Schwab Cash-Back Credit Card: Overview

For many years, Schwab offered a credit card that rewarded cardholders with 2% cash-back on all purchases deposited into a Schwab account. My Money Blog+2strategystreet.com+2
However, that 2% unlimited-cash-back card is no longer available to new applicants. obliviousinvestor.com+1
Today, Schwab offers the Schwab Investor Card® from American Express, which provides 1.5% cash back on eligible purchases, automatically deposited into your linked Schwab brokerage or eligible Schwab account. Schwab Brokerage+1
Because of this shift in reward rate, it’s important to understand how the product works now — and whether it’s still a good fit for you.

Key Features

Cash back rate: 1.5% on eligible purchases, deposited into your eligible Schwab account. American Express+1
Annual fee: The standard Schwab Investor Card has no annual fee. Schwab Brokerage+1
Introductory offer: For the Schwab Investor Card you’ll see a $0 annual fee, 0% introductory APR on purchases for first 6 months in some offers. Schwab Brokerage
Eligibility: You must have an eligible Schwab account (e.g., Schwab One® brokerage, Roth/Traditional/IRA) to link and receive rewards. Schwab Brokerage
Usage conditions: Cash back only applies to “eligible purchases” (goods/services, not interest/fees/cash advances). Also, you must remain current on payments to receive the cash back deposit. Schwab Brokerage

Why It Matters (and What Changed)

The old 2% era

Back when Schwab offered the 2% cash-back version, it was considered very generous. For example, an article in 2008 noted:

“This no-annual-fee card offers … 2% cash rebate on all purchases, one of the highest rebate promises around.” strategystreet.com
And a blog post from that era described it as “a very competitive card” because it offered 2% unlimited cash back. My Money Blog

Shift to 1.5%

Over time, many issuers pulled back rewards or added restrictions. Schwab likewise changed the offering: newer applicants are only eligible for the 1.5% card. This reflects a broader trend in the credit-card marketplace: higher reward rates are harder to sustain.

Why it still may make sense

If you already bank with Schwab (investing/brokerage) the 1.5% reward is delivered directly into your investment account, which helps compound returns.
No annual fee means you don’t need to worry about offsetting a fee to earn the reward.
Simplicity: one flat cash-back rate, no category-bonuses to manage.

Pros & Cons

Pros

Flat reward rate: Unlike many cards that require special categories to earn higher %s, this card gives 1.5% across all eligible purchases.
Automatic investment link: Cash back goes into your Schwab investing account — convenient if you already use Schwab.
No annual fee: Helps keep cost low.
Good option for Schwab users: If you’re already using Schwab for investing/brokerage, the card integrates well.

Cons

Lower reward rate than alternatives: Many cards in the market offer 2% or more cash back (or higher reward rates for particular categories). As one review put it: “While a 1.5% cash-back offer is fair, you can find higher rates from other providers…” 24/7 Wall St.
Requires Schwab account: You must have or open an eligible Schwab account to receive the benefit.
Cash back limited to one eligible Schwab account: You can only link one eligible Schwab account for deposits. Schwab Brokerage
Eligibility restrictions: Must satisfy Schwab’s account eligibility and credit-card qualification.
Existing 2% card no longer available: If you were hoping to apply for the 2% version, that option is closed to new applicants. obliviousinvestor.com

Is It Worth Applying? (And When)

Here are some scenarios to help you decide:

Good fit if:

You already maintain a Schwab brokerage or retirement account (so the reward deposit is convenient).
You prefer simplicity and a flat cash back on all purchases (rather than having to track categories).
You want a no-annual-fee card and are comfortable with a 1.5% return.
You are confident you’ll pay your balance in full each month (to avoid interest negating your rewards).

Might skip if:

You’re looking purely for the highest cash-back rate available and do not use Schwab otherwise.
You don’t want to open or maintain a Schwab account just to get the card.
You prefer bonus-category cards (e.g., 3% or 5% in groceries, gas, travel) and are willing to manage those.
You have weaker credit and wish to avoid a hard credit check for new card approval.

Tips to Maximize Value

Pay in full every month: Rewards only translate into real value if you avoid interest charges — paying off the full statement each month ensures your effective return is the 1.5%.
Use for all eligible purchases: Since the rate is flat across purchases, you might consider using it for most spending rather than splitting across several cards (unless you have one with higher rewards for specific categories).
Link early & correctly: Make sure your eligible Schwab account is set as the deposit account so rewards go automatically.
Avoid purchases that don’t earn: The FAQs note that cash advances, interest, fees, pre-paid reloads and certain other transactions are excluded. Schwab Brokerage
Leverage the rewards in Schwab account: Once rewards are deposited, you could invest them (e.g., in low-cost ETFs) to accelerate compounding returns — especially helpful if you’re using Schwab for your investing strategy.

Final Verdict

If you’re already a Schwab customer (or willing to become one) then the Schwab Investor Card offering 1.5% unlimited cash back is a solid, low-friction rewards card — particularly for those who prefer simplicity and integration with investing. It won’t beat specialty cards that offer higher rewards in selected categories, but for a flat rate with no annual fee and direct deposit into your investment account, it holds up well.

On the other hand, if you’re not a Schwab user and don’t plan to be, you might find better value elsewhere. Always compare the current market offers (since reward rates and terms can change).