Three ways Charles Schwab Bank can enhance your tax planning conversations

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Schwab Bank products make it easy to identify strategic lending and savings opportunities.

You want to help clients achieve their goals, be that investing in a business, paying a large tax bill, buying a new home, paying for a child's education, or retiring early. In these discussions, it's critical to discuss the role of credit in determining clients' overall financial needs. With offers from Schwab Bank, you can identify strategic lending and savings opportunities that can help clients achieve their goals while also helping to protect against disruptions to their overall investment strategy.

Learn more about:

  1. Using Pledged Asset Lines for greater flexibility when borrowing
  2. Mortgage discounts and other benefits for Schwab Bank clients
  3. Dedicated support when clients need it

Using a Pledged Asset Line® (PAL) for greater flexibility when borrowing

PAL is a non-purpose, securities-based line of credit that allows your clients to leverage the value of eligible assets in their investment portfolio as collateral for a secured loan. During this time of year, when many clients worry about the possibility of an unexpected tax bill, a PAL can offer increased borrowing flexibility with advance rates based on security type. When using a PAL, keep in mind that available credit will adjust based on the real-time value of eligible pledged brokerage assets.

A Pledged Asset Line can be beneficial to your clients for a variety of reasons.

  • Cost: PALs incur no origination fee. No maintenance fee. No annual fees. No prepayment penalties. No early closure fee. No wire or check fees. In the case of late payments, clients may be assessed a $25 fee.
  • Flexibility: PALs can be accessed multiple ways including wire transfers, checks and online transfers.
  • Control: Clients can determine when they borrow, how much they borrow, and how they repay the debt. Note: The initial advance must be at least $70,000. Subsequent advances may be less once that requirement is met.

In addition to helping with tax liabilities, there are many other ways clients may be able to use a PAL.

  • Student loan financing
  • Residential construction loan
  • Bridge financing
  • Rental property loan
  • Business start-up loan
  • Large purchase
  • Commercial real estate
  • Business buy out
  • Marine and aviation financing
  • Fine art financing
  • Livestock and land purchase
  • Estate loan

Visit the Introduction to the Pledged Asset Line (Demand) in the Service Guide to learn more.

Mortgage discounts and other benefits for Schwab Bank clients

Schwab Bank's Investor Advantage Pricing means clients have access to discounts on mortgage rates for eligible home loan products, including all adjustable-rate mortgages (ARM) and select fixed rate jumbo loans. Eligible clients may take advantage of interest rate discounts ranging from 0.250% to 1.000% on both purchase and refinance mortgage loans based on their qualifying assets with Schwab and Schwab Bank. Schwab Bank home loans are provided by Rocket Mortgage®.

Visit the  section in the Service Guide to learn more.

In order to participate, the borrower must agree that the lender, Rocket Mortgage, may share their information with Charles Schwab Bank and Charles Schwab Bank will share their information with the lender Rocket Mortgage. Nothing herein is or should be interpreted as an obligation to lend. Loans are subject to credit and collateral approval. Other conditions and restrictions may apply. This offer is subject to change or withdraw at any time and without notice. Interest rate discounts cannot be combined with any other offers or rate discounts. Hazard insurance may be required.

Dedicated support when clients need it

Schwab Bank provides support in a variety of ways, from Regional Banking Managers to Senior Bankers dedicated to supporting advisors' ultra-high net-worth clients, to help you meet your clients' banking needs from the most mundane to the very complex. With a focus on advisors and their clients, Schwab Bank offers high-touch service and access to solutions that can help advisors enhance their wealth management offering.


(0324-JB76)

Brokerage Products: Not FDIC Insured • No Bank Guarantee  •  May Lose Value

Charles Schwab & Co., Inc. does not solicit, offer, endorse, negotiate, or originate any mortgage loan products and is neither a licensed mortgage broker nor a licensed mortgage lender. Home lending is offered and provided by Rocket Mortgage, LLC. Rocket Mortgage LLC., is not affiliated with The Charles Schwab Corporation, Charles Schwab & Co., Inc., Charles Schwab Bank, SSB, Charles Schwab Trust Bank or Charles Schwab Premier Bank, SSB. In order to participate, the borrower must agree that the lender, Rocket Mortgage, may share their information with Charles Schwab Bank, SSB and Charles Schwab Bank, SSB will share their information with the lender Rocket Mortgage. Nothing herein is or should be interpreted as an obligation to lend. Loans are subject to credit and collateral approval. Other conditions and restrictions may apply. This offer is subject to change or withdraw at any time and without notice. Interest rate discounts cannot be combined with any other offers or rate discounts. Hazard insurance may be required. 

