15 May - 3 min read
Since its launch in mid-2012, Hong Leong Mach has been introduced some interesting products such as the Hong Leong Mach Visa. We recently came across another new product from Mach, the “Third Way of shopping”. This is basically a combination of Mach’s Money Box and Dream Jar savings accounts that provides a novel way to save up for things you want.
Just like everyone out there, I have things that I want but due to other commitments, practicality or just plain inertia when it comes to savings; many of us, myself included, don’t often get to achieve the little dreams we set out to. Whether it’s an iPhone 5 or a trip to Paris, the Dream Jar and Third Way offer a new way to save and shop.
What is the Third Way of Shopping?
The concept is simple. You want something that costs a lot but you don’t have the cash. You think of turning to your credit card but don’t want the pain of debt hanging over you.
The Third Way makes you save for it.
You start by picking a ‘goal’ from the list of deals on the Third Way site. Then you set the timeline within which you’d like to achieve it, open a Money Box account and a Dream Jar account and start saving. The Money Box is a current account without the chequebook service which will auto-debit fixed amounts to your Dream Jar account as agreed based on the timeline for achieving your goal. Not only will you receive a 2% (p.a.) interest on the amount in your accounts, but you’ll also receive a RM2 for every RM500 reached as a cash incentive to hit your target.
Here’s a short list of what you need to know:
Is it just another savings account?
The auto-debiting, planned fixed amounts and incentive features of the Dream Jar account are definitely an interesting way to automate your savings habit. There are many savings and FD accounts in the market with better interest rates but none of them offer the extra ‘nudge’. If you are keen to start saving up rather than buying on credit then you may want to consider it. However, even with the auto-debiting you will still need to stay disciplined to reach your goals and enjoy the rewards.
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