Account 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.

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, 230 KB) for all tiers and Marketing Relationship assets information.)

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, 230 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, 230 KB) for all tiers and Marketing Relationship assets information.)

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, 230 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, 230 KB) for all tiers and Marketing Relationship assets information.)

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, 230 KB) for more information.

Table 4 — Money Market Funds and Other Sweep Yields

Table 5 — International Deposit Account Yield

Important Disclosures for Tables 4 above

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 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, 230 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).

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, 230 KB).

UBS Financial Services Inc., a registered broker-dealer offering securities, trading, brokerage and related products and services. Member SIPC. Member FINRA. UBS Bank USA is a Member of the FDIC.

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