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Schwab Lowers Account Minimums

This article was written by in Investing. 2 comments.

This could be good news for anyone just starting out with investment accounts. Schwab lowered the minimum starting balance to $1,000 from $2,500 (or $2,000 for IRAs)and removed below-the-minimum fees for all their investment accounts as long as at least $100 is deposited into the account on a monthly basis. (Source: BusinessWeek.)

I recently opened a new SEP IRA with Vanguard. I chose Vanguard this time around because my fee-less TIAA-Cref account has too many problems.

Vanguard requires a $2,000 or $3,000 initial deposit (depending on the fund), but a minimum balance of $5,000 per fund to avoid maintenance fees. I’ll have to bring that balance up in the new few months.

Updated June 17, 2014 and originally published April 20, 2007. If you enjoyed this article, subscribe to the RSS feed or receive daily emails. Follow @ConsumerismComm on Twitter and visit our Facebook page for more updates.

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Luke Landes is the founder of Consumerism Commentary. He has been blogging and writing for the internet since 1995 and has been building online communities since 1991. Find out more about Luke Landes and follow him on Twitter. View all articles by .

{ 1 comment… read it below or add one }

avatar dimes

I wish Vanguard would do that, if only for one month per year, or if only for new investors/investors with low AGI. They suddenly raised the minimum from 2K to 3K right before I decided to start investing, and it created a little bit of strain for us to scrape up that extra $1000. Why not make it easy for new customers?

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