Money at 30: Charles Schwab Investing Starter Kit Overview Charles Schwab Investing Starter Kit Overview — Get $101 in Free Stocks
Schwab Sterter Kit

Money at 30: Charles Schwab Investing Starter Kit Overview

These days, there is no shortage of easy-to-use brokerage accounts that consumers can turn to when they’re ready to begin investing. From SoFi to Public and, of course, Robinhood, these fee-free accounts have revolutionized the industry in ways both good and bad, leaving traditional brokerage accounts to evolve as well. One such firm that’s seen a number of changes in recent years is Charles Schwab, which has attempted to bring younger and newer investors into its platform by rolling out such features as Stock Slices and commission-free trades. Recently, Schwab continued that trend by introducing its Investor Starter Kit, offering free stocks and other perks to new account holders.

So what exactly is the Schwab Starter Kit? Let’s take a closer look at the offering as well as my experience with it so far:

About the Charles Schwab Investing Starter Kit

What's inside the Schwab Starter Kit?

What is the Schwab Starter Kit

To help new investors jump-start their portfolios, Charles Schwab is currently offering what they call their Schwab Starter Kit. With this special package, new customers can open a free Schwab brokerage account and receive free Stock Slices, educational materials on stock trading, and more.

How does it work?

By visiting the Schwab Starter Kit site or using the code “SCHWABSTARTERKIT” when opening an account, you’ll be eligible for the benefits of this offer. Currently, those who open a new Charles Schwab brokerage account and fund it with at least $50 will earn $101 worth of “Stock Slices” for free (get it? 101?). Specifically, this $101 will be split across five company stocks — which happen to represent the top five stocks in the S&P 500. These include:

  • Amazon ($AMZN)
  • Microsoft ($MSFT)
  • Tesla ($TSLA)
  • Alphabet ($GOOGL)
  • Apple ($AAPL)

Note that the top five S&P stocks may change from time to time, which will mean that Schwab’s offer will change accordingly. As their site notes, “The stocks you purchase will be the top five stocks in the S&P 500 by market capitalization on the date your orders are placed.”

According to Schwab, two business days after your account has been opened, it will begin monitoring for deposits. Once the funding minimum has been reached, a $101 credit will display as cash the next evening (depending on the time your funding deposit is received). Then, customers will receive notification of their upcoming stock orders, with the five Stock Slice orders processing on the next trading day. Interestingly, Schwab notes that users can cancel these orders before they are executed, in which case they’d be able to keep the $101 bonus in cash or invest it as they see fit.

Of course, there may be other restrictions that apply, so be sure to check out the fine print on the Starter Kit site for more details.

Getting started videos for Schwab Starter Kit

Educational materials

These resources not only include video guides and written materials on some of the basics of investing — such as jargon, mechanics, and even a little bit of technical analysis — but also walks you through how to use some of the Schwab platform features.

If you really are brand new to investing, watching these videos and exploring these materials will be well worth your time. For those who are a bit more seasoned, you may want to pick and choose which elements you want to dive in on. Either way, it’s nice to have these extra resources at your disposal.

Schwab fees

As I mentioned at the top, Charles Schwab has mostly done away with its commission and trade fees. For listed stocks and ETFs, online trades come with a $0 commission. However, while Options have $0 online base commission, there’s a $0.65 per contract fee. Elsewhere, Schwab has no account minimums or maintenance fees for brokerage accounts, IRAs, Investor Checking Accounts, or Schwab Trading Services accounts.

Other Schwab opportunities

I’d be remiss if I didn’t mention another aspect of being a Schwab customer that I think is interesting. As I’ve previously shared, I’m a big fan of the American Express Platinum card. However, my biggest gripe with the offering (aside from its $695 annual fee) is the fact that points are only worth 0.6¢ each if redeemed for statement credits. Luckily, the new American Express Rewards Checking account provides customers with a 0.8¢ cashout option, but it’s still not quite up to par in my opinion. That’s where the American Express Platinum Card for Schwab card comes in.

While this “flavor” of the Platinum card has all of the same benefits as the original, cardholders with the Schwab Platinum can redeem their Membership Rewards points for deposits into their Schwab account at a rate of 1.1¢ per point. Sadly, this is down from the previous 1.25¢ each — but it’s still an improvement over the other options. So, if you do take advantage of the Schwab Starter Kit offer and are interested in the Amex Platinum overall, this variant may be the one to consider.

My Experience with the Schwab Starter Kit

screenshot of Schwab account

Opening my account

Getting started with my Schwab brokerage account was pretty easy, albeit a bit lengthy. To open an account, you will need to provide some personal info including your name, birthdate, address, Social Security number, etc. All of this is standard, so what made the process so long? Well, as you open your account, you’ll have to option to open a number of other accounts alongside your brokerage. However, this requires you to review and acknowledge separate terms and conditions for each.

Okay, so when I say the process was “lengthy,” it still only took me a matter of minutes. Plus, it’s partially my fault for opting into so many additional accounts. Still, considering that the reward is worth $100+, I think it was still time well spent.

Funding my account

Transferring money to my Schwab account was also quite easy. After linking my Wells Fargo account, I set up a transfer for $100, which cleared within a couple of days. Once it did arrive, I actually purchased a Stock Slice on my own even before my bonus Slices arrived.

