Schwab Unveils New Credit Card

Charles Schwab Corp. is rolling out a new credit card with some nifty features that the financial services company hopes will help it capture a chunk of the country’s multibillion-dollar credit-card business. In contrast to many of its competitors, the new Schwab card rewards users with a 2% cash rebate for all purchases, with no annual limit on how much cash the credit card user can earn. The Schwab card also has no preset spending limit, putting it in direct competition with cards like American Express.

While other cash-back credit cards may offer higher rebates, they are usually given only for purchases in certain categories like gas or groceries, or if you buy from selected merchants affiliated with the card. Also, with some other cards, buyers don’t start earning the best rebates until they reach a set spending plateau, while still others put a cap on how much money you can get back in a year. And although you must open a Schwab account to get the card, the company doesn’t make you maintain a minimum balance in the account, unlike some other bank credit cards. There is also no annual fee for the Schwab card.

Schwab card users will get one point for every dollar charged to the card and receive a $20 rebate for every 1000 points. Rebates are automatically deposited into the Schwab brokerage account every month and can be taken out either by using a debit card or writing a check. Rebates that aren’t redeemed expire after 5 years.