Pledged Asset Line®
Seize your next opportunity
without liquidating your investments.
Schwab Bank's Pledged Asset Line (PAL) is a flexible borrowing solution that can help you leverage the value of your investments through a revolving line of credit. Depending on your eligible investment assets, this allows you to increase your borrowing power while remaining invested and working toward your financial goals.1 Retirement assets are not eligible to use for Pledged Asset Line.
Request information on PAL >
Mon.–Fri., 8:30 a.m.–8 p.m. ET
Or visit your local branch to find out more.
- Stay invested
by using your eligible assets as collateral
instead of liquidating.
- Get competitive rates
and pay no application
or setup fees. Other account fees, fund expenses and brokerage commissions may apply
- Experience a quick lending decision and application process.
- Enjoy timely access
to funds for a period
of five years.
Money when you need it
Whether you would like to renovate your existing property, invest in real estate, or expand your business, PAL gives you immediate, flexible, non-purpose financing to do so.2
How PAL works:
- 1. Discuss your borrowing need with a Schwab Bank specialist, and see if PAL can be the right solution.
- 2. Together with a Schwab Bank specialist, you review how PAL can help in more detail.
- 3. Your application is facilitated over the phone with a PAL application specialist who will be your single point of contact through the application process.
- 4. Access your PAL, through wire requests or through checks provided when the line is opened.
Line amounts range from $100,000 to $20,000,000 and above.
Investment assets such as these are eligible
to use as collateral:
- Marginable equity securities valued at or above $3 per share at the time of funding and closing
- Certificates of deposit (CDs) and cash
- Many corporate, Treasury, municipal, and government agency bonds
- Most mutual funds and exchange-traded funds (ETFs)
Pledged asset lending involves a high degree of risk. If the value of your collateral account falls, your credit line may be lowered and you may have to deposit more cash or securities to meet a maintenance call. In addition, your pledged securities could be sold without your consent, which may result in tax consequences.
open a PAL?
Call 888-725-3630Mon.–Fri., 8:30a.m.–8 p.m. ET Or visit your local branch.
Charles Schwab Bank
1. Schwab Bank requires that the assets pledged as collateral for the Pledged Asset Line be held in a separate Pledged Asset Account (PAASB) maintained at Charles Schwab & Co., Inc. (Schwab). Schwab Bank establishes collateral requirements regarding the type of assets, value of assets, and concentration of assets that are required to be maintained in the PAASB as collateral for the Pledged Asset Line, and reserves the right to change the requirements from time to time.
Nothing herein should be interpreted as imposing an obligation on Schwab Bank to lend. Loans are subject to credit and collateral approval. Some restrictions may apply. Loan terms are subject to change without notice.
2. Proceeds may not be used to purchase securities or to pay down margin loans; proceeds may not be deposited into a Schwab brokerage account.
Charles Schwab Bank and Charles Schwab & Co., Inc., are separate but affiliated companies and subsidiaries of The Charles Schwab Corporation. Brokerage products and services, including the Pledged Asset Account, are offered by Charles Schwab & Co., Inc., member SIPC, and are not insured by the FDIC, are not deposits or obligations of Charles Schwab Bank, and are subject to investment risk, including possible loss of principal invested.
Deposit and lending products, including the Pledged Asset Line, are offered by Charles Schwab Bank, Member FDIC and an Equal Housing Lender. Charles Schwab Bank is not acting or registered as a securities broker-dealer or investment advisor.