Savings Loan Page

A savings-secured loan (often called a or passbook loan ) is a type of credit that uses your own savings account or certificate of deposit (CD) as collateral. It is a strategic financial tool often used by those who want to build credit without depleting their hard-earned reserves. How It Works

: As you pay back the principal, many lenders will gradually release the corresponding amount of your frozen funds. Why Use One? Savings Secured Loan - Money Federal Credit Union savings loan

: You receive the loan amount as a lump sum to use for any purpose. A savings-secured loan (often called a or passbook

: While the money remains in your account and continues to earn interest, it is "frozen" and cannot be withdrawn until the loan is repaid. Why Use One

When you take out a savings loan, the financial institution places a "hold" on an amount in your savings account equal to the loan amount.