BOSTON – (BUSINESS WIRE) – July 8, 2021–
Financing of salaries, the leading provider of socially responsible financial products for working Americans, today announced an ambitious new product that aims to help millions of working Americans save more money. In partnership with fintech company Chime, Save from Salary Finance will enable American workers employed by employer partners of Salary Finance to open a Chime expense account and a high interest Chime savings account, connect their direct deposit and to be rewarded for their savings. Salary Finance will also pay workers uniquely to build up their savings.
Not Enough People Save Money: According to recent data from Salary Finance, nearly 70% of employees don’t have savings reserved for emergencies and unforeseen expenses. A lack of savings can often lead people to resort to high-cost borrowing options, like payday loans or high-interest credit cards, when unforeseen expenses or income disruptions arise. This can lead to a conveyor belt of seemingly endless debt repayments. However, while it is difficult to save money – especially during a global pandemic – a recent Commonwealth poll showed that those with a savings buffer were better able to weather the pandemic.
“We are on a mission at Salary Finance to ensure that millions of American workers can easily save on their paycheck,” said Dan Macklin, CEO of Salary Finance Inc. “Save is designed to inspire American workers to create an account. savings, tie it to their salary and receive a $ 50 bonus, with the goal of helping all employees build emergency savings of at least $ 500. We are committed to continuing to develop impactful financial benefits that help Americans prosper. “
In addition to the Salary Finance bonus, when employees open a Chime savings account by leveraging Save, they get 0.50% Annual Percentage Return (APY) 1-10 times the national average – on their savings balances with no hidden fees and no minimum balance requirement 2. Employees can set up their Chime account so that money automatically goes from salary to savings every pay period 3. Chime also provides users with a function no-charge overdraft called SpotMe 4, early access to direct deposits 5, and a “save as you spend” to round up spending into savings 6.
It has always been difficult for companies to learn about the personal finances of their employees. The ice on the company-employee relationship has started to thaw – 75 percent of employees trust their employer with their personal finances – providing an opening for companies to have that discussion with workers. By offering Save, employers can build confidence and goodwill by giving employees a better way to save money during emergencies or unexpected income disruptions.
Salary Finance launched Borrow, its low-interest employee loan product, three years ago in the United States. credit.
1 The annual percentage return (“APY”) of the Chime Savings Account is variable and may change at any time. The disclosed APY is effective June 28, 2021. No minimum balance required. Must have $ 0.01 in savings to earn interest.
2 The average national savings account interest rate of 0.05% is determined by the FDIC as of November 30, 2020 based on a simple average of the rates paid (using the annual percentage return) by all deposit-taking institutions and insured branches for which data are available. Visit https://www.fdic.gov/regulations/resources/rates/ to learn more. A Chime Spending Account is required to open the High Yield Savings Account; the savings account is optional. See https://www.chime.com/savings-account/ to learn more.
3 Save when I get paid, if enabled, automatically transfers 10% of your direct deposits of $ 500 or more from your spending account to your savings account.
4 Chime SpotMe is an optional, no-charge service that requires $ 500 of eligible direct deposits to the Chime spending account each month. All eligible members will be allowed to overdraw their account up to $ 20 on debit card purchases upfront, but may later be eligible for a higher limit of up to $ 200 or more depending on member’s Chime account history, frequency and amount of direct deposit, spending activity and other risk-based factors. Your limit will be displayed to you in the Chime mobile app. You will receive notice of any change to your limit. Your limit may change at any time at Chime’s discretion. SpotMe will not cover debit card purchases, including ATM withdrawals, ACH transfers, Pay Friends transfers, or Chime Checkbook transactions. See terms and conditions.
5 Early access to direct deposit funds depends on when the payer submits the payment file. We generally make these funds available on the day we receive the payment file, which can be up to 2 days before the scheduled payment date.
6 Round Ups automatically rounds debit card purchases to the nearest dollar and transfers the rounding from your Chime spending account to your savings account.
About salary funding
Salary Finance’s mission is to improve the financial health of American workers by providing them with access to socially responsible financial products in the workplace. When employees can access affordable credit, reduce bad debt, and increase their savings, they are happier and more productive at work, and more likely to achieve long-term financial stability. Employers benefit from improved retention and engagement at no additional cost. Our award-winning technology platform enables us to deliver better inclusive financial products such as high interest savings accounts, access to affordable credit, and personalized financial education. Salary Finance is a United Way Worldwide business partner and works with over 600 of the world’s leading employers. Salary Finance is a founding member of the Senior Executives Network of Conscious Capitalism and a member of the American FinTech Council. For more information, please visit www.salaryfinance.com/us.
About Chime Financial, Inc.
Chime is a leading US mobile banking provider helping its members avoid traditional banking fees, save money automatically, and achieve financial peace of mind. Founded by financial and tech industry veterans Chris Britt and Ryan King, Chime offers its members on behalf of its banking partners, The Bancorp Bank and Stride Bank, FDIC members, an expense account, savings account optional, a Chime Visa® debit card and a powerful mobile app that gives them full control over their finances. The Chime mobile app is available for iPhone® and Android devices and has been touted as one of the top rated Money management apps in the App Store. www.chime.com.
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Financing of salaries
KEYWORD: UNITED STATES NORTH AMERICA MASSACHUSETTS
INDUSTRY KEYWORD: PROFESSIONAL SERVICES OTHER PROFESSIONAL SERVICES HUMAN RESOURCES FINANCING CONSULTING BANKING
SOURCE: Financing of salaries
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PUB: 08/07/2021 09:07 / DISC: 08/07/2021 09:07