan

is it possible to do this if i did the Schwab starter kit offer

AW
AW

Can I only open a Roth IRA account? (without a checking account). If so, where does be the bonus money go — into Roth IRA?

Ben

AW Not sure if you can have just a Roth IRA with Schwab but the bonus will be paid to your Roth IRA (even if you have a checking account)

007
007

Yes, no need for checking account with Schwab.

Leo
Leo

04/26/2021 – Signed up via referral link, ACAT $100,000+
06/15/2021 – Received $500 bonus
07/08/2022 – Closed account

07/14/2022 – Signed up via referral link, ACAT $100,000+
09/15/2022 – No bonus yet. Chatted in and they said I wasn’t eligible as I was a previous client. Mentioned to Chat rep that the terms explicitly state “Offer valid for referred individuals who do not currently have a Charles Schwab & Co., Inc. (“Schwab”) account.” Rep said to call in and speak with Promotions team for further review.

Leo
Leo

09/21/2022 – $500 bonus posted after an exception was granted by Promotions team.

Leo
Leo

Also wanted to add that P2 was also denied $500 bonus but didn’t pursue further as the $2,000 bonus from Public is 4x more and only requires a 6-month holding period. Schwab’s service this past year has gone downhill from what they used to be.

BG
BG

If you didn’t get the “Thank you for enrolling in Schwab’s Referral Offer” email I think you will not automatically qualify at the end of the 45 days. If you look at the earlier posts, it’s going to be a pain to try to churn this since previous customers, even with only closed accounts, does not quality without manual intervention.

20201103
20201103

“07/08/2022 – Closed account”
Are you sure the first account was actually closed? Doing a full ACATS out leaves the account open with zero balance, and you have to contact them to close it as an extra step (or it autocloses after about a year).

BG
BG

My DP is that even if the account is fully closed, as in you can no longer log in, the referral promo does not automatically apply on a new account.

20201103
20201103

Okay thanks for DP. P2 has “account fully closed, as in can no longer log in”. Will have to think about it (maybe open and see if we get email, before transferring – won’t mess with appealing if it fails).

Jelena
Jelena

I am so confused. The article says the money has to be kept for a full year, bur the landing page says 45 days. What I’m misreading?

007
007

Landing page, full terms and conditions: “ 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.”

20201103
20201103

In a taxable account they could clawback, per terms. In an IRA you can pull it out as soon as the bonus posts with no clawback (I confirm the latter from experience).

Terp
Terp

Think it’s possible to pull assets out of IRA after getting bonus and then sign up again and transfer those same assets in again for another bonus? I don’t see anything in the terms against that.

20201103
20201103

I haven’t tried this yet (but might). Other DPs here aren’t hopeful.

Ricky
Ricky

Say I got the $500 bonus for $100,000 deposit. Will they claw that back if I need to pull out some before the year is up? And it puts me under the $100000 mark but not emptying out my account

20201103
20201103

In a taxable account the could clawback, per terms. In an IRA you can pull it out as soon as the bonus posts with no clawback.

BG
BG

I used to get a “Thank you for enrolling in Schwab’s Referral Offer” email about a day after signing up. The email would clearly tell you when your 45 day period was done and when the contribution amount was calculated. The latest signup however didn’t generate the email. Anyone else have this issue?

007
007

I didn’t receive any such email. Do have screenshots of sign up process. Never been a Schwab customer before nore done this bonus, didn’t know it could be churned.

BG
BG

There seems to be some system changes implemented recently, maybe around April or May. The signup process didn’t change so what I saw was the same as you probably. But a few things I noticed, one is when I ACATS out from my account they don’t auto-close the account. I had to manually request the closeout. Closing out is required to churn since you can’t create a new login and apply the referral code if you have an account open. Second, no “Thank you for enrolling in Schwab’s Referral Offer” email after signing up. But instead I get another set of welcome emails that makes no mention of the referral offer. Lastly in some cases I’m able to see statements from my old closed accounts in my new account, which indicates they’re linking accounts. It makes me feel like they’re trying to discourage or disable churning.

007
007

Probably not the question you wanted, but did they charge you $75 fee if you did full transfer out but account wasn’t closed? Also, I’m guessing this fee applies to IRAs also? Trying to plan my exit strategy

BG
BG

Their full ACATS fee is $50, including for IRAs

20201103
20201103

Can you update whether or not you get the bonus.

