Sunny Day Fund

Sunny Day Fund automates & rewards employees' savings behavior, driving financial health & protecting retirement savings. 50-60% take-up, $1,060 in annualized savings, and ~25% higher retention.


What is Sunny Day Fund?

Sunny Day Fund is a workplace emergency savings program that nearly nine and 10 working adults have been asking for. And that's because we know that working America is financially unstable, unable to handle a $400 unexpected expense. They're asking for help saving directly from their paycheck, and they want a benefit like this two to seven times higher than your other basic financial wellness programs, including earned wage access. And by offering a program like Sunny Day Fund, you're also protecting retirement assets. There's no cannibalization, and in fact, a thousand dollars in emergency savings cuts 401K loans and hardship withdrawals in half and improves retention, as well.

How is Sunny Day Fund different?

So Sunny Day Fund's award-winning platform is an outside-of-ERISA program. This means that not only can more employers work with us, but it also means that we can be a lot more flexible in terms of how we offer this program within employees, incentivizing things like tenure, and maybe even having the employees that are earning lower wages earn more in rewards from you. And in addition to that, what we're doing is demand deposit banking. At the end of the day, that means that we're not holding those assets on behalf of someone else. We're making sure that people have it and it's an account that people can take anywhere they go. And finally, what we're doing is we are rewarding savings behavior and changing that in a way so that people can have assets they can count on when they need it. This is not just about having people do a split direct deposit. This is about making sure that people understand the value of saving, so they can come back and do it over and over again, which is what has a tendency to happen with our user base.

Who is a good fit for Sunny Day Fund?

When you think about the population that needs emergency savings the most, these are not necessarily your six-figure earners. Though, let's just remember, even 39% of people making over 250K are living paycheck to paycheck. So one of the reasons that people have not been so good at saving is because the interest rates have been so low. With Sunny Day Fund, the employer subsidizes a much higher interest rate. Think 20, 30, 40% per year, capped at no more than 300, $400. So those employers in education, manufacturing, quick service restaurants, all of a sudden they have something, that financial wellness and stability program that meets their employees where they are and changes financial savings behavior for the better.

Duration: 02:58

Posted: Thursday, October 20, 2022

Video tags: 251 - 500 EEs, 501 - 1000 EEs, 1001 - 2500 EEs, 2501 - 5000 EEs, Over 5000 EEs