THE CHARLES SCHWAB CORPORATION

EXHIBIT 12.1

Computation of Ratio of Earnings to Fixed Charges

(Dollar amounts in millions, unaudited)

Year Ended December 31,	2005		2004		2003		2002		2001
Earnings from continuing operations before taxes on earnings and extraordinary gain	$	1,185	$	645	$	717	$	249	$	128
Fixed charges
Interest expense:
Brokerage client cash balances		378		113		76		164		678
Deposits from banking clients		223		105		96		94		128
Long-term debt		34		32		35		46		55
Short-term borrowings		32		18		13		20		27
Other		20		9		20		7		22
Total		687		277		240		331		910
Interest portion of rental expense		73		82		87		82		88
Total fixed charges (A)		760		359		327		413		998
Earnings from continuing operations before taxes on earnings, extraordinary gain and fixed charges (B)	$	1,945	$	1,004	$	1,044	$	662	$	1,126
Ratio of earnings to fixed charges (B) ÷ (A)(1)		2.6		2.8		3.2		1.6		1.1
Ratio of earnings to fixed charges excluding brokerage and banking client interest expense(2)		8.5		5.6		5.6		2.6		1.7

⁽¹⁾ The ratio of earnings to fixed charges is calculated in accordance with SEC requirements. For such purposes, “earnings” consist of earnings from continuing operations before taxes on earnings, extraordinary gain and fixed charges. “Fixed charges” consist of interest expense as listed above, including one-third of rental expense, which is estimated to be representative of the interest factor.

⁽²⁾ Because interest expense incurred in connection with both payables to brokerage clients and deposits from banking clients is completely offset by interest revenue on related investments and margin loans, the Company considers such interest to be an operating expense. Accordingly, the ratio of earnings to fixed charges excluding brokerage and banking client interest expense reflects the elimination of such interest expense as a fixed charge.