Sunny Day Fund - 3x3x3 Challenge With Rachel Fox
Emergency Savings Accounts as an employee benefit. Stop the rampant retirement loans/withdrawals with payroll deducted savings that workers can use for emergencies and other goals. Out-of-plan ESA.
Transcript:
What is Sunny Day Fund?
Sunny Day Fund is an out of plan ESA. It's a financial wellness benefit that establishes emergency savings accounts or ESAs, so workers are less reliant on debt resources and finally build financial stability. Our mission is to empower all workers, especially those living paycheck to paycheck, to build savings they can rely on with contributions made directly from payroll. Employees can handle unexpected expenses without debt or loans, but we are so much more than a rainy day fund. We also help them save for all the financial goals that they need that paycheck to accomplish, like a new car down payment, or a security deposit, or a vacation, or even holiday gifts. Remember the old Christmas clubs, we are bringing 'em back.
How is Sunny Day Fund different?
Sunny Day Fund stands out because we focus specifically on tackling the immediate financial stress of not having money. Workers are clearly struggling to save on their own, creating a great opportunity for employers to help. In just seconds, we open new savings accounts for each participant with no credit checks, no balance limits, and no penalties for withdrawal. This becomes the first line of defense to reduce costly 401k loans and hardship withdrawals. It improves employee retention by reducing the job hopping for 50 cents an hour across the street. And when you see financial wellness pop up on employee engagement surveys, this is how to make that happen. We know there has been little incentive to save when the national average savings interest rate is still below a half a percent APY, but credit card cashback rewards are at 5%. Incentive is the key behind behavioral change, and we provide that in two ways. One, a competitive bank yield that is 10 times the national average, and two, the employer can provide a reward on savings capped at any number they choose, so it fits into any budget. This helps to improve employee culture, especially in low to moderate income workers who don't always feel prioritized in the benefit stack. Now they can say, my employer helped me save up for this new car, or, wow, my employer helped me take my family on vacation, and that is typically why our participation rate is above 50%.
Who is a good fit for Sunny Day Fund?
So companies with a significant portion of their workforce living paycheck to paycheck will see the most immediate benefits, but for employers looking for a more comprehensive program, check out our partnerships. Our safety net solution with FinFit provides savings plus low interest credit options when savings might be insufficient. In addition to financial coaching, our team can quickly develop a customized ESA plan design to specifically target and track the exact metrics you are looking to improve. Just reach out to me on LinkedIn or through our website at sunnydayfund.com to set up a time with me. Until then, have a sunny day.
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Transcript:
What is Sunny Day Fund?
Sunny Day Fund is an out of plan ESA. It's a financial wellness benefit that establishes emergency savings accounts or ESAs, so workers are less reliant on debt resources and finally build financial stability. Our mission is to empower all workers, especially those living paycheck to paycheck, to build savings they can rely on with contributions made directly from payroll. Employees can handle unexpected expenses without debt or loans, but we are so much more than a rainy day fund. We also help them save for all the financial goals that they need that paycheck to accomplish, like a new car down payment, or a security deposit, or a vacation, or even holiday gifts. Remember the old Christmas clubs, we are bringing 'em back.
How is Sunny Day Fund different?
Sunny Day Fund stands out because we focus specifically on tackling the immediate financial stress of not having money. Workers are clearly struggling to save on their own, creating a great opportunity for employers to help. In just seconds, we open new savings accounts for each participant with no credit checks, no balance limits, and no penalties for withdrawal. This becomes the first line of defense to reduce costly 401k loans and hardship withdrawals. It improves employee retention by reducing the job hopping for 50 cents an hour across the street. And when you see financial wellness pop up on employee engagement surveys, this is how to make that happen. We know there has been little incentive to save when the national average savings interest rate is still below a half a percent APY, but credit card cashback rewards are at 5%. Incentive is the key behind behavioral change, and we provide that in two ways. One, a competitive bank yield that is 10 times the national average, and two, the employer can provide a reward on savings capped at any number they choose, so it fits into any budget. This helps to improve employee culture, especially in low to moderate income workers who don't always feel prioritized in the benefit stack. Now they can say, my employer helped me save up for this new car, or, wow, my employer helped me take my family on vacation, and that is typically why our participation rate is above 50%.
Who is a good fit for Sunny Day Fund?
So companies with a significant portion of their workforce living paycheck to paycheck will see the most immediate benefits, but for employers looking for a more comprehensive program, check out our partnerships. Our safety net solution with FinFit provides savings plus low interest credit options when savings might be insufficient. In addition to financial coaching, our team can quickly develop a customized ESA plan design to specifically target and track the exact metrics you are looking to improve. Just reach out to me on LinkedIn or through our website at sunnydayfund.com to set up a time with me. Until then, have a sunny day.
Click this link to subscribe to the BenefitsAlly Substack for FREE!
https://benefitsally.substack.com/