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This type of account basically operates like a secured credit card similar to what most people call a second mortgage. You have a large balance secured by the property and the interest on the balance is calculated daily (rather than monthly like a first mortgage). Your bill payments or deposits adjust the running balance when they are made. So, if you pay your bills as late as possible (keeping the balance lower) and make your deposits as early as possible (keeping the balance lower) your money works better and saves you on the daily interest calculation . But, if you're not disciplined or over spend it can end up costing you more as your balance will go up instead of down.