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Accounts & Products
 

Schwab Purchased Money Funds

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Schwab Purchased Money Funds are designed for both short-term investment and longer-term cash investing needs. The Funds invest exclusively in dollar-denominated, high-quality, short-term instruments and are designed to offer investors stability of capital, liquidity, and current income.

A convenient way to produce income, Schwab Purchased Money Funds generally provide higher yields than sweep cash features, but they must be actively bought and sold like other mutual funds.

Features include:

  • A broad choice of funds that offer taxable or tax-free income1
  • Investment options for both retail and institutional accounts
  • No fees for buying or selling2

Schwab Purchased Money Funds

Prime Money Funds3 (Taxable)
Fund Name 7-day yield (with waivers) as of 7/21/20174 Minimum Initial Investment Next Step
Schwab Value Advantage Money Fund® Share Classes
Investor Shares (SWVXX) 0.88% $25,000 ($15,000 for IRA and custodial accounts) Buy
Select Shares (SWBXX) 0.98% $1,000,000 Buy
Premier Shares (SWAXX) 1.06% $3,000,000 Buy
Ultra Shares (SNAXX) 1.09% $10,000,000 Buy
Schwab Retirement Advantage Money Fund® (SWIXX) 0.83% $25,000 Buy
Schwab Investor Money Fund® (SW2XX)5 0.77% $2,500 Buy
Government and Treasury Money Funds (Taxable)
Fund Name 7-day yield (with waivers) as of 7/21/20174 Minimum Initial Investment Next Step
Schwab Government Money Fund – Purchased Shares (SNVXX) 0.58% $25,000 ($15,000 for IRA and custodial accounts) Buy
Schwab Treasury Obligations Money Fund – Value Advantage Shares (SNOXX) 0.70% $25,000 ($15,000 for IRA and custodial accounts) Buy
Municipal Money Funds3 (Tax-Exempt)
Fund Name 7-day yield (with waivers) as of 7/21/20174 Taxable Equivalent Yields6,7,8 Minimum Initial Investment Next Step
Schwab Municipal Money Fund Share Classes
Value Advantage Shares (SWTXX) 0.46% 0.81% $25,000 ($15,000 for IRA and custodial accounts) Buy
Select Shares (SWLXX) 0.56% 0.99% $1,000,000 Buy
Premier Shares (SWOXX) 0.66% 1.17% $3,000,000 Buy
Schwab California Municipal Money Fund (SWKXX) 0.44% 0.90% $25,000 ($15,000 for IRA and custodial accounts) Buy
Schwab New York Municipal Money Fund – Value Advantage Shares (SWYXX) 0.43% 0.84% $25,000 ($15,000 for IRA and custodial accounts) Buy
Schwab AMT Tax-Free Money Fund – Value Advantage Shares (SWWXX) 0.45% 0.79% $25,000 ($15,000 for IRA and custodial accounts) Buy
Variable Share Price Money Funds (Taxable)
Fund Name 7-day yield (with waivers) as of 7/21/20174 Minimum Initial Investment Next Step
Schwab Variable Share Price Money Fund – Ultra Shares (SVUXX) 1.06% $10,000,000 Buy
The Variable Share Price Money Fund is a prime taxable money fund intended for institutional accounts.
Investors could lose money by investing in the fund because the share price of the fund will fluctuate. When investors sell shares, they may be worth more or less than the price originally paid, unlike prime retail money funds that seek to maintain a stable market value of $1.00.

Money fund investors should carefully consider information contained in the money fund prospectus, or, if available, the summary prospectus, including investment objectives, risks, charges, and expenses. You can request a mutual fund prospectus by calling Schwab at 1-800-435-4000. Please read the prospectus carefully before investing.

