EMPLOYER Savings Account - Get Your Job To Save Money For You
- Initiative from Yorkshire Building Society could make saving money easier
- Designed to help the 16.8 million who don’t have any savings
- You chose how much to save each month
- Money can be withdrawn without a charge
A new savings scheme from the Yorkshire Building Society could make savings a lot simpler.
As part of the new initiative, employers would put money directly from post-tax wages into a savings account, with a 0.75% interest rate.
The employee would decide how much to go into the account each month, and then can make a withdrawal when they want, free of charge.
Mike Regnier, Yorkshire Building Society Chief Executive, said, “Starting and keeping up a regular savings habit is a big driver of financial well-being, especially for those that don’t have any form of meaningful savings already.
“Saving a small amount directly out of salary on a regular basis is a simple way to achieve this, as money is moved into savings before it reaches a bank account, and could get caught up in everyday spending.”
The building society has teamed up with Salary Finance, which provides employee benefit technology, for the initiative, which is open to all employers.
How do I get my employer to do this?
Employers will need to join the scheme in order for employees to sign up, but if enough workers register an interest, then the building society will approach the employer.
Care home provider Allied Healthcare is the first employer to sign up to the scheme.
James Drewry, reward manager at Allied Healthcare, said, “Colleagues have made it clear through survey feedback and written requests that they wanted more support with saving for long or short-term financial goals.”
You will need to get your employer to sign up to the scheme in order to benefit from it.
Either wait for them to sign up, or you can register your interest with the Yorkshire Building Society, and it will approach your employer on your behalf.
What other schemes are out there?
If you want to join this savings account but your employer has not registered, there are other payroll savings schemes that you can join.
FairShare credit union has a scheme where employers can deduct a weekly or monthly amount from your payslip, to put it into a savings account.
The money can be withdrawn at any time with no charge, but you will need a Fairshare account in order to get this scheme.
Hoot Credit Union also offer a payroll savings account.
To sign up, you’ll also need a Hoot account, and can register your employer with it, and say how much you want to save.
Savings can then be withdrawn at anytime for no extra charge.
Would you sign up to this savings account? Let us know in the comments