Jar app gained lot of recognition now a days because through Jar app you can buy digital gold and also start saving. However, where does it stand in comparison to traditional saving accounts? We will go through the differences in between these two for making the right decision.
Understanding the Jar App
The Jar app is designed to simplify saving and investing for the average consumer. Here’s what makes it stand out:
1. Investment in Digital Gold
Through the Jar app, you can purchase gold for as low as ten rupees. With this regard, the gold investment is open to everybody. Digital gold investment can be profitable providing they achieve the same return with traditional investments particularly when gold prices are increasing.
Open an account with Angel One– Click here
2. Encourages Saving Habits
It means that you’ll set up how much your daily purchases will be rounded up to the nearest 10 with the surplus amount invested. For example, if you spent Rs. 45 on coffee, the Jar invest the extra Rs.5 into gold. People who have trouble putting up a consistent savings plan will benefit from the ‘set it and forget it’ plan.
3. User-Friendly Interface
The app has been developed in a simple way so that even people who are not so fond of complicated technologies will have no problems using it.
4. Security and Trust
This makes Jar regulated by the SEBI which provides or guarantees the safety and reliability of the site.
The Benefits of Traditional Savings Accounts
Traditional savings accounts provided by banks have long been the preferred option for many. Let’s look at their benefits:
1. Guaranteed Returns Interest Rates:
Savings accounts normally provide guaranteed interest rates, though rates may vary by bank. They may not be as large as possible investment returns, but they are stable.
2. Liquidity
Traditional savings accounts offer immediate access to funds, making them excellent for emergency savings. You can withdraw your money at any time without facing penalties.
3. Safety:
In India, the Deposit Insurance and Credit Guarantee Corporation (DICGC) insures savings accounts up to Rs. 5 lakh, providing peace of mind.
4. Broad Range of Services
Traditional banks provide a variety of services beyond just savings accounts, including loans, credit cards, and investment options
Jar App vs. Traditional Savings Accounts
Feature | Jar App | Traditional Savings Accounts |
Investment Type | Digital Gold | Cash Savings |
Return Potential | Variable (depends on gold price) | Fixed (interest rates) |
Liquidity | Moderate (depends on gold prices) | High (instant access to funds) |
Ease of Use | Very user-friendly | Varies by bank |
Safety | Regulated (SEBI) | Insured (DICGC coverage) |
Minimum Investment | Rs. 10 | Usually none, but minimum balance may apply |
Open an account with Upstox– Click here
Which Is Better?
The answer to this question largely depends on your financial goals and habits:
Choose Jar App If:
You want to start investing with as little money as possible.
You want to move into gold to diversify your portfolio.
You like a progressive way of saving.
Choose Traditional Savings Accounts If:
You require a secure location for emergency money.
You like highly certain incomes and free marketability.
You need a full, all around service from your bank.
Conclusion
While the use of the Jar app has some benefits even with regular savings accounts. The Jar app is suitable for everyone who wants to face the technological future and buy gold while at the same time encouraging people to save. While on the other hand traditional savings have the strength of stability and open doors for managing of the emergency cash balance.
If you found this post useful, please comment “useful”. And I request you to Please share this article on Facebook/WhatsApp with those who need this.
