Want to make 4.8% on your savings? Here’s how

Jasmine Birtles 3rd Feb 2021 No Comments

Reading Time: 3 minutes

Who wouldn’t want to make.a cool, guaranteed 4.8% on their savings?

I don’t usually use the word ‘guaranteed’ when it comes to savings, particularly when it’s such a high rate, but I happen to know that this return is pretty rock solid as I’ve downloaded this app myself.

I’m talking about HyperJar, the clever, free money app that genuinely gives you the amazing return of 4.8% on your savings.

How do they do it? Read on…

How can Hyperjar give 4.8% when the banks barely offer 0%?
So what’s the catch with Hyperjar?
Is my money safe?
How do I sign up to HyperJar?

How can Hyperjar give 4.8% when the banks barely offer 0%?

So, when you put money into a savings account with the bank, they use that money to lend out to borrowers and make a profit on the margin between when they pay you and what they charge the borrower. At the moment, money is very cheap to borrow. The Bank of England is offering it at pretty much zero, so high street banks and other lenders don’t have to pay much to borrow money to lend out. That means…they don’t need your money.

So, HyperJar has cleverly bypassed the banks and gone straight to retailers to find a good rate of return on savings.

HyperJar is really a budgeting app that gives you virtual ‘jars’ in which to save money for different parts of your life, just like your mum might have done back in the day with actual jars or envelopes for different bills. However, they also have jars where you can put money to spend at different retailers – including petrol stations like Shell and (coming soon) your local supermarket. It’s those jars that pay you 4.8% to keep your money there.

So what’s the catch with hyperjar?

Weirdly, there’s no real catch except for the fact that the 4.8% you make has to be spent with the retailer that gave you that money.

So if you drive a lot, you could put £1,000 into the Shell jar which you use in Shell garages to fill up the car with petrol. While the money is sitting in that jar, waiting for the next time you need to top up with petrol it’s making you 4.8% interest which, later in the year, you can spend on more petrol. It’s a win-win and you can see why the retailers are happy to give such an eye-watering rate on your savings.

They have a few retailers right now and are getting more all the time. Currently their retailers include Boden, NotOnTheHighStreet, Blow Ltd, FeelUnique, Megabus, Dyson and Laithwaites Wine.

Is my money safe?

Yes it is. HyperJar is risk-free – really! You can withdraw your money at any time (though if you choose to withdraw it, you don’t get your 4.8% bonus – but you DO get back everything you put in).

Money put into jars is backed by the Bank of England, so even if the retailer goes out of business – or HyperJar fails – you will get your money back, too. This makes it much safer than alternative options, like gift cards for retailers, which you can’t spend if the retailer goes bust!