Schwab reduces, scraps minimums

Charles Schwab Corp. has reduced account opening minimums for all of its main brokerage and retirement accounts and eliminated minimums for many others, the firm announced today. The San Francisco-based discount brokerage firm also said it has eliminated any charges for accounts falling below the minimum. Minimums for opening a Schwab One brokerage account were slashed from $2,500 to $1,000. The previously required minimum initial deposit for IRAs, college saver and education savings accounts were cut from $2,000 to $1,000. Schwab also said it has waived account minimums entirely for clients who make the commitment to deposit $100 or more each month into the account via direct deposit or Schwab MoneyLink. The minimum to open a custodial account has been lowered from $2,500 to $100. “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 of Schwab Investor Services.