Payroll Deduction

Solent Credit Union Selected Payroll Partners enables their employees to save with us direct from their salary – no mess, no fuss, no temptation to spend.
Payroll deduction is a service many credit unions offer, including ourselves. (Did you know that the Duchess of Cornwall is a member of a credit union? As a responsible employer, she has set up a payroll scheme with her husband for their staff.)
We already have a number of schemes but are looking to expand more widely throughout South Hampshire.

How does it work?

It is a simple way of making a payment into employees credit union account(s) directly when they get paid. It will appear on their payslip as payment to Solent Credit Union (and we will pay the money into their savings, or make loan repayments. (The purpose of the deduction is not shared with the employer.)

Benefits for staff and employers.
Financial worries are a huge concern to employers and workers alike: debt can cause stress and depression, which can lead to absences and reduced productivity – a vicious circle that leaves everyone worse off.
However, becoming one of our Selected Payroll Partners means that employees can save direct from their salary.
The set-up admin is minimal, and
• We are committed to working with you to help raise employee awareness and participation.
• Strengthens Corporate Social Responsibility and benefits the local community by reducing the negative impacts of financial exclusion, pay day lenders and other high cost credit providers.
• Any savings are lent out to the local community.
• Payroll deductions offer a simple, convenient route to saving.
• If employees take out credit union loans, this is a convenient and simple method of repayment.
• People who save regularly are better able to cope with any financial distress or unexpected cost.
• For no financial outlay the employer provides a valued staff benefit which can help recruitment and retention of staff.
• Offering membership to a credit union is a commitment to your employee’s financial future.
• Credit unions promote personal financial stability.
• Build employee loyalty by adding to your range of employee benefits.
• Easy to administer payroll system.
• Savings are protected under Financial Services Compensation Scheme
• Savings can be as a rainy day fund or we can help set up a savings scheme whether it be for something expected like a car maintenance plan or Christmas or something more exciting such as a wedding, a significant birthday, a special holiday; we all need something exciting to save for and a credit union account by way of payroll deduction is a great way to save.
Do Solent Credit Union pay interest on savings?
Our savings account does not pay interest, although a dividend may be payable to savers if the credit union were to make sufficient profit.
Do you offer loans?
Subject to status, we can offer loans up to £7,500. As a responsible lender, we need to make sure that repayments are affordable which is why we do not offer instant loans. We fast track loan applications for members who are part of our Selected Payroll Partners Programme and we aim to deal with them within 3 working days. We offer loans repaid through Payroll Deduction at a preferential rate which depend on the circumstances of the individual.
What checks do you undertake?
We will undertake a credit reference check and we will require sight of payslips and bank statements for the past three months, you will of course need to be a member of Solent Credit Union! Did you know that you can improve your credit rating by taking out a small loan and successfully repaying it (assuming you do not default on other credit agreements). This may be useful if you have a poor credit rating and want to improve it for something significant like a mortgage or a new car!