Schwab launched a promotion this week offering $101 in stock slices when new investors open an account and fund it with $50.
- Deposit $50+ in a new Schwab investment account & get $101 in stock slices for the top 5 stocks in the S&P 500.
- Direct link to offer.
- Must fund your account with a minimum of $50 within 30 days of opening the account to qualify. Once funded, Schwab will deposit $101 in your account to purchase your stock slices.
- Two business days after your account is opened Schwab will begin checking for deposits. Once your qualifying deposit has been received, Schwab will credit the $101 to your account and place your trades the next trading day. We’ll send you an email the night before that happens, so you’ll know when to expect your stock slices and the ability to review your orders.
- Once the orders are placed, you will have a short period of time (from approximately 8:00 pm Eastern Time until approximately 9:25am the next morning) to cancel the orders. To cancel the orders, you will need to go to the Order Status page on schwab.com or to any of Schwab’s other trading platforms or call a Schwab representative at 800-435-5000. If you cancel your orders, you keep the $101 cash bonus and can save or invest it however you want. If you take no action, the orders will be executed shortly after market open the next trading day. You will see the stocks reflected in your account and Schwab will send you trade confirmations.
Many of us already have a Schwab investment account by virtue of having a Schwab Amex Platinum card and/or by opening a High Yield Investor Checking account to take advantage of unlimited ATM fee rebates when traveling.
If you’ve never opened a Schwab investment account though, this promotion is a great incentive to do so. Funding a new investment account with $50 will get you $101 in fractional shares for Amazon, Tesla, Apple, Alphabet (Google) and Microsoft (i.e. $20.20 in fractional shares per company).
If you’re wary of investing in the stock market or would rather invest the $101 in another way, you don’t have to have the $101 invested in those five companies. The $50 you initially fund your account with can remain there as cash or invested however you want. The terms then state you can cancel the automatically-placed orders for the stock slices so that the $101 cash bonus is available for you to save or invest however you’d like. You’ll have fewer than 13.5 hours to do that though, so keep an eye out for emails from Schwab after you’ve deposited your $50 so that you can cancel the orders for the five stock slices.