The 10 Best Financial Benefits for Members of the Military and Their Families

Julie Provost

2 years ago

The 10 Best Financial Benefits for Members of the Military and Their Families

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What are some of the best financial benefits for those serving in the military? Here are the top 10!

1. VA Loans

With a VA Loan, military families have a much better chance of being able to own vs having to rent or live on their military installation. With a VA loan, you don’t have to have a down payment and you don’t have to buy private mortgage insurance. The amount you are allowed to use for a VA loan has recently gone up, making it possible to use one in most locations. There is a VA funding fee, but if you have a service-connected disability you do not have to pay it.

>> Interested in a no PMI, zero down payment possible home loan? For a no-obligation, free consultation regarding your VA Loan eligibility, please go here.

2. Lower Interest Rates

The Servicemembers Civil Relief Act ( SCRA) protects service members by putting a cap of a 6% interest rate on financial obligations that were started before military service. Service members must be serving as active duty or on active duty orders.

3. Military Discounts

There are so many military discounts out there. From Disneyland to Home Depot. Some may save you 10% and others might give you a free entry, or 50% off the cost of a ticket. You can check out our military discount section here at MyMilitaryBenefits to see what is out there.

4. Space-A Flights

Space-A Flights are basically free flights for service members and their families, as well as veterans. The flights are based on space available on military flights. You do have to plan for these trips and need to know if you qualify and what priority you have. If you can make Space-A work you can travel for very low cost, CONUS, and OCONUS depending on your status.

5. State Tax Breaks

Depending on your state, you might get a tax break. Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming don’t have state taxes on income. In addition to those states, Arizona, Alabama, Arkansas, Connecticut, Hawaii, Illinois, Indiana, Iowa, Kansas, Louisiana, Maine, Massachusetts, Michigan, Mississippi, Missouri, Nebraska, New Jersey, New York, North Carolina, North Dakota, Ohio, Pennsylvania, Utah, West Virginia, and Wisconsin do not tax military retirement pay.

6. The Savings Deposit Program

The DoD Savings Deposit Program is where service members can save up to $10,000 with a 10% interest rate during a deployment. Service members must be serving in a designated combat zone, or are receiving hostile fire/imminent danger pay as they serve in a Qualified Hazardous Duty Area (QHDA) or a designated direct support area of a combat zone, and serve for more than 30 consecutive days. The savings account can continue to earn interest up to 90 days after you redeploy.

7. Thrift Savings Program (TSP)

TSP stands for the Thrift Savings Plan. The Thrift Savings Plan (TSP) is a retirement savings and investment plan for federal employees and members of the uniformed services, including the Ready Reserve. The limit for 2022 is $20,500 but if you are deployed you are able to put more than that amount in. The TSP is a great way to save money during military life.

8. The Exchange

The Exchange is also called AAFES, NEX, or CGX depending on the branch. The Exchange offers tax-free shopping on a military installation. They offer employment and around 60% of what you spend goes back to the military community. They also offer contests, events, and sweepstakes, and you can shop online.

9. Commissary

The Commissary, operated by The Defense Commissary Agency, can save military families money on similar products that you find elsewhere. In addition to this, the Commissary also has a reward card, sales, scholarships, discounted prices, and more.

10. Inexpensive Life Insurance

Servicemembers’ Group Life Insurance (SGLI) offers low-cost term coverage to eligible members of the military. You can get coverage up to $400,000 regardless of your age, health, or if you will be deployed or not. The cost is $300 a year.

FSGLI is for spouses and children. You can get up to $100,000 in coverage for a spouse for as little as $54 a year, if the spouse is under 35. You can also get $10,000 per military child for no fee.