Asda has announced the launch of a new UK-leading workplace savings account as an exclusive benefit for its 150,000 colleagues.
The retailer has partnered with financial benefits company Wagestream to offer its colleagues a 4.7% AER workplace savings account, which is fully protected under the FSCS.
Unlike high street accounts offering similar rates, Asda colleagues won’t be required to deposit a fixed amount and can withdraw at any time with no fees attached.
Colleagues will be able to start saving in two ways. By either setting a fixed amount to be taken out of their regular pay-packet and deposited straight into their savings account. Or by ‘rounding up’ which will see their shift payments rounded to the nearest whole pound and the difference deposited into their accounts automatically.
Bank of England data[1] shows more than £1tn of UK savings is being wasted in accounts generating below 2.02% interest – the average easy access savings rate available to consumers. Half of UK consumers have never switched savings accounts at all[2] – with a quarter having under £100 in savings[3].
Asda’s own Income Tracker, an established barometer of household disposable income, revealed that UK households are now prioritising saving over spending.
Despite a 14% increase in disposable income for the average household during Q2 compared to a year earlier, figures show that consumption was down by 0.3% during the same timeframe.
Around 36,000 Asda colleagues have already downloaded the Wagestream app, and it expects the workplace savings account to be the most popular benefits on offer.
Asda already offers a wide range of other benefits to its colleague via its partnership with Wagestream including retail discounts, money coaching, workplace loans and choice over when to get paid.
Asda chief people and corporate affairs officer, Hayley Tatum, said: “Financial wellbeing of colleagues is a top priority for us and offering this UK-leading workplace benefit is just one of the many ways we’re continuing to support our colleagues. This new benefit is alongside other financial benefits and support we already offer our colleagues at Asda, which includes financial education, budgeting tools, discounts and flexible pay.
“We’ve already had some really positive feedback from colleagues about these benefits and we’re looking forward to this latest roll-out, which we hope will have a positive impact for so many of our colleagues.”
Emily Trant, chief impact officer at Wagestream, added: “Asda’s new workplace savings scheme is an incredible work perk for its team, offering better interest and flexibility than what’s typically available on the high street. It will make a real difference to financial lives and futures, and marks Asda out as a progressive, caring employer.”
