Jago’s Saving Pocket and Locked Pocket Have Differences, What Are They?

18 February 2022

Jago’s Saving Pocket and Locked Pocket Have Differences, What Are They?

Jagoans who already have Jago accounts and explore various features in the Jago application, of course, have seen the Saving Pocket and Locked Pocket. However, maybe there are some Jagoans who are still confused about whether to save money in the Saving Pocket or Locked Pocket or even in both.

Jago offers 2 saving options to encourage you to save money. So that you can decide where to save your money, here are the differences between the Saving Pocket and Locked Pocket.

Difference Between Saving Pocket and Locked Pocket

1. Different interest rates

Talking about savings, there must be interest. Well, the first difference between the Saving Pocket and Locked Pocket is the amount of interest given. If you save money in the Saving Pocket, you can earn interest up to 3.5% p.a.*. Meanwhile, the Locked Pocket offers a higher interest rate, which is up to 4% p.a.*

2. Flexibility to use money

Because it offers a higher interest rate, the Locked Pocket, as the name implies, requires you to lock your money for some time. In other words, as long as the money is locked, you can't use it. This is the second difference.

However, unlike time deposits, the lock duration of the Locked Pocket is more flexible. By locking your money for as short as 14 days, you can already enjoy 4% interest p.a.* What if you want to lock your money for more than 14 days, for example for 6 full months? You certainly can. After 6 months, you can also continue to extend the lock period.

What about the Saving Pocket? You are free to use the money in the Saving Pocket at any time, Jagoans.

3. Meeting different financial goals

In your opinion, the Saving Pocket is more suitable for meeting which financial goals, short-term or long-term? What about the Locked Pocket?

You guess correctly if the Saving Pocket is more suitable for short-term financial goals, while the Locked Pocket for long-term financial goals.

Then, what is meant by short-term financial goals? In general, short-term financial goals can be achieved in a short time, be it a few days or a few months, usually no more than a year. If you want to buy a new cell phone, television and refrigerator, then you have short-term financial goals.

Long-term financial goals usually take between 5 to 10 years or even more to be achieved. Examples of long-term financial goals are buying a house and saving for retirement.

But, it all depends on you. If you aim to be able to buy a new refrigerator within 6 months, there's nothing wrong with saving money in a Locked Pocket. This is so that you are not tempted to take money from your savings and spend it for temporary pleasure. Later, you may end up postponing your plan to buy a new refrigerator. If you want to buy a new cell phone next week, saving money in a Saving Pocket is definitely best.

Jagomin wants to give one more example, because this example is important. How about an emergency fund? Should it be in a Saving Pocket or in a Locked Pocket? Can be in both, Jagoans.

Because we never know when an emergency will take place, it's a good idea to save some money for emergencies in the Saving Pocket. But, although unpredictable, emergencies don't happen every day.

Remember, not all events that come your way are categorized as emergencies. If a pair of shoes is worn out but you still have another pair of shoes, then this is not an emergency.

You can read this article: Having an Emergency Fund is Important: Before Using It, Ask Yourself These 3 Questions with regard to the use of emergency funds.

So, you can also save your emergency fund in a Locked Pocket for a short period. When it’s time to unlock the Pocket and there is no emergency, you can lock it again. 

In fact, keeping your emergency fund in a Locked Pocket is meant to avoid improper use, i.e. when an emergency happens, you don't have any savings, because it's been used for non-emergencies.

Now, you know the difference between the Saving Pocket and Locked Pocket clearly and can start making use of both Pockets.

If you don't have the Jago application yet? You can download the Jago application here.

*Interest rate can change at any time in accordance with BI interest rates & LPS policy

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