Schwab Investor Card® from American Express Review [2024]: Generous Cash Back for Your Investment Account

CREDIT CARDS - CASH BACK CREDIT CARDS
The Schwab Investor Card from American Express provides an ideal opportunity for Schwab investors to grow their accounts through valuable cash back on any purchases they make.
Updated June 20, 2024
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When you compare credit cards, it’s essential to find a card that suits your lifestyle and spending habits. The Schwab Investor Card® from American Express could be an excellent fit if you want to pair cashback rewards with your Schwab investment account.

In this Schwab Investor Card from American Express review, you’ll learn about the benefits and drawbacks of this card, along with how earning and redeeming cash back works. This will help you decide whether the Schwab Investor Card from American Express would be the right fit for your wallet.

All information about Schwab Investor Card® from American Express has been collected independently by FinanceBuzz.

Grow Your Investment Account

Schwab Investor Card® from American Express
4.1

Schwab Investor Card® from American Express

Current Offer

Earn $200 cash back (in the form of a statement credit) after spending $1,000 in the first 3 months

Annual Fee

$0

Rewards Rate

1.5% cash back on all eligible purchases

Benefits and Drawbacks
Card Details

In this Schwab Investor Card from American Express review:

Who should get the Schwab Investor Card from American Express?

The best rewards credit cards offer either points, miles, or cash back when you make purchases. With the Schwab Investor Card from American Express, you earn cash back on eligible purchases, so it’s easy to get rewarded for purchases you were already planning on making.

However, the Schwab Investor Card from American Express only makes sense if you want to earn cash back for the sole purpose of depositing it into an eligible Schwab account. This is the only redemption option for this card, so if you don’t have a Schwab investment account or aren’t planning on getting one, this card wouldn’t be the right fit for you.

Card basics

Card type Cash Back
Credit card issuer American Express
Annual fee $0 (Terms apply)
Intro bonus Earn $200 cash back (in the form of a statement credit) after spending $1,000 in the first 3 months of cardmembership
Reward rate 1.5% cash back on all eligible purchases
Recommended credit score Good, Excellent
Intro APR 0% intro APR on purchases for 6 months, then 19.24% to 22.24% (variable)
Foreign transaction fee 2.7%

Schwab Investor Card from American Express benefits and perks

  • Generous welcome offer: Earn $200 cash back (in the form of a statement credit) after spending $1,000 in the first 3 months of account opening.
  • $0 annual fee: With a $0 annual fee, there’s no annual cost to try and offset through earning enough cash back each year.
  • Unlimited cash back: Earn unlimited 1.5% cash back on all eligible purchases.
  • Schwab partnership: All the cash back you earn is automatically deposited into your linked Schwab account, which helps you to grow your investments. This is a unique partnership you won’t find anywhere else.
  • ShopRunner membership: Receive a complimentary ShopRunner membership for free shipping on eligible purchases from more than 100 online retailers. Shipping times can be as quick as two days and major retailers include Under Armour, 1-800-Flowers, Neiman Marcus, and more. Shipping is also free on returns through ShopRunner. This membership requires enrollment.
  • Car rental loss and damage insurance: This credit card offers up to $50,000 in coverage for damage to or theft of an eligible rental vehicle. Cardmembers and their spouses or domestic partners, plus authorized drivers, are covered with this benefit.
  • Extended warranty benefits: Eligible purchases receive up to one additional year of extended warranty coverage. This benefit covers up to $10,000 per eligible purchase and up to $50,000 per card account.
  • Purchase protection: Eligible purchases are covered for damage or theft within 90 days of purchase. This benefit covers up to $1,000 per eligible purchase and up to $50,000 per card account.

Drawbacks to the Schwab Investor Card from American Express

  • Average earning potential: Although earning 1.5% cash back on all eligible purchases is a decent return, it doesn’t compare to better cashback potential from cards with higher offers on multiple categories.
  • Schwab requirement: You can only get this card if you already have an eligible Schwab account to link to it.
  • Limited redemption options: Your only redemption option is depositing your cash back into your linked Schwab account.

Earning and redeeming your cash back

Potential earnings in years one and two

Here's a look at how your cash back can add up with the Schwab Investor Card from American Express.

Remember, this is an estimation. The actual value will be determined by how much you spend and in which categories you spend.

Year one earnings: $703 (in statement credits and Schwab deposits)

Year two earnings: $503 (in Schwab deposits)

These values are based on the FinanceBuzz Credit Card Rewards Valuation Model, which looks at cash back earned via spending and the welcome bonus.

