Press Release

Vestwell Unveils New Emergency Savings Account (ESA) Offering

Issued by Vestwell

Feb. 12, 2025

The company expands its suite of financial wellness solutions with a new workplace ESA

NEW YORK -- Vestwell, the backbone of the modern savings economy, today announces the launch of its new Emergency Savings Account (ESA).

Vestwell’s ESA is an after-tax savings tool that earns interest, giving employees quick access to funds without penalties or high-interest debt - so they can respond to unexpected expenses or challenges with less fear of compromising their financial futures.

The new emergency saving account is offered as a workplace savings option that can easily integrate into an employer's existing benefits package or function as a standalone choice. With Vestwell’s modern savings platform, users can view their ESA alongside other accounts, including retirement savings such as a 401(k), 403(b), or individual retirement account (IRA), as well as their student loan paydown account, all in one unified view.

Vestwell’s ESA offers flexible enrollment and contribution options, with competitive interest rates, that allow employers to design a program that incentivizes the savings habits that they hope to see, whether that is an employer contribution bonus for opening an account, a dollar-for-dollar match, or a reward for hitting an established savings goal.

Aaron Schumm, Founder and CEO of Vestwell, said:

"Emergency savings accounts are a cornerstone of financial security, and we're focused on expanding Vestwell's offerings to meet the needs of savers across all income levels. With the average American having less than $1,000 in savings, many cannot afford to handle emergencies. This new offering aims to foster a culture of saving that will enable more Americans to prepare for immediate, unexpected needs while laying the foundation for long-term savings to secure their financial futures through retirement. The role of employers is crucial in making this a reality, especially during times of economic instability that increasingly affect the lives and livelihoods of Americans.”

"We believe that holistic savings solutions can have a positive impact on individuals and families. To achieve our goal of reaching those who have previously been excluded from savings opportunities, we are proud to offer access to our new Emergency Savings Account. In many cases, this is available to employers and savers at no additional cost."

According to the Georgetown Center for Retirement Initiatives, 53 percent of U.S. households lack an emergency savings account, leaving millions of Americans vulnerable to unexpected economic hardships. Additionally, a survey conducted by the Bipartisan Policy Center, indicates that 60 percent of employed adults would like to access an emergency savings account through their employer; however, only 21 percent currently offer this option. Modern savings platforms and new provisions in the SECURE 2.0 Act are driving awareness around these essential savings accounts and enabling more employees to build savings while planning for retirement.

Vestwell's ESA is built with its industry-leading technology and provides both an intuitive interface for savers and a customizable program design for employers. Employees will be able to contribute directly from a linked bank account and via employer payroll deductions - if their employer chooses to offer this functionality. Employer contributions are also customizable, allowing employers to mix and match incentive options to best support their workforce's financial well-being. Advisors and employers can further elevate their workplace offerings by providing a financial wellness solution that enables employers to tackle one of the most pressing concerns in their workforce: economic security.

About Vestwell

Vestwell is the backbone of the modern American savings economy. Vestwell is a financial technology company that makes it easier for more Americans to save for life’s most important moments - from retirement to education and healthcare. Founded in 2016, Vestwell’s platform removes traditional barriers to saving, making it accessible, efficient, and approachable for everyone.

Vestwell provides a comprehensive suite of workplace savings solutions, including retirement plans, student loan repayment benefits, and specialized accounts for education, emergencies, and disability savings.

Trusted by financial advisers, employers, payroll providers, financial institutions, and government agencies, Vestwell empowers nearly 1.5 million savers across over 350,000 businesses nationwide, with over $30 billion in assets under management. With a commitment to closing the savings gap and fostering a secure financial future for all, Vestwell provides an elevated and accessible savings technology everyone deserves.

For more information, visit vestwell.com.

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