Social Saving and Borrowing

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Use an Accumulated Savings and Credit Association (ASCA) to pool your emergency fund resources with others and improve your liquidity! An ASCA is an insurance plan where you're in on it with people you actually know, care about, and trust—you can cherry-pick your most financially stable, trustworthy associates!


Creating A Line Of Credit With Friends: The New Trend In Finance

Puddle: Big Splash or Financial Mudhole?

"Leverage is set to be 5:1. Please contact us if you want to customize this setting after your puddle is created."

The default borrowing fee is 4% and I can't seem to change it through the web interface; I've emailed support to ask if this can be changed.

"Borrowing fees from puddles are earned by the puddle members as credits. Credits help protect members of a puddle should someone not repay. You can see your accumulated total on the account page under "my credits.""

It also states that credits can be used to borrow money without a fee, but this is not elaborated upon.

Invitation Message[edit]

“This is an experiment in establishing an ASCA (Accumulated Savings and Credit Association). It is a form of social finance in which members put money into a pool in exchange for the ability to take short-term loans from that pool. The pool can elect to charge a borrowing fee to cover funds lost when someone fails to pay it back; if someone defaults, they are banned from the service (by social security number). This is my invite-only pool. You have been invited because you are fiscally responsible and generally awesome. In exchange for feedback, the developers have agreed to allow me to edit parameters of the pool (borrowing fee, payback duration, late fee, maximum allowed leverage, &etc) that are usually fixed; exactly how we want to set these parameters is open to discussion. Anyone can pull out their contribution—minus the amount in outstanding loans, if any—at any time. An ASCA can't fix fundamental balance sheet problems, but it can fix temporarily liquidity issues. Used properly with a group you trust, it can diversity away liquidity risk and help everyone's emergency funds go further. This service is legitimate. One of the founders was also a cofounder of It has been profiled by Forbes: If you have any questions, shoot me a message!"

PayPal Business Account[edit]

Users could log into the shared business PayPal account as 'employees' to withdraw money by pushing it to their own PayPal account which is linked to their own bank account. Users could contribute money to the PayPal business account using the billpay feature of their primary bank. This way, neither withdrawals nor contributions require the user to directly link their bank account information. ---

"Something we did for a small trip that required pooling money but independent spending was setting up a Business/Premier PayPal account, and getting the ATM/Debit Card(s). You can order multiple cards with different names on them, and they'll all draw from the same PayPal acccount."

"PayPal's Multi-User Access feature allows you to give multiple users various levels of access to a single PayPal Business account. With Multi-User Access, you can add multiple logins and access levels for your employees, so they can complete necessary tasks without having access to extraneous features. By controlling the access your users have to your account, you can run your business smoothly and not have to worry about allowing total access to your account."

"Hello, I'm thinking of adding a single PayPal business account for both my wife and I. If I do that, can we both request debits cards in or own name ?"

"Last, the debit card question, you can order a second card however, the Card User Agreement does not provide any specific details on whose name is on the card. Suggest that you call 866-888-6080 as a follow-up to find out exactly how that part works."

Group Bank Accounts[edit]

Instead of putting ten people on a bank account, try creating a ‘community organization’, requesting an Employer Identification Number (EIN) for the organization, and then opening a bank account with that EIN.

Getting an EIN takes all of five seconds online!

"Contact the IRS to request Form SS-4: “Application for Employer Identification Number.” Beginning January 6, 2014, the IRS now refers all domestic EIN requests received by phone to the EIN Online Assistant."

"Click “View Additional Types, Including Tax-Exempt and Governmental Organizations” Select “Community or Volunteer Group”"

Vanguard Brokerage Account[edit]

Vanguard appears to allow six owners. If you want multiple people to have direct ownership over an account, keep in mind that Vanguard can organize this in different ways:

"Joint tenants with right of survivorship. Each tenant owns an undivided interest in the account. Upon the death of one tenant, ownership of the account passes to the survivors without going through probate.

Tenants in common. Each tenant owns a proportional interest in the account. There are no survivorship provisions with this type of registration. Upon the death of one owner, his or her share of the account passes to his or her estate.

Community property. In this account established by a husband and wife where property is owned in common, each owner has an undivided one-half interest in the account. Upon the death of one spouse, his or her half of the account passes to his or her estate.

Community property with right of survivorship. In this account established by a husband and wife where property is owned in common, each owner has an undivided one-half interest in the account. Upon the death of one spouse, the surviving spouse assumes complete ownership of the account without court proceedings."

While Tenants In Common must share proportionally in the account, this is not a legal requirement of a Tenants In Common arrangement:

"While none of the owners may claim to own a specific part of the property, tenants in common may have different ownership interests. For instance, Tenant A and Tenant B may each own 25 percent of the home, while Tenant C owns 50 percent of the property as a whole."

"Joint tenants, on the other hand, must obtain equal shares of the property with the same deed at the same time."

Little Free Library[edit]