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- 1). Go to the bank and identify yourself by providing the teller with at least one form of identification, such as a passport or driver's license. Ask the teller how much money you currently have in your savings account. You can borrow an amount equal to the savings account balance, so having reviewed the balance, you must decide how much you want to borrow.
- 2). Speak to a customer service representative and ask for interest rate quotes and payment amounts for savings-secured loans. Tell the banker how much you intend to borrow and choose a loan term based upon the payment amounts. Do not take out a short-term loan if you cannot afford to make the monthly payments.
- 3). Ask a customer service representative to open a certificate of deposit account in your name. Open the account with funds from your savings. CDs are an illiquid type of savings account that you can secure loans against so you must transfer enough money from your regular savings to the CD to cover the loan amount.
- 4). Choose a CD term. The CD term must last for at least as long as the loan term, so if you want to repay the loan over the course of five years then you must choose a CD with a term of five years or more. The interest rates on CDs vary but while banks offer promotional rates on some short-term CDs, many banks offer the best rates on the longest-term CDs.
- 5). Sign the CD contract and keep a copy of it for your records. Review the loan agreement to ensure the rate and term are as quoted and then sign the loan document. You can accept the loan proceeds in the form of a check, as cash, or you can have the money directly deposited into your account.
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