When you open a Share Certificate, you agree to lock your funds in for a set amount of time and pay a penalty if you take it out early. But what can you do if you need that cash now?
When you use a Certificate Secured Loan to borrow against your existing Share Certificate account, funds equaling the amount of the loan are frozen from use and released when your Secured Loan is paid back. The money in the certificate continues to
collect dividends, which helps offset the already low interest rate charged on the loan.
This allows you to avoid certificate early closure fees, which can equal 3 to 12 months of dividends depending on the original term of your Share Certificate.