Save as You Borrow: a unique way to build savings

When it comes to managing finances, getting the right balance between saving and borrowing is often a challenge. Many people find themselves needing to borrow money, whether it’s for an unexpected emergency, home improvement, or a special purchase.

Credit unions are financial institutions that provide people the opportunity to borrow and also save at the same time. Many credit unions offer ‘Save As You Borrow’ schemes, providing an easy and effective way to build your savings automatically, without much effort on your part.

What is ‘Save As You Borrow’?

‘Save As You Borrow’ (SAYB) is an innovative savings scheme provided by credit unions that combines the act of borrowing with the opportunity to build savings. Instead of separating your financial goals into borrowing and saving, credit unions help you achieve both at the same time.

With this scheme, every time you make a loan repayment, a portion of that payment is deposited into a savings account in your name. By the time you’ve finished repaying your loan, you’ll have not only cleared your debt but also accumulated a savings pot.

How does it work?

‘Save As You Borrow’ is simple, as the credit union does most of the work for you. Here’s a breakdown of how it works:

• Apply for a loan: the process starts when you apply for a loan at a participating credit union. Credit unions tend to offer more flexible lending criteria than traditional banks, so even if your credit history isn’t perfect, you may still be eligible.
• Repay the loan: as you make regular repayments (whether that’s weekly or monthly), a small amount of that repayment is diverted to your savings account.
• Build your savings: by the end of the loan term, you will have repaid the loan in full and accumulated savings. These savings can act as a safety net or can be used for future goals like home improvements, education, or a well-deserved holiday.

Why choose ‘Save As You Borrow’?

This scheme offers several benefits:

• Builds a savings habit: for many people, developing a habit of saving can be difficult, especially when they have outstanding debts. With SAYB, saving happens automatically, helping you build good financial habits without extra effort.
• Get out of debt and have savings: unlike traditional loans that leave you with nothing once paid off, SAYB helps you clear your debt while also strengthening your financial position by providing a savings buffer.
• Affordable and fair lending: credit unions typically offer more affordable interest rates compared to high street lenders and payday loans, especially for those with limited access to credit. They focus on responsible lending and always have the borrower’s financial wellbeing in mind.
• Credit union support: Instead of prioritising profits, credit unions prioritise members. This means you’re more likely to receive personalised support throughout your borrowing journey.

The ‘Save As You Borrow’ scheme is an excellent way to meet your immediate financial needs while also planning for the future. It’s a unique solution that allows you to manage your debt responsibly while growing your savings—something that few other financial products can offer.

If you’re looking for an easy and community-oriented approach to managing your money, consider joining a credit union and taking advantage of the ‘Save as You Borrow’ scheme.

If you’re looking for a loan and want to save at the same time, visit our dedicated credit union comparison platform. It’s the perfect starting point for your savings journey with a ‘Save as You Borrow’ scheme.