Emergency Savings Fund | Custodian - Millennium Trust Company

Emergency Savings Fund

Americans Aren’t Prepared for Emergencies

We know individuals struggle to adequately save. Approximately 40% of Americans would borrow money in some capacity if hit with an unexpected bill of $1,000 or more.1 And, more than 30% of Americans withdrew or borrowed money from an IRA or 401(k) during the pandemic – nearly two-thirds of which was used to cover basic living expenses.2

When relatively small financial emergencies occur, such as car repairs or a leaky roof, many Americans are forced, or elect, to tap into their retirement savings – and the consequences can be detrimental to long-term financial wellness.

Download Fact Sheet
List of emergencies that you should save for
1 Bankrate’s Financial Security Index, January 2020.
2 Kiplinger’s Personal Finance magazine and Personal Capital poll, released January 2021.

Help Your Employees Expect the Unexpected

Financial stress can affect your employees in the workplace. Studies have shown that when employees are stressed about their finances, morale, productivity and tenure is likely to be negatively affected.3

In fact, financially stressed employees are two times more likely to seek employment elsewhere, costing employers an average of 11% to 14% of their payroll expense in turnover costs and lost productivity.4

3 PricewaterhouseCoopers, “Special Report: Financial Stress and the Bottom Line”, 2017.
4 Rotondo, Stephanie. “Employees’ Financial Stress Costs Employers.” World at Work 2019.
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We Make it Easy

We provide employers an easy way to offer and manage our Emergency Savings Fund solution as a workplace benefit from start to finish, with minimal cost or administrative responsibility.

DIGITAL ONBOARDING

Establishing a program is made easy for employers with our streamlined, digital onboarding and account establishment. We take care of the employee engagement and enrollment through an extended communication plan.

FLEXIBLE FUNDING OPTIONS

Employers have the option for the program to be funded via payroll deduction or ACH contributions. The program also supports employer contribution options.

STREAMLINED PROGRAM MANAGEMENT

The easy-to-use Employer Administration Portal helps make program and account management easy and non-time consuming. We provide a choice of data processing options, as well as real-time reporting.

NOMINAL COST

The program has a nominal employer cost, similar to offering Health Savings Accounts (HSAs).

Employers are 5X more likely to feel liable

Our Solution

Our Emergency Savings Fund solution allows employees to save for the unexpected easily and automatically each pay period, or on their own time – no matter the amount.

Program Details

FDIC Insured

Accounts participating in the program currently enjoy enhanced FDIC protection.

Fully Liquid

The bank-demand savings account is completely liquid enabling accountholders to quickly and conveniently access their funds to address immediate expense needs.

No Penalties or punitive tax impact for withdrawals

The taxable custodial account allows employees to avoid potentially costly tax implications and keep longer term retirement savings dollars where they belong.

Employer Process

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Complete the online Service Agreement and work with a Millennium Trust Onboarding Specialist to help set up the program. During this time, choose how to fund the program, either via automated payroll processing or ACH, and whether or not you intend to take part in employer contributions.

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The employer then uploads an employee data file on our secure portal, so employees can receive a series of emails from Millennium Trust to help them understand the importance and benefit of enrolling, contributing and building an emergency savings fund.

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Once the employee enrolls and establishes an emergency savings fund at Millennium Trust, they will have access to the Employee Portal, where recurring contribution amount and withdrawals can be easily managed.

  • Employer adopts program

    x

    Complete the online Service Agreement and work with a Millennium Trust Onboarding Specialist to help set up the program. During this time, choose how to fund the program, either via automated payroll processing or ACH, and whether or not you intend to take part in employer contributions.

  • Employees receive invitation to enroll

    x

    The employer then uploads an employee data file on our secure portal, so employees can receive a series of emails from Millennium Trust to help them understand the importance and benefit of enrolling, contributing and building an emergency savings fund.

  • Employee manages funds online

    x

    Once the employee enrolls and establishes an emergency savings fund at Millennium Trust, they will have access to the Employee Portal, where recurring contribution amount and withdrawals can be easily managed.

Connect with an Expert

Connect with an Expert to learn more about your emergency savings options.

Client service representative on phone