Yorkshire Building Society launches savings scheme that takes money directly from your salary
You'll be able to put as much cash as you want into the account which pays 0.75 per cent on balances
BRITS could find it easier to start a savings habit and build up their "rainy day" funds thanks to a new scheme from Yorkshire Building Society.
The new initiative will let workers choose an amount of cash to save and have the money taken directly from their post-tax salary.
The funds will be put straight into an easy access savings account paying 0.75 per cent interest.
The society said the scheme will help encourage workers to put some money aside for emergencies, as the cash will be kept separate from their normal account.
Savers can withdraw their money at any time, and can vary the amount they save each month, if they're feeling particularly flush.
It has teamed up with Salary Finance, which provides employee benefit technology, for the initiative.
It said employers need to join the scheme for their staff to take part - but workers can register their interest and then an approach will be made to their company.
Yorkshire Building Society chief executive Mike Regnier said: "Starting, and keeping up, a regular savings habit is a big driver of financial well-being, especially for those that don't have any form of meaningful savings already.
"Saving a small amount directly out of salary on a regular basis is a simple way to achieve this, as money is moved into savings before it reaches a bank account and could get caught up in everyday spending."
Care home provider Allied Healthcare will be the first company to offer the product and Saga also has plans to launch the scheme too.
More on money
Money expert Andrew Hagger said: "Hats off to YBS for trying to get more people into the savings habit.
"It's a much needed initiative that will hopefully mean fewer people will need to rely on expensive credit cards and overdrafts if they build up a savings nest egg.
"With more than 57 per cent of variable rate savings accounts paying 0.50 per cent of less, it's good that customers are being offered an above average return of 0.75 per cent.
"The salary sacrifice scheme gives people the discipline to save and takes away the temptation to spend."
Savers have had it tough for a decade now as interest rates have remained at record lows.
Late last year, the Bank of England rose rates but banks and building societies were slow to pass the rise on.
Although the new saving scheme is to be welcomed, it doesn't top the current best buy charts.
Top of the pile is the AA's Easy Saver which pays 1.32 per cent - so on a balance of £1,000 you'd earn £13.20 in interest.
Next is the Post Office's Online Saver and RCI Bank's Freedom Saving Account, both come with a rate of 1.30 per cent and will earn you £13 in interest on £1,000.
We pay for your stories! Do you have a story for The Sun Online Money team? Email us at [email protected] or call 0207 78 24516