You can turn off stock lending in your Charles Schwab account through the Account Settings menu
Charles Schwab's stock lending program, called Schwab Stock Yield Enhancement Program, lets the firm lend out shares you hold to other investors. In return, you receive a portion of the lending income. If you do not want your shares lent out, you can disable this feature in your account settings without closing your account or moving your holdings.
The process takes a few minutes and requires you to log into your Schwab account online or through the mobile app. Once you turn off stock lending, Schwab will stop lending your shares when ready, though shares already out on loan may take a few business days to be recalled.
Key Takeaways
- Stock lending is turned off through Account Settings under the Positions or Holdings section, not through a separate form or phone call.
- Disabling stock lending stops new loans but does not when ready recall shares already lent out — those typically return within a few business days.
- You can turn stock lending back on at any time using the same menu, so this choice is not permanent.
- Turning off stock lending means you will no longer receive the lending income Schwab would have paid you for that feature.
Steps to disable stock lending on the Schwab website
Log into your Charles Schwab account at schwab.com using your username and password. Once you are logged in, look for the Account Settings link, usually found in the top right corner of the page or in a menu labeled with your name or account icon.
From Account Settings, navigate to the Positions or Holdings section. The exact menu name varies slightly depending on when your account was created, but both lead to the same place. Look for an option labeled "Stock Lending" or "Yield Enhancement Program." Click on that option to open the settings.
You will see a toggle or checkbox next to "Enable Stock Lending" or similar wording. Click to turn it off. Schwab will ask you to confirm your choice. After you confirm, the setting takes effect when ready for new shares, though any shares already lent out will remain on loan until they are recalled — usually within one to three business days.
How to disable stock lending on the Schwab mobile app
Open the Charles Schwab mobile app and log in with your credentials. Tap the menu icon (three horizontal lines) in the bottom right corner or top left, depending on your device.
Select "Account" or "Settings" from the menu. Scroll down to find "Positions," "Holdings," or "Stock Lending." Tap on "Stock Lending" or "Yield Enhancement Program." Toggle the setting to the off position and confirm when prompted.
The change takes effect the same way as on the website — when ready for new shares, with existing loans recalled within a few business days.
What happens to shares already lent out when you turn off stock lending
When you disable stock lending, Schwab does not when ready recall every share that is currently on loan. Instead, the firm stops initiating new loans and begins recalling shares as the existing loans mature or as borrowers return them. This process usually takes one to three business days, though it can occasionally take longer depending on market conditions.
During the recall period, your shares are still lent out and you continue to receive lending income on those positions. Once they are returned to your account, they will no longer be available for lending, and you will stop earning that income on them.
If you need your shares back faster — for example, to sell them — contact Schwab directly through the phone number on your account statement. A representative can sometimes expedite the recall, though there is no may provide shares will be returned before a specific date.
Turning stock lending back on if you change your mind
Disabling stock lending is not a permanent decision. You can turn the feature back on at any time by returning to the same Account Settings menu and toggling stock lending to the on position. Once you re-enable it, Schwab will begin lending your shares again and you will start receiving lending income.
There is no waiting period or penalty for turning stock lending on and off. You can change this setting as often as you want.
Why you might want to turn off stock lending
Some investors turn off stock lending because they plan to sell shares soon and do not want to wait for recalls. Others prefer not to have their holdings lent out for personal reasons, even if it means giving up the small income Schwab pays for the privilege.
Stock lending income is typically modest — usually a fraction of a percent per year — so the decision to disable it is often about preference rather than money. If you hold individual stocks you plan to trade actively, turning off stock lending can reduce the chance that a recall delays your sale.
What to do if you cannot find the stock lending setting
The location of the stock lending toggle varies slightly depending on your account type and when you opened it. If you cannot find it in Account Settings under Positions or Holdings, try searching the settings menu for the words "lending," "yield," or "enhancement."
If you still cannot locate it, contact Charles Schwab directly. You can reach them by phone using the number on your account statement, through the message center in your account, or by visiting a local branch. A representative can confirm whether your account is enrolled in the stock lending program and can disable it for you over the phone if needed.
Frequently Asked Questions
Does turning off stock lending affect my ability to trade or access my money?
No. Disabling stock lending does not change how you trade, withdraw money, or use any other Schwab features. It only stops the firm from lending your shares to other investors and stops you from receiving lending income on those shares.
Will I lose money if I turn off stock lending?
You will stop receiving the small amount of lending income Schwab pays you, but you will not lose money in your account. Your shares remain yours and their value does not change based on whether they are lent out.
Can I turn off stock lending for only some of my shares?
No. The stock lending setting applies to your entire account. You cannot disable it for individual stocks while keeping it on for others. If you want to protect specific shares from being lent, you would need to move them to a separate account with stock lending disabled.
How much money do I make from stock lending?
The amount varies based on which stocks are lent out, how long they are lent, and current market demand. Schwab does not publish a standard rate. You can see your lending income in your account statements under a section labeled "Stock Lending Income" or "Yield Enhancement Income."
If I turn off stock lending, will Schwab charge me a fee?
No. There is no fee for disabling or re-enabling stock lending. Schwab does not charge you to change this setting.