Interest rates for loans are fixed at the time you open your account. Interest rates for lines of credit vary with the market based on the U.S. Prime Rate and are calculated on the value of the index plus a margin. The interest rate will be based upon the specific characteristics of your credit application including, but not limited to, evaluation of credit history, amount requested, geographic location, and by whether you choose a secured or unsecured product.
How is interest accrued on a line of credit?
Interest is accrued daily only on the outstanding balance.
How are the monthly payments computed for loans?
For loans, the monthly payments are fully amortized based on a simple interest calculation.
What are the minimum payment amounts?
For loans, your payment amount will be determined by the amount you borrow, the length of time or term of the loan, and the interest rate. The payment amount will stay fixed for the life of the loan.
For unsecured personal lines of credit, your minimum payment during the life of the account is equal to $25 or 1% of the outstanding principal balance, whichever is greater, plus the total any accrued monthly interest and fees. For the Time Account (CD)/Savings Secured Line of Credit, your minimum payment is $25 or 1/120th of the outstanding principal balance, whichever is greater, plus accrued monthly interest plus the total any accrued monthly interest and fees.
When will I be billed and how often?
Your loan payment will be due monthly. For lines of credit, you will receive a monthly bill when you carry a balance. When you sign up for automatic payments for your loan or line of credit, your payment will be recorded on your monthly checking statement and you will not receive a separate bill.
Is there a transfer or advance fee to withdraw cash from my line of credit?
No. There is no transfer fee or advance fee charged to transfer money from your line of credit or withdraw cash directly from it, nor is there a higher interest rate charged to do so.
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