My Stock Slice orders

Just as the process was outlined in the section above, once my deposit was recognized by Schwab, I saw the $101 credited to my account. Then, the next trading day, I got word that my Slices would soon be purchased. Sometime later, I received notifications one after another informing me that my trades had indeed been placed, with each Slice then showing in my portfolio. Although I haven’t tried selling any of the shares I now have, there doesn’t seem to be anything preventing me from doing so. Thus, if investors did miss the option to cancel their default Stock Slices order and want to offload their selections, they totally could.

The Schwab platform

Finally, having come from the world of FinTech, I do feel as though the Schwab platform does lack a certain sleekness that many modern apps have. While the service has plenty of features (likely more than most basic apps) and works perfectly well, I can’t help but wish it was a little bit nicer to look at. Other than that, I’ve been pleased with my limited time using Schwab so far.

Final Thoughts on the Schwab Starter Kit

Whether you’re completely new to trading, just new to Schwab, or want to try out another brokerage service, the Schwab Starter Kit could present a great opportunity. Considering that you only need to fund your account with $50 in order to get $101 in free stocks make this nearly a no-brainer. Plus, the educational elements of the Starter Kit also present value to newbie investors. For those reasons, I’d recommend checking out the Schwab Starter Kit for yourself.

Author

Kyle Burbank

Head Writer ~ Fioney
Kyle is the head writer for Fioney. He is a personal finance nerd, constantly looking for new apps and services to test and incorporate into his own financial game plan. In addition to his role at Fioney, he's written for other publications including Born2Invest, Lifehack, and Laughing Place, as well as his own site Money@30. He also creates personal finance and travel-related videos for Money@30's YouTube channel, which has garnered more than 2 million views. Currently, Kyle resides in Springfield, Missouri with his wife of 10 years. Together, they enjoy traveling (including visiting Disney Parks around the world), dining, and playing with their dog Rigby.

Other Articles by Kyle Burbank

2023 Small Business Credit Card Satisfaction Tops 2019 Highs

The latest small business credit card study from J.D. Power shows satisfaction continuing to rise. About the study and results: This week, J.D Power released its 2023 U.S. Small Business Credit Card Satisfaction Study, which includes responses from more than 3,400 small business credit card customers. In this case, the study looked at businesses with annual revenues between $10,000 and $10 million. First, it was discovered that overall satisfaction among...

Discover Announces 5% Bonus Categories for First Quarter of 2024

With 2024 sneaking up on us, Discover has announced its rotating 5% bonus categories for the first quarter of next year. About the Q1 2024 bonus categories: From January through March 2024, Discover It customers will be able to earn up to 5% back in two categories: restaurants and drugstores. According to the company, the Restaurants category includes full-service establishments, cafes, cafeterias, fast-food locations, and dining delivery services. For the...

Public App Adds Corporate and Treasury Bonds Feature

The FinTech trading app Public has announced new investment options for its members. About the features: Public is now rolling out the ability for customers to invest fractionally in corporate and Treasury bonds. This capability will be introduced on both the mobile and desktop interfaces for the service. According to Public, the addition comes as demand for fixed-income products increases. In addition to these bond types, the app will also...
The "Email" field is empty, you must enter some text to proceed.The text you entered in the "Email" field appears to be invalid, please edit it and try again
Get the Latest News Delivered to Your Inbox

FedEx Announces Winners of 11th Annual 2023 Small Business Grant Contest

Nearly three months after the entry period ended, FedEx has announced the winners of its 11th annual Small Business Grant Content. This year's event saw more than $300,000 in funds going to a variety of small businesses across the nation. Last month, the company revealed 100 finalists, with that list now being narrowed down to just 10 winners. This year's grand prize winners included KindVR, The Cupcake Collection, Up In...
Summer app

Student Loan Benefit FinTech Summer Raises $6 Million

For years, student debt has been one of the most talked about financial topics. What's more, while the debt itself has become a major part of many Americans' lives, discussion of student loans has become political due to efforts to forgive certain loan repayments. However, while we wait for resolution on that front, a FinTech that brings student debt benefit solutions to employers and consumers has raised a new round...
H-E-B and Central Market  credit cards

Imprint Launches Credit Cards from H-E-B and Central Market 

The FinTech Imprint is partnering with the popular Texas-based grocery chain H-E-B for a pair of new rewards credit cards. This week saw the launch of the H-E-B Visa Signature Credit Card as well as the Central Market Visa Signature Credit Card. With these two (nearly identical) options, customers will be able to earn rewards on groceries and beyond. First, both versions of the card earn up to 5% back on select...
Melissa Urban holding a Ness card

Health and Wellness Rewards Card Ness Partners with Whole30

In recent years, several unique rewards cards have come to market. These include offerings from FinTech startups as well as brands looking to do something special for their loyal fans. On that note, a recently-announced rewards credit card offering is now working with a popular brand to introduce new benefits for customers. This week, the Ness Card (which is issued by The Bank of Missouri) unveiled a new partnership with...
Choice Privileges Select Card

Choice Hotels, Wells Fargo Debut Choice Privileges Select Card

With spring well underway and the summer travel season now just around the corner, Choice Hotels and Wells Fargo have unveiled their latest co-branded credit card offering. Today, the two companies announced the Choice Privileges Select Mastercard. Carrying an annual fee of $95, this card will serve as the premium option in the hotel brand's new lineup. Looking at the Choice Privileges Select, it offers a mix of rewards categories....