Charles Schwab Debit Card/Checking/Brokerage Acct

[SurfRider]

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"wondering ... if possibly Schwab has begun charging (not absorbing) the 1% VISA card network fee"

"Withdrew 6000 baht. My Schwab account is showing a debit of $196.42."

"I'm stumped... Never seen these kinds of over and under swings before"

Just a wild guess jfc, but possibly Schwab is giving a lower rate on smaller transactions since their processing costs on 1000 Baht are likely the same as a larger withdrawal -- I'd suggest trying 10Kor 20K and see what rate they give you.

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[jfchandler]

SR, I doubt that's the case.

I've usually done small withdrawals in the past, and always had close to IER results... So the ATM withdrawals I did earlier this week were no different than others I've done in the past, although with seemingly very different rate results...

I'll be curious to see others' rate results for Schwab ATM withdrawals in the days ahead, and see what others report.

[wimpy]

I just checked my records. On Tuesday, Jan 11, I received a rate of 30.422 from Aeon with Schwab debit.

[SurfRider]

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"I'll be curious to see others' rate results for Schwab ATM withdrawals in the days ahead"

I have to do a 30K pull sometime in the next week - will try to remember to report back.

Unfortunately, there are only three AEON ATMs in Pattaya and the central location has displayed "out of service" on its screen four out of the last 5 times I've been there. Not encouraging for the usury fee avoidance posse . . .

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[jfchandler]

Thanks Wimpy... If you note above, that 30.422 rate happens to be the exact same figure my withdrawal on Jan. 11 from AEON received...

But unlike the other withdrawal you did, the Jan 11 ones (yours and mine) were much under the IER for the day... Nice to know we're playing in the same ballpark...

I just checked my records. On Tuesday, Jan 11, I received a rate of 30.422 from Aeon with Schwab debit.

Tues., Jan 11

AEON ATM

1,000 baht for $32.87, rate 30.42

BOT IER 30.68

BOT TT 30.55

XRates 30.52

[jfchandler]

Thanks SR. I'd be glad to hear the result, assuming you're able to do a withdrawal...

Wimpy's info would tend to suggest there's just some kind of market fluctuations going on... not any fee change on Schwab's part.

As it turns out, on Jan. 11, we both did AEON ATM withdrawals and got exactly the same rate, well under the IER for that day...

Then on Jan. 12, he did an AEON pull and got well above the IER for the day... Unfortunately, I didn't do any withdrawal that day... I guess I would have been better off if I had waited!!!

I feel better now... and am relaxing a bit...

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"I'll be curious to see others' rate results for Schwab ATM withdrawals in the days ahead"

I have to do a 30K pull sometime in the next week - will try to remember to report back.

Unfortunately, there are only three AEON ATMs in Pattaya and the central location has displayed "out of service" on its screen four out of the last 5 times I've been there. Not encouraging for the usury fee avoidance posse . . .

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[Pib]

There were some pretty wide swings on the Baht to Dollar exchange rate on 11 Jan per this XE.COM chart. And I've seen other charts where the rapid exchange rate swings up and down looked like a seismograph recording of an earthquake....the exchange rate probably varied much more than normal on that day depending on bank/card system was being used to send/withdraw money. Hopefully, that is all that caused the Schwab card related withdrawals to vary a healthy amount.

Looks like Schwab has approved my brokerage account application since I got an email yesterday relating to it which included the last three digits of the account number. The application was mailed in on 4 Jan, along with applications for a checking and savings account. I expect the first thing I could see relating to the checking and savings accounts hopeful approval/setup is ACH withdrawals hitting my bank account...I authorized a couple ACH withdrawals in the applications to fund the new accounts. Hopefully the accounts will setup OK and I will receive certain account documents/instruments in the mail over the next few weeks like debit cards, checks, etc. So far, so good.

[jfchandler]

Thanks Pib!!! That really helps explain what was going on earlier this week... Just a case of bad timing and big fluctuations, I guess...

By the way, for everyone else, here's the link for XE.com's Thai Baht vs U.S. $ charts, which allow various views including the recent 12 hours, one day, one week, one month, one year, etc...

http://www.xe.com/currencycharts/?from=USD&to=THB&view=1W

I think I probably got caught in that big down spike toward the latter part of Jan. 10...since I was doing that withdrawal in the mid to late afternoon time frame.

