Wednesday, June 19, 2024
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Hyperjar Review

HyperJar – At A Glance

HyperJar features a Mastercard debit card paired with an easy-to-use money management app, enabling you to allocate your funds into separate categories within your account, known as jars.

This service functions more like a prepaid debit card with savings features rather than a traditional bank or budgeting application. It stands out with several unique features and functions that set it apart from other financial apps, it works very well as a pocket money app (which helps to teach children to manage their own money), and users say it has excellent customer service.

HyperJar Pros & Cons

Pros:

  • The HyperJar app is completely free to use, and has no monthly fee.
  • HyperJar work with a number of partner companies, and you can earn rewards when committing to saving up to spend with them.
  • HyperJar allows you to combine jars with friends and family.
  • HyperJars Annual Growth Rate allows your money to grow if spent with certain retailers.

Cons:

  • It is not possible to withdraw cash from ATMs with HyperJar cards.
  • HyperJar do not pay interest on balances in their savings jars.

What Is HyperJar?

Launched in 2020, HyperJar now boasts over 600,000 users as of 2024. The company positions itself as an alternative to common debt-inducing payment options on the market, such as Buy Now Pay Later services like Klarna and traditional credit cards. HyperJar promotes its approach as ‘pay now, buy later,’ encouraging users to accumulate funds beforehand for spending with specific retailers, avoiding debt.

Once an account is established, users can make a bank transfer money into the account. They can then utilize the app to create various jars for different purposes, whether it’s for savings, grocery shopping, or any other expenditure.

HyperJar also offers a kids app alongside the adult account, which an adult user can set up. This allows children to manage their own card and spending under adult supervision.

What Is A HyperJar Card?

The HyperJar card is central to the HyperJar product offering. Each account holder receives a Mastercard debit card that can be used for payments, although it does not allow for cash withdrawals.

HyperJar Features

HyperJar Jars

After setting up your HyperJar account and depositing funds from your bank, you can create jars, which are fundamental to the app’s functionality. Jars can be tailored for various purposes like savings or groceries, and you can impose specific rules and limits on each jar. When making payments with your card, you can swiftly select which jar to draw funds from by simply tapping a few options on the app before completing your transaction.

HyperJar Annual Growth Rate

HyperJar doesn’t offer traditional interest on the amounts saved in their jars. Instead, they introduce the Annual Growth Rate (AGR), a standout feature of their app. Users can allocate a jar for exclusive use with a chosen retail partner. For instance, if you frequently shop at a particular supermarket, you can dedicate a jar for spending there. Funds in this jar will earn an Annual Growth Rate, currently averaging 4.8% though it varies by retailer, blending elements of interest and cashback/rewards attractively.

HyperJar Vouchers

HyperJar vouchers enable you to gift funds to other users, designated for specific retailers. These vouchers benefit from the HyperJar Annual Growth Rate, potentially increasing in value over time.

HyperJar Travel

Traveling abroad is more convenient with the HyperJar Mastercard debit card, as it incurs no currency exchange fees, enabling fee free spending abroad. Transactions are processed using the current Mastercard exchange rate without additional charges. However, it’s important to note that the card does not support cash withdrawals, either domestically or internationally. While this may not pose an issue in the UK, where card payments are widely accepted, carrying cash in other countries where digital payments are not as ubiquitous might be necessary.

HyperJar Kids App

The HyperJar Kids App allows an adult to establish a linked account for their child, assigning specific jars for the child’s use. The child receives their own Mastercard debit card, and the adult can monitor all card activities. Unlike similar child-focused financial products like Starling Kite and GoHenry, the HyperJar kids account has no associated fees. Children over the age of 6 can have an account and will need their own mobile device to access the app.

HyperJar Costs & Fees

HyperJar prides itself on having no monthly fees or transaction costs; all card and app features are free. The only charge applied is a £5 fee for a replacement card.

Is HyperJar Safe?

HyperJar is not a licensed UK bank but collaborates with an e-money institution called Modulr FS Ltd, which safeguards customer funds. This setup means that HyperJar customers do not benefit from the Financial Services Compensation Scheme (FSCS) protection that would apply if their funds were held by a licensed bank, in the event of the company’s failure.

