What Is a Secured Savings Installment Loan?
A secured savings installment loan is men a bank makes a loan that is secured with an investment or savings account. Discover why a secured savings installment loan is a guaranteed loan for a bank with help from a financial specialist in this free video on personal loans and money management.
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Hi, my name is Matt McKillen, and I'm with Innovative Financial Group. The question that's posed to me today is: What is a secured savings installment loan? Basically, that is a loan that you get from your bank where you have your savings account or your checking account or CD. And what they do is they make a loan to you and they collateralize or secure the loan with your investment account or your savings account. To give you an example, let's say you have 10,000 dollars in a savings account with your bank. They're really not at risk if they give you a loan for 5,000 dollars. And when it's done on an installment basis, it usually means that it's set to repay in anywhere from 12 to 24 to 36 months -- whatever it may be -- based on the size of the principle. So it's really a guaranteed loan to the bank, and they don't have to worry if, in fact, you don't make the payments because they're holding your savings account as a collateral or your CD. So that's basically how it works. So if you do have money tied up with an institutional bank and you do need a quick loan, that's always a viable option for you to pursue if, in fact, you just need a quick personal loan for your use. Again, my name is Matt McKillen. I'm with Innovative Financial Group.