These accounts are sometimes called budgeting accounts or rent accounts. They’re designed to help you budget.
High-street banks rarely offer these accounts. Instead, you’ll have to apply via a credit union or your housing association.
Often, there’ll be a fee for these accounts of around £3-£15, although your housing association might pay it for you.
A jam jar account lets you divide your money into different ‘pots’ or ‘jars’.
You decide how much money goes into each pot. You do this by working out how much you need for your bills and how much is left over for spending or saving.
They also allow you to:
- pay bills by Direct Debit or standing order
- receive payments such as salary, wages or benefits.
A jam jar account might be right for you if:
- you want an account that helps you to budget
- you want to avoid charges for refused Direct Debits
- you rent a council or housing association property – in which case your landlord might pay the monthly fee for you.