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Pledged Asset Line

Schwab Bank Pledged Asset Line®

A flexible line of credit for your financial needs.

Looking to enhance your borrowing power for real estate, business, or other expenses? A Pledged Asset Line from Schwab Bank is a flexible, non-purpose line of credit¹ that lets you leverage the value of your portfolio.

Secured by assets held in a separate Pledged Account maintained by Charles Schwab & Co., Inc., you can use your line of credit to access the funds you need while helping maintain your investing strategy.

This flexible line of credit can be used for a wide range of financial needs:*

  • New home icon New home purchase
  • home renovation icon Home renovation
  • business startup icon New business startup
  • tax payment icon Tax payments
  • college tuition icon College tuition
  • suitcase icon Dream vacation

*Proceeds may not be used to purchase securities, pay down margin loans, or be deposited into any brokerage account.

Looking for a smarter way to borrow?

  • Flexible. Line amounts from $100,000 (required minimum initial advance of $70,000).

  • Convenient. Quick lending decisions, whether applying online or with a representative.

  • Affordable. Competitive rates with no set-up fees or pre-payment penalties.

Before applying, please read the Pledged Asset Line Fact Sheet.

Affordable rates. Now even more so.

For a limited time, you can get an exclusive 0.50% discount on the interest rate spread when you open a new flexible line of credit. See what you may qualify for:

Loan Value Of Collateral at Origination Index Interest Rate Spread Interest Rate with 0.50% Discount
$100,000 to <$250,000
1-month
LIBOR
4.50%
4.00%
$250,000 to <$500,000
3.25%
2.75%
$500,000 to <$1,000,000
2.75%
2.25%
$1,000,000 to <$2,500,000
2.25%
1.75%
$2,500,000 and above
1.75%
1.25%

Schwab Bank reserves the right to change any part of the interest rate after the Pledged Asset Line is established, including the LIBOR reference rate, interest rate spread, or post-demand spread.

See terms and conditions below for complete details.

Leverage the value of your investments.

Schwab Bank determines what constitutes eligible collateral for your flexible line of credit, which generally includes:

  • Marginable equity securities valued at or above $3/share at the time of funding and closing
  • Most mutual funds and exchange-traded funds
  • Certificates of deposit and cash
  • Many corporate, Treasury, municipal, and government agency bonds

Retirement assets are not eligible.

Considering a line of credit?

Log in to get started

Have questions?

You can talk to your personal Schwab Financial Consultant, speak with a Regional Banking Manager at 888-725-3630, or request more information and we'll contact you.

(Monday–Friday, 8:30 a.m.–8:00 p.m. ET)

Contact us today for further information or see the frequently asked questions below.

Schwab Bank's Pledged Asset Line is an uncommitted revolving non-purpose flexible line of credit¹ 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 one-month LIBOR (London interbank offered rate) 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 LIBOR reference 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.

See if your securities may be eligible to be used as collateral for your line of credit.

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


Charles Schwab Bank Pledged Asset Line® Promotion Terms and Conditions


This offer is made available at the discretion of Charles Schwab Bank ("Schwab Bank") and is valid from July 1, 2019, to September 30, 2019 (the "Promotion Period"). If during the Promotion Period you submit an application for a new Schwab Bank Pledged Asset Line account ("PAL Account"), you will receive a discount of 0.50% on the interest rate spread ("Interest Rate Spread") applicable to your PAL Account based on Schwab Bank's standard rates described above, which are subject to change without prior notice. The initial variable Annual Percentage Rate on the PAL Account is the sum of one-month LIBOR plus the Interest Rate Spread (based on the loan value of collateral at origination).

The Schwab Bank PAL Account is governed by the terms of the Schwab Bank Pledged Asset Line Agreement. The discount will apply to the PAL Account and is subject to Schwab Bank's right to change the interest rate at any time. The following are not eligible for this offer: any PAL with a stated term, or the amendment or refinancing of any existing PAL.

Notwithstanding this offer, Schwab Bank reserves its right to impose a post-demand spread after making demand on the PAL Account. Nothing herein is or should be interpreted as imposing an obligation to lend. Pledged Asset Lines are subject to credit and collateral approval.

This offer is available to legal U.S. residents only. Schwab Bank may modify or end this offer at any time without notice. This offer cannot be combined with any other offers or rate discounts. Other restrictions may apply.


The initial variable Annual Percentage Rate on the Pledged Asset Line, based on the loan value of the collateral pledged at origination, is the sum of one-month LIBOR plus the applicable Interest Rate Spread shown above. Pledged Asset Line amounts begin at $100,000 with a required initial minimum advance of $70,000.

To learn more, talk to your Financial Consultant today or call Schwab Bank at 888-725-3630 to speak with a Regional Banking Manager.

Schwab Bank requires that the assets pledged as collateral for the Pledged Asset Line be held in a separate Pledged Account maintained at Charles Schwab & Co., Inc. (Schwab). Schwab Bank, in its sole discretion, will determine at any time the eligible collateral criteria and the loan value of collateral.

This offer is subject to change or withdrawal at any time and without notice. Nothing herein is or should be interpreted as imposing an obligation to lend. Pledged Asset Lines are subject to credit and collateral approval. Other conditions and restrictions may apply.

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.

Charles Schwab & Co., Inc. and Charles Schwab Bank are separate but affiliated companies and subsidiaries of The Charles Schwab Corporation. Brokerage products, including the Pledged 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 the 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.

©2019 Charles Schwab Bank. All rights Reserved. Member FDIC. Equal Housing Lender.
CC2807728 (0819-9WN4) (08/19)