Account Sweep Yields

Your UBS Resource Management Account® (RMA®), Business Services Account BSA® or Basic Investment Account provides a feature that "sweeps" available cash balances from your account into one or more deposit accounts or investment vehicles on a daily basis. To determine which sweep options are available to you, please see Important Disclosures (PDF, 240 KB). The yields for the various sweep options are provided below.

Table 1 — UBS Bank USA Deposit Account Yields

Interest paid on a deposit account at UBS Bank USA is tiered based on the total amount of eligible Marketing Relationship or Qualified Plan assets (as defined in the General Terms and Conditions) that a client holds with UBS Financial Services Inc. A client's tier is generally determined by the value of their Marketing Relationship or Qualified Plan assets at calendar month-end. (See Important Disclosures (PDF, 240 KB) for all tiers and Marketing Relationship assets information.)

Funds in deposit accounts at UBS Bank USA are eligible for insurance by the Federal Deposit Insurance Corporation (FDIC) of up to $250,000 per account owner, in accordance with FDIC rules. Funds in deposit accounts at UBS Bank USA are not eligible for protection by the Securities Investor Protection Corporation (SIPC). See Important Disclosures (PDF, 240 KB) for more information about FDIC insurance.

Table 2 — UBS Bank USA Business Account Yields

Interest paid on a business account at UBS Bank USA is tiered based on the total amount of eligible Marketing Relationship assets (as defined in the General Terms and Conditions) that a client holds with UBS Financial Services Inc. A client's tier is generally determined by the value of their Marketing Relationship assets at calendar month-end. (See Important Disclosures (PDF, 240 KB) for all tiers and Marketing Relationship assets information.)

Funds in business accounts at UBS Bank USA are eligible for insurance by the Federal Deposit Insurance Corporation (FDIC) of up to $250,000 per account owner, in accordance with FDIC rules. Funds in deposit accounts at UBS Bank USA are not eligible for protection by the Securities Investor Protection Corporation (SIPC). See Important Disclosures (PDF, 240 KB) for more information about FDIC insurance.

Table 3 — UBS AG Deposit Account Yields

Interest paid on a deposit account at UBS AG, Stamford Branch is tiered based on the total amount of eligible Marketing Relationship or Qualified Plan assets (as defined in the General Terms and Conditions) that a client holds with UBS Financial Services Inc. A client's tier is generally determined by the value of their Marketing Relationship or Qualified Plan assets at calendar month-end. (See Important Disclosures (PDF, 240 KB) for all tiers and Marketing Relationship assets information.)

Funds in deposit accounts at UBS AG, Stamford Branch are not eligible for Federal Deposit Insurance Corporation (FDIC) insurance or protection by the Securities Investor Protection Corporation (SIPC).  See Important Disclosures (PDF, 240 KB) for more information.

Table 4 — Tax-Exempt Money Market Funds and Other Sweep Yields

Table 5 — Money Market Funds and Other Sweep Yields

Please Note: Clients who are ineligible for either of the UBS Bank Sweep Programs may choose a tax-exempt money market fund or taxable money market fund as their primary sweep option.

Additionally, see Important Disclosures below.

Important Disclosures for Tables 4 and 5 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. In general, most clients with a Resource Management Account® (RMA®), Individual Retirement Account (IRA), Basic Investment Account, Business Services Account BSA®, Coverdell Education Savings Account and certain Investment Advisory Accounts will be eligible for one of the UBS Bank Sweep Programs.  Eligibility is based primarily upon the type of client (i.e., most non-business clients are eligible for the Deposit Program and most business clients are eligible for the Business Program).  Available cash will sweep up to $250,000 per account owner unless they choose one of the tax-exempt money market funds if eligible, offered by UBS Financial Services as an alternative to the Bank Sweep Programs (See Table 4 above)1.
  2. Eligible Participants will have cash swept into the Bank up to $250,000 per account owner on a per-account basis. Amounts in excess of the cap will default to UBS AG Deposit Account (“Secondary Sweep Option”) unless an available money market fund is selected.
  3. Clients who are ineligible for either of the UBS Bank Sweep Programs may choose a tax-exempt money market fund or a taxable money market fund as their primary sweep option. (See Table 5 above). For more detailed information on the operation of the UBS Bank Sweep Programs, please see Important Disclosures (PDF, 240 KB).
  4. If you are an Eligible Participant and have a Basic Investment Account, and you do not want your secondary sweep option to be UBS AG Deposit Account you can only select RMA Money Market Portfolio as a Secondary Sweep Fund. If you are an Eligible Participant and have a Basic Investment Account IRA, and you do not want your secondary sweep option to be UBS AG Deposit Account, you may select either UBS Retirement Money Fund or RMA Money Market Portfolio as a Secondary Sweep Fund.

Definition of Terms

7-Day Current Yield for Money Market Funds — The 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).

Tier — A client's tier is determined by the value of a client's eligible Marketing Relationship or Qualified Plan 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 or Qualified Plan information, please see Important Disclosures (PDF, 240 KB).

 

1 UBS 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 York Municipal Fund and UBS Select Tax-Free Capital 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 risks than those funds. The fund is sold by prospectus only, is not FDIC-INSURED, is NOT BANK GUARANTEED, and MAY LOSE VALUE. Clients with Basic Investment Accounts, Retirement 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 before investing. The prospectus contains this and any other information. Read it carefully before you invest.

Resource Management Account, RMA and Business Services Account BSA are registered service marks of UBS Financial Services Inc.