Even, an earned wage access platform, has announced the launch of a savings solution that gives employers the ability to design and manage their emergency savings programs.
Under the solution, savings are directly deposited from employees’ paychecks into a checking account provided by Cross River Bank, a member of the Federal Deposit Insurance Corp. (FDIC). The company notes that employees can access their funds when they need them and are not subject to regulations regarding withdrawals from savings accounts, such as they would be with retirement plans.
The interest rate is set by the employer. Companies can incentivize employees, for example, by offering up to 10% annual percentage yield (APY) for the first $500 saved and offer a competitive interest rate thereafter.
Research shows that unequal financial experiences highlight the need for different emergency savings solutions. Some people have not recovered from economic losses caused by the pandemic and need help from employers, retirement plan providers and other sources to build a financial cushion.
“It is very empowering to know that you have the emergency savings necessary to handle life’s curve balls—as is knowing that you can tap into some of the wages you’ve already worked hard to earn, even if payday is still days away,” says Even CEO David Baga. “We’re pleased to work with forward-thinking employers that are prioritizing financial health and empowering their workers with the information and tools they need to make better financial decisions.”
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