BENEFITS OF PAYROLL MEMBERSHIP
Saving doesn’t come naturally to everyone. Indeed, many people live financially from month to month. This can become difficult at times, especially if you need money in an emergency. This could be anything from an appliance breaking down, home or car maintenance or needing to travel somewhere. Having regular savings isn’t just about paying for the things you want, but more linked to security and knowing that if you need something urgently, you have the money to pay for it.
If you have ever read anything about wealth building or managing your finances better, you’ll know that the general rule of thumb is to save 10% of everything you earn. We know that this isn’t always going to be possible, but as a starting point, it’s a good guideline. Let’s keep it simple – if you earn £1,000 a month the savings plan would be to save £100 of that. If that isn’t feasible work from the 10% figure until you reach a number that is. Even saving 1%, just £10 a month, is better than saving none at all.
How does Payroll Membership Work?
If you are already a member you will know that the best way to think about payroll membership is in the same way that a pension payment is made; directly from wages or salary. A link is set up between us, the credit union and your payroll department. You, as the member of staff, sign up and open a credit union account and then specify a savings amount to be deducted each month or week. The amount is deducted from the net salary (after tax) and transferred directly to your credit union account.
Why is it easier to Save this Way?
One of the biggest mistakes people make when saving is that they wait until they have been paid or bought everything else before deciding what to save. Returning to savings basics, you should always pay yourself first i.e. save. We are not suggesting you avoid important bills or payments, but by considering a regular savings amount that you can afford, and paying that first, you are more likely to succeed with your savings than if you consider it an afterthought.
Savings then becomes an important payment you make each week or month. The beauty of course is that you are paying yourself! We all deserve to have the security of savings and this is a tried and tested way of doing it. Just like any other banking organization, we are protected by the Financial Services Compensation Scheme up to £85,000.
What about borrowing. Can I apply for a loan with payroll membership?
Yes! Part of managing your money better is being able to access affordable loans when you need to. If we dipped into our savings every time we needed something we would have nothing left. So you may wish to borrow from time to time too.
As a credit union we can often give a preferential loan rate to payroll members.
In the same way that you make regular payments from your salary to save, you can apply for a loan and have the repayments deducted directly from your salary. For peace of mind and confidentiality, payroll departments do not have any information on what the payment you are making to the credit union is for (i.e. it could be for savings or loan repayments). You only have to specify the amount and frequency. The payment is simply sent to your loan account for repayment.
How can I join a Payroll Deduction Scheme?
As an employee of a partnered organisation, if you aren’t yet a member, you can become a member of Nottingham Credit Union at any time. If you are already a member and are not yet saving, why not set up a payment now. You can also apply for a loan at any time.
Please visit our dedicated Payroll Pro website to find out more www.payroll-pro.org.uk
It does feel like we skipped the last half of summer and with such brisk weather, heading off to somewhere warm and sunny for October half term is tempting. Despite the fact that some holiday companies do hike up their prices during this time, there are lots of great deals to be had.
If you need a little extra to make it happen, we can help. As an example you could borrow £1000 for 12 months with a repayment of just £91 a month*. Remember this repayment can be made directly from your salary.
Visit our Payroll Pro website today and apply online
* Terms & Conditions apply. Loans are subject to status. Over 18’s only. Example based on loan amount of £1000 at APR of 17.5%. repayable over 12 months with total interest of £89.74. Total amount repayable £1089.74. Nottingham Credit Union encourages responsible lending.