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Ready Reserve

March 29, 2023


Ready Reserve is a revolving line of credit available with your Bank of Elk River checking account. It gives you financial freedom as well as the security of overdraft protection.


  • Advances are automatically made in $200 increments when the checking account balance falls below zero.
  • Ready Reserve can prevent overdraft fees and checks being returned on your checking account.
  • Unsecured credit limits range from $200 to $5,000, depending on your credit qualifications.
  • Monthly payments are drawn automatically from the checking account 24 days after your monthly statement cycle. The payment amount is determined by the Ready Reserve unpaid balance.
  • You can write yourself a loan from your checking account to pay bills or make purchases.

Once your application is approved and an agreement is signed, your Ready Reserve is activated.

How can I use Ready Reserve?

By simply writing a check, you advance funds that can be used to take a vacation, buy something special, or cover unexpected expenses. Whenever funds are advanced, you will be mailed an Advice of Transaction to enter into your checking register as a deposit. If your checking account balance would go below $0, an automatic advance would be made in increments of $200 (unless under $200 is available).

How do I repay the advance(s)?

You can make a payment or pay off your balance at any time by notifying us in person, by phone, or through Digital Banking.
If an unpaid balance remains when your monthly checking statement cycles, an automatic payment will be deducted according to the following schedule:

Balance Owed Monthly Payment
$0 to 24.99 Entire balance
$25 to 499.99 $25
$500 to 749.99 $40
$750 to 999.99 $60
$1,000 to 1,499.99 $90

Balances over $1,500 will have higher payment requirements.

What is the cost for Ready Reserve?

There is no interest fee for Ready Reserve unless there is a balance. It earns interest on balances owed, which is 18% APR*. So, if you never use your Ready Reserve, you will never have to pay any interest. There is a $25.00 Annual Fee.

Ready Reserve Application

* The finance charge is determined by the amount advanced and number of days you use the funds. The finance charge is computed at the daily periodic rate of .04931%, which is equivalent to an annual percentage rate of 18%.