Financial wellness provider Salary Finance is partnering with Yorkshire Building Society to launch a payroll deduction savings solution to help employees keep savings separate from day-to-day salary.
Allied Healthcare, one of the UK’s biggest home care providers, and Saga will be amongst the first employers to roll out the product to its staff. Saga is to offer an employer matching scheme to its staff. They will get access to the provider’s variable Salary Finance Internet Saver account, which currently pays 0.75 per cent gross AER.
The initiative follows Salary Finance’s entry into the payroll loans sector. The company is co-founded by the former MD of Google UK & Ireland, Dan Cobley, former banking consultant, Asesh Sarkar, and social impact entrepreneur, Daniel Shakhani.
Former pensions minister and consumer champion Baroness Ros Altmann has backed the launch saying: “The UK is facing a savings crisis. In 2017 the ONS announced the UK savings ratio was at its lowest since 1963. The erosion of a savings habit is creating financial fragility across the UK workforce. This increases the risks of unexpected costs putting people in financial difficulty. Salary Finance and Yorkshire Building Society are launching an exciting new initiative that can enable employers to play a role in addressing these issues. In doing so employers can improve the financial confidence and resilience of workers across the UK.”
Yorkshire Building Society chief executive Mike Regnier says: “Starting, and keeping up, a regular savings habit is a big driver of financial wellbeing, 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.”
Salary Finance chief executive Asesh Sarkar says: “This new savings product creates a great opportunity for employers to have a significant positive impact in the lives of their employees by increasing their financial confidence. We are excited to make this product available to employees that already have access to Salary Finance.”
Allied Healthcare reward manager James Drewry says: “Having already implemented a highly successful loans product with Salary Finance, we are hugely excited about this new addition to their offering. 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.”
Saga group HR director Karen Caddick says: “We care passionately about the wellbeing of our colleagues and recognise the impact that financial stress can have at home and work. We have been very pleased with the way Salary Finance has helped our colleagues to get out of debt faster and at lower cost, and are now delighted to be launching their savings product. We will also be introducing a matched savings scheme, where we will add to employee savings, to encourage a savings habit and increase financial resilience.”
