Vacation Savings Plan, Prepaid Card Help Employees Get Away
It’s vacation season, and employers have a new tool to encourage employees to take much-needed time off and come back more productive. 401Play is offering what it calls a vacation savings account (VSA) program with a companion Capital Prepaid Services’ BlazePays Visa Prepaid Card to help employees save for vacation.
The VSA program, which is offered by employers, helps employees save for vacation by enabling them to set aside a certain amount of earnings through post-tax payroll deductions, similar to a 401(k) retirement account. Employees also can take advantage of discounts for hotel, airfare, cruises and rental cars, among other offers. The deductions are loaded onto a BlazePays Visa Preapid card. Previously, the deductions were deposited into an account and employees would have to go to the bank to access their money.
“Americans aren’t good at saving money,” said Greg Nickolson, president of 401Play. “And if employees don’t save for a vacation they are less likely to use their paid time off. With the BlazePays 401Play Vacation Saving Account, employers can encourage their employees to save for their vacation, using a simple and cost-effective tool.”
The BlazePays 401Play VSA program is available to any size employer, which pays an annual fee based on its number of employees. The BlazePays Visa Prepaid Card is issued by First Savings Bank of Beresford, S.D.
Prepaid cards are popular with many vacationers because of their convenience, security and help with budgeting, according to an InComm consumer survey conducted last year. More than half of respondents said they would use a prepaid card anywhere it was accepted. Sixty-five percent would consider using prepaid for shopping and dining and 61 percent would use a prepaid card at gas stations.