[grin]

Used the AEON ATM at Central Airport Plaza in Chiang Mai to withdraw 30,000 THB yesterday and the day before using a Schwab ATM card:

11/01/2011 15:10 - USD 986.12 - rate 30.422

12/01/2011 15:33 - USD 982.10 - rate 30.547

Kind of strange as the exchange rate was declining from the 11th to the 12th. It would be nice to know exactly how this rate is determined. Using an ATM card to make withdrawals has one advantage over ACH transfers in that you can get a high rate on a particular day. With ACH transfers there seems to be 24 to 48 hours delay and the exchange rate can change a bit in that amount of time.

One more thing I like about Schwab is that they support Quicken "direct connect" even for the Mac and with no fees. Also the Quicken data is available in near real time and not updated just every 24 hours. For example I was able to download the above transactions about 15 minutes after making them. All transactions in both trading accounts and bank accounts are supported.

[Pib]

Thanks Pib!!! That really helps explain what was going on earlier this week... Just a case of bad timing and big fluctuations, I guess...

By the way, for everyone else, here's the link for XE.com's Thai Baht vs U.S. $ charts, which allow various views including the recent 12 hours, one day, one week, one month, one year, etc...

http://www.xe.com/cu...&to=THB&view=1W

I think I probably got caught in that big down spike toward the latter part of Jan. 10...since I was doing that withdrawal in the mid to late afternoon time frame.

And take a look at this post from Naam on 11 Jan baht/dollar exchange rate trading...looks like an earthquake being recorded on a seismograph with all the rapid variations.

http://www.thaivisa.com/forum/topic/293008-is-the-us-destined-to-collapse/page__view__findpost__p__4143236

[jerryb78]

By the way, on a related topic, the web site NerdWallet.com has updated their post (current thru January) regarding the best no foreign currency fee credit cards.... As in the past, for U.S. folks, Schwab (no longer avail. to new applicants) and Capital One top the list, particularly being in the status of generally available cards that are not limited by eligibility or other financial limitations.

just a minute guys. so, Charles Schwab will not do a fee absorbtion for new account now? I want to confirm this as i'm about to open an account with them and also want to talk to them about retirement account.

i'm here in San Francisco, California, their office is not too far from my job site. just have not find the time to go down there yet. you guys could really save me a trip if you know the info.

also, if i open an account with them, is it better to open account here in USA or in Thailand? (I'm planning to move to thailand this summer.)

if not Schwab, then who else do you recommend

[jfchandler]

Jerry, sorry for the confusion.... Let me straighten it out...

We're talking about two separate and different things here:

1. What used to be called the Schwab Invest First VISA CREDIT card...

2. What still is the Schwab VISA DEBIT card.

My post above was in reference to the Schwab credit card. That card is no longer available to new applicants, and Schwab turned over the card to FIA Card services last fall. However, for those who already have that credit card, it continues to have no foreign currency charge when used for purchases abroad and also continues to pay a real 2% cash back on all purchases.... However, there is a lot of speculation that FIA (which is part of BofA) likely will soon end at least the 2% cash back feature... since Schwab supposedly lost a lot of money on that feature and that contributed to them ceasing the card.

Then, Schwab does continue to offer/issue its VISA DEBIT card in connection with its High Yield Investor Checking and Savings accounts. Those are still available to new applicants thru Charles Schwab Bank. You do have to open a Schwab brokerage account in order to have one of the bank accounts. But there are no trading or minimum balance requirements for either the brokerage or bank accounts, which are all accessed together thru one unified online banking setup...

And yes, the Schwab VISA debit card continues to reimburse foreign ATM charges like the Thai banks' 150 baht fee and also have no foreign currency surcharge itself... So it's one of the best ATM cards available to use for anyone traveling or living abroad. And there's been no talk or any indication that anything's going to change with the debit card.

As for the location for opening the account, it's probably easier and less complicated if you use a U.S. address to do that... provided you'll be able to keep that address into the future.... Or at least, open the account there and later do an address change.

