How do FCM and Funds Held Compare?
– With FCM there is no limit to how much you can put into your investment account. Funds Held is an advance payment escrow account on your loan and is limited to 50% of the amount owed on the loan. FCM lets you move money in and out of your account at will, but there are some restrictions with Funds Held. The interest rate paid to you by FCM is generally related to the cost of money in the U.S. economy while the interest rate earned in Funds Held is based on the rate being charged for your loan. Both FCM and Funds Held can be very good tools to reduce the cost of your borrowing. Ask your Progressive FCS loan officer to show you how either -or both – might be of value to you!
