Using FRB Personal Line of Credit to buy a car

As I also went through the process about 6 weeks ago, i can only add one other thing.
They require a direct deposit going into the ATM rebate checking regularly (no specified amount) to get extra 0.25% to get to 3.95%.


Pick a different branch that has one available. I waited too long for a spot at a particular branch (very old bank with a very cool vault) when I lived in VA, until they decided to freeze any new boxes because they wanted to renovate the vault. A branch the same distance from my house had plenty of space.

And, that signature card is probably the most important you’ll ever sign.

Same, for the small box, increasing sizes are deeply discounted.

I hosted a meeting in October at a hotel that used to be a bank

Some of the safe deposit boxes were still being used by the hotel staff.


I spoke to the FRB rep and agree that they seem professional, friendly, etc. But at least for my purposes, the numbers don’t add up to quite the killer deal that the 3.95% sounds like due to the 20% “reserves” which they keep at 0%. Some have talked about the “effective” loan rate so this may be repetitive for some…

I have an internet savings account (AmEx) - they are currently paying 3.5%. So to use round numbers, let’s say you borrow $100k from FRB at 3.95%. The issue is that you now have to keep $20k in their savings at 0%. If I did that (instead of keeping it at AmEx savings), I lose 3.5% on 20% of my money… with these numbers, I lose $700/year. So in napkin math, I’d pay $3,950 of interest on the FRB loan and I’d also lose $700 of savings interest - add those together and it “costs” $4,650 per year in interest, or 4.65%.

So still a good rate, but you’re also “freezing” that 20% of your own cash which for me is not ideal. So I passed - hoping to find a 5% or less traditional auto loan which doesn’t force me to tie up cash.


Just read through this thread and looks like there’s an option for zero deposit as well for a 0.75 rate bump. That still puts you below the 5% you’re looking for with the minimum deposit of $3500 if you don’t want to pay maintenance fee on your checking account with frb

Yeah, I had the same concern as well. They mentioned you can keep up to half of the requirement in their investment account, but my work has compliance requirements so I’m not allowed to have a self-directed brokerage account except at pre-approved brokers.

I have seen a few anecdotes of people withdrawing their deposits with no immediate consequences and the terms explicitly state 4 specific test dates. My plan is to withdraw the money after the first test date and put it back a month before the second. In the meantime, I’d put it in an 11 month CD which I’m seeing around 4.5%. Worst case scenario is the loan rises to 4.7% which is still better than what I’ve been able to find, save a handful of unicorn credit unions. And the interest from the CD somewhat offsets the increase in rate.

I went ahead with it, mostly as a hedge in case rates continued to rise. My own local credit union can do 4.95% but only for 36 months and that rises to 5.95 for 72 months.


One would think that having wealthy clients would be a good thing. Maybe people need to consider if they should keep or move their deposits.

The wealthy are the ones who can engineer a government bailout if their risky loans.

The guy with 599 in his checking account doesn’t have to worry about being bailed out.


How long usually does it take dealing with FRB ? My car comes in May (hopefully). Should i start now ?

I spoke with them over the phone and it is like getting a mini mortgage. Time frame about 2-4 weeks, depend how long underwriter takes.

1 Like

The way it’s going, FRB is going to need a line of credit from us.

1 Like

They kind of survived, no ? :slight_smile:

UPDATE: Effective March 21, 2023, the rate for this PLOC increases to 6.95% APR with discounts. Given this substantial jump in APR, it becomes difficult to suggest this product. I am keeping this thread open for discussion, but please note that one of the main benefits of this product is no longer applicable. Hopefully some folks here were able to get approved at the previous rate, which is fixed during the duration of the PLOC.


Very clever carpet selection by the designer of that conference room. It almost creates an illusion of there being coins spilled across the floor.

OMG Damnnn !!!