Schwab Reduces Account Minimums to $1,000, and Waives Minimums for Clients who Deposit As Little As $100 a Month

SAN FRANCISCO, April 20 /PRNewswire-FirstCall/ -- Charles Schwab & Co., Inc. today announced reduced account opening minimums for all of its main brokerage and retirement accounts and the elimination of minimums for clients who agree to small automatic monthly deposits or who open a checking account with their brokerage account. In addition, the company has eliminated any charges for accounts falling below the minimum. The moves make it substantially easier and more affordable for consumers to start saving and investing.

"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, Schwab Investor Services. "Now, with as little as $1,000, or a commitment of $100 a month, individuals can gain access to Schwab's full range of services. Saving and investing for the future is important for everyone -- regardless of age, life stage or income level -- and we're striving to make it as affordable and accessible as possible."

The minimum to open Schwab One(R) brokerage accounts has been reduced from $2,500 to $1,000. IRAs, college saver and education savings accounts that previously required a minimum initial deposit of $2,000 can also now be opened with just $1,000. These account minimums are waived entirely for clients who make the commitment to deposit $100 or more each month into the account via direct deposit or Schwab MoneyLink(R). The Schwab One account minimum is also waived for clients who also open a Schwab Bank Investor Checking(TM) account with their brokerage account. The minimum to open a custodial account has been lowered from $2,500 to $100.

All Schwab clients, regardless of age, life stage, income level or how much they deposit in their account, have access to the company's powerful research, reporting and financial tools on http://www.schwab.com/ as well as customer service via the phone or in person at any Schwab branch.

At the same time, Schwab is eliminating all of its minimum balance charges, which were levied on accounts that dropped below their minimum balance requirements. Those included charges of $12.50 per quarter for brokerage accounts, $50 per year for IRAs, and $20 annually for custodial, education savings and college saver accounts.

All of the changes are effective immediately.

The reduced minimums for custodial accounts allow parents or other relatives or friends an easy way to provide a gift to the children in their lives and engage them in learning the basics of saving and investing, noted Carrie Schwab Pomerantz, chief strategist of consumer education at Charles Schwab.

"Parents have a unique opportunity to help give their kids a head start toward becoming financially fit as adults," Schwab Pomerantz said. "It's not only passing along good money values or explaining the mechanics of budgeting and saving that are important; young people need to learn how to invest their money to make it grow. A custodial account can provide a great way to pique a child's interest and teach the essential ingredients of successful investing."

Important Disclosures

Charles Schwab & Co., Inc. and Charles Schwab Bank, N.A. are separate but affiliated companies and wholly owned subsidiaries of The Charles Schwab Corporation. Charles Schwab & Co., Inc. (member SIPC, http://www.sipc.org/) offers brokerage products and services. Schwab Bank (member FDIC and an Equal Housing Lender) offers deposit and lending products and services.

  Brokerage Products:  Not FDIC Insured * No Bank Guarantee ( May Lose Value

  About Charles Schwab

The Charles Schwab Corporation (NASDAQ: SCHW) is a leading provider of financial services, with more than 300 offices and 6.8 million client brokerage accounts, 1.1 million corporate retirement plan participants, 151,000 banking accounts, and $1.3 trillion in client assets. Through its operating subsidiaries, the company provides a full range of securities brokerage, banking, money management and financial advisory services to individual investors and independent investment advisors. It's broker-dealer subsidiary, Charles Schwab & Co., Inc., and affiliates offer a complete range of investment services and products including an extensive selection of mutual funds; financial planning and investment advice; retirement plan and equity compensation plan services; referrals to independent fee-based investment advisors; and custodial, operational and trading support for independent, fee- based investment advisors through its Schwab Institutional division. The Charles Schwab Bank, N.A. (member FDIC) provides banking and mortgage services and products. More information is available at http://www.schwab.com/. (0407-5661)