Savings Secured LoanErica Volpe2022-09-01T15:06:07-04:00
Do you need to make a purchase but don’t want to spend all of your savings? A savings secured loan is perfect for you. It’s a low-interest loan that uses your own money as collateral. Your savings secures the loan so you can borrow the same amount that you have in your account. As a bonus, there’s no credit check so it’s quick and simple.
What is a Savings Secured Loan?
When you need to buy something, think of a Savings Secured Loan before spending the hard-earned money in your savings account. For a quick, low-rate loan, use your savings as collateral! Secured loans require collateral. For example, when you take out an auto loan, the car is used to secure the loan. The car is the collateral. Similarly, your home is considered the collateral when you get a mortgage or home equity loan. With a Savings Secured Loan, the money you already have on deposit is used as collateral.
What are the benefits of a Savings Secured Loan?
There are many reasons to choose a Savings Secured Loan. First, the rate is much lower than the average credit card or unsecured personal loan. Historically, credit cards charge much higher interest rates than a secured loan. The average credit card rate 20.93% as of August 2023 according to creditcards.com., according to creditcards.com. A Savings Secured Loan rate is as low as 5.50%* APR. Additionally, there is no end date when you use a credit card. You could be paying for that purchase years longer than you would with a Savings Secured Loan, racking up hundreds more in interest charges.
Secondly, you worked hard to build up your savings account. Why spend it all on one purchase? Borrow against it with a Savings Secured Loan. This way, when the loan is paid off with minimal interest charges, you still have your savings. You can borrow against your own money again and again.
Another benefit is that you continue to earn interest on your savings while you pay back the loan. Basically, you’re cutting down the amount of interest you pay since you’re still earning money at the same time. For example, if you borrow $5,000 for 5 years at 5.50%* annual percentage rate (APR), you would pay around $193 in interest. If the $5,000 you’re borrowing against is sitting in a savings certificate with a rate of 4.07% APY, you would earn around $114. As you can see, when you subtract the interest you earned from the interest you paid, it’s only $79. That’s a bargain when you need to borrow money!
Lastly, there is no credit check. Your savings, which is the collateral, is put on hold in your account. That means there is little risk to the credit union. If you default on the loan and don’t make your payments, the credit union can take the money that’s on hold. It’s a quick and easy loan that doesn’t affect your credit.
*Rate shown includes 0.25% automatic payment discount.
How much can I borrow?
You can borrow up to the same amount of money you have on deposit. We will give you a loan equal to the amount of money you have in a savings account or savings certificate. You can borrow dollar for dollar against your savings. So, if you need $5,000, we will put that amount on hold and grant you the $5,000 loan. As the loan is paid off in monthly installments, your savings will become available for you to use. Additionally, you can use a Savings Secured Loan over and over. Once the initial loan is paid off, you can use your savings as collateral again for your next purchase. Also, you can add to the loan at any time. If you have the savings available to borrow against, you can get a loan.
Why shouldn’t I just spend my savings?
How long did it take you to build up your savings? Was it easy? Did you get a lump sum of money from a tax return or stimulus payment? That doesn’t happen very often. You certainly could use that instead of taking out a loan, but how easy would it be to save that money again? If you don’t opt for a Savings Secured Loan and simply spend your own savings, there is no guarantee you will build the savings back up.
If you’re concerned that your savings won’t be available to use in case of an emergency, there is a solution for that. For example, if you need the money that is securing your loan, we can transfer the balance to a personal loan. This way, your savings will be freed up for you to use. A personal loan is based on credit and does have a higher interest rate. However, it would help you out of an emergency situation if you need cash. While this scenario is rare, we are always here to help you figure out the best solution.
Can it help me build credit?
Yes! Making your payments on time and the Savings Secured Loan itself can help raise your credit score. We report loan activity to the three credit bureaus once a month. That includes both good and bad credit activity. Making your loan payment timely should help you see your credit score improve. Additionally, a Savings Secured Loan does not require a credit check. Therefore, your credit won’t be negatively affected by a hard pull.
A secured personal loan is also a better choice for building credit or repairing credit. Your monthly payment doesn’t change, and you pay a lower interest rate while your credit improves. A Savings Secured Loan offers a lower, fixed rate than an unsecured personal loan because the loan is secured. It uses the money you have on deposit as collateral. It’s a smart way to improve your credit.
