Payroll deduction is the way forward to encourage savings throughout the Western Isles and beyond, says HI-Scot, the credit union for the Highlands and Islands.

HI-Scot has vowed to make 2020 the year when saving and borrowing are even more accessible. With a focus on payroll deduction, allowing people to save directly from their pay packet every month via their employer, the credit union offers a viable alternative to high street banking in 2020.

And it's simple for employers - with no software needed. Employees simply sign a mandate allowing their company to deduct an amount from their net pay (after tax) and the company makes one payment to HI-Scot, which then divides that as agreed between the accounts of the employees involved - who all must have HI-Scot accounts, of course.

“We're always looking for ways to make banking with HI-Scot easier for our members,” said David Mackay, General Manager. “And payroll deduction is exactly that, with savings or loan repayments being made directly into a member's account from their salary.”

Recent research from the Financial Inclusion Centre showed that employees saving with a credit union via payroll are much more likely to regularly save and that the simplicity of payroll deduction is a vital factor.

“HI-Scot already offers payroll deduction with several organisations across the Highlands and Islands,” said Dave Rattray, Treasurer of the Board of Directors. “In 2020 we want to increase this reach and offer the service to more of our members – and also welcome new members to the credit union.”

Payroll deduction with HI-Scot credit union is available to employees at Comhairle nan Eilean Siar, Highland Council, Orkney Islands Council, Shetland Islands Council, NHS Highland, NHS Western Isles, Highland Home Carers, Lewis Crofters and Skills Development Scotland.

To find out more about saving via payroll deduction with any of these organisations, employees should contact HI-Scot directly.

“We plan to expand the list of employers who offer payroll deduction throughout 2020,” adds David. “And we'd like to encourage people who work for any of the organisations who offer the service to consider saving in this way.”

The Financial Inclusion Centre's research also showed that more than half of workers reported that their current financial situation worries them. An employer who encourages a regular saving habit by offering payroll deduction can hope to support their employees - with the buffer provided by savings, people feel more in control of their circumstances, which impacts positively on an individual's sense of well-being.

HI-Scot are keen to speak to any employer in the Highlands and Islands who would like to sign up to payroll deduction and can be contacted on 01851 701865 or by email at This email address is being protected from spambots. You need JavaScript enabled to view it.