tttttttSince 1913, Flanagan State Bank has been a financial institution in the heart of Illinois that has stood the test of time. We span cities like Flanagan, El Paso, Benson, Bloomington, Le Roy, Gridley, and Pontiac, and in that time, we’ve come to champion causes that matter to us and our community. 

As a family-owned institution since 1930, we’ve come to epitomize the essence of one family helping another. That’s why supporting service members in our community means so much to us. Whether you’re an active service member or a veteran, there are a number of ways that financial institutions like Flanagan State Bank can help you.

How It Came To Be

Financial protections for service members date back to the start of the 20th century, a time when the world was embroiled in global conflict. 

Some of the earliest protections came in the form of the Soldiers’ and Sailors’ Civil Relief Act, established in 1918 during the final year of World War I. The goal was to ensure that those serving their country overseas weren’t penalized for being unable to manage their financial and legal affairs while away from home.

During this time, the government recognized that those dedicating their lives to national service shouldn’t arrive to find their assets seized, families evicted from their homes, or their financial standing compromised due to their time overseas. 

As financial matters and the nature of military service evolved over the next hundred years, so too did the need for more comprehensive protections for service members. In 2003, the original Soldiers’ and Sailors’ Civil Relief Act was revised and replaced by the Servicemembers Civil Relief Act (SCRA) to reflect the needs of the modern military better.

The introduction of other acts like the Military Lending Act (MLA) also solidified a commitment to safeguarding the financial well-being of military personnel, symbolizing the nation’s gratitude to those who risk everything for its security and freedom.

The Servicemembers Civil Relief Act (SCRA)

The SCRA is an important piece of legislation that provides legal protections to military members that aren’t available to the general public. From rental agreements, security deposits, and evictions to credit card and mortgage interest rates, this act ensures that service members are protected while defending the nation.

The act is a vital measure that helps military members maintain their financial stability, whether stationed in the US or serving overseas. It applies to service members in the Army, Marine Corps, Navy, Air Force, Coast Guard, and the Reserve when serving on active duty.

Some of the protections that the SCRA includes are:

• A maximum pre-service loan interest rate of 6% for home, auto, or student loans.
• Protections against home foreclosure or property repossession.
• Termination of residential housing and auto leases without penalty.

Military Lending Act (MLA)

The MLA also protects military members and their families from potentially harmful credit practices, particularly regarding consumer loans. Interest rates are capped at 36%, while insurance premiums and finance charges are protected under this act.

The MLA aims to shield service members against financial scams and ensure that they’re given fair and transparent deals without hidden clauses or predatory rates.

Payday loans, overdraft lines of credit, installment loans, certain student loans, and some credit cards are protected under the MLA. Home mortgages, personal property, and auto loans are exempt.

Special Banking Accounts for Service Members

Many financial institutions like Flanagan State Bank offer bank accounts uniquely tailored to the needs of service members. These accounts often come with added perks and benefits like reduced fees, higher interest rates on savings, and other options that are best suited for the transient and unpredictable life that the military brings.

With frequent relocations and deployments, these bank accounts offer flexibility and convenience that many other standard accounts don’t. Features like mobile banking also make it easier for those stationed abroad to manage their finances remotely.

Deployment and Overseas Financial Protections

Deployment and being stationed overseas comes with its own set of financial challenges. Protections, both governmental and through your financial institution, are there to protect service members who need to manage their finances outside the US.

Special allowances, tax breaks, and even certain exemptions are put in place to ensure that while military members protect the nation, their finances remain secure. At Flanagan State Bank, we want to ensure that, during a stressful time, your finances are one less aspect to worry about so that you can focus on your military duties.

Homeownership and Mortgage Protections

For those in the military looking to purchase a home, there are specific mortgage protections and loan types that can help. These initiatives offer more favorable loan terms, lower interest rates, and even grants to help service members achieve their dream of home ownership without undue financial strain.

Owning a home is a significant milestone for many people. For those who are serving, this should never be an unattainable dream. Programs through the Department of Veteran Affairs, like VA home loans, can be used by active and retired military members and their spouses, with competitive rates and, often, no down payment required.

Education and Financial Counseling

Knowledge is power, and for service members, financial education can empower them and help them feel that their family is financially protected, wherever they’re located. Various programs offer financial counseling, helping military personnel navigate the complexities of finance.

Whether it’s budgeting or investing that you need help with, these programs are uniquely tailored to the understanding of the specific challenges faced by military families. They work to educate and equip you with the tools and knowledge to make more informed financial decisions.

Retirement and Investment Benefits

The military itself offers robust retirement and investment options for its members. Service members can look forward to a secure future and a comfortable retirement life with specialized retirement plans and investment opportunities.

These benefits aren’t only about financial security and recognizing military members and their families’ years of service and dedication. By offering competitive retirement and investment options, the military ensures that its members are well taken care of once their service days have come to an end.

Challenges Faced by Service Members

Despite the numerous protections in place, it’s important to acknowledge that service members face unique financial challenges. From frequent relocations to the unpredictability of military life, it’s essential that the right support and resources are in place.

The transient nature of military life can make long-term financial planning more difficult. However, working with the right financial institution that understands your situation can help you navigate these challenges more successfully. 

When you’re ready to start thinking about financial stability and security as a service member, contact the team at Flanagan State Bank. We’re here to help you put down roots in the home of your dreams with a VA home loan or open a bank account that can support you through overseas deployments. Contact us today to get started.