Additionally, parents often use a Savings Secured Loan to help their teens or young adult children build good credit. Typically, older teens and young adult children have no credit. This can be a hurdle when they apply for a credit card on their own someday. Many financial institutions don’t look favorably on someone with no credit. The lender doesn’t know what type of borrower you are if there’s no history to look at. So, if your child needs to purchase something, parents can use their own savings as collateral.
However, we don’t suggest you finance their first car with a Savings Secured Loan. Start with something smaller like a new game console or sports equipment. This can be a great way to teach them about saving, borrowing, and credit in general. This loan can be a great option for teenagers to start building their credit with little risk! It’s never too early to teach your children about money.
Savings Secured Loans at a glance.
Low Fixed Rate
This is a secured loan, which means your savings is used as collateral. It offers a rate as low as 5.50%* APR. Don’t use a credit card or spend your savings for your next major purchase. Save hundreds of dollars in interest and keep your hard-earned savings intact.
1-5 Year Loan Term
Choose the term that fits your budget. We offer flexible repayment terms from 1 to 5 years, with multiple monthly payment options.
Retain Your Hard-Earned Savings
The biggest benefit of this loan is that you don’t spend all of your savings at once. It’s also a much lower rate than an unsecured personal loan. If you need to borrow money and you already have some savings, this loan is right for you.
No Credit Check
Since a savings secured loan is secured by your own money, there is little risk to the credit union. Therefore, we don’t pull your credit report for a credit check. We grant you a loan for however much money you have in your savings. You can use a little or a lot. It’s a quick, flexible loan for when you need cash fast and don’t want to use your hard-earned savings.
Apply Now
Why wouldn’t I just use my savings to pay for what I need?
Why would you take on a loan payment instead of just using the money you already have? Many people don’t have the discipline to save money. It takes some folks a long time to save even $1,000. Living paycheck to paycheck is a common lifestyle these days. Instead of spending all of your savings in one shot, use a Savings Secured Loan. There’s no guarantee you will save up that money again. But with a Savings Secured Loan, you will pay minimal interest and still have your hard-earned savings at the end of the loan.
Apply Now
The Credit Union is where I got my start and has always taken good care of me despite moving 10 different times.
Bruce – Tallahassee, FL
You guys are always so friendly when I call, I love calling all of you because you’re always so upbeat and nice!
Kelli – DeWitt, NY
I started banking with you in 2000, almost 19 years ago. Best bank ever, I moved to CA and you made banking easy when doing electronic banking wasn’t really popular yet.
Jesse – Syracuse, NY
Everything, anything you guys do with me is done 200%. I KNOW that you’ve got my back. Thank you for this, and for everything you help me with. I truly appreciate it.
Marian – Mahopac, NY
I commend your staff; they are always very pleasant and willing to assist my needs. Customer Service is very important to me and the credit union definitely shines in this area.
Kathy – Clay, NY
This is by far the best credit union, you guys are so good, you’re always on top of everything and you make me feel like my account is safe.
Regina – Phoenix, NY
I do not say it often enough, but you have great staff! Nothing is ever a problem, they are terrific! Amy just helped me out big time and Debbie is always my #1 at the credit union.
Jeff – Wake Forest, NC
I just wanted you to know that it is so nice to get a real person when I call in instead of an automated machine. I really appreciate it.
Anne – Pittsboro, NC
I just LOVE all of you there. People ask me why I use a credit union in Syracuse and I tell them you can’t beat the customer service!
Denise – Monroe, NY
Thank you for watching for fraudulent activity so diligently. Not only do you notify me when there is suspicious activity, but you are quick to help recover the money.
Sandy – Liverpool, NY
I’ve been in Charlotte for 7 seven years and I will not change banks because of this type of customer service.
Elliot – Charlotte, NC
Thank you MFCU for all the work you do and for really treating your customers like family.
Catherine – Baltimore, MD
I have to say it again – our credit union is absolutely the best! Hands down, no one else even comes close to the exceptional customer service and knowledge that you receive at Money FCU.
Michelle – Syracuse, NY
I told the car dealer I am sure that I want use Money for financing. The difference is only $7.00 per month. You have the very best customer service of any financial institution that I have worked with. Your customer service is worth every penny of the $7 per month and then some!
Cindy – Tully, NY
Each representative takes a special interest in any request made, with coordinating efforts by everyone. At a time when I was in transition, MFCU gave attention to what I needed to continue with them, now over 40 years.
Diane – Wilton, CT
I have been a member since 1987 and would NEVER, NEVER, EVER leave Money FCU under ANY circ*mstances!!
