Our Verdict
The rewards potential on this card is limited. If you already hold an eligible investment account with Charles Schwab and want ways to grow your investment contributions, the Schwab Investor Card® from American Express* could be a good option. However, if you’re not locked into Schwab as your investment platform, there are higher-earning cards to consider for rewards or investing.
Pros
- Comes with a welcome offer
- Unlimited 1.5% cash back automatically deposited into your Schwab account
- No annual fee
- 0% introductory APR on purchases for 6 months
Cons
- Foreign transaction fee on international purchases
- Cards are only available to cardholders with an eligible Schwab account
- Rewards are limited to automatic deposits into a single Schwab account
Highlights
- Earn a $200 statement credit after spending $1,000 in purchases on the card in the first three months of card membership
- Earn an unlimited 1.5% cash back automatically deposited into your eligible Schwab account for purchases made with your card
- No annual fee
Introduction
The Schwab Investor Card® from American Express* is only available if you maintain an eligible Schwab account, including a Schwab One account, brokerage account or an IRA account. To avoid adversely impacting your credit score from opening a new card, make sure Schwab meets your investment needs before applying.
Cardholders earn 1.5% cash back automatically deposited into an eligible Schwab account for purchases made with the card with no rewards cap. While there are cash-back cards that earn higher rewards, the simple rewards structure may be appealing for boosting your Schwab contributions.
You’ll also earn a $200 statement credit after spending $1,000 in purchases in the first three months of card membership. Plus, new applicants qualify for a 0% introductory APR on purchases for six months starting from the date of account opening. After that, a variable APR of 19.24% - 22.24% applies. The intro APR could add up to significant savings if you tend to carry a balance.
Featured Partner Offers
Quick Facts
- $0 annual fee
- Earn 1.5% cash back automatically deposited into an eligible Schwab account for purchases made with the card
- Earn a $200 statement credit after spending $1,000 in purchases in the first three months of card membership
- Need an eligible Schwab account to apply
Schwab Investor Card from American Express Rewards
Earning Rewards
Earning rewards with the Schwab Investor Card® from American Express* is straightforward. You’ll earn unlimited 1.5% cash back automatically deposited into an eligible Schwab account for purchases made with the card. You’ll also earn a $200 statement credit after spending $1,000 in purchases in the first three months of card membership.
Redeeming Rewards
Rewards are automatically deposited into your linked Schwab account at the end of each billing cycle. While you may withdraw funds from your Schwab One or Schwab general brokerage accounts, these funds are intended to trade stocks, bonds, mutual funds and other financial products. If your linked account is a Schwab traditional, Roth or rollover IRA, withdrawals will be penalized for account holders under 59 ½. There may also be tax implications.
Rewards can only be deposited into one linked account. If you hold multiple accounts and want to change your linked account, you must make that request by phone.
Rewards Potential
Your reward earnings depend on your unique household spending. In order to provide you with an accurate gauge of potential earnings, Forbes Advisor uses data from various government agencies to determine baseline income and spending averages across various categories. The following sample household spending is based on the 70th percentile of wage earners who make $118,438 annually.
Estimated credit card spending is $39,337 annually. If you used your Schwab Investor Card exclusively, you could earn $590.06 the first year. You’d also get an additional $200 welcome bonus in the first year after meeting the minimum spending requirements.
0% Introductory Rates
The Schwab Investor Card® from American Express* offers a 0% introductory APR on purchases for six months starting from the date of account opening. After that, a variable APR of 19.24% - 22.24% applies. That could give you a little flexibility to pay off big-ticket items before incurring interest.
Other Schwab Investor Card from American Express Benefits
- Car rental insurance. Protect against damage or theft with included secondary car rental coverage.
- Extended warranty coverage. Get up to one extra year on original manufacturer warranties of five years or less, up to $10,000 per covered purchase and up to $50,000 per calendar year.
- Purchase protection. Get up to 90 days of coverage against theft and damage to covered purchases, up to $1,000 per purchase and up to $50,000 per eligible card.
- Free ShopRunner membership. Get free two-day shipping and returns from over 185 stores.
- 24/7 dining and events assistant. Take advantage of the concierge service to book restaurant reservations and tickets.
- Lowest hotel rate guarantee. American Express will refund the difference if prices drop on your qualified AmexTravel.com reservation.
- American Express Early Access. Use your American Express card to purchase select seats for specific events before tickets are open to the public.
