Which speed key is used for loan payments?

Which speed key is used for loan payments?

• A. Speed key for savings deposit
• B. Speed key for loan payments
• C. Speed key for checking deposit
• D. Speed key for mortgage payments

Answer: (B)

The main idea here is that speed keys are built to shortcut specific kinds of transactions. When you need to pay down a loan, you should use the speed key designated for loan payments because it directs the funds to the borrower’s loan account and posts the payment to the loan balance (reducing principal and affecting interest as configured). Using a savings or checking deposit key would route the money to a deposit account, not to a loan, so it wouldn’t apply the payment to the loan balance. A mortgage payments key, if available, handles mortgage-specific flows, but the standard loan payments key is the designated path for applying payments to loan accounts in general.

The main idea here is that speed keys are built to shortcut specific kinds of transactions. When you need to pay down a loan, you should use the speed key designated for loan payments because it directs the funds to the borrower’s loan account and posts the payment to the loan balance (reducing principal and affecting interest as configured). Using a savings or checking deposit key would route the money to a deposit account, not to a loan, so it wouldn’t apply the payment to the loan balance. A mortgage payments key, if available, handles mortgage-specific flows, but the standard loan payments key is the designated path for applying payments to loan accounts in general.