Schwab Reduces Account Minimums to $1,000, and Waives Minimums for Clients who Deposit As Little As $100 a Month

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Schwab Reduces Account Minimums to $1,000, and Waives Minimums for Clients who Deposit As Little As $100 a Month
                   Minimum Balance Charges Are Eliminated

    SAN FRANCISCO, April 20 /PRNewswire-FirstCall/ -- Charles Schwab & Co.,
Inc. today announced reduced account opening minimums for all of its main
brokerage and retirement accounts and the elimination of minimums for
clients who agree to small automatic monthly deposits or who open a
checking account with their brokerage account. In addition, the company has
eliminated any charges for accounts falling below the minimum. The moves
make it substantially easier and more affordable for consumers to start
saving and investing.
    "People expect greater value, and in the case of younger individuals,
they want fewer barriers like high initial investment requirements and fees
preventing them from starting early on saving and investing," said Jonathan
Craig, vice president, Schwab Investor Services. "Now, with as little as
$1,000, or a commitment of $100 a month, individuals can gain access to
Schwab's full range of services. Saving and investing for the future is
important for everyone -- regardless of age, life stage or income level --
and we're striving to make it as affordable and accessible as possible."
    The minimum to open Schwab One(R) brokerage accounts has been reduced
from $2,500 to $1,000. IRAs, college saver and education savings accounts
that previously required a minimum initial deposit of $2,000 can also now
be opened with just $1,000. These account minimums are waived entirely for
clients who make the commitment to deposit $100 or more each month into the
account via direct deposit or Schwab MoneyLink(R). The Schwab One account
minimum is also waived for clients who also open a Schwab Bank Investor
Checking(TM) account with their brokerage account. The minimum to open a
custodial account has been lowered from $2,500 to $100.
    All Schwab clients, regardless of age, life stage, income level or how
much they deposit in their account, have access to the company's powerful
research, reporting and financial tools on http://www.schwab.com as well as
customer service via the phone or in person at any Schwab branch.
    At the same time, Schwab is eliminating all of its minimum balance
charges, which were levied on accounts that dropped below their minimum
balance requirements. Those included charges of $12.50 per quarter for
brokerage accounts, $50 per year for IRAs, and $20 annually for custodial,
education savings and college saver accounts.
    All of the changes are effective immediately.
    The reduced minimums for custodial accounts allow parents or other
relatives or friends an easy way to provide a gift to the children in their
lives and engage them in learning the basics of saving and investing, noted
Carrie Schwab Pomerantz, chief strategist of consumer education at Charles
Schwab.
    "Parents have a unique opportunity to help give their kids a head start
toward becoming financially fit as adults," Schwab Pomerantz said. "It's
not only passing along good money values or explaining the mechanics of
budgeting and saving that are important; young people need to learn how to
invest their money to make it grow. A custodial account can provide a great
way to pique a child's interest and teach the essential ingredients of
successful investing."
    Important Disclosures
    Charles Schwab & Co., Inc. and Charles Schwab Bank, N.A. are separate
but affiliated companies and wholly owned subsidiaries of The Charles
Schwab Corporation. Charles Schwab & Co., Inc. (member SIPC,
http://www.sipc.org) offers brokerage products and services. Schwab Bank
(member FDIC and an Equal Housing Lender) offers deposit and lending
products and services.
    Brokerage Products: Not FDIC Insured * No Bank Guarantee ( May Lose
Value
    About Charles Schwab
    The Charles Schwab Corporation (Nasdaq: SCHW) is a leading provider of
financial services, with more than 300 offices and 6.8 million client
brokerage accounts, 1.1 million corporate retirement plan participants,
151,000 banking accounts, and $1.3 trillion in client assets. Through its
operating subsidiaries, the company provides a full range of securities
brokerage, banking, money management and financial advisory services to
individual investors and independent investment advisors. It's
broker-dealer subsidiary, Charles Schwab & Co., Inc., and affiliates offer
a complete range of investment services and products including an extensive
selection of mutual funds; financial planning and investment advice;
retirement plan and equity compensation plan services; referrals to
independent fee-based investment advisors; and custodial, operational and
trading support for independent, fee- based investment advisors through its
Schwab Institutional division. The Charles Schwab Bank, N.A. (member FDIC)
provides banking and mortgage services and products. More information is
available at http://www.schwab.com. (0407-5661)
SOURCE Charles Schwab
http://www.schwab.com/
CONTACT:
Matt Hurwitz, +1-415-636-3700,
matt.hurwitz@schwab.com, or Glen Mathison, +1-415-636-5448,
glen.mathison@schwab.com, both of Charles Schwab