Michael – Clifton Park, NY
I wanted to let you know how much I love having Money instead of Chase! You guys have all been amazing since I have opened my account and I am so happy that I switched!!
Lisa – Syracuse, NY
I just love Debbie. She’s my hero!
Henry – Gastonia, NC
As we are wrapping details around our third vehicle loan inside of a year or so, I just want to say thank you again. Your customer service is off the charts, and you are a pleasure to deal with.
Anthony – Phoenix, NY
Thank you to all of you! You girls are so wonderful! I love my credit union.
Pat – Syracuse, NY
I thought I would take this opportunity to share with you what phenomenal employees you have. We couldn’t be happier to be blessed enough to have found MONEY FCU, and all that this bank encompasses.
Lisa – Baldwinsville, NY
I moved everything out of M & T Bank to you because of the service I receive. I just love you guys!
Angela – Manlius, NY
MONEY Federal Credit Union is people – a great group of people – who leave no doubt that while they are helping me, I am the most important thing going on that day.
Robin – Chappaqua, NY
I am not sure who is working their magic, but without it my wife and I wouldn’t be able to purchase this house we fell in love with in a neighborhood we fell in love with. I truly appreciate everything Money Federal Credit Union does for my family!
Jason – Baldwinsville, NY
YOU ROCK!!
Kerry – Ossining, NY
I have been a member since around 1992 or so and, even though I no longer work at Mutual of New York I have had nothing but excellent service from EVERYONE and I will never stray.
Erik – East Syracuse, NY
When you walk in the door you are always welcomed with a smile and happy greetings. Nothing is ever hard to do. When I need a loan it’s done and ready for me and I don’t even have to do anything! Just come in and sign!
Deb – Liverpool, NY
You guys are the greatest. So professional and up to date with technology!
Vera – Warners, NY
I have been banking with MFCU since I was 17 years old. I left NY and banked with other companies but I came back to MFCU. I am so happy that I did!! Your staff has always been so helpful. I just figured you would want to know that your staff is great and they deserve an extra day off :)
Danielle – East Syracuse, NY
You guys haven’t changed a bit since I opened my account in 1987! You are all still so nice to deal with and I’m glad the changing times hasn’t hardened you into being unappreciative of your members. I now live in NJ and you are the best Credit Union I have ever had the pleasure of doing business with!
Eileen – North Arlington, NJ
I remember when I joined the CU in 1980 and you were located in a closet upstairs, and you would write the number of members and the percentage rate on a chalk board on the wall.
Joanne – Syracuse, NY
I just wanted to let you know that your staff has been so helpful since the move out of the building. The staff is always quick and kind. You said that a Credit Union is much like a Bank…I would say that the Credit Union is much better than a bank. I appreciate you guys!!
Michele – Baldwinsville, NY
I just wanted to let you know how awesome you are! I tell anyone who’ll listen about the GREAT customer service I get from the MONEY FCU. With commercial banks becoming less and less friendly and helpful and more and more costly, you guys are the best thing around!
Lisa – East Syracuse, NY
I just went through one of the most painless processes getting a home improvement loan. I couldn’t believe how quick and smoothly everything went. I was quite impressed at the level of service. A special thank you also goes out to Debbie for her efficiency and for being so easy to work with!
John – Camillus, NY
I love you guys, one call and it’s done. Love, love, love you all.
Kathy – Fair Lawn, NJ
I just went through the process of taking out a car loan. If it weren’t for Melissa, I wouldn’t have been able to get things done. I wasn’t sure about what to do for so many things, but Melissa did! She was always there for me, quick, soooooo much help. Lucky for me I was smart enough to join your credit union years ago.
Katie – Syracuse, NY
I am so grateful to have such kind and helpful people to work with on my banking needs.
Meg – Webster, NY
When our office moved I decided to keep my account with you because I don’t mind the 10 minute drive downtown to deal with you guys because you’re always so helpful and friendly.
Tom – Syracuse, NY
I’m ready! How do I apply for a Savings Secured Loan?
Great, let’s get you started! Apply for a Money FCU Savings Secured Loan.Want to learn more before applying? Call (315) 671-4000 or chat with our friendly agents. We are ready to answer any of your banking questions.
Apply Now
 WEB-DL [Hindi (ORG 5.1) & English] 1080p 720p & 480p [x264/10Bit-HEVC] | [ALL Episodes] | Amazon Series)