A share is synonymous with deposit. A loan secured or collateralized with a share account is collateralized with a deposit account at Your Legacy Federal Credit Union.
There are several advantages to pledging funds in a deposit account as collateral for a loan.
- Oftentimes, the interest rate on a share secured loan is superior to the interest rate offered with other loan types
- Reduced loan fees
- The hold on the account corresponds to the balance on the loan. As the loan pays down, the claim on the deposit account also reduces each month. Rather than a claim on the entire asset, such as with a vehicle or a home, the claim is basically equivalent to the remaining principal balance owed
If you have funds on deposit with Your Legacy Federal Credit Union that exceed a loan need, you may want to consider a share secured loan as another way to put money back in your pocket.
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Secured by share account - 2.75% Annual Percentage Rate
Secured by Certificate of Deposit - 2.75% over the CD rate (term of loan can not be longer than remaining maturity of CD)
*Rates Effective 4/1/18
**Rates are based upon individual credit and all loans are subject to credit approval.