Friday, 30 October 2015

Joining Forces - Savings & Loans for the Armed Forces

Joining forces – Savings and loan repayments taken straight from pay. The MoD has made possible for three of the UK’s leading credit unions to join forces and make simple saving accounts and loans available to the armed forces and their families.

Forces families whose credit ratings are damaged by the demands of the job are to be offered cheap loans and good savings accounts. A new government –backed credit union service will help Army, Navy and RAF personnel struggling to build a credit rating. 

Overseas postings and call-ups at short notice often make it impossible to show evidence of regular payment – deterring lenders from offering cheap deals. Now a trio of credit unions will allow personnel and their families to repay loans from them through their pay packets and offer the chance to save regularly.

Historically, credit unions are locally run financial services firms offering loans and current accounts to the less well-off. Like a mutual, credit unions are jointly owned, run, managed and controlled by their members. They make a profit from lending and attracting savings, and use this to give savers a return while trying to cut loan rates. Credit unions are typically set up by a workplace, a small community housing association or trade union.

Over the past four years, credit unions saving rates generally have been as high as 3pc. Personal loan rates are expected to start at 4.5pc.

For more details, apply for a loan or savings plan go to