EXHIBIT (d)(ix) April 16, 2004 Randall W. Merk, President and Chief Executive Officer, Schwab Capital Trust and Schwab Investments 101 Montgomery Street San Francisco, CA 94104 Re: Charles Schwab Family of Funds Dear Mr. Merk: This letter will confirm...

                                                                 EXHIBIT (d)(ix)

April 16, 2004

Xxxxxxx X. Xxxx,
President and Chief Executive Officer,
Schwab Capital Trust and Schwab Investments
000 Xxxxxxxxxx Xxxxxx
Xxx Xxxxxxxxx, XX 00000

Re: Xxxxxxx Xxxxxx Family of Funds

Dear Xx. Xxxx:

This letter will confirm our agreement to limit net operating expenses of the
following funds, as noted in the table below and described in the funds'
registration statements filed with the Securities and Exchange Commission.



FUND                            NET OPERATING              GUARANTEED
                                EXPENSE LIMIT              THROUGH
                                                     
SCHWAB MONEY
MARKET FUND                     75 bps                     4/30/05

SCHWAB GOVERNMENT
MONEY FUND                      75 bps                     4/30/05

SCHWAB U.S. TREASURY
MONEY FUND                      65 bps                     4/30/05

XXXXXX MUNICIPAL MONEY
FUND- SWEEP SHARES              66 bps                     4/30/05

SCHWAB CALIFORNIA
MUNICIPAL MONEY FUND-
SWEEP SHARES                    65 bps                     4/30/05

SCHWAB NEW YORK
MUNICIPAL MONEY FUND-
SWEEP SHARES                    69 bps                     4/30/05

SCHWAB NEW JERSEY
MUNICIPAL MONEY FUND            65 bps                     4/30/05






FUND                            NET OPERATING              GUARANTEED
                                EXPENSE LIMIT              THROUGH
                                                     
SCHWAB PENNSYLVANIA
MUNICIPAL MONEY FUNDS           65 bps                     4/30/05

SCHWAB FLORIDA
MUNICIPAL MONEY FUND            66 bps                     4/30/05

SCHWAB MASSACHUSETTS
MUNICIPAL MONEY FUND            60 bps                     4/30/05

XXXXXX VALUE ADVANTAGE
MONEY FUND - INVESTOR
SHARES                          45 bps                     4/30/05

XXXXXX MUNICIPAL MONEY
FUND - VALUE ADVANTAGE
SHARES                          45 bps                     4/30/05

XXXXXX CALIFORNIA
MUNICIPAL MONEY FUND -
VALUE ADVANTAGE SHARES          45 bps                     4/30/05

SCHWAB NEW YORK
MUNICIPAL MONEY FUND -
VALUE ADVANTAGE SHARES          45 bps                     4/30/05

XXXXXX VALUE ADVANTAGE
MONEY FUND -
INSTITUTIONAL SHARES            24 bps                     4/30/05

XXXXXX VALUE ADVANTAGE
MONEY FUND - SELECT
SHARES                          35 bps                     4/30/05






FUND                            NET OPERATING              GUARANTEED
                                EXPENSE LIMIT              THROUGH
                                                     
SCHWAB RETIREMENT
ADVANTAGE MONEY FUND            50 bps                     4/30/05

SCHWAB GOVERNMENT CASH
RESERVES FUND                   125 bps                    4/30/05

XXXXXX MUNICIPAL MONEY
FUND - INSTITUTIONAL
SHARES                          24 bps                     4/30/05

SCHWAB MUNICIPAL MONEY
FUND - SELECT SHARES            35 bps                     4/30/05


Sincerely,

/s/ Xxxxxxx X. Xxxx                  /s/ Xxxxxx Xxxxxxxx
-------------------                  -------------------
Xxxxxxx X. Xxxx,                     Xxxxxx Xxxxxxxx,
Senior Vice President and Chief      Senior Vice President, AMPS Development
Investment Xxxxxxx, Xxxxxxx Xxxxxx   and Distribution Xxxxxxx Xxxxxx & Co., Inc.
Investment Management, Inc.

cc:      Xxxxxx, Xxxx
         Xxxx, Xxxx
         Xxxxx, Mini
         Xxxxxxxxxx, Xxxxxxx
         Xxxxxx, Xxx
         Xxxxxxx, Xxxxxxx
         Xxxxxx, Xxxx
         Xxxxxx, Xxxxxx
         Xxxx, Xxx-Xxxx