Vestwell unveils new emergency savings account offering

Vestwell, the wealth tech firm that claims a central role in supporing savings in the modern American workplace, is reinforcing that commitment with a new savings account offering.

The fintech platform has launched a new emergency savings account designed to help employees build financial security against unexpected expenses, providing  them quick access to after-tax savings without penalties or high-interest debt.

The new emergency savings account, which can be integrated into an employer’s benefits package or offered as a standalone option. allows users to view their balance alongside other savings tools, such as 401(k) or 403(b) plans, individual retirement accounts, and student loan repayment programs, through the Vestwell platform.

"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," Aaron Schumm, founder and CEO of Vestwell, said in a statement announcing the new offering. "With the average American having less than $1,000 in savings, many cannot afford to handle emergencies."

Citing data from the Georgetown Center for Retirement Initiatives, Vestwell said 53 percent of US households lack emergency savings, leaving many financially vulnerable. A Bipartisan Policy Center survey also pointed to a concerning gap as 60 percent of employed adults would like to access an emergency savings account through their workplace, though only 21 percent of employers currently offer one. 

Vestwell’s emergency savings account offers flexible enrollment and contribution options, along with competitive interest rates. Employers can also integrate the accounts with their preferred incentives, such as contribution bonuses, dollar-for-dollar matching, or rewards for reaching savings goals.

Last January, the movement to encourage emergency savings in the workplace got a boost as the Department of Labor issued guidelines around how to implement pension-linked emergency savings accounts, including answers to questions on matching contributions and auto-enrollment.

Vestwell's ESA feature is one that's been years in the making. Even before the Secure 2.0 Act provision enabling employers to establish emergency accounts alongside 401(k) plans kicked in last year, Vestwell was already working on a "sidecar" savings program to help employees prepare for the worst.

"We believe that holistic savings solutions can have a positive impact on individuals and families," Schumm said.