# How savings pots work

## What are Savings pots?

Savings pots are flexible accounts designed for goal-based saving. Unlike your Cash or Emergency Savings accounts, you can create multiple Savings pots to separate your savings into distinct goals.

- **Multiple pots**: Create as many as you need for different goals
- **Instant access**: Transfer money out anytime without penalties
- **Earns interest**: Your money grows daily in the Allan Gray Money Market Fund
- **Fully customizable**: Choose a name, colour, and icon for each pot
- **Target tracking**: Set a goal and watch your progress

Use Savings pots for goals like a holiday, new phone, wedding fund, home deposit, or anything else you're saving for.

## Creating multiple pots

You can create as many Savings pots as you need to keep your savings organized. Each pot represents a separate goal with its own balance and progress tracking.

**Common use cases**:

- Short-term goals: new phone, concert tickets, holiday
- Medium-term goals: wedding fund, car deposit, home furnishings
- Discretionary savings: spending money, entertainment budget

Having separate pots helps you see exactly how much you've saved for each goal, rather than tracking everything in a single account. When one goal is reached, you can close that pot or repurpose it for something new.

1. Tap **Add account** on your home screen
2. Select **Savings pots**
3. Enter a name and choose a colour
4. Tap **Continue** to create your pot

## Customization options

Each Savings Pot has three customization elements that help you identify it at a glance.

**Name**: Choose a specific, meaningful name that reminds you what you're saving for. Keep it short enough to display fully on your home screen.

**Colour**: Select from eight available colours (rose, orange, yellow, green, sky, blue, indigo, or purple). Your colour appears throughout the app in charts, transaction lists, and automation rules.

**Icon**: Fynbos generates a unique icon for each pot. Tap **shuffle** when creating your pot to generate different options until you find one you like.

Your customizations make it easy to distinguish between multiple pots, especially when you have several goals running simultaneously.

## How your money is invested

Your Savings Pot balance is invested in the Allan Gray Money Market Fund (AGMF), a low-risk investment that earns daily interest while keeping your money accessible.

**What this means for you**:

- Your balance grows every day through interest earnings
- You can transfer money out anytime without penalties
- Returns are typically higher than a traditional bank savings account
- Your investment strategy is fixed at 100% AGMF

Think of it like a high-interest savings account with better returns. Your money is pooled with other investors and lent to banks and government institutions, earning interest that gets added to your balance daily.

The fixed investment strategy ensures your savings stay stable and accessible, unlike investment accounts where values can fluctuate with the market.

## Interest payments

Interest is earned daily and typically paid in the first 10 days of each month. You may see it arrive in two separate payments.

Your account page shows an **Interest payments** card with this information so you know when to expect your interest to appear in your balance.

## Setting a savings target

A target gives you a clear goal to work toward and enables the stop at target option on automation rules.

1. Open your Savings Pot from the home screen
2. Tap **Set up savings target** in the Target section
3. Enter your target amount
4. Tap **Continue**

Your target appears with a progress bar showing how close you are to your goal. As you add money, watch the bar fill up toward your target.

**Why set a target**:

- Visual progress tracking keeps you motivated
- Enables the stop at target option on automation rules
- Helps you plan when you'll reach your goal

Targets are optional. You can use Savings pots without them, but setting a target unlocks additional features and helps you stay focused.

## Instant liquidity explained

Instant liquidity means you can access your savings immediately when you need them. There are no waiting periods, penalties, or restrictions on transfers.

When you transfer money out of a Savings Pot:

1. The transfer to your Cash account happens instantly
2. Your updated balance appears immediately
3. From Cash, you can withdraw to your bank account

This is different from investment accounts like your TFSA or Investment Account, where selling holdings takes 2-3 business days to settle. Savings pots are designed for flexibility because your goals might change.

> **Note**: While transfers to Cash are instant, withdrawing from Cash to your bank account may take 1-2 business days depending on your bank.

## Savings pots vs Emergency Savings

Both account types use the Allan Gray Money Market Fund and offer instant liquidity, but they serve different purposes.

| Feature | Savings pots | Emergency Savings |
| --- | --- | --- |
| **Purpose** | Specific goals (holiday, phone, wedding) | Financial safety net for emergencies |
| **Number of accounts** | Create as many as you need | One protected account |
| **Can be deleted** | Yes, you can close any pot | No, this account is protected |
| **Stop at target** | Yes, cap allocations at target | Yes, cap allocations at target |
| **External tracking** | No | Yes, track savings held elsewhere |

Use Emergency Savings for your financial safety net and Savings pots for everything else you're saving toward.