A benefit that helps employees save money? There’s an app for that
Six in 10 Americans have less than $500 in their savings account. Shuttle’s new Savings Assistance aims to fix that.
NEARLY SIX in 10 Americans have less than $500 in their savings account to pay for an unexpected expense, according to Bankrate. It was that dire statistic that prompted Brendon McQueen, co-founder and CEO of financial services company Shuttle Finance, to create an app-based employee benefit that helps employees save.
“We thought that [statistic] was really scary,” McQueen says. “The financial wellness products out there weren’t leveraging technology that could create a consistent, positive outcome. Most financial wellness offerings are kind of education-based. How do we let people save and not think about it?”
Called the Savings Assistance app, it will be available for both iOS and Android this fall. It allows employers to contribute to employees’ financial goals alongside with them by automating three ways employees can save money each month.
Savings Assistance uses round-up technology, which tracks transactions and rounds up to the nearest dollar, to save spare change. The app also allows employees to set up a recurring deposit of $25 to $100 a month and enables employers to contribute to employees’ accounts. While the average contribution is $50 a month, McQueen says employers do not need to contribute.
When employees save money with the app, it sits in an FDIC-insured savings account that is directly linked to participants’ personal checking accounts, McQueen says. There are no fees or transaction limits, he adds.
There is, however, a cost to the employers to offer the B2B enterprise app — which is not available for consumers to download without their employer sponsoring it.
The app costs between $2.99 and $4.99 per employee per month, but employers who pay the fee upfront will receive a 20% discount; employers with 50,000 employees or more will also receive a lower rate. There is no white-label option. Shuttle’s existing data clients will be the first to use the app when it rolls out in October. The technology will be available for other employers by early 2018.