Some U.S. banks will simply refuse to open new accounts for applicants with addresses outside the U.S., or even choose to non-renew credit cards when the address is outside the U.S. I'm not saying that Schwab is one of those, and they're probably not.. But I always think it's better to not take any chances on such things.

[jerryb78]

thx for clearing this up. i got confuse a bit, sorry. once you guys start talking exchange rate....it kinda blur...LOL

some one on this board posted that Schwab start loosing their shirt with the credit card, so they stop taking any new applicant for the C/C. excellent move from a business point of view.

it is easier for me to open account in US and use US address.....until i move over sea.(i will change it before i move oversea, i'm already on my sister Tabian Ban in BKK/ have legal address in thailand) - that sound like a plan, thx for the advice

as for opening a brokage account, is there a minimum amount ($$$$) they require to open an account? not really into e-tread/stock. i do understand that you dont need to carry a minimum balance as you said.

but want to reap the benefit of having investment account/ checking/ saving account roll into one. .. and what ever advantage i can get from a bank.

(do they do 403B / IRA account? sorry, i'm not very good with these stuff.)

I want to roll my 403B into IRA after i quite my job and move over sea, ( i just want access to it if i ever needed it.- emergency only)

thx for helping a novice

:jap:

Edited January 17, 2011 by jerryb78

[Pib]

Lots of info at their web site: https://www.schwab.com/public/schwab/home/welcomep.html?cmsid=P-2655315&lvl1=home

[jfchandler]

Jerry, Schwab definitely does IRAs, both traditional and Roth... You should check with them or their web site about the 403 variety you're asking about.

But more broadly, I think they're an excellent choice for a place to combine one's banking and retirement accounts, particularly when you're living abroad (or plan to be).

E*Trade used to be exactly the same kind of situation, but then last year they began charging a 1% foreign currency fee on ATM withdrawals and POS purchases, and became a lot less attractive to folks who pay attention to the details of their finances and spending.

As for the Schwab One brokerage account, just the same as their bank accounts, there is no minimum balance or required trading involved when you open the brokerage account in connection with opening the Schwab checking or savings account.

[jfchandler]

Just wanted to confirm again as a follow-up ... re my earlier post, all is well with the world and Schwab's debit card...

Did two separate ATM withdrawals from AEON yesterday (Jan. 17 afternoon), one with the Schwab card and the other with a different no-fee VISA debit card.

Withdrawal Results:

Schwab Card withdrawal: 30.44 rate

Other VISA card withdrawal: 30.44 rate

Bank of Thailand IER: 30.58 rate

Bangkok Bank Buying TT: 30.41-42

As usual, the no-fee debit cards combined with AEON ATMs (or a home bank that reimburses foreign bank ATM fees like Schwab) beat the Thai banks' own buying TT exchange rates....

[Pib]

JFC,

There you go again in being a bad farang and an informed consumer by not helping Thai banks make a 150 baht ATM withdrawal fee for use of a foreign card and using a home country debit/ATM card that does not charge a foreign transaction fee...and even reimburses for ATM withdrawal fees when there is a fee. Plus using an ATM network that does not charge a 150 baht withdrawal fee.

By the way, I'm still trying to be a bad farang also. Hopefully on my next mail run my Capital One Cash Rewards credit card (no foreign transaction fee and 1 to 2% cash back) will have arrived and hopefully setup of my Schwab brokerage/savings/checking accounts with debit card (no foreign transaction fee and reimburses for ATM withdrawals) is still going OK. Yeap, I too am trying to be a bad farang.

Cheers,

Pib

[SurfRider]

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"There you go again in being a bad farang and an informed consumer by not helping Thai banks make a 150 baht ATM withdrawal fee"

Yup, my guess is that you naughty Farangs won't be invited to the Thai Bankers Association High-Five party in April, celebrating the the brilliant concept of 150 Baht ATM usury fees-- and the successful multi-billion-Baht "Fleecing of Farangs" campaign. You should be ashamed of yourselves! . . .

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[jfchandler]

I keep waiting for my invitation, but it never seems to come...

Yup...coming up on the anniversary date, right? Sometime around April... what... two years now?

[SurfRider]

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"what... two years now?"

