A new app by London fintech company Squirrel Financial Wellbeing Ltd has been launched to help people avoid the temptation of dipping into their savings.
The Money Lockup is an app where users can store their spare money or savings to avoid spending it.
The money saved can be withdrawn by travelling to a predetermined location to make withdrawals.
The app has been created for people who are easily tempted to spend money they have access to, even though it has been set aside in a savings account attached to their current account.
Emanuel Andjelic, co-founder of the Money Lockup (pictured above), said: “People kept telling us they were too easily tempted to spend money they had easy access to, so we decided to build an app that would put it physically out of reach.
“We were inspired by stories of people stashing money at their nan's house or in credit union book accounts two towns away, simply to avoid spending it.
“One guy we interviewed would buy lots of Oyster cards he could only cash in by going to the local underground station.
“Money Lockup lets you choose a place you know you won't easily be tempted to go and withdraw it.
“That could be somewhere far away or the top of a steep hill, whatever works for you.”
The app works by following six easy steps:
- Download the app.
- Add some money to your savings locker using a debit card.
- Choose a location where your money should be stored.
- Forget about it until you need to withdraw it.
- Travel to the location your money is kept.
- Withdraw your money (it will take up to two hours to arrive into your account).
The money is stored in an FCA-regulated e-money account and held with Barclays with funds protected by the Financial Services Compensation Scheme.
The app is free to download and the service is also completely free.
You can read more about Money Lockup on the official website.
SIGN UP TO OUR NEWSLETTER TO RECEIVE MORE NEWS LIKE THIS STORY
Monese urges holidaymakers to shop around for their bank to save money abroad
Brits travelling abroad have been encouraged to save money by shopping around for bank accounts...
Tandem introduces healthy balance feature
Digital bank Tandem has announced the launch of a new healthy balance notification feature on its banking app...
The Access Bank UK joins Bacs
The Access Bank UK has been announced as the latest brand to join Bacs Payment Schemes Limited (Bacs)...
Nearly 75,000 SMEs supported through BBB programmes
The British Business Bank (BBB) has reported that the total stock of finance provided through its programmes in the last financial year rose by 33% to £12.25bn...
Close Brothers’ banking division reports 6.6% loan book growth
Close Brothers Group PLC has revealed that its banking division has seen a 6.6% growth in its loan book in the 11 months to 30th June 2018...
Leeds introduces two-year fixed rate BTL product
Leeds Building Society has launched a two-year fixed rate buy-to-let (BTL) mortgage product as part of a wider refresh of its 70% LTV BTL range...
Just 20% of Brits would opt for a challenger bank
Only 20% of UK residents would opt for a challenger bank if they were opening a new account today, according to research from Equifax...
Santander to form digital investment banking team
Banco Santander has announced that a new digital investment banking team will be formed within Santander Corporate & Investment Banking...
Metro Bank introduces developer portal
Metro Bank has launched a new developer portal for FCA-registered third parties wishing to build services on top of its APIs...
Wesleyan Bank appoints new head
Wesleyan Bank has appointed David Brownbill (pictured above) as its new head of indirect sales...
Arbuthnot announces profit surge
Arbuthnot Banking Group has reported a half-yearly profit before tax of £3.5m for the six months to 30th June 2018, up from the £2.5m recorded during the same period last year...