Your UBS Resource Management Account® (RMA®), Business Services Account BSA® or Basic Investment Account provides a feature that "sweeps" free credit balances (available cash) from your account into one or more depository or investment vehicles on a daily basis. To determine which sweep options are available to you, please see below. The yields for the options are also provided below.
Table 1 — UBS Bank USA Deposit Account Yields
Annual Percentage Yield (APY) as of November 28, 2008
APY may change daily
Interest paid on the deposit accounts is tiered based on the total amount of eligible assets by Marketing Relationship that a client holds with UBS Financial Services Inc. and UBS Bank USA. A client´s tier is generally determined by the value of their accounts in a Marketing Relationship at calendar month-end. (See Important Disclosures for all tiers and Marketing Relationship information.)
Based on UBS
Financial Services Inc. and UBS Bank USA eligible marketing relationship assets
See Important Disclosures for more
information.
Tier 6 - $2 million or more
1.17%
Tier 5 - $1 million to $1,999,999
0.65%
Tier 4 - $500,000 to $999,999
0.55%
Tier 3 - $250,000 to $499,999
0.42%
Tier 2 - $100,000 to $249,999
0.18%
Tier 1 - Less than $100,000
0.12%
UBS Bank USA deposit accounts are insured by the Federal Deposit Insurance Corporation (FDIC) up to $100,000 per depositor and up to $250,000 for some retirement accounts, in accordance with FDIC rules. See Important Disclosures for more information regarding FDIC insurance and other matters of interest.
Table 2 — Money Market and Other Fund Yields
Yield Information is for the 7-day period ended November 28, 2008
Please Note: Clients who are ineligible for the UBS Deposit Account Sweep Program may choose a tax-exempt money market fund or taxable money market fund as their primary sweep option.
Important Disclosures for Tables 2 and 3 above The PR Short Term Investment Fund is only available to residents of Puerto Rico. Additionally, this fund is not principally underwritten by UBS Global Asset Management. Performance data quoted represents past performance. Past performance does not guarantee future results. Current performance may be lower or higher than the performance data quoted. Yields will vary. An investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although each money market fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the money market funds. Money market funds are sold by prospectus. Investors should consider the investment objectives, charges, expenses and risk factors carefully before investing. The prospectus contains this and other information. Read it carefully before you invest.
Not FDIC-insured. May lose value. No bank guarantee. UBS Global Asset Management (US) Inc. is the principal underwriter for the money market funds.
How to determine which sweep option(s) is (are) available to you:
1.
Clients who are eligible to participate ("Eligible Participants") in the UBS Financial Services Inc. Deposit Account Sweep Program will have their available cash swept into a UBS Bank USA (Member FDIC) (the "Bank") deposit account (see Table 1 above) without limit unless they choose (a) one of the tax-exempt money market funds offered by UBS Financial Services Inc. for that purpose (each, a "Tax-Exempt Sweep Fund") (see Table 2 above) or (b) a cap (please see paragraph 2 for more information).1
2.
Eligible Participants whose available cash is swept into the Bank may choose to cap the amount of cash swept into the Bank deposit accounts ($100,000 or more for individual accounts, $200,000 or more for joint accounts) on a per-account basis. For those Eligible Participants who choose a cap, amounts in excess of the cap will be swept into a secondary money market fund ("Secondary Sweep Fund") that the client chooses (See Table 3 above).2
3.
Clients who are ineligible for the Deposit Account Sweep Program may choose a Tax-Exempt Sweep Fund or a taxable money market fund as their primary sweep option (see Table 3 above).1 For more detailed information on the operation of the UBS Financial Services Inc. Deposit Account Sweep Program, please see Important Disclosures.
Definition of Terms 7-Day Current Yield for Money Market Funds — 7-Day Current Yield is based on a recently ended seven-day period. It is computed by determining the net change, exclusive of capital changes, in the value of a hypothetical pre-existing account having a balance of one share at the beginning of the period, then subtracting a hypothetical charge reflecting deductions from that shareholder account, then dividing the difference by the value of the account at the beginning of the base period to obtain the base period return and then multiplying the base period return by (365/7), with the resulting yield figure carried to at least the nearest hundredth of one percent.
Annual Percentage Yield (APY) — APY measures the total amount of interest paid on an account based on the interest rate and the frequency of compounding. The annual percentage yield is expressed as an annualized rate, based on a 365- or 366-day year (as applicable).
Eligible Participants — "Eligible Participants" means individuals, sole proprietors and governmental agencies. Custodial accounts are also Eligible Participants if each beneficiary is an Eligible Participant. See Important Disclosures for more information.
Tier — A client´s tier is determined by the value of a client´s eligible Marketing Relationship assets, which is generally calculated at each calendar month-end. This valuation is then used to set the client´s interest-rate tier level for the interest period beginning the fifth business day of the following month. For more tier and Marketing Relationship information, please see Important Disclosures.
1UBS Financial Services Inc. offers the following Tax-Exempt Sweep Funds: UBS RMA Tax-Free Fund, Inc., UBS RMA California Municipal Money Fund, UBS RMA New Jersey Municipal Money Fund and UBS RMA New York Municipal Money Fund. State-specific municipal funds are designed for residents of those states. Puerto Rico Short Term Investment Fund, Inc. is offered exclusively to Puerto Rico residents as defined in the Fund´s prospectus. The Fund is not a money market fund registered under the U.S. Investment Company Act of 1940, does not comply with rules applicable to U.S. registered funds and presents a higher degree of risk than those funds. The Fund is sold by prospectus only, is NOT FDIC-INSURED, NOT BANK GUARANTEED, AND MAY LOSE VALUE. Clients with Basic Investment Accounts and RMA IRAs are not eligible to select a Tax-Exempt Sweep Fund. This does not constitute a solicitation, offer or recommendation to purchase any securities. Money market funds are sold by prospectus. Investors should consider the investment objectives, charges, expenses and risk factors carefully before investing. The prospectus contains this and other information. Read it carefully before you invest.
2If you are an Eligible Participant and have a Basic Investment Account, you must select UBS Cashfund Inc. as a Secondary Sweep Fund. If you are an Eligible Participant and have a Basic Investment Account IRA, you may select either UBS Retirement Money Fund or UBS Cashfund Inc. as a Secondary Sweep Fund.
Resource Management Account, RMA and Business Services Account BSA are registered service marks of UBS Financial Services Inc.
