Savings account loans are usually associated with your bank. Many banks are realizing that people need an advance on their next paycheck, and instead of having their clients go to loan providers the bank extends savings account loans to their customers. This is a great way for the customer to get what they need and for the bank to continue to make money as well as keep their clients at the bank instead of allowing for them to go elsewhere for their financial needs.
The way that the savings account loans work is really simple. You can choose to advance a portion of your next paycheck into your account for your immediate use. Usually you will need to have direct deposit of your payroll check to be eligible for this service, so if you don’t have it, make sure you set it up if you want to take advantage of savings account loans. This really is a great way to get the money that you need, when you need it!
Many banks actually allow you to request their savings account loans online. Most banks today have their own websites that will allow their clients to make changes to their account, including loans. The client will simply go into their account services and request an advance.
The advance can be as small as $20 in most cases and as much as $500. This is a great option because the money will immediately be there for you to use any way that you would like.
The great thing about savings account loans compared to loans that have traditionally been sought by people is that they are much more affordable. Instead of paying three digit interest rates with the traditional loan, you can pay just $10 for every $100 that you borrow. This is just 10% which is much more affordable than 500% APR.
When your paycheck gets deposited into your account the money that was borrowed would immediately be taken out, plus interest. So, if you borrowed $500 that would mean that when your paycheck is deposited electronically that the bank would debit $550 from your account for the borrowed funds as well as for the interest paid. Savings account loans really are simple because there isn’t much work involved but you get the money you need as soon as you need it.