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Secured Loan on Savings VS Secured Loan on CD?


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If the interest rates will effectively be the same, that is 3% over what you are earning on either savings or CD, are there any pros or cons to using savings instead of a CD. It seems like there is a benefit to using savings because then you can access the secured funds as you're balance diminishes, as oppossed to a CD which means you have to wait until maturity no matter how much you've paid towards the loan.

I'm doing this to get some positive TLs. Any thoughts?

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Pro CD - usually a higher rate of return.

Con CD - have to wait until maturity to take out the available funds (those funds that are not secured by the loan).

Pro Savings - can ADD to the savings account at any time; does NOT affect your secured loan because the loan is already secured by other funds in the account.

Con Savings - your rate of return isn't as high as a CD could offer.

I would say that it's all your preference.

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