<PAGE> 1
SUPPLEMENT
TO THE PROSPECTUS, DATED APRIL 30, 1997, FOR THE
SCHWAB NEW YORK MUNICIPAL MONEY FUND-SWEEP SHARES
The following replaces the ninth and tenth paragraphs in the "Investing in
Shares of the Fund" section of the prospectus:
Schwab accounts opened prior to January 15, 1998 require a $1,000 minimum
investment and account balance ($500 for custodial accounts). A fee of $7.50
will be charged to Schwab accounts that fall below this minimum for three
consecutive months in a quarter. The fee, if applicable, will be charged at the
end of each quarter, but will be waived if there has been at least one
commissionable trade within the previous six months, or if the investor's
combined Schwab accounts equal $10,000 or more.
Schwab One(R) accounts opened prior to January 15, 1998 require a $5,000 minimum
investment and account balance. A monthly fee of $5.00 will be charged to Schwab
One accounts that fall below this minimum, unless there have been at least two
commissionable trades within the previous twelve months.
Effective January 15, 1998, Schwab accounts will not be available, and Schwab
One(R) accounts will be available with a new minimum initial investment
requirement of $2,500. Additionally, the account fees for existing Schwab and
Schwab One accounts will be replaced with a calendar quarter account fee of $15,
effective April 1, 1998. However, this fee will not be charged if the combined
balances of your household's accounts at Schwab exceed $25,000 at the end of any
month in that quarter, you have one commissionable trade in that or the
preceding quarter or you have two or more commissionable trades during the last
four quarters. If you have more than one account at Schwab, you will be charged
only one quarterly fee.
The following replaces the first, second and third paragraphs under the heading
"How to Buy Shares" in the "Investing in Shares of the Fund" section of the
prospectus:
AUTOMATIC INVESTMENT. When opening a Schwab One account, investors with combined
household accounts at Schwab of at least $10,000 may chose Sweep Shares of the
Fund as their primary fund, and free credit balances in their Schwab One account
will be invested automatically in Sweep Shares of the Fund according to the
terms and conditions of the account agreement. Shares will be sold as necessary
to settle any negative cash balance in the Schwab One account. Existing Schwab
accounts with primary funds previously selected will not be subject to the
$10,000 household minimum requirement in order maintain or change their primary
fund.
DIRECT PURCHASE. Shares of the Fund may be bought (even if it is not a primary
fund) in several ways. The minimum initial investment in Sweep Shares of the
Fund through direct purchase is $1,000. Subsequent direct purchases must be in
amounts of at least $100.
TF5350 (1/15/98)
<PAGE> 2
SUPPLEMENT
TO THE PROSPECTUS, DATED APRIL 30, 1997,
FOR THE VALUE ADVANTAGE INVESTMENTS(R)
SCHWAB MUNICIPAL MONEY FUND-VALUE ADVANTAGE SHARES(TM)
SCHWAB CALIFORNIA MUNICIPAL MONEY FUND-VALUE ADVANTAGE SHARES(TM)
SCHWAB NEW YORK MUNICIPAL MONEY FUND-VALUE ADVANTAGE SHARES(TM)
The following replaces the eighth and ninth paragraphs in the "Investing in
Shares of the Funds" section of the prospectus:
Schwab accounts opened prior to January 15, 1998 require a $1,000 minimum
investment and account balance ($500 for custodial accounts). A fee of $7.50
will be charged to Schwab accounts that fall below this minimum for three
consecutive months in a quarter. The fee, if applicable, will be charged at the
end of each quarter, but will be waived if there has been at least one
commissionable trade within the previous six months, or if the investor's
combined Schwab accounts equal $10,000 or more.
Schwab One(R) accounts opened prior to January 15, 1998 require a $5,000 minimum
investment and account balance. A monthly fee of $5.00 will be charged to Schwab
One accounts that fall below this minimum, unless there have been at least two
commissionable trades within the previous twelve months.
