<<I'll try to dig up the number and post it when I get into work this morning.>>
The Schwab service is called "Schwab One Access." The 800 number is 888-274-5738 (I think -- try it, in any event).
The service is pretty cool -- basically, the convergence of banking and investing. The idea is that you direct-deposit your paycheck to Schwab(or periodically deposit money manually). Then, for no charge, you get:
--Unlimited, no-fee checking. Funds on deposit earn money market rates, unlike most banks.
--Account insurance up to $500,000 through SIPC (not FDIC, along with extended coverage for securities on deposit)
--a Gold VISA debit card for routine purchases (I don't think brokerages can offer credit cards directly). Also, I wonder if you can draw against your margin excess with the card?
--Six free ATM transactions per month. After the six, Schwab will charge you 50 cents per transaction. The bank providing the ATM service may charge you as well. (This is decidedly the weak link in the service, i.e. getting your $ in and out of the system). Like NetBank, this is presumably offset by earning money market interest on your checking account.
I'm sure that in the years to come, some smart folks will find a way around the ATM premium (through smart cards, or whatever).
--A separate "banking" statement that is mailed with, but completely separate from your Schwab investment accounts.
--Ability to download activity and positions to Quicken, Money, etc.
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Schwab charges $5.95/month for the bill pay service, and the fee for Schwab "Active Traders" is waived for six months. After 15 transactions per month, they charge 50 cents per payment. CKFR does the back-end processing, and judging from the web link I posted last week, it looks like e-billing is in the works as well.
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All-in-all, this is the tip of the iceberg and an enormous wake-up call for banks to get their sh*t together. In my (ever-humble) opinion, over time, most American consumers would be more comfortable letting their trusted brokerages (Fido, Schwab, DLJ, E-Trade (?),etc.) act like banks (after all, its just a direct deposit change we're talking about), rather than have their bank act like a broker (i.e. major issues like quality of trade execution, dispute resolution, margin lending, customer service, excessive fees, etc.)
If the typical consumer ever really sat down to think about it, with the proviso that you can *trust*, say, Schwab or Fido, why WOULD one stay with Citi, for example, where I haven't stepped foot into a branch in two years, and they don't pay me any interest on my money and try to charge me some new convoluted fee every step of the way???
Interesting stuff......
Regards, RK |