Fine Print
Interest Rates
- Regular APR: 19.24% - 22.24% variable
- Purchase intro APR: 0% introductory APR on purchases for 6 months
- Balance transfer intro APR: N/A
Fees
- Annual fee: $0
- Balance transfer fee: N/A
- Foreign purchase transaction fee: 2.7% of each transaction after conversion to US dollars
How the Schwab Investor Card from American Express Stacks Up
Schwab Investor Card® from American Express* vs. Fidelity® Rewards Visa Signature® Credit Card*
If the appeal of the Schwab Investor Card is to generate additional investment deposits, consider the no annual fee Fidelity® Rewards Visa Signature® Credit Card*. You’re not locked into Schwab as your investment platform, so this card could be a better option.
The Fidelity Rewards Signature Visa also earns 2% cash back on every eligible net purchase, which is more than the Schwab Investor card. The Fidelity card does not offer a welcome bonus, but you might come out ahead with the extra rewards if you intend to use the card long-term.
The Fidelity Rewards Signature Visa has no foreign transaction fees and offers a greater range of eligible Fidelity accounts. Just like the Schwab Investor Card, rewards are deposited into eligible Fidelity accounts, but eligible accounts include a 529 college savings plan, Fidelity HSA or Fidelity Cash Management account, among others. You can also divide your deposits among up to five Fidelity accounts, whereas the Schwab Investor card locks you into one account.
Schwab Investor Card® from American Express* vs. TD Double Up Credit Card
Another option to earn unlimited 2% cash back on all purchases is the TD Double Up Credit Card. This card offers $150 cash back in the form of a statement credit after spending $1,000 within the first 90 days after account opening. So you could earn an extra bonus the first year and more rewards each additional year.
TD Double Up card rewards are applied as statement credit or deposited into any checking or savings account at a U.S. financial institution, so you could easily transfer your rewards to any investment platform of your choice. You aren’t required to have or maintain an account at TD Bank.
Plus, the TD Double Up Credit Card comes with a generous 0% introductory APR on balance transfers for the first 15 billing cycles after account opening, followed by a standard variable APR of 20.24%, 25.24% or 30.24% on both purchases and balance transfers. A balance transfer fee of either $5 or 3% of the amount of each transaction, whichever is greater, applies. If you’re looking to pay down current credit card debt, this card is a better choice since the Schwab Investor card intro APR only applies to new purchases.
Schwab Investor Card® from American Express* vs. Citi Double Cash® Card
If your goal is to earn the most rewards, the Citi Double Cash® Card is worth a look. It offers the same simple rewards structure, but instead of 1.5% on purchases, you can earn 2% cash back on all purchases—1% when purchases are made and another 1% when they’re paid off. Through the end of 2024, car rentals and hotels booked through Citi travel earn a total of 5%. Plus, cardholders earn $200 cash back after spending $1,500 on purchases in the first 6 months of account opening, fulfilled as 20,000 ThankYou® Points.
Additionally, the Citi Double Cash® Card offers a 0% intro APR on balance transfers for 18 months. After that, the standard variable APR will be 19.24% - 29.24%, based on creditworthiness. An intro balance transfer fee of either $5 or 3%, whichever is greater, applies to transfers completed within the first 4 months of account opening. After that, the fee will be 5% of each transfer (minimum $5). That offer makes this a better option for no interest on current credit card balances.
Is the Schwab Investor Card from American Express for You?
Maybe. If you want the discipline of adding to your investment accounts regularly and are already investing (or want to invest) with Schwab, the Schwab Investor Card® from American Express* card could be helpful. However, it definitely doesn’t present the best rewards-earning opportunity. If you want greater flexibility for rewards redemptions or investment platforms, you should consider one of the best cash-back credit cards instead.
Find the Best Credit Cards for 2024
No single credit card is the best option for every family, every purchase or every budget. We've picked the best credit cards in a way designed to be the most helpful to the widest variety of readers.
Methodology
Forbes Advisor considers a variety of criteria when assigning credit cards a rating. Cards are graded based on numerous factors including:
- Annual fees
- Welcome bonus offers
- Ongoing earning rates
- Value of individual points or miles
- Included travel or merchant credits
- Additional cardholder benefits
Card features we expect cardholders to use the most often are weighted more heavily in our ratings. Altogether, the factors came together to provide a star rating for each individual card.
Read more: How Forbes Advisor Rates Credit Cards
*The information for the following card(s) has been collected independently by Forbes Advisor: Schwab Investor Card® from American Express, Fidelity® Rewards Visa Signature® Credit Card. The card details on this page have not been reviewed or provided by the card issuer.