Yes, and it seems like only yesterday!

The least they could do is send a blanket invitation to the intrepid members of this forum who have been the loyal opposition - fighting the good fight and guiding the lost sheep though the maze.

Maybe something like a children s table next to the lavatory in the basement while they celebrate upstairs in regal splendor - popping magnums of Pernod-Ricard Perrier-Jouet an only $50,000 per ... ( a mere pittance to the Thai ATM usury fee cartel )

http://most-expensiv...mpagne-in-world

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[Pib]

I was going to attend this multi-day banker's party which is even open to the general public on certain days. I was going to attend on their "Thai Banks Love Farangs Day," but a cover charge exists at the door of being able to show 4 ATM receipts dated within the last 30 days reflecting a 150 fee on each receipt. But if you don't have these 4 receipts in hand, they will have a row of Thai bank ATM's (excluding AEON) lined-up next to the entry door so you can get your 4 receipts. Since the principle of the thing will prevent me from meeting the entry requirement, if any ThaiVisa member does attend maybe he can post a party report.

[SurfRider]

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Charles takes a big hit . . .

http://sanfrancisco....in-4th-quarter/

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[jfchandler]

Glad to see we haven't lost our collective sense of humor... even amid sometimes trying circumstances...

[SurfRider]

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FWIW, I did a 30K withdrawal at an AEON ATM on the 27th - Schwab rate was 30.76

X-Rates.com for that date was 30.92, so it cost me US$5.04 more than the published rate, or 155 Baht

Roughly the same as paying an additional 1% or the equivalent of the 150 Baht Thai ATM usury fee.

Such is life in "paradise" . . .

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[jfchandler]

SR, the Bank of Thailand average IER for that day was 30.82. I think you did fine...

[SurfRider]

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" Bank of Thailand average IER for that day was 30.82. I think you did fine..."

Yea, but isn't the BOT a member of the Usury Cartel? . . .

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[jfchandler]

Just our commonly accepted yardstick for determining what's a good exchange rate on any given day...

[Pib]

As the OP for this topic, I would like to thank everyone for the information/feedback they gave regarding their experiences with Charles Schwab. My brokerage, checking, and savings accounts have now been setup, I've got the Welcome Packages from Schwab, and have my online account up and running. I originally mailed the applications on 4 Jan. As you saw in some earlier posts where we talked Validation and VOIP callings for a couple of posts, I did have to do a validation by telephone. Schwab didn't call me, but I called them after getting my Welcome Packages and noticing a typo in the address and also noticing some ACH withdrawals hadn't occurred yet from my bank to fund the Schwab account. Turns out my Schwab accounts were on hold pending Validation. When running credit reports and searches against govt records, a question had come up so they put the accounts on hold pending validation...they said they had just mailed me some letters stating such and what to do, but they could still do the validation over the phone if I desired via a series of questions and answers...a test so to speak. The test was not for credit worthiness reasons; it was to help confirm who I said I was on the applications was truly me. I took the validation test, passed, and the accounts were taken off hold, I can see the ACH transfers are underway to fund the accounts, etc. I won't go into any more detail on the type/number of questions other than it would indeed be tough for an impostor to answer the questions correctly. With funding of the accounts which is underway, they will then mail out checks and debit cards. So thanks again for all the great info/feedback given.

[Pib]

As the OP, one final update. I did get the checks and debit cards for the wife and I.

As FYI, at least one person mentioned they got separate debit cards, one for the checking account and one for the savings account....the card each of us (the wife and I) got works on the checking and savings accounts per the document the card was attached to...this info was in big print just underneath where the card was stuck on the doc. Maybe Schwab has recently changed how it sends out debit cards when both a checking and savings account are opened.

Additionally, a few folks mentioned the daily ATM cash withdrawal limit using the debit card was $500 and a few folks said $1000...turns out it depends on which card you get. The basic Schwab Visa Debit Card has a $500 daily cash withdrawal limit and the Schwab Visa Platinum Debit Card has a $1000 daily limit. I got the Platinum card...I didn't ask for a Platinum card nor would the small initial amounts I funded the checking and savings accounts at make me look like a rich guy (which I ain't), but they sent me the Platinum card. Although I don't plan to use the debit card for purchases, the basic card has a daily limit of $2,000 and the platinum card $15,000. No foreign transaction fee applies to the debit cards for cash withdrawals or purchases....and as numerous people confirmed ATM fees are reimbursed for worldwide withdrawals, although I don't plan to abuse this great ATM reimbursement benefit and when ever possible I will only use AEON ATMs or ATMs that don't charge a fee. The card has the Visa, Plus, and Interlink logos.

