Ready reserve is a special benefit offered with your checking account. It is your personal and automatic line of credit used as an "overdraft protection" or may be used to "write your own loan" up to your personal credit line limit.
When you write a check on your account which either accidentally or purposely exceeds your account balance (overdraft), your ready reserve is triggered and deposits in integrals of $100 are made into your account to cover the overdrawn check(s) you have written up to your maximum credit line. When a loan from your ready reserve has been deposited into your account, you will be notified by mail of the ready reserve deposit.
However, please note that a deposit into your checking account does not repay the ready reserve loan. To make repayment, simply write a check to ready reserve when your account balance will cover the check, or instruct a teller to direct some funds (check or cash) toward repayment of your ready reserve loan. You may also transfer funds between your ready reserve credit line and your checking or savings account anytime with BankLine (our 24 hour bank by phone system).
Interest is charged from the first day of the loan at a rate of 1.5% monthly (18% A.P.R.) which equates to 75 cents per month per $50 used from your credit line. If repayment of some or all of your loan is not made by you within a month after deposit to your account, $10 or 10% (whichever is greater) of the loan balance and interest will be automatically deducted from your checking account. This will be shown on your account statement as repaid to your Ready Reserve . If no repayment is initiated by you, the $10 or 10% automatic repayment will be deducted from your account each month until the loan is repaid.
Your ready reserve is a reflection of special credit worthiness to the bank and business community and is simply a convenience loan when you need it from your prearranged credit line. If you have any questions concerning this feature, call or stop by one of our Locations.