For Schwab Bank Pledged Asset Line: 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. Access your account at schwaballiance.com and review the PAL product page under Bank Offerings for additional 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.

For Schwab Bank Investor Advantage Pricing (IAP): Loans are eligible for only one Investor Advantage Pricing discount per loan. Select mortgage loans are eligible for an interest rate discount of 0.250% - 1.000% based on qualifying assets of $250,000 or greater. Discount applies to ARMs, Jumbo 15-yr and Jumbo 30-yr fixed (excludes HELOCs, VA loans, and FHA loans). Discount for ARMs applies to initial fixed-rate period only. 

Qualifying assets are based on non-retirement Schwab brokerage and Schwab Bank combined account balances, including:  

  1. a) Brokerage accounts in which the borrower(s) is an owner, trustee or custodian;
    b) Traditional, Roth, and Rollover Individual Retirement accounts (IRA)* - individually owned or inherited (excludes Educational & Custodial IRAs);
    c) Bank accounts in which the borrower(s) is an owner or trustee: checking & savings;
    d) Non-Retirement Corporate, LLC, Partnership and Sole Proprietorship accounts may be eligible depending on the borrower's ownership and role (excludes business retirement accounts such as Simple IRA, SEP IRA & Pension Trust).

    *Clients of Independent Investment Advisors: Qualifying assets are based on non-retirement Schwab brokerage and Schwab Bank combined account balances. Retirement accounts, including all IRAs, are excluded from this offer. For additional details please visit and log into www.schwaballiance.com.

    Schwab Bank makes its best effort to identify all qualifying assets based on your Social Security Number. If you have questions regarding your specific assets or account eligibility, please call your Regional Banking Manager for assistance.

    Clients that utilize an eligible IRA account balance to qualify for certain discounts may qualify for a special IRA benefit package per loan. This includes a detailed review and consultation of your IRA with a Financial Consultant. This information does not constitute and is not intended to be a substitute for specific individualized tax, legal, or investment planning advice. Where specific advice is necessary or appropriate, Schwab Bank recommends consultation with a qualified tax advisor, CPA, financial planner, or investment manager. 

    Clients must notify Schwab and Rocket Mortgage of any new assets brought to firm during processing. Qualifying new assets should be deposited and verified 15 days prior to the anticipated closing date to avoid closing delays and remain eligible to receive the interest rate discount.
     

Charles Schwab & Co., Inc. and Charles Schwab Bank, SSB are separate but affiliated companies and subsidiaries of The Charles Schwab Corporation. Deposit and non-mortgage lending products, including the Pledged Asset Line, are offered by Charles Schwab Bank, SSB, Member FDIC and Equal Housing Lender, and Charles Schwab Premier Bank, SSB, Member FDIC. Rocket Mortgage, LLC; NMLS #3030; www.NMLSConsumerAccess.org. Equal Housing Lender. Licensed in 50 states. AL License No. MC 20979, Control No. 100152352. AR, TX: 1050 Woodward Ave., Detroit, MI 48226-1906, (888) 474-0404; AZ: 1 N. Central Ave., Ste. 2000, Phoenix, AZ 85004, Mortgage Banker License #BK-0902939; CA: Licensed by the Department of Financial Protection and Innovation under the California Residential Mortgage Lending Act; CO: Regulated by the Division of Real Estate; GA: Residential Mortgage Licensee #11704; IL: Residential Mortgage Licensee #4127 – Dept. of Financial and Professional Regulation; KS: Licensed Mortgage Company MC.0025309; MA: Mortgage Lender License #ML 3030; ME: Supervised Lender License; MN: Not an offer for a rate lock agreement; MS: Licensed by the MS Dept. of Banking and Consumer Finance; NH: Licensed by the NH Banking Dept., #6743MB; NV: License #626; NJ: New Jersey – Rocket Mortgage, LLC, 1050 Woodward Ave., Detroit, MI 48226, (888) 474-0404, Licensed by the N.J. Department of Banking and Insurance.; NY: Rocket Mortgage, LLC, 1050 Woodward Ave., Detroit, MI 48226 Licensed Mortgage Banker-NYS Department of Financial Services; OH: MB 850076; OR: License #ML-1387; PA: Licensed by the Dept. of Banking – License #21430; RI: Licensed Lender; WA: Consumer Loan Company License CL-3030. Conditions may apply. 

©2024 Charles Schwab Bank, SSB. All rights Reserved. Member FDIC. Equal Housing Lender. 

Equal Housing Lender