As featured in The Wall Street Journal, Money Magazine, and more!

The Schwab Bank Invest First™ Visa Signature® Credit Card

This article was written by in Credit. 21 comments.

Update: This card is no longer available. Here’s a current list of the best cash back credit cards.

The name of the card has clearly too many symbols and arguably too many syllables, but when the daily financial news is consistently dire, I should just be happy to see something that is this innovative and attractive.

It’s a credit card that gives you free money for investing.

Of course, we at Consumerism Commentary always recommend against carrying a balance on a credit card from month to month (incidentally, so does Dave Ramsey, who proves it by not accepting them on his Web site), but if you’re put together enough to literally take advantage of a credit card’s bonus features, check this out:

  • Unlimited 2% “cash” back on purchases
  • the cash is actually a deposit made into a Charles Schwab brokerage account
  • no minimum purchase or annual fee

See more details at MarketWatch.

I’m not a Charles Schwab customer, so I don’t know what kind of investment options you get when you sign up for the card. For example, maybe you’re limited to mutual funds with front-end load fees. Hopefully someone can help out in the comments below.

Anti-disclaimer: This is not an advertisement. I honestly found this when looking at the news and thought it was compelling enough to write about.

Updated October 14, 2016 and originally published December 9, 2008.

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About the author

Smithee formerly lived primarily on credit cards and the good will of his friends. He is a newbie to personal finance but quickly learning from his past mistakes. You can follow him on Twitter, where his user name is @SmitheeConsumer. View all articles by .

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{ 10 comments… read them below or add one }

avatar 1 Anonymous

Signing up for the card doesn’t require a Schwab account, and doesn’t automatically sign you up for one. I saw this offer and it is attractive even to me, though not attractive enough for me to apply. The card is issued by FIA Card Services, which apparently has some connection to Bank of America. I do have Schwab Investor Checking and brokerage account, so if I had the card, the cashback would go into the brokerage account. If someone wanted a credit card to use for their own gain, always paying the balance in full, I would recommend this one. My only reservations are that it is a credit card, with an apparent connection to Bank of America.

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avatar 2 Anonymous

I looked into that. My one issue with it was that getting the deposits meant opening a Schwab One brokerage account, which has a $1K opening deposit. You can get around that if you set up a monthly transfer of $100 or have a Schwab checking account (I don’t).

If they’d let me direct the cash back to my existing Roth IRA with Schwab, I’d be so there. (And I may still consider it — I’m just not sure I want to have to open a taxable account to do this.)

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avatar 3 Anonymous

it doesnt matter what investment options you are open to (which is actually everything schwab offers). You can just request an ACH transfer of the cashback to your checking account.

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avatar 4 Anonymous

Wonder how long till they drop the cashback rate? Nice teaser though.

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avatar 5 Anonymous

Cherryblossom: seems like it doesn’t it? :/

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avatar 6 Anonymous

“I’m not a Charles Schwab customer, so I don’t know what kind of investment options you get when you sign up for the card.”

Uh, then go to their Web site and read their FAQs. Would’ve taken you five minutes!

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avatar 7 Anonymous

One of my best friends works for Schwab and has their savings, checking, and credit card accounts. And he always says that even if he no longer worked there, he would keep the accounts – I guess they are that good. I have not signed up for any of them, but he always tells me I should!

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avatar 8 Anonymous

This honestly is a great card for those with a Schwab brokerage account. 2% back, unlimited, and no foreign exchange fees for a Visa card is rather rare (without having to resort to capital one).

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avatar 9 Anonymous

Schwab high interest checking + schwab brokerage = no min deposits. This is also called a schwab one account.

2% cash back from this card goes monthly into your brokerage. Free to move into your checking account instantly, for use or move to another institution through free ACH push or pull

the card is in the mail for me, looking to use this as a backup to my starwood amex, or make it my primary.

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avatar 10 Anonymous

This card is no longer available for new users as of April 2010.

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