When it comes to high cash back credit cards with no annual fee, the Schwab 2% Cash Back Credit Card stands out as a top contender—especially for investors and high-income earners. Offering unlimited 2% cash back on every purchase, this card is designed for simplicity, long-term value, and seamless integration with Charles Schwab investment accounts.
In this in-depth review, we’ll explore the benefits, drawbacks, rewards structure, eligibility requirements, and who should apply—so you can decide if this card deserves a place in your wallet.
What Is the Schwab 2% Cash Back Credit Card?
Officially known as the Schwab Investor Credit Card® from American Express, this card allows cardholders to earn 2% cash back on all eligible purchases, with no caps, no categories, and no expiration—as long as the card remains open.
What makes it unique is how rewards are redeemed:
👉 Cash back is automatically deposited into your eligible Charles Schwab brokerage account, helping you grow your investments effortlessly.
Key Benefits of the Schwab 2% Cash Back Credit Card
✅ Unlimited 2% Cash Back on All Purchases
Unlike many cash back cards that require category tracking, this card offers a flat 2% rate on everything—from groceries and gas to travel and online shopping.
✅ No Annual Fee
A major advantage for cost-conscious users. You earn premium rewards without paying an annual fee, making it ideal for long-term use.
✅ Automatic Investing of Rewards
Cash back is deposited directly into:
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Schwab One® brokerage accounts
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Eligible retirement accounts (like IRAs)
This feature is especially attractive for users focused on passive investing and wealth building.
✅ American Express Benefits
As an Amex cardholder, you gain access to:
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Purchase protection
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Extended warranty
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Fraud protection
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Global customer service
Schwab 2% Cash Back Credit Card Drawbacks
While the card offers strong value, it’s not for everyone:
❌ Requires a Charles Schwab Account
You must have or open an eligible Schwab brokerage account to redeem rewards.
❌ Foreign Transaction Fee
This card charges foreign transaction fees, making it less ideal for frequent international travelers.
❌ No Welcome Bonus
Unlike some high-CPC competitors, this card does not offer a sign-up bonus, which may disappoint churners.
Who Should Get the Schwab 2% Cash Back Credit Card?
This card is best suited for:
✔ Investors who want to automatically invest cash back
✔ High spenders who prefer simple, flat-rate rewards
✔ Users seeking a no annual fee, long-term credit card
✔ Professionals with good to excellent credit scores (700+)
If you already use Charles Schwab for investing, this card is almost a no-brainer.
Schwab 2% Cash Back vs Other 2% Cash Back Cards
Compared to competitors like Citi® Double Cash or Wells Fargo Active Cash®, Schwab’s card shines for those who value investment integration over flexibility.
Key difference:
Other cards offer statement credits or bank deposits, while Schwab rewards help build your investment portfolio automatically.
Is the Schwab 2% Cash Back Credit Card Worth It?
Yes—if you’re an investor or long-term planner.
The Schwab 2% Cash Back Credit Card is one of the best high-CPC financial products for users who value:
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Consistent rewards
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Simplicity
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Wealth-building through investing
While it lacks flashy bonuses, it excels in steady, predictable value, making it a powerful tool for financially disciplined users.
Final Verdict
⭐ Rating: 4.6 / 5
If you want a no annual fee credit card with unlimited 2% cash back that helps you invest automatically, the Schwab 2% Cash Back Credit Card is an excellent choice—especially for long-term financial growth.