  1. 1. May be subject to state, local, and the Federal Alternative Minimum Tax. Capital gains are not exempt from Federal taxes.
  2. 2. Fund expenses and other fees may apply.
  3. 3. Qualifies as a “retail money market fund,” which means it is available for investment by natural persons only. The Fund reserves the right to do the following: involuntarily redeem a shareholder's shares after providing 60 days' written notice if the shareholder does not satisfy the eligibility requirements for a retail money market fund (i.e., the shareholder is not a natural person); and deny purchase of Fund shares to investors who do not satisfy the eligibility requirements to invest in a retail money market fund (i.e., investor is not a natural person).
  4. 4. The 7-Day Yield is the average income paid out over the previous seven days assuming interest income is not reinvested and it reflects the effect of all applicable waivers. Absent such waivers, the fund’s yield would have been lower. In addition to the contractual expense limitation discussed in the prospectus, the investment advisor and/or its affiliates may voluntarily waive and/or reimburse expenses in excess of their current fee waiver and reimbursement commitment to the extent necessary to maintain a positive net yield (in the case of Schwab U.S. Treasury Money Fund, Schwab Treasury Obligations Money Fund, Schwab Government Money Fund and Schwab Retirement Government Money Fund, a nonnegative net yield).
  5. 5. Participants in employer-sponsored retirement plans (for example, a 401K) invested in the Schwab Investor Money Fund® may qualify for lower investment minimums (trading symbol SWRXX). All other investors are subject to the $2,500 minimum initial investment, $500 minimum additional investment and $2,500 minimum balance requirement as outlined in the fund's prospectus.
  6. 6. Dividends from the Schwab Municipal Money Fund and the state specific funds typically are exempt from federal income tax; dividends from state specific funds typically are exempt from the respective state's income tax as well. A portion of these funds' income, however, may be subject to the federal alternative minimum tax (AMT). Dividends from the Schwab AMT Tax-Free Money Fund, on the other hand, typically are exempt from federal income tax, including AMT.
  7. 7. Schwab AMT Tax-Free Money Fund and Schwab Municipal Money Fund: The taxable-equivalent yield assumes a federal regular income tax rate of 43.40%, which includes a Medicare surcharge rate of 3.8%. Your tax rate may be different.
    Schwab California Municipal Money Fund: The taxable-equivalent yield assumes a federal regular income tax rate of 43.40%, which includes a Medicare surcharge rate of 3.8%, and effective California state personal income rate of 6.96%. Your tax rate may be different.
    Schwab Massachusetts Municipal Money Fund: The taxable-equivalent yield assumes a federal regular income tax rate of 43.40%, which includes a Medicare surcharge rate of 3.8%, and effective Massachusetts state personal income rate of 2.97%. Your tax rate may be different. Effective April 30, 2015, the name of the Schwab Massachusetts AMT Tax-Free Money Fund was changed to Schwab Massachusetts Municipal Money Fund.
    Schwab New Jersey Municipal Money Fund: The taxable-equivalent yield assumes a federal regular income tax rate of 43.40%, which includes a Medicare surcharge rate of 3.8%, and effective New Jersey state personal income rate of 5.08%. Your tax rate may be different. Effective April 30, 2015, the name of the Schwab New Jersey AMT Tax-Free Money Fund was changed to Schwab New Jersey Municipal Money Fund.
    Schwab New York Municipal Money Fund: The taxable-equivalent yield assumes a federal regular income tax rate of 43.40%, which includes a Medicare surcharge rate of 3.8%, and effective New York state personal income rate of 4.99%. Your tax rate may be different. Effective April 30, 2015, the name of Schwab New York AMT Tax-Free Money Fund was changed to Schwab New York Municipal Money Fund.
    Schwab Pennsylvania Municipal Money Fund: The taxable-equivalent yield assumes a federal regular income tax rate of 43.40%, which includes a Medicare surcharge rate of 3.8%, and effective Pennsylvania state personal income rate of 1.74%. Your tax rate may be different.
  8. 8. Taxable equivalent yield represents the pretax, effective yield an investor would need to get from a taxable investment in order to match the yield paid by a given tax-exempt investment.

All Schwab Money Funds with the exception of Schwab Variable Share Price Money Fund: You could lose money by investing in a money market fund. Money market funds seek to preserve the value of your investment at $1.00 per share, but cannot guarantee they will do so. All Schwab Money Funds with the exception of Schwab Government Money Fund, Schwab U.S. Treasury Money Fund, Schwab Treasury Obligations Money Fund, Schwab Government Money Market Portfolio, and Schwab Retirement Government Money Fund may impose a fee upon the sale of your shares or may temporarily suspend your ability to sell shares if the fund’s liquidity falls below required minimums because of market conditions or other factors. An investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The money market fund's sponsor has no legal obligation to provide financial support to the fund, and you should not expect that the sponsor will provide financial support to the fund at any time.

Schwab Variable Share Price Money Fund: You could lose money by investing in a money market fund. Because the share price of the fund will fluctuate, when you sell your shares they may be worth more or less than what you originally paid for them. The fund may impose a fee upon the sale of your shares or may temporarily suspend your ability to sell shares if the fund’s liquidity falls below required minimums because of market conditions or other factors. An investment in the fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The fund’s sponsor has no legal obligation to provide financial support to the fund, and you should not expect that the sponsor will provide financial support to the fund at any time.

Charles Schwab & Co., Inc. (“Schwab”) and Charles Schwab Bank are separate but affiliated companies and subsidiaries of The Charles Schwab Corporation (“Charles Schwab”). Brokerage products, including the Schwab One® brokerage account, are offered by Schwab, Member SIPC. Deposit and lending products and services, including the High Yield Investor checking account, are offered by Charles Schwab Bank, Member FDIC and an Equal Housing Lender.

Charles Schwab Investment Management, Inc. (CSIM), the investment advisor for Schwab Funds, and Schwab, Member SIPC, the distributor for Schwab Funds, are separate but affiliated companies and subsidiaries of Charles Schwab.

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