Major supermarket chain Asda is set to roll out a new workplace savings account as an exclusive benefit for its 150,000 staff.
The employer partnered with financial benefits company Wagestream to offer its colleagues a 4.7 percent annual equivalent rate (AER)* workplace savings account, which has been described as “UK-leading” when compared with high street accounts offering similar rates.
High street savings accounts frequently require people to agree a fixed deposit, but the Asda account will not ask for this. And people using the Asda account will be able to withdraw their cash at any time without incurring fees.
Two ways to save
Employees will be able to start saving by either setting a fixed amount to be taken out of their regular pay-packet and put straight into their workplace 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.
Data from the Bank of England, published in December 2023, revealed that more than £1 trillion of UK savings is sitting in accounts generating below 2.02 percent interest. And an Atom Bank survey in 2023 found that half of UK consumers have never switched savings accounts to access a better rate.
Asda’s Income Tracker, which is an established measure of household disposable income, found that UK households are now prioritising saving over spending.
Disposable income for the average household rose 14 percent in the second quarter of 2024, compared with the same three months the year before, but consumption dropped 0.3 percent during the same quarter in 2024.
Financial wellbeing ‘top priority’
The employer said that 36,000 Asda staff have already downloaded the Wagestream app, and it expects the new workplace savings account to be the most popular benefit on offer.
The retailer offers a wide range of other benefits to its workforce through its partnership with Wagestream including retail discounts, money coaching, workplace loans and choice over when to get paid.
Hayley Tatum, chief people and corporate affairs officer at Asda, 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.”
Ren Patel, head of UK client success at Wagestream, added: “It’s fantastic to see a major employer like Asda leading the way with its financial benefits. We know saving is one of the core pillars of financial wellbeing, so by providing this workplace savings scheme, Asda will make work more rewarding for its colleagues, and really stand out as an employer of choice.”
*The 4.7 percent AER is subject to variability.
