When you open a share certificate, you agree to lock your funds in for a set amount of time and pay a penalty if you take it out early.
But what can you do if something comes up and you need that cash now?
When you use a secured loan to borrow against your existing share certificate account, funds equaling the amount of the loan are frozen from use and released when your
secured loan is paid back. The money in the share certificate will continue to collect dividends even while you pay back your secured loan. This allows you to access your money and avoid share certificate early closure fees, which can end up being 3-12
months worth of dividends depending on the terms of your share certificate.
Loan payment example: For a loan amount of $2,000 borrowed at APR1 as low as 4.00%2 for 60 months, your monthly payments would be $36.
Key features:
- Avoid costly early withdrawal fees
- Your share certificate will continue to earn dividends
- Term of secured loan equals the remaining term of the original share certificate
- Minimum loan amount is $500
- Minimum loan payment is $25
- No credit report required
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