Is Charles Schwab a good annuity company?
Schwab is not an annuity company at all, so the question does not quite apply the way it would for an insurer. Schwab is a brokerage that distributes one annuity product, the Schwab Income Annuity, which is actually written by Protective Life Insurance Company, an A+ rated carrier. If you already bank and invest with Schwab and want a single premium immediate annuity without moving your account elsewhere, it is a workable path. If you want a multi-year guaranteed annuity or a fixed index annuity, or you simply want to shop rates across many carriers, Schwab's shelf will not get you there.
Charles Schwab at a glance
| Legal name | The Charles Schwab Corporation |
|---|---|
| What it is | Brokerage and investment firm, not an insurance carrier |
| Headquarters | Westlake, Texas |
| Founded | 1971 |
| Annuity products offered | Schwab Income Annuity (SPIA); variable annuities through advisory accounts |
| MYGAs or fixed index annuities | Not offered |
| Issuing insurer for the income annuity | Protective Life Insurance Company, A+ (Superior) from AM Best |
| AM Best rating for Schwab itself | Not applicable; Schwab is not an insurance carrier |
Today's rates for Charles Schwab
Rates change often and vary by state, term and deposit size. Get today's numbers for your state, side by side with other top-rated carriers. Free, with no obligation.
Charles Schwab is a household name in brokerage accounts, but the word "annuity" next to Schwab's name confuses a lot of shoppers. Schwab does not manufacture annuities. It is a broker-dealer that distributes a narrow shelf of annuity products built by an actual insurance company, and knowing that distinction up front will save you time.
Schwab at a glance
Schwab's core business is investing, banking and advisory services, not insurance underwriting. It does not appear on any AM Best list because there is nothing for AM Best to rate; a brokerage carries no claims-paying obligation the way an insurer does.
What annuities does Schwab actually offer?
Schwab keeps its shelf intentionally small:
- Schwab Income Annuity. This is a single premium immediate annuity: you hand over a lump sum and it converts into a guaranteed monthly check for a set period or for life. The contract itself is written and backed by Protective Life Insurance Company, which carries an A+ rating from AM Best. Schwab simply distributes it and quotes it for its own account holders.
- Variable annuities. These live inside Schwab's advisory and managed-account programs, so ordinary self-directed clients generally cannot buy one on their own. A variable annuity ties your return to market performance in subaccounts, with no guaranteed crediting rate the way a fixed contract has.
Does Schwab sell MYGAs?
No. If you came here looking for a multi-year guaranteed annuity, the kind that locks in one fixed rate for a set term and competes head to head with a bank CD, Schwab simply does not carry one. Comparing MYGA rates across carriers requires going through an independent channel with access to more than one company, since a single-carrier platform like Schwab can only show you its own numbers.
Who fits the Schwab annuity shelf?
Existing Schwab clients who want to turn part of a brokerage or IRA balance into guaranteed income without opening an account somewhere else are the natural fit here. Because Protective Life underwrites the contract, the guarantee itself rests on Protective's financial strength rather than on Schwab.
If your priority is finding the single highest guaranteed rate or payout in the market, Schwab is the wrong starting point. It cannot show you how its own numbers measure up against other carriers, and it has nothing to offer if you specifically want a MYGA or a fixed index annuity. Pricing the same type of contract across several A+ rated carriers first will tell you whether Schwab's number is actually competitive.
Contact Charles Schwab annuity services
| Contact method | Details |
|---|---|
| Website | www.schwab.com/annuities |
| Annuity services line | 1-866-855-9102 |
| Mailing address | Charles Schwab & Co., Inc., 211 Main Street, San Francisco, CA 94105 |
| Hours | Monday through Friday, 8 a.m. to 8 p.m. Eastern |
Other annuity companies to consider
- Protective Life: the A+ rated insurer that actually underwrites the Schwab Income Annuity
- American National: another A rated carrier with a broad SPIA and MYGA lineup
- Browse all annuity company reviews
Pros and cons
Pros
- Convenient if you already hold a brokerage or IRA account at Schwab and do not want to move money elsewhere
- The Schwab Income Annuity is underwritten by Protective Life, which carries a strong A+ rating
- A single premium immediate annuity is a simple contract type, easy to understand and quote
- Payout rates on the Schwab Income Annuity are generally competitive for an SPIA
Cons
- No multi-year guaranteed annuities and no fixed index annuities anywhere on the platform
- Schwab is a distributor, not a carrier, so there is no Schwab-specific rating to evaluate
- You cannot see how the Schwab Income Annuity's payout stacks up against other carriers without pricing it elsewhere first
- Variable annuities are restricted to Schwab's advisory and managed-account relationships, not open to every client
Frequently asked questions
Can I trust Schwab with an annuity purchase?
Schwab does not carry its own AM Best rating because it is not an insurance company, it is a broker-dealer. What matters for safety is the rating of the company actually issuing the contract, and here that company is Protective Life. AM Best puts Protective in its A+, or Superior, tier, so the money behind your guarantee comes from Protective's balance sheet, not Schwab's. A state guaranty association adds a further backstop up to a state-set limit.
Which annuity types can I actually get through Schwab?
Two, and only two: the Schwab Income Annuity, a single premium immediate annuity underwritten by Protective Life, and variable annuities offered through Schwab's advisory and managed-account programs. There is no MYGA and no fixed index annuity on the platform, so if either of those is what you are shopping for, you will need to look at a carrier that specializes in them.
What does the purchase process look like at Schwab?
You buy the Schwab Income Annuity directly from Schwab, either online or by calling its annuity line, rather than through an independent agent. A licensed strategist cannot place a Schwab-branded contract, but can quote income annuities from Protective Life and other A+ rated carriers side by side, which is useful if you want to see how Schwab's payout compares before committing.
Written and reviewed by
James Forren Warren
Licensed Retirement Income Strategist · License #20551202
James Forren Warren is a licensed Retirement Income Strategist with Tax Free Wealth Plan. For the past five years he has helped individuals and families turn their savings into retirement income they can count on. He writes and reviews the annuity research on this site and keeps it plain: what a product does, what it costs you, and who it actually fits.
Sources
Educational only, not investment, tax or legal advice. Tax Free Wealth Plan LLC is a licensed insurance agency, not a registered investment adviser or broker-dealer. Annuities are not bank deposits, are not FDIC insured and are not guaranteed by any government agency. Guarantees are backed solely by the claims-paying ability of the issuing insurance company. Features, rates and availability vary by state and change over time; the contract and disclosure documents govern.