Best ways to earn

The best way to earn cashback rewards with the Schwab Investor Card from American Express is to use it on as many purchases as possible. Because this card earns 1.5% cash back on all eligible purchases, you don’t have to worry about using it in certain categories, such as groceries or gas. Instead, every purchase you make will earn 1.5% cash back.

Categories Rewards rate
All eligible purchases 1.5%

Maximizing your redemptions

Whenever you earn cash back on the Schwab Investor Card from American Express, it’s automatically deposited into your linked Schwab account. Because this is your only redemption option, you’ll want to earn as much cash back as possible to maximize your deposits into your investment account.

Schwab Investor Card from American Express FAQs

Does Charles Schwab offer credit cards?

Charles Schwab has partnered with American Express to design the Schwab Investor Card from American Express and the American Express Platinum Card® for Schwab. Although both of these cards are issued by American Express, they come with unique Schwab benefits you won’t find anywhere else.

All information about American Express Platinum Card® for Schwab has been collected independently by FinanceBuzz.

Is the Schwab Investor Card from American Express a good credit card?

The Schwab Investor Card from American Express is a good credit card if you want a quality cashback rewards card that works toward growing your Schwab investment account. It’s easy to get rewarded for your daily expenses because this card earns cash back on every purchase. And once you earn cash back, it’s deposited straight into your linked Schwab account. So you can watch your investments grow from purchases you make every day.

Does the Schwab Investor Card from American Express have an annual fee?

The Schwab Investor Card from American Express has a $0 annual fee, so there’s no annual cost to worry about. However, the American Express Platinum Card for Schwab has a $695 annual fee.

Do you need a Schwab investment account to get the Schwab Investor Card from American Express?

Yes, you need a qualifying Schwab investment account to get the Schwab Investor Card from American Express. Eligible Schwab accounts include a Schwab One or Schwab General Brokerage account.

How much money do you need for a Charles Schwab account?

You don’t need any money to open a Charles Schwab brokerage account, individual retirement account (IRA) account, Schwab Trading Services account, or Schwab checking account linked to a Schwab One brokerage account. These accounts don’t have any opening or maintenance fees or any account minimums.

Other cards to consider

The Schwab Investor Card from American Express is an excellent choice for Schwab investment account holders, but it may not be the best fit for everyone. If you want more earning potential, consider using one of the best cashback credit cards available.

The Blue Cash Preferred® Card from American Express has a $0 intro annual fee for the first year, $95 per year thereafter and earns 6% cash back at U.S. supermarkets (for first $6,000 per year, after that 1%) and on select U.S. streaming services, 3% cash back at U.S. gas stations and on eligible transit, and 1% cash back on other eligible purchases. With high earning rates on common categories, it’s easy to see how the Amex Blue Cash Preferred can outperform the earning potential of the Schwab Investor Card.

The Chase Freedom Unlimited® earns 6.5% cash back on travel purchased through Chase Travel℠, 4.5% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service and 3% cash back on all other purchases (on up to $20,000 spent in the first year). After your first year or $20,000 spent, earn 5% cash back on travel purchased through Chase Travel℠, 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service and unlimited 1.5% cash back on all other purchases. In all earning categories, the Freedom Unlimited either matches or surpasses the Schwab Investor Card. It also doesn’t hurt that this card earns cash back in the form of Chase Ultimate Rewards points. These points offer a lot of flexibility because they can be redeemed for cash back, online shopping trips, gift cards, and travel.

Grow Your Investment Account

Schwab Investor Card® from American Express
4.1

Schwab Investor Card® from American Express

Why We Like It

Earn $200 cash back (in the form of a statement credit) after spending $1,000 in the first 3 months

Terms Apply

See how these cards compare:

Blue Cash Preferred® Card from American Express
Blue Cash Preferred® Card from American Express
  • High cashback rates at U.S. supermarkets, U.S. gas stations, eligible transit, and U.S. streaming subscriptions (cash back is in the form of Reward Dollars that can be redeemed as a statement credit)
  • Introductory APR for purchases and balance transfers
  • $7 monthly statement credit toward an eligible Disney bundle subscription (subject to auto renewal) of $9.99 or more (enrollment required)
  • See rates and fees | Terms Apply
Chase Freedom Unlimited®
Chase Freedom Unlimited®
  • High base rewards rate of 1.5%
  • $0 annual fee
  • Valuable welcome bonus for new cardholders
  • Intro APR offers for purchases and balance transfers

Author Details

Ben Walker, CEPF, CFEI® Ben Walker, CEPF, CFEI®, is credit cards specialist. For over a decade, he's leveraged credit card points and miles to travel the world. His expertise extends to other areas of personal finance — including loans, insurance, investing, and real estate — and you can find his insights on The Washington Post, Debt.com, Yahoo! Finance, and Fox Business.