Key Alternative Loan?

iceman21 · January 24th, 2003, 13:57

Simple question really. I have borrowed a substancial amount of money from Key and the money is sitting in my account at my flight school. My question is, can I pull that money out of the flight school account and toss it into my savings account? Or is it up to the bank or school to decide that? I am paying interest on the money now and I would like to offset that interest with my savings as much as possible.

Thanks,

Mike

pavelump · January 24th, 2003, 15:52

I think that depends on the school. That's exactly what I'm doing at FlightSafety. In fact, one of the selling features for me attending FSI was that when my Key Checks show up, I can take them to the bank and deposit them in a savings account. Then, I pay into my student account using my credit card (which I get Sony points for!).

After reading some of the horror stories about having your money tied up w/ a school after withdrawing, I wouldn't have it any other way. I may only be getting 1.75% on the money while it's in the account, but something's better than nothing right? Another bonus is that the interest doesn't start until I cash the check so I wait until the last moment to cash them.

You also have the option of "cashing" the check directly into your account, but why would you want to do that?

Dave

blee256 · January 24th, 2003, 17:13

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I may only be getting 1.75% on the money while it's in the account, but something's better than nothing right?

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Can't you put in a CD, and get a higher interest rate? they have CDs that are as short 30 days, i think I know 90 for sure.

-Brian

pavelump · January 24th, 2003, 17:27

The short term CDs aren't any better than the rate that I get on savings (credit union) and I also need the liquidity to transfer small amounts out ($2500) at a time. The interest is just a small bonus. It doesn't really amount to all that much in the grand scheme. The big bonus is not having my money sitting in the school's bank account in the event that I were to change my mind about attending. I don't imagine that will be the case, but it's better to have the option.

Dave

iceman21 · January 24th, 2003, 18:46

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You also have the option of "cashing" the check directly into your account, but why would you want to do that?

Dave

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Thanks guys, I guess I will just have to ask. I have over 30K on account and I will adding another 12K in a few days. I would really like to pull it and put in my savings account.

pavelump · January 24th, 2003, 20:09

If you can avoid cashing another check, do. Interest starts as soon as you cash it and if you have 30k on account, that should last you for quite some time, at least I would hope. The checks are good for 60 days (or maybe it's 90) past the point they are issued. Check into it. no pun intended!

Dave