HyperJar offers digital version of jam-jar budgeting
HyperJar is a prepaid account which allows you to split your money into virtual jam jars linked to goals, group-spending or specific retailers.
Retailer jars enable you to commit to spending a set amount of money with a certain retailer in the future. Money in retailer jars can earn an annual growth rate of 4.8% for 12 months.
The idea is to turn “buy now, pay later” into “pay now, buy later”. HyperJar’s launch partners include Shell, Dyson, Boden, Not On The High Street, Bloom & Wild, and Virgin Wines.
Accountholders will also receive offers for the retailer’s products and services.
The app, which is intended to complement your main bank account, comes with a prepaid debit card which can be added to Google Pay and Apple Pay. App customers can share jars with up to 100 other people.
HyperJar research found that 70% of peoples agree that current accounts don’t help us to budget our everyday money effectively, with a fifth (18%) needing more help with budgeting since Covid-19 and almost a quarter (23%) wanting to build a better financial buffer in future.
Against a backdrop of further lockdowns and rising unemployment, the data also shows that one in six feels more nervous about debt, with a third (28%) wanting to take more time to think about where and how they spend.
Mat Megens, HyperJar founder and CEO, said: “There’s been a hostile environment for saving and planning for years, and the gravitational pull of easy credit has never been stronger. A new way for people to budget and spend well is overdue.
“The effectiveness of splitting out budgets and naming savings goals is well known, and our early customers tell us that adding a fraction more friction to their spending – taking a bit of time to think about what they want to spend in future – works. Visualising and allocating their money like this gives them clarity, control and confidence.”
HyperJar has three unique features:
Spending from any Jar
The Jars function acts as mini-accounts within the app. Customers can create an unlimited number of Jars and spend from each directly by linking them to the HyperJar payment card from the app.
An example is a Food Shopping Jar, from which the account holder can spend every time they buy groceries.
Jars can be shared
Jars can be shared with up to 100 people, creating pop-up digital kitties and hassle-free joint accounts that don’t affect credit scores. Sharers join a Jar via Bluetooth, a QR code, or a direct invitation in the app.
All sharers can pay into the Jar, link their payment cards to spend from it and send each other notes inside the Jar. Everyone sees what, where and when money has been paid in and spent.
Getting paid to plan
Account holders who allocate money ahead of spending with HyperJar partners get an average 4.8% annual growth rate for up to 12 months, calculated and added to the account daily.
An odometer in the app shows this increased buying power growing in real time. Committed money must be spent with the business it has been committed to – however there is no time limit and it can be shared or sent to other HyperJar customers as risk-free digital gift cards.
All consumer funds deposited with HyperJar are managed in segregated accounts at the Bank of England by Modulr, an e-money institution regulated and authorised by the Financial Conduct Authority.