What is a Pledged Asset Line?
Transcript of the video:
Upbeat background music plays throughout.
The Charles Schwab Bank logo appears on a clean white screen.
The logo fades to reveal a pie chart representing a portfolio, animating onto a blue background.
What if your current portfolio could help cover life's big expenses without having to sell your investments?
We zoom into a wedge of the pie chart and see a man with a shovel in front of a home, representing home renovation. The chart spins to another wedge where we see a woman at a computer desk; a tax icon appears, representing tax expenses. A final spin shows a man holding an open sign in front of a building with a "Grand Opening" banner.
A Pledged Asset Line is a flexible line of credit that allows you to borrow against non-retirement assets in your portfolio, without having to liquidate your investments.
We zoom back out to see the portfolio slowly rotating next to the text "Pledged Asset Line." The text "Borrow against non-retirement assets in your portfolio" comes on to align with the voiceover. That animates off and is replaced by "without having to liquidate your investments" to again align with the voiceover.
A glass cage animates on around the portfolio, representing the idea of not having to liquidate investments. The glass cage animates left, and the text "Keep long-term investments" comes on to align with the voiceover. The text "Avoid tax consequences" appears below, again aligning with the voiceover.
This can help you keep your long-term investment strategy intact and avoid the tax consequences that come with selling securities.
The caged portfolio animates off the screen and is replaced by a collage of items representing taxes: a manila folder containing documents, a tax document, a calculator, pens, paperclips, and paper.
Get approved online, usually in as little as one business day, with no application fees and no account opening or maintenance fees.
We pan to a laptop and see a cursor click an "Apply now" button. The button disappears and is replaced by a clock with the hands animating around. The message "Funds Available" appears below the clock, and a green checkmark animates on in front of the message.
This is then replaced by a dollar sign icon with a slash through it as text animates on: "No application fees. No opening fees. No maintenance fees."
Plus, you will receive competitive rates and may be eligible for exclusive discounts based on your Schwab relationship.
The previous laptop screen is cleared, and two price tags animate down onto the screen: one has a large dollar sign and the text "Exclusive Discounts," and the other has a large percentage sign and the text "Competitive Rates."
Once approved, you can use the funds for expenses like renovating a home, covering taxes, or starting a business.
We pan away from the laptop to see a man in construction gear holding a shovel next to a blueprint for a home with a new garage animating on, representing home renovation. We pan to see the same character sitting at a desk in front of a laptop with a tax document in the space above him, representing paying taxes. We pan to see the same character standing in front of a storefront with a "Grand Opening" banner, representing starting a business.
Discover a smarter way to borrow with a Pledged Asset Line from Schwab Bank.
We transition to the portfolio from the beginning on a white background next to the text "Discover a smarter way to borrow."
The scene fades away to the Charles Schwab Bank logo on a white background with the text: "Learn more about a Pledged Asset Line from Schwab Bank at Schwab.com/PAL or call 1-888-725-3630."
That fades, and the following disclosures appear:
Investment and Insurance Products Are: Not FDIC Insured • Not Insured by Any Federal Government Agency • Not a Deposit or Other Obligation of, or Guaranteed by, the Bank or any of its Affiliates • Subject to Investment Risks, Including Possible Loss of Principal Amount Invested
1. Annual average cycle time as of 2024 was 1.4 days.
2. For Charles Schwab Bank & Charles Schwab Premier Bank Pledged Asset Line (PAL) Investor Advantage Pricing (IAP): Loans are eligible for only one IAP discount per loan. PALs are eligible for an interest rate discount between 0.25% and 1.00% based on Borrower's Schwab brokerage and Schwab Bank combined qualifying assets totaling $250,000 or greater. Loans to organizational borrowers are not currently eligible for IAP discounts. See schwab.com/PAL for more details.
The Pledged Asset Line is an uncommitted demand line of credit provided by either Charles Schwab Bank, SSB, or Charles Schwab Premier Bank, SSB. Entering into a Pledged Asset Line and pledging securities as collateral involves a high degree of risk. As a non-purpose line of credit, proceeds may not be used to purchase securities, pay down margin loans, or be deposited into any brokerage account. See Schwab.com/PAL for more details. Before you decide to apply for a Pledged Asset Line, make sure you understand the risks. A Pledged Asset Line requires a brokerage account at Charles Schwab & Co., Inc.
Charles Schwab & Co., Inc., Charles Schwab Bank, SSB and Charles Schwab Premier Bank, SSB are separate but affiliated companies and subsidiaries of The Charles Schwab Corporation. Deposit and lending products are offered by Charles Schwab Bank, SSB, Member FDIC and an Equal Housing Lender, and Charles Schwab Premier Bank, SSB, Member FDIC.
©2025 Charles Schwab & Co., Inc. All rights reserved. Member SIPC. (0725-DNNY) ELC128688-00 (09/25)