It would be better if more users actively use the Pots feature to achieve their goals. There is a way to do that -
Increase interest rate on savings through Pots a little more than normal interest rate given on bank account balance like 0.1 -0.15 %.
This way more users will be keen to create pots and save for their goals.
Indirectly more money will be available with the bank at their disposal as money in pots is least likely to be withdrawn frequently (acts like a mini FD) and can generate more revenue for the banks. A small portion of this can be passed on to the users, which is not a big deal.
I don’t think many users will find the mere increase in interest rate in pots account significant (At least It doesn’t attract me)
Instead of that if the amount in pots can be invested in a MF, it would be fun.
And there should be an option in which kind of MF the user want his money to be invested based on the risk parameter.
Or else pots account should give interest of FD which is also low but at least better than the interest of saving account in federal.
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@DEBASISH_SAHU MF thing would not be that easy. Each MF has its own minimum SIP, lumpsum, additional lumpsum requirements. I haven’t seen any fund having minimum investment requirement less than 100. 100 is there but that too is in liquid funds.
Plus this will require another regulatory approvals which means existing users will have to go for kyc again for MF investment.
There is exit load also.
I was thinking if there would be an option like “Invest the change”(From NiyoX) and the jewels would not redeem untill it reached the minimum amount for particular MF.
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I get your point about the regulatory issue and another KYC which I totally forgot.
Plus it would take months to accumulate the jewels since there are MFs of different Minimum lumpsum amount starting from Rs.100 to Rs.5000.
Exactly. It’s might be better to have an saving account in a bank which offers higher interest and park the money there and forget it till you really need it.
Or one can go with PPF also as it allows us to deposit in multiple of 50. But only con is that the money gets locked.
Honestly, I am not a big-fan of invest the change concept because :-
- I am not a spending machine so it will be difficult to build a corpus using that.
- I use credit cards for most of my online/pos spend.
Fi Money has it.
And now as Jupiter started MF investments as well… collecting change and investing in Mf should be easy task…