Loan Rates

Effective February 1, 2009, 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 5.50% +/- Specified Percentage
Household Account Value 
Highest Debit Balance

$0-$249,999

$250,000-$999,999

$1,000,000-$1,999,999

$2,000,000 & above

$0 - $19,999
2.750%
2.125%
1.375%
0.750%
$20,000-
$49,999
2.250%
1.625%
1.000%
0.625%
$50,000-
$99,999
1.625%
1.125%
0.625%
0.250%
$100,000-$249,999
1.000%
0.625%
0.250%
0.125%
$250,000-$499,999
N/A
0.375%
0.125%
-0.125%
$500,000-$999,999
N/A
0.125%
-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 plus or minus a Specified Percentage. The Base Rate will be determined by Baird by reference to a number of factors, which may include commercially recognized interest rates (such as the broker call rate, the prime rate, the Federal funds rate and/or LIBOR), Baird’s cost of capital, industry conditions relating to extension of margin credit, and general market and competitive considerations. Baird may change the Base Rate at any time without specific notice to you. A change in the Base Rate will generally be reflected in the daily interest that is charged to your account beginning on the first business day following the change.

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 4.5%, the interest rate charged on the debit balances in each margin account would be 4.625%. 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