Major prepaid card provider to introduce £3 monthly fee in weeks – but you can avoid it
A MAJOR prepaid card provider used by thousands of families is set to introduce a £3 monthly fee.
HyperJar is a free money management app and prepaid debit Mastercard designed for both adults and children aged six and above.
However, customers face a new inactivity charge, which is set to be introduced within weeks.
From June 3, a £3 monthly inactivity fee will come into effect.
This fee will be automatically deducted from your HyperJar balance if your account remains inactive for 12 months or longer.
Thankfully, you can take steps to prevent this fee entirely and keep your account free of charges.
To avoid the charge, simply use your account.
You can send or receive money from another bank or HyperJar account.
Transferring money between your HyperJar “jars” will also prevent the fee.
Making a purchase with your HyperJar card or buying a voucher through the app are other ways to avoid the charge.
Remember, you need to use your account at least once every 12 months to avoid future fees.
If you no longer need your HyperJar account, ensure you have a zero balance and use any remaining vouchers before closing it.
You can close your account via the app (‘Profile’, ‘Profile & Security’, ‘Close Account’) or through HyperJar’s online chat.
What are prepaid cards?
PREPAID cards are payment cards that are pre-loaded with a set amount of money.
They work like a pay-as-you-go mobile phone.
This means you have to add funds to the card, and then use those funds for purchases or cash withdrawals.
Unlike traditional debit cards, they are not linked to a bank account. This means you can only spend what you load onto the card, preventing overdrafts or debt.
They are accepted by most retailers, online and in shops, and can often be used at ATMs.
Prepaid cards can be reloadable or for one-time use (like gift cards).
What does HyperJar offer?
HyperJar is a free money management app and prepaid debit Mastercard designed for both adults and children aged six and over.
It functions as a digital “jam jar” budgeting system, allowing users to divide their money into separate “jars” for specific spending categories like groceries, holidays, or bills.
Users can pay directly from these jars using the linked HyperJar card. The app also offers features such as shared expenses, bill splitting with other HyperJar users, and cashback rewards of up to 20% with selected retailers through “Cashback Vouchers”.
Kids’ Cards are available, offering parents control over children’s spending with features like spending limits and instant notifications.
HyperJar boasts no fees for overseas spending, using Mastercard’s exchange rate.
The app also provides budgeting tools, spending controls, and bank-grade security.
What are the alternatives?
If you’re searching for alternative prepaid card and budgeting apps for yourself or your children, MoneySavingExpert.com has at handy guide.
For example, Starling Kite (ages 6-15) is a free option with spending and withdrawal limits, requiring a parent’s Starling account.
NatWest Rooster Money (ages 6-17) offers similar features, costing £19.99 annually, but free for NatWest, RBS, or Ulster bank account holders.
For adults, Tesco Clubcard Pay+ is a fee-free option earning Clubcard points.
Ode offers cashback at various retailers for those in charity, education, or healthcare, with a £2.99 annual fee after the first year.
What are the most popular budgeting apps?
THERE are plenty of other money management apps available to help you budget and save effectively.
While most apps are free to use, some may offer optional subscription upgrades for additional features.
Here, we have outlined several money-saving apps on offer:
Emma
The Emma app is a free financial management tool available on iOS and Android.
It allows you to view all your accounts, including current accounts, savings, credit cards, loans, investments, and even pensions, in one place.
Emma automatically categorises your spending, and you can also set your own budgets to track progress and identify potential savings.
The app provides regular updates on your bills and spending, giving you a comprehensive overview of your finances.
Alternatively, the app’s Plus plan, priced at £4.99 per month or £41.99 annually, provides customers with greater flexibility.
This includes the ability to link more than two bank or credit card accounts, alongside the option to set regular bill reminders.
Monzo
Monzo’s app provides real-time spending updates, automatically categorises transactions, and allows custom categories.
The ‘Trends’ feature helps visualise spending habits and track progress against monthly targets.
‘Pots’ are sub-accounts for specific savings goals, with options for scheduled transfers and interest.
Monzo Plus and Premium accounts also offer personalised spending targets and additional features
The app also allows for transaction round-ups to boost savings.
Snoop
Snoop allows you to link your bank accounts and credit cards, providing you with a personalised digital assistant to help you manage your budget more effectively.
The app highlights potential savings opportunities, such as switching to a cheaper utility provider, and offers tailored insights to optimise your spending.
You can also set up alerts to help you stay on track and avoid overspending.
Snoop is free to download on smartphones via the Apple App Store or Google Play Store.
For those seeking enhanced functionality, Snoop Plus offers additional features through a subscription priced at £4.99 per month or £39.99 a year.