by Emily Hechler ST. LOUIS (July 16, 2024) – Alltru Credit Union, a leading Community Development Financial Institution (CDFI) in the Greater St. Louis area, is excited to announce a free Employer Benefits program to strengthen the financial capacity and stability of local employees. By recognizing the difficulty of employers to create a strong financial wellness program for their employees on their own, Alltru has stepped in to provide locally headquartered companies and their employees with the tools they need to create a more productive and stable work environment.
According to a study by the Society for Human Resources Management, unchecked employee stress is leading to anxiety and depression in employees and financial loss to employers, and it showed that 61% of human resource professionals reported financial stress as having some impact on employee work performance.
Alltru helps employees combat this stress through financial education and access to free or affordable loan and savings tools. Alltru delivers free financial education classes which inform the employees of what resources and tools are available to them through their employer and how they can benefit from them in the short-term and long-term.
Employers that participate in Alltru’s Employer Benefits program give their employees access to products that could otherwise be out of reach including personalized financial reviews, small dollar emergency loans, fee free health savings accounts, highly unique credit building loans, checking accounts and high yield savings accounts.
With Alltru’s Salary Advance Loan, employees receive access to small dollar loans at a 15.99% annual percentage yield, regardless of their credit score. Affordable payments toward the Salary Advance Loan are taken directly from the employee’s paycheck and help build the borrower’s credit score, unlike a payday loan, which can come with average interest rate of more than 400% in the state of Missouri. In addition, the employee can continue sending the payment amount after the balance is satisfied, which will automatically be put into an individual savings account, allowing the employee to save for a future emergency.
Payday loans have been banned in many states as they are deemed predatory, but they are still legal in Missouri. Predatory lending makes it nearly impossible for those with payday loans to repay their emergency debt and as a result they become stuck in a cycle of payday loans.
Employees with damaged credit scores can also take advantage of the unique Credit Builder Loan, where they can borrow a small amount of money and pay monthly toward the balance with very affordable payments. When the balance is paid off, the money is released to the borrower, resulting in established credit and an improved credit score, and a small savings account balance. As an added benefit, if all payments are made on time, Alltru also refunds half of any interest which is accrued back to the borrower.
“We’re proud to be a not-for-profit banking services provider that operates under a lens of financial access, providing a checking account to every person regardless of their history or credit score,” said Alltru Community Development Manager Tracy Verner. “By partnering with employers in the St. Louis area, we’re able to empower our community to create financial stability for their employees both while at work and at home. It’s a win-win situation.”
Alltru’s Employer Benefits package can be customized to fit the needs of the company. In addition, employees can open an account with Alltru independent of the benefits of the program.
To learn more about Alltru’s Employer Benefits program, visit https://alltrucu.org/employer-benefits/.
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About Alltru Credit Union
Alltru Federal Credit Union was chartered in 1968 as District 837 Credit Union by the International Association of Machinist Union members employed by McDonnell Douglas in North County St. Louis. Alltru is full-service Community Development Financial Institution (CDFI) whose mission is to improve the financial well-being of its members. With nearly 40,000 members and $350 million in assets, Alltru has provided members with a full line of dependable financial products and services for 56 years. For more information about Alltru Credit Union, visit https://alltrucu.org/.
Not a credit union member? Membership is available to anyone who lives, works, or worships within St. Charles county, St. Louis county, or the City of St. Louis. Open an account today.
Media Contact:
Laura Woods – Vice President of Marketing and Community Presence (636) 916-8303; lwoods@alltrucu.org