Effective January 15, 1998, Schwab accounts will not be available, and Schwab
One(R) accounts will be available with a new minimum initial investment
requirement of $2,500. Additionally, the account fees for existing Schwab and
Schwab One accounts will be replaced with a calendar quarter account fee of $15,
effective April 1, 1998. However, this fee will not be charged if the combined
balances of your household's accounts at Schwab exceed $25,000 at the end of any
month in that quarter, you have one commissionable trade in that or the
preceding quarter or you have two or more commissionable trades during the last
four quarters. If you have more than one account at Schwab, you will be charged
only one quarterly fee.
TF5351 (1/15/98)
<PAGE> 3
SUPPLEMENT
TO THE PROSPECTUS, DATED APRIL 30, 1997,
FOR THE SCHWAB VALUE ADVANTAGE MONEY FUND(R)
INVESTOR SHARES
The following replaces the eighth and ninth paragraphs in the "Investing in
Shares of the Fund" section of the prospectus:
Schwab accounts opened prior to January 15, 1998 require a $1,000 minimum
investment and account balance ($500 for custodial accounts). A fee of $7.50
will be charged to Schwab accounts that fall below this minimum for three
consecutive months in a quarter. The fee, if applicable, will be charged at the
end of each quarter, but will be waived if there has been at least one
commissionable trade within the previous six months, or if the investor's
combined Schwab accounts equal $10,000 or more.
Schwab One(R) accounts opened prior to January 15, 1998 require a $5,000 minimum
investment and account balance. A monthly fee of $5.00 will be charged to Schwab
One accounts that fall below this minimum, unless there have been at least two
commissionable trades within the previous twelve months.
Effective January 15, 1998, Schwab accounts will not be available, and Schwab
One(R) accounts will be available with a new minimum initial investment
requirement of $2,500. Additionally, the account fees for existing Schwab and
Schwab One accounts will be replaced with a calendar quarter account fee of $15,
effective April 1, 1998. However, this fee will not be charged if the combined
balances of your household's accounts at Schwab exceed $25,000 at the end of any
month in that quarter, you have one commissionable trade in that or the
preceding quarter or you have two or more commissionable trades during the last
four quarters. If you have more than one account at Schwab, you will be charged
only one quarterly fee.
TF5352 (1/15/98)
<PAGE> 4
SUPPLEMENT TO THE PROSPECTUS, DATED APRIL 30, 1997 AS
AMENDED OCTOBER 17, 1997, FOR THE
SCHWAB MONEY FUNDS-SWEEP INVESTMENTS(TM)
SCHWAB MONEY MARKET FUND
SCHWAB GOVERNMENT MONEY FUND
SCHWAB U.S. TREASURY MONEY FUND
SCHWAB MUNICIPAL MONEY FUND-SWEEP SHARES
SCHWAB VALUE ADVANTAGE MONEY FUND-SWEEP SHARES
The fifteenth paragraph in the "Key Features" section of the prospectus is
deleted.
The following replaces the ninth and tenth paragraphs in the "Investing in
Shares of the Funds" section of the prospectus:
Schwab accounts opened prior to January 15, 1998 require a $1,000 minimum
investment and account balance ($500 for custodial accounts). A fee of $7.50
will be charged to Schwab accounts that fall below this minimum for three
consecutive months in a quarter. The fee, if applicable, will be charged at the
end of each quarter, but will be waived if there has been at least one
commissionable trade within the previous six months, or if the investor's
combined Schwab accounts equal $10,000 or more.
Schwab One(R) accounts opened prior to January 15, 1998 require a $5,000 minimum
investment and account balance. A monthly fee of $5.00 will be charged to Schwab
One accounts that fall below this minimum, unless there have been at least two
commissionable trades within the previous twelve months.
Effective January 15, 1998, Schwab accounts will not be available, and Schwab
One(R) accounts will be available with a new minimum initial investment
requirement of $2,500. Additionally, the account fees for existing Schwab and
Schwab One accounts will be replaced with a calendar quarter account fee of $15,
effective April 1, 1998. However, this fee will not be charged if the combined
balances of your household's accounts at Schwab exceed $25,000 at the end of any
month in that quarter, you have one commissionable trade in that or the
preceding quarter or you have two or more commissionable trades during the last
four quarters. If you have more than one account at Schwab, you will be charged
only one quarterly fee.
