A flexible line of credit for your financial needs.

Schwab Bank's Pledged Asset Line is an uncommitted revolving non-purpose flexible line of credit^¹ secured by assets held in a separate Pledged Account maintained by Charles Schwab & Co., Inc. ("Schwab").

All loan requests are accepted or rejected in Schwab Bank's sole discretion.

Proceeds must be used for a lawful personal, commercial, or business purpose under state, federal, or other applicable law and may not be used to purchase securities, pay down margin loans, or be deposited into any brokerage account.

Individual, joint, and revocable living trust registrations are eligible.

There is no stated maturity date.

At any time, Schwab Bank may demand immediate payment of all or any portion of the outstanding obligations or require additional cash or securities to be added to the Pledged Account.

Interest rates are based on the market-driven SOFR plus an Interest Rate Spread. The interest rate spread is determined based on the loan value of your collateral at the time the line of credit is opened.

Changes in the interest rate may cause your monthly payments to change and may increase your cost of borrowing. Schwab Bank reserves the right to change any part of the interest rate after the PAL is established, including the index rate, interest rate spread, or post-Demand spread.

There are no fees to apply for the line of credit, and there are no account opening or maintenance fees on the Pledged Account (brokerage commissions and other fees may apply).

The only fee associated with your line of credit is a late payment fee of $25.

Schwab Bank requires that the assets pledged as collateral be held in a separate Pledged Account maintained at Schwab, and that, at all times, the loan value of collateral of the assets held in the Pledged Account(s) equal or exceed the greater of (i) the minimum loan value of collateral (currently $100,000) and (ii) the outstanding loans.

Schwab Bank, in its sole discretion, will determine what collateral is eligible collateral and the loan value of collateral.

The first draw made against a Pledged Asset Line must meet or exceed the minimum initial draw amount (currently $70,000). After the minimum initial draw has been satisfied, subsequent draw requests can be made in lesser amounts subject to available credit.

The Pledged Account is a special account set up at Schwab, a broker-dealer. This account holds your assets that have been pledged as collateral for the line of credit. There are no account opening or maintenance fees (brokerage commissions and other fees may apply). The Pledged Account does not have margin, payment, or option trading features.

Schwab Bank does not provide investment advice with respect to the Pledged Account, any securities pledged to the Pledged Account, or any transactions therein. Unless otherwise specified or agreed, Schwab also does not make recommendations about the Pledged Account, assets pledged to the Pledged Account, or any transactions in the Pledged Account.

Entering into a Pledged Asset Line and pledging securities as collateral involve a high degree of risk. At any time, including in the event that the loan value of collateral is insufficient to satisfy the minimum loan value of collateral or to support the outstanding loans, Schwab Bank may demand immediate payment of all or any portion of the outstanding obligations, or require additional cash or securities to be added to the Pledged Account maintained at Charles Schwab & Co., Inc.

If a Demand is not addressed, the pledged securities may be immediately liquidated without further notice to you, which may result in tax consequences.