Schwab Reduces Account Minimums to $1,000

Charles Schwab announced Friday that it has reduced the minimum for its brokerage and retirement accounts to $1,000 and is waiving the minimum for those who commit to automatically depositing at least $100 a month. In addition, Schwab will not impose fees on accounts whose balances have fallen below the minimum.The minimum for brokerage and custodial accounts had been $2,500, and $2,000 for IRAs and college savings accounts.

“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.