The following information replaces the third, fourth and fifth paragraphs under
the heading "How to Buy Shares" in the "Investing in Shares of the Funds"
section of the prospectus:
AUTOMATIC INVESTMENT. When opening a Schwab One account, investors with combined
household accounts at Schwab of at least $25,000 may chose a Fund ($10,000 for
Schwab Municipal Money Fund) as their primary fund, and free credit balances in
their Schwab One account will be invested automatically in Sweep Shares of the
Fund according to the terms and conditions of the account agreement. Shares will
be sold as necessary to settle any negative cash balance in the Schwab One
account. Existing Schwab accounts with primary funds previously selected will
not be subject to the $25,000 (or $10,000) household minimum requirement in
order maintain or change their primary fund.
DIRECT PURCHASE. Shares may be bought (even if it is not a primary fund) in
several ways. The minimum initial investment through direct purchase is $1,000
($25,000 for Schwab Value Advantage Money Fund). Subsequent direct purchases
must be in amounts of at least $100 ($5,000 for Schwab Value Advantage Money
Fund).
The eleventh, twelfth and thirteenth paragraphs under the heading "How to Buy
Shares" in the "Investing in Shares of the Fund" section of the prospectus are
deleted.
The fifth paragraph under the heading "Methods of Selling or Exchanging Shares"
in the "Investing in Shares of the Funds" section of the prospectus is deleted.
TF5353 (1/15/98)
<PAGE> 5
SUPPLEMENT
TO THE PROSPECTUS, DATED APRIL 30, 1997, FOR THE
SCHWAB CALIFORNIA MUNICIPAL MONEY FUND-SWEEP SHARES
The following replaces the ninth and tenth paragraphs in the "Investing in
Shares of the Fund" section of the prospectus:
Schwab accounts opened prior to January 15, 1998 require a $1,000 minimum
investment and account balance ($500 for custodial accounts). A fee of $7.50
will be charged to Schwab accounts that fall below this minimum for three
consecutive months in a quarter. The fee, if applicable, will be charged at the
end of each quarter, but will be waived if there has been at least one
commissionable trade within the previous six months, or if the investor's
combined Schwab accounts equal $10,000 or more.
Schwab One(R) accounts opened prior to January 15, 1998 require a $5,000 minimum
investment and account balance. A monthly fee of $5.00 will be charged to Schwab
One accounts that fall below this minimum, unless there have been at least two
commissionable trades within the previous twelve months.
Effective January 15, 1998, Schwab accounts will not be available, and Schwab
One(R) accounts will be available with a new minimum initial investment
requirement of $2,500. Additionally, the account fees for existing Schwab and
Schwab One accounts will be replaced with a calendar quarter account fee of $15,
effective April 1, 1998. However, this fee will not be charged if the combined
balances of your household's accounts at Schwab exceed $25,000 at the end of any
month in that quarter, you have one commissionable trade in that or the
preceding quarter or you have two or more commissionable trades during the last
four quarters. If you have more than one account at Schwab, you will be charged
only one quarterly fee.
The following replaces the first, second and third paragraphs under the heading
"How to Buy Shares" in the "Investing in Shares of the Fund" section of the
prospectus:
AUTOMATIC INVESTMENT. When opening a Schwab One account, investors with combined
household accounts at Schwab of at least $10,000 may chose Sweep Shares of the
Fund as their primary fund, and free credit balances in their Schwab One account
will be invested automatically in Sweep Shares of the Fund according to the
terms and conditions of the account agreement. Shares will be sold as necessary
to settle any negative cash balance in the Schwab One account. Existing Schwab
accounts with primary funds previously selected will not be subject to the
$10,000 household minimum requirement in order maintain or change their primary
fund.
DIRECT PURCHASE. Shares of the Fund may be bought (even if it is not a primary
fund) in several ways. The minimum initial investment in Sweep Shares of the
Fund through direct purchase is $1,000. Subsequent direct purchases must be in
amounts of at least $100.
The ninth paragraph under the heading "How to Buy Shares" in the "Investing in
Shares of the Fund" section of the prospectus is deleted.
TF5355 (1/15/98)
