Why Cash is Dead and What You Should Do Instead

In today’s digital age, cash is becoming a thing of the past. Back in 2012, cash transactions made up about 40% of all transactions, but today, that number has dropped to less than 26%. However, just because cash is less common doesn’t mean it’s obsolete. There are still situations where you need cash, such as at a cash-only restaurant or when traveling to a country that primarily uses physical currency.

So, how do you access your cash when you need it? The answer is not just any debit card, but the best debit card available today—the Charles Schwab High Yield Investor Checking Account debit card. This card is a game-changer for travelers and anyone who needs easy, fee-free access to their cash.

Why I Avoid Using Debit Cards

I generally avoid using debit cards. Here are three reasons why:

1. Fraud Protection: Debit cards typically offer less protection against fraud compared to credit cards. Credit cards often have zero-dollar fraud liability with no time limit. In contrast, debit cards have strict time limits and can leave you liable for significant amounts if you don’t report fraud quickly.
2. Rewards: Debit cards don’t offer cashback, points, or miles. When you use a credit card, you can earn rewards on every purchase. It’s a smart way to get something extra for every dollar you spend. For example, instead of just buying an AirPod and getting only the AirPod, with a credit card, you can earn 1%, 2%, 3%, or even 5% cashback on that purchase. Make it a habit to get something back every time money leaves your account, just like the rich do.
3. Building Credit: Using a debit card doesn’t help build your credit profile. Building a strong credit profile is crucial for securing loans at favorable interest rates. Credit cards help you build credit when used responsibly by making on-time payments.

The Charles Schwab Debit Card: A Game Changer

Despite the general drawbacks of debit cards, there are situations where you need one to access cash. This is where the Charles Schwab High Yield Investor Checking Account debit card comes in. Here’s why it’s the best:

1. Unlimited ATM Fee Reimbursements: You can use any ATM in the world, and Charles Schwab will reimburse all ATM fees. This feature is invaluable for travelers and anyone needing cash on the go.
   • Example: Imagine you’re traveling in Southeast Asia, moving from country to country. You land in Vietnam and need cash. Instead of searching for a currency exchange service with unclear rates, you simply find an ATM, use your Schwab debit card, and get the cash you need. No extra fees, no hassle.
2. No Foreign Transaction Fees: Use this card abroad without worrying about foreign transaction fees. This makes it ideal for international travel.
   • Example: You’re on a European vacation, hopping between Italy, France, and Spain. Every time you need cash, you use an ATM, knowing you’ll get the best exchange rate and won’t pay any foreign transaction fees. This not only saves money but also gives you peace of mind.
3. Safety and Security: Carrying large amounts of cash can be risky. With the Schwab debit card, you minimize the need to carry cash. You can withdraw small amounts as needed, reducing the risk of loss or theft.
   • Example: You’re in a bustling market in Thailand. Instead of carrying a lot of cash and worrying about pickpockets, you withdraw what you need for the day from an ATM. This approach enhances your safety and security.
4. No Monthly Maintenance Fees: There are no fees to keep this account open, and you don’t need to maintain a minimum balance.
5. High Yield Checking Account: While the interest rate isn’t the highest (0.4% APY), it’s still better than many traditional checking accounts. Use this account for travel and cash needs while keeping your main funds in a higher-yield account.

How to Use the Charles Schwab Debit Card Effectively

1. Set Up Your Main Checking Account: Use a checking account with a higher interest rate for your everyday banking. There are accounts offering over 3% APY, which is much better for your money in the long run.
2. Fund Your Schwab Account When Needed: Transfer money to your Schwab account before traveling or when you anticipate needing cash. This way, you can take advantage of the fee-free ATM withdrawals without keeping a large balance in a lower-yield account.
3. Link External Accounts: Link an external checking account to your Schwab account for easy transfers. This setup ensures you always have access to cash without incurring unnecessary fees.

Invest in Your Future

Opening a Charles Schwab High Yield Investor Checking Account is not just about accessing cash. It’s also an easy introduction to investing. Along with the checking account, you’ll open a brokerage account, giving you access to a user-friendly platform where you can start investing in stocks, index funds, and more. This is a quick and simple way to begin building your investment portfolio and securing your financial future.

Conclusion

The Charles Schwab High Yield Investor Checking Account debit card is an excellent tool for accessing cash without fees. It’s particularly useful for travelers and anyone who needs to withdraw cash frequently. While it may not be the best for everyday banking due to its modest interest rate, it shines in situations where you need cash quickly and fee-free. Plus, it’s a great entry point into the world of investing.

For more information and to apply for the Charles Schwab High Yield Investor Checking Account, visit Charles Schwab.