No doubt, Pots are a great way to budgeting and save for short-term goals.
I have a suggestion to enhance the functionality of the savings pots by allowing direct spending from it. Implementing this feature would greatly improve our ability to utilize the saved funds for our intended expenses.
If we put money in mobikwick xtra we get an interest rate of 12% p.a and we can withdraw the money anytime we want , no lock-in periods. So why should I put money that give only 6 or 7 % p.a which is locked for a period of time…
You cannot directly compare the both. Mobikwik xtra is P2P lending, while P2P lending can offer attractive returns, it’s essential to be aware of potential risks. Unlike Pots, P2P lendings are not insured by RBI.
Coming from a rural area, where collection agents from various co-operative banks (mostly females) visit our homes to set up day deposit accounts (referred to as ‘pigmy’ here), I was totally surprised to find a digital version of this on Jupiter as a feature called “POTS”, when I started the account in 2021.
The primary motivation behind creating pots for me is to plan for various goals such as emergencies, travel, or purchasing specific products etc… I’m not particularly concerned about interest rates. So, I haven’t created a super pot yet.
In addition to pursuing my own personal goals, I find myself consistently saving in pots whenever there are challenges like the “Weekly Savings Challenges.” In fact, these challenges, both version 1 and 2, have greatly helped me in developing healthy savings habits.
@alec The suggestion/feedback put forward by @specter is yet to be implemented.
Btw,P2P means Peer to Peer lending. It uses online platforms to directly connect people who want to borrow money with people who want to lend money . So instead of taking out a traditional loan from a bank or credit union, you borrow money from individual investors who are registered on a P2P lending platform. eg: Mobikwik Loans (LendBox), LiquiLoans etc. The one who lends money get higher rate of interest compared to FD or other mode of investment