Salary deduction explained
Managing your money can sometimes feel like a balancing act. Between bills, everyday spending and trying to save for the future, it can feel like your money is spent before it even reaches your bank account.
That's where salary deduction can help.
What is salary deduction?
Salary deduction is when an agreed amount of money is taken directly from your salary and put towards either building your savings or making payments towards a loan.
Because it's automatic, you don't need to remember to move money or set up repayments yourself. The money is taken before it reaches your bank account, making it easier to stay on track and giving you a clearer picture of what you have available to spend.
How does salary deduction work?
If your employer offers a salary deduction scheme like Money@Work, you'll have access to a range of products designed to support your financial wellbeing.
You simply choose how much you'd like to save or borrow, and your employer arranges for the correct amount to be deducted directly from your salary.
It's a simple way to make saving or repayments part of your regular payday routine, without having to think about it every month.
What are the benefits of salary deduction?
Build savings effortlessly
One of the biggest challenges when it comes to saving is getting started.
Salary deduction makes saving automatic by putting money aside before you have the chance to spend it elsewhere. Even small amounts can soon add up over time.
And with our salary deduction savings account paying 3.04% AER, your money can work a little harder while you save towards an emergency fund, a holiday, Christmas, or whatever matters most to you.
Manage repayments with confidence
Salary deduction isn't just useful for saving. It can also make borrowing easier to manage.
When you take out a salary deduction loan, repayments are taken automatically through payroll meaning you never have to remember payment dates or move money around yourself.
Whether you're planning a holiday, covering a larger purchase or preparing for life's important moments, you can spread the cost through affordable repayments direct from your salary.
Support for life's unexpected costs
Not every expense can be planned for.
That's why flexible, affordable financial support can make all the difference.
Together, these products are designed to help employees build financial resilience, plan ahead and access fair financial support when they need it.
Is my employer signed up?
You can check whether your employer is partnered with us and explore the products available to you by heading to our salary deduction page.
If your workplace doesn't currently offer salary deduction, why not speak to your HR or People team about the benefits of salary deduction? You can also direct them to our simple employer enquiry form to find out more.
Whether you're building a savings habit, planning for the future or looking for a simpler way to manage repayments, salary deduction can help make managing your money a little easier.