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What is a reserve line on my bank account?

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TheVetDr asked:


I don’t understand what a reserve line is. My bank account has one and it says I have a reserve line of certain amount of $.

Do I owe this to the bank? I don’t get it as even though there have been times my checking account has been on zero, my savings account has always had enough money to cover my spending
Please could anyone elaborate on what is this?

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2 Responses to “What is a reserve line on my bank account?”

  1. Allston says:

    Reserve line of credit. Its basically a loan. You don’t owe the bank anything, unless you use it. You can use it whenever you would like, or if the accounts get to a zero balance then the bank pulls your funds from that. There is more then likely a monthly charge getting taken out of you account each month to have that reserve on there.

  2. j_slyfield says:

    If you run out of money in checking, most likely your bank would first yank money out of savings. Then it would likely hit your reserve line.

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