Margin Account Loan Rates
 
Effective September 1, 2008, the annual rate of interest you will be charged on your Baird loan (i.e., “debit balance”) will be equal to a “Base Rate” plus or minus a “Specified Percentage.” The percentage will vary based on the highest debit balance in any margin account among your Baird “household accounts”and the aggregate value of your Baird household accounts.

To determine the interest rate that will be applied to your loan, see the table below.
Annual Rate of Interest = Current Base Rate of 5.0% +/- Specified Percentage

Household Account Value
Highest Debit Balance $0-$250,000 $250,000-$999,000 $1,000,000-$1,999,999 $2,000,000 & above
$0 - $19,999
2.500%
2.000%
1.375%
0.750%
$20,000-
$49,999
2.000%
1.500%
1.000%
0.625%
$50,000-
$99,999
1.375%
1.000%
0.625%
0.250%
$100,000-$249,999
0.750%
0.500%
0.250%
0.125%
$250,000-$499,999
N/A
0.250%
0.125%
-0.125%
$500,000-$999,999
N/A
0.000%
-0.125%
-0.375%
$1,000,000-$1,999,999
N/A
N/A
-0.375%
-0.625%
$2,000,000
and above
N/A
N/A
N/A
-0.750%

What Does “Household Accounts” Mean? “Household Accounts” refers to your individual and joint accounts, and accounts related to you that share the same address and, at your request, are consolidated for statement mailing purposes.
How Your Interest Rate is Determined As mentioned above, the interest rate applicable to a loan is equal to the Base Rate (the prime rate of interest as published in the “Money Rates” section of The Wall Street Journal) plus or minus a Specified Percentage.

The Specified Percentage is determined monthly by reference to the highest debit (loan) balance in any of the margin accounts among your Baird household accounts, and the aggregate value of your Baird household accounts as of the end of the previous month.

For example, if you have four Baird household accounts with values of $800,000, $500,000, $100,000 and $25,000 (total household value = $1,425,000), and two of those accounts are margin accounts with outstanding debit (loan) balances of $400,000 and $150,000, according to the table above, the Specified Percentage for the two margin accounts would be 0.125%. Assuming a Base Rate equal to 5.0%, the interest rate charged on the debit balances in each margin account would be 5.125%.  The Specified Percentage was determined by using the highest debit balance ($400,000) and a household account value of $1,425,000.
Additional Information or Questions Contact Your Financial Advisor
 
Important Information About Margin Loans
 
Margin Risk Disclosure
 
Margin Account Facts
Contact a Baird Financial Advisor
 
Related Information
 
Important Information About Margin Loans
Margin Risk Disclosure
Margin Account Facts
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