Despite this, HyperJar is regulated by the Financial Conduct Authority (FCA), obliging them to follow specific regulations designed to protect their customers. One crucial regulation is the requirement to keep customer funds entirely separate from the company’s operational funds, ensuring that if HyperJar were to face insolvency, customers could recover their money.

Regarding data security, HyperJar uses 256-bit encryption, which is the standard for banking security, to protect your personal information.

HyperJar Alternatives

HyperJar Vs GoHenry

GoHenry is a specialized financial app designed for children, offering features similar to those of HyperJar, such as a child-specific app supervised by an adult and a debit card for the child. The primary distinction lies in the cost structure: HyperJar is free to use, whereas GoHenry charges £2.99 per month (though the first month is free) and imposes a fee of £0.50 for each account load after the first one each month, making HyperJar a potentially more affordable option. However, GoHenry does have an advantage over HyperJar, as it allows cardholders to withdraw cash from ATMs, a feature not available with HyperJar.

HyperJar Vs Starling Kite

Starling Kite, offered by Starling Bank, provides a dedicated child account feature that allows adult customers of the bank to set up a separate account for their children within their main account. Like GoHenry, the primary distinction between Starling Kite and HyperJar lies in the cost—Starling Kite charges £2 per month, while HyperJar is available for free. Nonetheless, for adults who are already Starling Bank customers, setting up a Starling Kite account may be more convenient than starting anew with HyperJar.

HyperJar Vs Digital Banks

Many digital banks provide features that allow you to organize your finances by dividing your money into distinct categories within your account. For instance, Starling Bank offers “Spaces,” and Revolut has “Vaults,” which help you allocate funds for specific purposes like savings, bills, or discretionary spending. These digital banks also issue debit cards that enable cash withdrawals at ATMs—a functionality not available with HyperJar. However, HyperJar stands out as it is primarily focused on savings, potentially offering more specialized functionality than typical banking apps. Additionally, HyperJar allows for the creation of shared savings spaces, enhancing its appeal for collaborative financial management.

HyperJar Vs Budgeting Apps

One key distinction between HyperJar and budgeting apps like Emma, Snoop, and Money Dashboard is that HyperJar provides a physical card for spending. While HyperJar only allows you to budget the funds within its system, budgeting apps leverage open banking to connect with all your financial accounts, enabling a comprehensive view and management of your finances across multiple platforms.

HyperJar Vs Buy Now Pay Later (BNPL) Providers

HyperJar positions itself as an alternative to Buy Now Pay Later (BNPL) schemes such as Klarna, Monzo Flex, and others, which it argues may encourage consumer debt. HyperJar champions the concept of ‘pay now, buy later,’ allowing users to create and fund jars specific to certain retailers in advance. This approach not only facilitates planned spending but also offers an Annual Growth Rate on the funds in these jars, effectively growing the money available for future purchases with those retailers, thus incentivizing savings and responsible spending.

HyperJar FAQ

CAN HYPERJAR BE TRUSTED?

HyperJar is a UK-based company fully regulated by the Financial Conduct Authority (FCA). This regulation ensures they adhere to strict rules designed to protect customer funds. However, it’s important to note that HyperJar operates as an e-money provider rather than a traditional bank, meaning customer funds are not covered by the Financial Services Compensation Scheme (FSCS)

WHY IS HYPERJAR FREE?

HyperJar stands out by offering its services without any monthly fees, transaction costs, or other charges. So, how does HyperJar generate revenue? They earn a small fee each time the debit card is used. Additionally, they receive payments from their retail partners whenever a HyperJar customer makes a purchase using funds from a HyperJar jar designated for that retailer.

CAN I WITHDRAW FROM ATM WITH HYPERJAR?

No, withdrawing cash from your HyperJar jars via an ATM is not possible. HyperJar is designed primarily for making purchases from specific retailers, leveraging the app’s benefits when you use the card for payments rather than cash withdrawals.

HyperJar Review – Summary

HyperJar is an intriguing and innovative app that merges various elements, including a prepaid debit card, budgeting and saving tools, and rewards/cashback. While it shares some features with digital banks and budgeting apps, HyperJar offers unique benefits that can enhance your ability to budget, save, and spend more efficiently.

Signup for HyperJar

*Please note: This article may include affiliate links. If you purchase through these links, we may earn a commission at no extra cost to you. This helps support our work and allows us to continue providing content like this.

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