Thanks again for everyone's great info/feedback.

[jfchandler]

FYI, re U.S. credit cards in general, I was listening to a news report today that said the worm is turning, and after being on freeze for a long time, the big U.S. credit card companies supposedly are now beginning to start sending out masses of credit card solicitations again...

Regarding Capital One, for example, as one of the often mentioned card here, the news report said Cap One this year is expecting to send out about 50 times more credit card solicitations this year than in the past year...

Here's one link to one article on the subject:

If it seems like your mailbox is overflowing with new credit card offers, it may not be your imagination. Direct mail industry sources report credit card companies, after hunkering down for more than a year, are actively looking for new customers. One source, Synovate's Mail Monitor, puts the total number of credit card solicitations world-wide at 2.73 billion -- a 96 percent increase over 2009. That same year, some credit card companies closed out millions of credit card accounts to reduce their risk of default.

"Synovate Mail Monitor also recorded the third consecutive quarterly increase in credit card mailings since we hit a significant low in the third quarter of 2009," said Anuj Shahani, Director of Competitive Tracking Services for Synovate's Financial Services group. "Despite the uncertainty introduced by the CARD Act, Fin Reg, and other such legislative changes, we are seeing the credit card issuers get back to market, trying to entice consumers once again."

Double the offers

During the second quarter of 2010, U.S. households received 640.3 million credit card offers -- an 83 percent increase -- versus 349.1 million offers mailed during the same time a year ago. Chase was the leading issuer, quadrupling their mailings versus the same period in the prior year.

Citibank, the second largest mailer for the second quarter of 2010, demonstrated a major comeback by showing significant growth quarter over quarter -- almost triple their mailings from the first quarter, according to the report.

With the economy showing signs of improvement, the lenders want your business again. They're even going after the subprime market again, through industry analysts say subprime customers will likely pay higher fees for carrying a credit card again.

Higher rates

They'll also pay higher interest rates. In its weekly report on current credit card rates, CreditCards.com says the average prime credit card rate is 14.72 percent. The average rate for a "bad credit" card is 24.95 percent, with some subprime cards charging double that rate.

At least one member of Congress wants to pass a law that would cap credit card interest rates. Rep. Maurice Hinchey (D-NY) has introduced legislation that would cap interest rates on credit cards and all other loans at 15 percent.

Hinchey says the Interest Rate Reduction Act would rein in the skyrocketing rates that banks and financial institutions are charging customers with little or no warning and without any justification.

Using cards to make ends meet

"Many hardworking Americans are using credit cards to make ends meet in this recovering economy, but credit card companies are finding new ways to squeeze the middle class despite significant reforms in the last Congress," said Hinchey. "Credit card companies are charging interest rates as high as 50 percent, trapping millions of Americans in a spiral of debt, forcing bankruptcies, and ruining peoples financial futures. We need to put an end to this legalized loan sharking. A fair and healthy lending system is critical to the success of hardworking Americans and the recovery of the economy. This bill helps limit credit card and general lending abuse by placing a reasonable cap on the rates that can be charged to Americans."

Hinchey says the limits in his bill are the same rules that currently apply to credit unions, which have been forbidden from charging usurious interest rates on credit cards and other loans to their members for nearly 30 years. The interest rate cap that has protected consumers at credit unions from being charged usurious interest rates has not harmed the safety and soundness of these institutions, he says, and has not negatively affected the access to credit of credit union members. Furthermore, he points out, credit unions have been able to stay afloat throughout the credit crunch and have not received one dime of taxpayer assistance.

Hinchey says credit card debt in the U.S. still totals nearly $800 billion, despite significant reforms passed by Congress. The average American household that has credit card debt carries a balance of nearly $15,000.