What is the Annual Growth Rate (AGR)?
It’s not exactly spoiler alert time to point out that most of us earn less than not-very-much on our current accounts and savings. Which is why the AGR is such a stand-out feature in the app.
Create a Jar with a merchant featured in the app's Explore section and you start supercharging your money straight away. The 4.8% AGR is a reward given by our partner merchants for making advance payments to spend with them in the future.
A commitment exchange
The AGR is a bit like the interest rate paid by banks, but we call it a growth rate because the money can’t be turned into cash.
Each time you commit money in advance to a Merchant Jar your spending power with them increases by a rate of 4.8% for 12 months, calculated and applied on a daily basis (you'll see it added each time the growth reaches 10p).
You can share these Jars with other HyperJar members and send some or all of the advance payment balance as a gift to anyone on the app who is happy to spend with that merchant.
Money committed to a Merchant Jar must be spent with them, but there's no time limit. That's it.
It's a pleasingly old-fashioned concept, wrapped up in a high-tech environment: you lock-in your loyalty to a business and they commit to the 4.8% AGR.
It works like this
Here's an example of the AGR in action. If you pay in £300 to a Merchant Jar with an AGR of 4.8%, at the end of that day your Jar will have grown by 4p to £300.04: £300 x 4.8% = 4p/365 (days). Let's say you put another £150 in to the same Jar the next day, your balance is now £450 and you'll receive 6p for every day it stays at that level (up to 12 months), worked out in the same way: £450 x 4.8%/365 days. You get paid the 4.8% on the balance of what you have paid in, but not on the growth.
Your reward, paid daily, on money you know you want to spend
Another advantage of allocating money to Merchant Jars is that it's a great way to plan your budget. If you own a car, you'll always need fuel. When you plan ahead with a Shell Jar you're just making the money you'd already be spending work harder for you. This captures one of our ambitions for the HyperJar community: to wake up the thousands of pounds sleepwalking through our lives, often going to the same places, and put it to work.