Personal Reserve

What is a Personal Reserve Account?
A Personal Reserve Account (PRA) is your personal line of credit from the Bank of Milton to use whenever and however you need.

How do I use my PRA?
When you need a loan, all you do is write a personal check up to the amount of your credit limit. There’s no paperwork or red tape.

What are the advantages?
With a Personal Reserve Account, you can borrow money quickly and easily. You have the immediate resources for spontaneous purchases, for short-term borrowing needs, and to avoid the embarrassment and cost of an overdraft.

How does it work?
If you need an amount of money in excess of your checkbook balance, you can access your Personal Reserve Account by writing a personal check. Your bank will transfer the money to your Bank of Milton checking account in increments of $100.00. For example, if you wrote a check for $90.00 more than the balance in your checking account, the bank transfers $100.00. If you wrote a check for $175.00 more than your current balance, your bank transfers $200.00, and so forth.

Every transfer is confirmed by mail the same day you make the loan. When you receive the notice, simply add the amount to your checkbook and note your expenditure.

How do I repay the loan?
There are two ways of loan repayment. With automatic deduction, the Bank of Milton will deduct a specified amount from your checking account each month until the loan is repaid. This deduction is made on the date of your monthly account statement.

If you prefer, you may repay the loan completely in one lump sum, making your check payable to “Personal Reserve Account.” Similarly, you can make partial payments over and above the automatic deduction schedule. These payments will be credited to your Personal Reserve Account on the date your check is received.

As you repay the money you have borrowed, your credit limit will renew itself for use again.

Note: You cannot make payments to your Personal Reserve Account by depositing money in your checking account.

How do I apply for a Personal Reserve Account?
Simply complete the enclosed application form. The Bank of Milton will process your application and advise you of your credit resources.


How much does this service cost?
Once a loan has been generated, you will be assessed a rate of interest expressed as an Annual Percentage Rate (APR) of 18%.
An annual fee of $20.00 is assessed on the Personal Reserve Account. Your payment will be 5.0% of the outstanding principal balance plus interest accrued per month. (Minimum monthly payment of $15.00)

Your Bank of Milton Representative will be happy to explain the details and provide you with the current. Personal Reserve Account rate and fee information.