New App "Money Lockup" lets spenders put savings out of reach
London, UK (PRWEB UK) 30 November 2017 -- A new app is launched today that helps people avoid the temptation to spend money in their savings.
“The Money Lockup” is a place people can lock up their spare cash or savings so they can’t be tempted to spend it. Users save money and then withdraw it by travelling to a predetermined location to make withdrawals.
Who is it for?
Money Lockup is aimed at people who are easily tempted to spend money they have access to. People who typically set aside money in the savings account attached to their current account, and then dip into it across the month. Users may want to keep money aside for a holiday, Christmas or just to save, but know that if the money is in a regular account, they’ll spend it.
What if people need their money?
If users want to have access to their money, they simply travel to the location of their lockup to withdraw their money using their phone.
Co-Founder Emanuel Andjelic comments:
“People kept telling us they were too easily tempted to spend money they had easy access to, so we decided to build an app that would put it physically out of reach.
We were inspired by stories of people stashing money at their Nan’s house or in Credit Union book accounts two towns away, simply to avoid spending it. One guy we interviewed would buy lots of Oyster Cards he could only cash in by going to the local underground station.
Money Lockup lets people choose a place they know they won’t easily be tempted to go and withdraw it. That could be somewhere far away or the top of a steep hill, whatever works for them.”
How safe is people’s money?
Money is kept in an FCA regulated e-money account and held with Barclays. In the event that Barclays was to become insolvent, their money would be protected by the Financial Services Compensation Scheme (FSCS). If Money Lockup were to become insolvent saver’s money would still be returned to users as it’s held at Barclays not Squirrel.
What if people need their money?
If users want to have access to their money they simply travel to the location of their lockup to withdraw their money using their phone.
What does it cost?
Nothing. Money Lockup is absolutely free, Money Lockup will make money from interest (not at launch though).
Savers can earn up to 5% interest!
Savers can earn up to 5% p/a interest for 3 months by referring a friend. Each referral will generate 3 months of interest at an interest rate of between 0.1% to 5% p/a, randomly assigned to each 3 month period. Users can refer as many people as they wish, and each referral will generate an additional 3 months of interest.
For example, 3 referrals would give 9 months of interest, at 3 different interest rates. The interest rate is intentionally variable to help drive positive saving habits, as randomly assigned rewards are shown to drive better behaviour change than fixed rewards.
How does it work?
1. Download the app.
2. Add some money to the savings locker using a debit card
3. Choose a location where money should be stored.
4. Forget about it until you need to withdraw it.
5. Travel to the location money is kept.
6. Withdraw money (it will take up to 2 hours to arrive in the users bank account).
What happens if someone has an emergency?
Savers must travel to their lockup location to take money out. In the event of an emergency we will provide savers with an optional “Spare Key”. This is essentially a special reference that can be sent to a trusted person. The spare key can be used within the app to allow the trusted person to travel to the savings locker location and withdraw money into the saver’s bank account only.
About the company:
Product name: “Money Lockup”
Website - http://www.moneylockup.com
Launch - 29th November 2017
Money Lockup is made by London Fintech firm Squirrel Financial Wellbeing Ltd, makers of the award
winning “Squirrel“ budgeting app (http://www.squirrel.me).
Squirrel was founded in 2014 by Emanuel Andjelic and Mutaz Qubbaj with a mission to help people
manage their money better.
Emanuel Andjelic, Squirrel Financial Wellbeing Ltd, +44 7775884168, [email protected]
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