You describe how you can repeat it if you totally close the previous account, but what you said makes it unclear if even that will work now.

BG
BG

Update since it’s been 45+ days since both my enrollment date and funding date. Schwab said that I’m not eligible for the referral bonus because I previously had a closed account. I mentioned the terms on the website doesn’t exclude people with closed accounts, but it didn’t seem to matter with the agent I spoke to. I was unable to get the exemption as another person mentioned before. YMMV with exemptions I guess, but apparently their system update now checks for closed accounts.

007
007

So my update is that I didn’t automatically get the promotion and am in the process of getting it escalated via phone support. So maybe there is some issue on the back end with automatic crediting? I should be eligible as far as I know.

BG
BG

007 your account is 100% new? As in you didn’t have any Schwab accounts prior? If so you should definitely be eligible. I’m not sure if their system update messed up the promo detection.

007
007

Yup, 100% new. It looks like promotions team has already applied promotion now, I received voicemail and confirmation email that says will get bonus within a week. We’ll see what happens with P2 who also did it and received no confirmation emails when signing up, their timeline is a bit later.

esther
esther

Do I have to call 800-398-8640 to enroll this offer? Can I just click “open an account” in a referral link? THX

007
007

Just click open an account on main Schwab site. First question is referral code which is the REFER… text at the end of your referral link. You’ll see terms right after you enter the code

Ben

Schwab defines New as no previous or current relationships. I closed my Schwab Checking and Brokerage accounts before going after this offer with Traditional and Roth IRAs. Confirmed with agents multiple times during account opening and asset transfer that I would qualify but the bonus didn’t post automatically. Currently working with an Investment Specialist to have an exception processed / approved

Ben

Escalation / exception was approved after a few days and bonus posted a few days after that.

007
007

Thanks. Reading the terms, it seems that for a Roth IRA (i) bonus amount depends on value after 45 days (as opposed to Merrill Edge which counts value at transfer) and (ii) there is no one-year holding period for a Roth IRA (only for taxable accounts) after bonus is deposited so could pull funds afterwards for another bonus. Is this correct? Thanks!

Ben

007 it’s not account value at 45 days, it’s net deposits on the 45th day. That way you’re not impacted based on market fluctuations after your transfer(s) completes

Agree on the second point though – no 1 year holding for the Roth IRA

007
007

Ah, I see, even better. Thanks for your super rapid reply!

007
007

Thanks again! Ben you mentioned doing the bonus for both your Roth and traditional IRA accounts. Is this bonus generally available for multiple accounts? If so, is the bonus based on the total amount or each account gets separate bonus (so $100k in Roth plus $100k in traditional gets $500 each or just a single $500 for aggregate amount)? Thanks!

Ben

007 I opened both a Roth and Traditional IRA to do mega backdoor Roth IRA contributions / rollovers, not to do the bonus for two separate accounts. Pretty sure you’d only be able to get the bonus on one of the accounts

007
007

I see, thanks for clarifying! That is what I thought re bonus but wanted to make sure.

Paola
Paola

Hi! Need some help! I opened the Individual Brokerage account under the $50 Bonus Start Kit last year in December. No hard pull. I would like to open the checking account for the ATM reimbursements. Is this still a hard pull as of 2022? Appreciate any input!

Some1odd
Some1odd

Schwab stopped doing hard pulls… but they are still Chex sensative and known to shutdown checking accounts shortly after opening if they don’t like what they see on Chexsystems.

Ben

Paola I opened Roth + Traditional IRAs in early March 2022 and then Brokerage + Checking accounts in early April 2022. No hardpulls were done as part of the account openings.

Paola
Paola

Thank you for the feedback. I definitely have been churning a lot bank bonuses in the last six months. I might wait a few more months to open the checking account then.

ShawntheShawn

Paola You do not need to open the checking account. The brokerage account has debit card and check writing feature that you can enable. The associated debit card also offers global ATM fee reimbursements. And you can avoid a Chex hit in this way.

killdozer
killdozer

Is this churnable? Dont see any language saying otherwise. Did the $100 bonus for $1k deposit, closed in Q2 2021. Edit: ehh… not really worth it to keep for 1 year. $500 for $100k is 0.5% for 1 year, a bad offer unless you plan to actually invest with them.