Three ways Schwab Bank can enhance your tax planning conversations

Couple having a conversation

Schwab Bank enhancements make it easier 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 generally adjust based on the real-time value of eligible pledged brokerage assets.

A Pledged Asset Line can be beneficial to both advisors and end clients for a variety of reasons.

  • Cost: PALs incur no origination fee. No maintenance fee. No annual fees. No prepayment fees. No early closure fee. No wire or check fees. In the case of late payments, clients may be assessed a $25 fee.
  • Efficiency: A PAL can be established with flexible access options including wire transfers and online transfers.
  • Control: Clients can determine when they borrow, how much they borrow, and how they repay the debt.

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
  • Single premium life insurance 
  • Livestock and land purchase
  • Estate loan

Visit the in the Service Guide to learn more.

Entering into a Pledged Asset Line and pledging securities as collateral involve a high degree of risk. Before deciding to apply for a Pledged Asset Line, your clients should be sure they understand the risks.

Please know that 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.

*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.

†The initial advance must be at least $70,000. Subsequent advances may be less once that requirement is met. Loans are subject to available credit. Mandatory interest payments are due monthly. All or any part of the PAL obligations are payable immediately upon demand by Schwab Bank in its sole discretion.

Mortgage discounts and other benefits for Schwab Bank clients

Schwab Bank's enhanced 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 specific advisors, 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.