By not mentioning that the brokerage has an alternative way to offer banking services (debit card/checking), your first explanation seemed to suggest that Schwab Bank always handled it for the brokerage account. Your second explanation makes it more clear.
What exactly was I wrong about?
I will point out for clarity though, BNY Mellon Investment Servicing Trust does NOT handle the bank services for the brokerage account if you open and link a Schwab Bank account. In that case, the Schwab Bank services (for the debit card and check writing) replace those offered by BNY Mellon Investment Servicing Trust.1. Charles Schwab Bank's products are literally called "Investor Checking" and "Investor Savings" accounts which have a separate Schwab Bank Deposit Account Agreement from the Schwab One Brokerage Agreement. All the features in these accounts are managed by Schwab Bank.
2. The Schwab Brokerage account has multiple layers:
- Bank services are managed by BNY Mellon Investment Servicing Trust
- Multiple partner banks for holding bank sweep funds, including Charles Schwab Bank, SSB; Charles Schwab Premier Bank, SSB; Charles Schwab Trust Bank; TD Bank, N.A.; TD Bank USA, N.A.
Statistics: Posted by typical.investor — Sun Feb 09, 2025 10:52 pm — Replies 37 — Views 3677