In the context of Charles Schwab accounts, the word "deposit" generally refers to money or securities that you add to your investment or bank account. It's the act of putting funds into your account so that you can then use them for various purposes, primarily investing.
Here's a breakdown of what "deposit" specifically
means at Schwab:
- Funding
Your Account: This is the most common meaning. When you
"deposit" money into your Schwab brokerage or bank account, you
are transferring funds from an external source (like your Cambodian bank
account) into your Schwab account. This allows you to then buy stocks,
ETFs, mutual funds, or simply hold cash.
- Minimum
Deposit: Schwab International accounts, for example, have a minimum
deposit of $25,000 USD to open. This means you need to put at least
that amount of money into the account to get started.
- Types
of Deposits:
- Cash
Deposits: This would typically involve wiring money from your bank
account.
- Securities
Deposits: You might also "deposit" existing securities
(like stocks or bonds) from another brokerage firm into your Schwab
account. This is called an "Account Transfer."
- Check
Deposits: For US residents or those with a linked Schwab Bank
account, you can often deposit checks using mobile deposit features.
- Availability
of Funds: When you make a deposit, the funds might not be immediately
"available" for all types of trading. Schwab, like other
financial institutions, has clearing periods.
- Cleared
Funds: These are funds that have fully processed and are available
for any type of transaction or withdrawal.
- Holding
Period: Sometimes, especially for new accounts or certain deposit
types, funds might be subject to a "holding period" before they
are fully cleared.
- Bank
Sweep / Cash Feature: In Schwab brokerage accounts, any uninvested
cash is typically "swept" into deposit accounts at
Schwab-affiliated banks. These are essentially bank deposits that are
FDIC-insured (for US-based banks) and earn a small amount of interest. So,
even within your investment account, some of your cash might technically
be held as a "deposit" in a banking product.
In essence, "deposit" at Schwab is the fundamental
action of adding capital to your account, which then enables you to
participate in the investment opportunities they offer.