What is save as you borrow?
The Community Bank ‘Save as you borrow’ scheme is something that sets ourselves apart from other mainstream lenders. All of account holders are required to build savings whilst repaying loans.
These savings will act as collateral against your loan, but will also develop into a rather handy nest egg limiting the need to borrow in the future. Creating a better financial future for our account holders is incredibly important to us at Northern Community Bank and encouraging better saving habits goes hand in hand in achieving that.
Recent research by the Fairbanking Foundation shows that 92% of survey participants found it “helpful” being able to save at the same time as paying off their loan. In addition to this 67% of ‘Save As you Borrow’ users who had no savings. Many who found it impossible to put money aside, now have plans to save regularly as a result of the ‘Save As you Borrow’ scheme.
The save as you borrow scheme not only helps our account holders, it also facilitates the way Community Banks work. As although the money you save is secure in your account; behind the scenes we pool all the savings. It is from this common pool of savings that we issue loans at affordable rates to account holders. Choosing to save with Northern Community Bank means that you are helping local people in your community. It’s literally people helping people.
How does the save as you borrow work?
Save as you borrow works by ensuring our account holders put a proportion of money in to their Long Term Savings Account in addition to making loan repayments. For a Standard Loan we require a minimum of £20 per month. For Payroll Plus Loan we require £10 per month and a Family Loan consists of £8 per month. This money cannot be accesses until the Long Term Savings balance is above the loan balance. When this happens you can withdraw the difference. Otherwise these savings are made accessible once the loan balance is fully repaid.
As well as our Long Term Savings account we have a range of free to open savings account that you can make deposits into. Our savings accounts include Christmas Savings account, Instant Access account, Dream Saver or Young Savers. Most of these accounts allow you to withdraw throughout the year at any time. The Christmas savings account is locked until November and December. The Dream Saver is also locked until you reach your savings goal.
So whether you are looking to save or borrow – Northern Community Bank are on hand to help. Apply online and we’ll do the rest.
