Schwab Total Cash & Cash Investments: What You Need To Know

Schwab Total Cash & Cash Investments is the net cash balance in your Schwab account. It is the amount of money that you can use to trade or withdraw without borrowing on margin or accessing margin borrowing. This includes uninvested cash in your Schwab brokerage account, which can be used to trade, invest, and manage daily expenses. It is important to note that cash from recent deposits may be available for trading but may not be available for withdrawal until after an initial hold period.

Schwab Intelligent Portfolios®

• Certificates of Deposit (CDs): Schwab CD OneSource® offers FDIC-insured CDs with fixed rates of return, allowing clients to protect their principal investments.
• Schwab Money Funds™: These funds aim to provide income while maintaining capital stability and liquidity. While they are not FDIC-insured, they offer competitive yields ranging from 2.41% to 4.60%.
• Schwab Bank Investor Savings™: This option helps clients save on bank fees while growing their liquid savings. It is offered by Charles Schwab Bank, SSB, a member of the FDIC.
• Schwab Bank Investor Checking™: Clients can save on bank fees, manage daily expenses, and seamlessly transfer funds to their brokerage account for trading and investing. This checking account is also offered by Charles Schwab Bank, SSB, and is FDIC-insured.

When it comes to understanding your account balance and available funds for trading or withdrawal, Schwab provides a "Funds Available and Margins Details" section on their website. This section includes important information such as "Cash & Cash Investments," which represents the available cash you can use for trades without borrowing on margin. It's important to distinguish between "Cash & Cash Investments" under "To Trade" and "To Withdraw," as they may differ due to initial hold periods on recent deposits. Additionally, "Settled Funds" represent cash from deposits or the sale of securities that have been fully paid for and reached their settlement date.

Another aspect to consider is "Available to Day Trade," which only applies to margin accounts designated for day trading. This value includes the maximum dollar amount of fully marginable securities that can be held intraday, along with funds swept into interest-bearing features like the Bank Sweep feature. "Cash + Borrowing" indicates the maximum market value you can purchase if trading on margin.

By effectively utilizing these features and understanding the nuances of each section, clients can make more informed decisions about their trades and withdrawals, maximizing the potential of their investments with Schwab Intelligent Portfolios®.

Cash & Cash Investments (to Withdraw)

The Cash & Cash Investments (to Withdraw) amount is a combination of credits in the account less any cash on hold. It is important to note that if you have $2,000 or more in marginable securities equity, you can use the amount above $2,000 as collateral to borrow or withdraw. In this case, think of $2,000 as the baseline.

You will be charged interest on any amount that you withdraw that exceeds the available cash in your account. This includes any amount you borrow that exceeds the Available Cash. Additionally, cash on hold will only display an amount if your account has cash placed on hold. For instance, trades placed in a pledged account could result in changes to the pledge required amount, leading to cash being placed on hold. You will be notified of any changes in your pledged required amount.

The Cash & Cash Investments (to Withdraw) feature provides a clear indication of the funds available for withdrawal, helping you effectively manage your finances and make informed decisions about withdrawals from your Schwab account.

Cash & Cash Investments (to Trade)

It is important to note that Cash & Cash Investments (to Trade) may not always be the same as the amount of cash available to withdraw from the account. For example, cash from recent deposits may be available for trading but may not be available for withdrawal until after an initial hold period. Additionally, if you have margin enabled on your account, you can use the amount above $2,000 as collateral to borrow or withdraw.

Schwab Money Funds™

There are several types of Schwab Money Funds™, including Prime Money Funds (taxable), Government and Treasury Money Funds (taxable), and Municipal Money Funds (tax-exempt). Prime Money Funds invest in high-quality, short-term money market securities issued by US and foreign entities, while Government and Treasury Money Funds invest in short-term US government debt securities. Municipal Money Funds invest in short-term municipal money market securities issued by states, local governments, and other municipal agencies.

Schwab Bank Investor Checking™

One of the key benefits of the Schwab Bank Investor Checking™ account is the ability to transfer funds between your brokerage and checking accounts instantly. This means you can quickly access your cash for trading and investing, without having to wait for funds to clear. The account also offers unlimited ATM fee rebates for cash withdrawals worldwide and no foreign transaction fees, making it convenient for those who travel frequently.

The security features of the account are also noteworthy. The account includes card lock/unlock functionality, transaction alerts, fraud alerts, and travel notifications. The Schwab Bank Visa® Platinum Debit Card that comes with the account has smart chip technology, adding an extra layer of security to your transactions.

In addition, the Schwab Bank Investor Checking™ account provides convenient payment options, such as mobile wallets and contactless payments, which allow you to make purchases securely and quickly. The account also offers free standard checks, free bill pay on Schwab.com and the Schwab Mobile app, and direct deposit, although this is not required.

Overall, the Schwab Bank Investor Checking™ account offers a range of features that make it a convenient and secure choice for investors, providing easy access to funds and a seamless connection between checking and investing activities.

Frequently asked questions