Account Sweep Yields

Sweep Yields

Your UBS securities account provides a feature that “sweeps” available cash balances from your account into one or more deposit accounts or money market funds on a daily basis. To determine which sweep options are available to you, please see the Account Information and Disclosures (if applicable) or contact your Financial Advisor. The yields for the various sweep options are provided below.

Saving Yields

If eligible, your UBS securities account allows you to deposit into the UBS Bank USA Core Savings and/or UBS Bank USA Core Savings — Promotional products, based on availability. To determine which Savings Product is available to you, please see the UBS Bank USA Core Savings Disclosure Statement or contact your Financial Advisor. The yields for the UBS Core Saving products 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 deposits in a Marketing, SEP, SIMPLE or Qualified Plan Relationship. A client’s tier is generally determined by the value of his or her eligible deposits in a Marketing, SEP, SIMPLE or Qualified Plan Relationship at calendar month-end. (See Important Disclosures (PDF, 201 KB) for information on eligible deposits, tiers, Marketing, SEP, SIMPLE  or Qualified Plan Relationships.)

Balances 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. Balances in deposit accounts at UBS Bank USA are not eligible for protection by the Securities Investor Protection Corporation (SIPC). See Important Disclosures (PDF, 201 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 deposits in a Marketing Relationship. A client’s tier is generally determined by the value of his or her eligible deposits in a Marketing Relationship at calendar month-end. (See Important Disclosures (PDF, 201 KB) for information on eligible deposits, tiers and Marketing Relationships.)

Balances 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. Balances in deposit accounts at UBS Bank USA are not eligible for protection by the Securities Investor Protection Corporation (SIPC). See Important Disclosures (PDF, 201 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 deposits in a Marketing, SEP, SIMPLE or Qualified Plan Relationship. A client’s tier is generally determined by the value of his or her eligible deposits in a Marketing, SEP, SIMPLE or Qualified Plan Relationship at calendar month-end. (See Important Disclosures (PDF, 201 KB) for information on eligible deposits, tiers, Marketing, SEP, SIMPLE or Qualified Plan Relationships.)

Balances 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, 201 KB) for more information about FDIC insurance.

 

Table 4 — UBS FDIC Insured Deposit Program 

Interest paid on balances held in the UBS FDIC Insured Deposit Program is tiered based on the total amount of eligible deposits in a Marketing Relationship. A client’s tier is generally determined by the value of his or her eligible deposits in a Marketing Relationship at calendar month-end. (See Important Disclosures (PDF, 225 KB) for information on eligible deposits, tiers, and Marketing Relationships.)

Balances in deposit accounts at participating banks in the UBS FDIC Insured Deposit Program are eligible for insurance by the FDIC of up to $250,000 per bank per owner. Balances in deposit accounts in this program are not eligible for protection by the Securities Investor Protection Corporation (SIPC). See Important Disclosures (PDF, 225 KB) for more information.

 

Table 5 — Money Market Funds and Other Sweep Yields

 

Table 6 — UBS Bank USA Core Savings Yields

UBS Bank USA Core Savings is available only if you have a securities account with UBS Financial Services Inc. and is available only to individuals, nonprofit entities and U.S. governmental entities. Annual Percentage Yields (APY) are accurate as noted above. Rates and rate tiers may change at any time without prior notice. Each withdrawal in excess of five per month is subject to a $25 fee. Fees could reduce earnings on the Savings Product.

Interest paid on UBS Bank USA Core Savings deposits is tiered based on the total amount of eligible deposits in a Marketing, SEP, SIMPLE or Qualified Plan Relationship. A client’s tier is generally determined by the value of his or her eligible deposits in a Marketing, SEP, SIMPLE or Qualified Plan Relationship at calendar month-end. (See Important Disclosures for information on eligible deposits, tiers, Marketing, SEP, SIMPLE or Qualified Plan Relationships.)

Funds on deposit at Bank USA are eligible for deposit insurance from the FDIC up to $250,000 (including principal and accrued interest) for each insurable capacity in which you hold your Securities Account (e.g., individual, joint, IRA). Balances in deposit accounts at UBS Bank USA are not eligible for protection by the Securities Investor Protection Corporation (SIPC). See Important Disclosures for more information about FDIC insurance.

 

Table 7 — UBS Bank USA Core Savings Promotional Yields 

UBS Bank USA Core Savings Promotional is available only if you have a securities account with UBS Financial Services Inc. and is available only to individuals, nonprofit entities and U.S. governmental entities. Rates and rate tiers may change at any time without prior notice. Each withdrawal in excess of five per month is subject to a $25 fee. Fees could reduce earnings on the Savings Product.

Promotional rate ends on December 31, 2019.

UBS Bank USA Core Savings - Current Promotion (PDF, 90 KB)

The annual percentage yield quoted is valid during the promotional period. Upon expiration, interest will be applied based on interest tiers noted under Table 6. Funds on deposit at Bank USA are eligible for deposit insurance from the FDIC up to $250,000 (including principal and accrued interest) for each insurable capacity in which you hold your Securities Account (e.g., individual, joint, IRA). Balances in deposit accounts at UBS Bank USA are not eligible for protection by the Securities Investor Protection Corporation (SIPC). See Important Disclosures for more information about FDIC insurance.

Important Disclosures for Table 5 above

Performance data quoted represents past performance. Past performance does not guarantee future results. Current performance may be higher or lower than the performance data quoted. Yields will vary.

You could lose money by investing in a money market fund. Although a money market fund seeks to preserve the value of your investment at $1.00 per share, a fund cannot guarantee it will do so. An investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. A money market fund's sponsor has no legal obligation to provide financial support to a money market fund, and you should not expect that the fund's sponsor will provide financial support to a money market fund at any time.

Mutual funds are sold by prospectus,which includes more complete information on risks, charges, expenses and other matters of interest. Investors should read the prospectus carefully before investing. For more information contact your Financial Advisor.

Not FDIC-insured. May lose value. No bank guarantee

UBS Asset Management (US) Inc. is the principal underwriter for the money market funds.

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

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 continued deterioration of the Puerto Rican economy over the past decade as well as the efforts by the Government to restructure its outstanding debt will likely lead to continued or increasing volatility in the Puerto Rico bond market, making it more challenging for the Fund to invest a portion of its assets in Puerto Rico securities in accordance with its investment objectives. The Fund is sold by prospectus only, is not FDIC-INSURED, is NOT BANK GUARANTEED and MAY LOSE VALUE. 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 other information. Read it carefully before you invest.

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).

2. Eligible Participants will have available cash balances swept into deposit accounts at UBS Bank USA up to $250,000 per securities account owner on a per-account basis. Amounts in excess of the cap will default to UBS AG Deposit Accounts unless an available money market fund is selected (“Secondary Sweep Option”). If you do not want your Secondary Sweep Option to be the UBS AG Deposit Account, you can only select an available money market fund, subject to meeting eligibility requirements.

3. For more detailed information on the operation of the UBS Bank Sweep Programs, please see Important Disclosures (PDF, 201 KB).

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).

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