Certificate Loans

howardt55 | Apr 16, 2016 | 5 posts since 2015

Has anyone had experience using their CDs as security for a loan? What rates did the bank charge you? Was it easy? How much of the CD face value were you able to borrow? Does anyone know which banks and/or credit unions permit borrowing using their CDs as security?

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Shorebreak | Apr 18, 2016 | 4,039 posts since 2010

Here is an example at Randolph-Brooks Federal Credit Union:

Certificate Secured Loan Rate - 2% APR over your certificate rate. Repayment up to certificate's remaining term.

https://www.rbfcu.org/NB/html/Loans/ShareSecured.htm

Ally6770 | Apr 17, 2016 | 4,290 posts since 2010

Just call the banks and credit unions and ask if they have secured loans. I think most do. Just don't
know if it is a good idea to pay interest on a loan that most likely may not be tax deductible when you pay income tax on the interest from your CD. Have you compared the numbers?

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