Savings are an important part of personal finance management. Piggy banks might be good for children as they present a nice visual representation of savings utility. However, extra money in a piggy bank cannot earn interest unlike a savings account. Besides, it is hard to administer and store larger savings (e.g. retirement fund, saving for a house or a car) without some kind of formal banking services. Today, both kids and adults can not only manage but also maximise their savings with a vast number of helpful fintech apps.
What Consumers Appreciate in a Savings App
There are a lot of similar personal finance open banking apps on the market. To distinguish the most efficient ones, we must know what people want from this type of software.
According to recent research conducted in the UK, consumers look for a ‘low impact’ way to save money. They mostly appreciate automation of this process and a background boost to their pre-app savings strategy. Even small but regular automatic contributions to the savings goal in the form of round-ups help customers build a sustainable savings habit. When savings apps offer cashback, sign-on bonus or other rewards – it is also always a welcome feature that adds up to one’s financial health. About two-thirds of the savings apps users note their savings have significantly grown with the help of their chosen fintech service due to such small but tangible enhancements.
The respondents also cherished flexibility of the savings modes available in-app, so that they can modify the savings rate depending on current circumstances or shifting goals. The variety of available savings accounts (e.g. fixed-term with higher interest rates, low-interest accounts with easy withdrawals, deposit towards an investment fund, etc.) are also helping to personalise the savings experience.
Another desired feature for a savings app is an ability to link existing bank accounts instead of opening a separate one specifically for the savings service.
Best Apps to Suit Various Purposes
Savings apps might be as different as one’s personal goals and circumstances you use them in. Therefore, we singled out the best options for various financial needs and possibilities so that every person can find the most suitable and helpful service.
Chip – Best for Smart Autosave
Chip is an app powered by AI algorithms, providing a smart way to set money aside automatically. Once linked to a bank account, the app analyses your spending habits and tracks your balance to suggest optimal savings or investment amounts. Chip’s autosave feature then automatically transfers a set amount of money into a designated savings account regularity. If you want to set a savings amount yourself, you can use a Recurring deposits feature to customise your saving strategy.
Chip offers a variety of savings options:
- Instant Access Account with 3.75% AER paid monthly and an almost instant deposit/withdrawal possibility;
- Cash ISA offering a 4.58% AER tax free, enabling you to withdraw money without impacting your annual ISA allowance;
- Prize Savings Account with a monthly prize draw instead of interest earned for those loving a game of chance;
- Easy Access account designed for long-term savings at 4.25% AER, with instant deposits and withdrawals, and three penalty-free withdrawals allowed in a 12 month period.
Besides savings accounts, Chip also provides an opportunity to invest in a curated selection of investment funds.
As for the app’s drawbacks, there are charges applicable to autosave on basic accounts unlike the premium version which costs £5.99 monthly, plus the app only links to one bank account, which is a bummer for those customers who prefer using multiple financial institutions.
Acorns – Best for Micro-Investing Approach
Acorns helps you save almost without noticing, starting with baby steps, by rounding up every purchase to the nearest dollar. It might seem trivial, but the average Acorns user saves around $150 in four months just by applying the round-up rule.
Spare change is then invested into diversified portfolios. The app will recommend a suitable investment portfolio for your money goals. There are various solutions for people saving for their retirement, wanting to invest in chosen companies and ETFs, saving for emergencies, and even wishing to teach their children to save and manage pocket money.
Besides automatic investments towards the chosen account or fund, the app also provides plenty of educational content on finances as well as bonus investments from hundreds of in-app partner brands. The ‘Silver’ and ‘Gold’ plan subscribers also get a 25%-50% match on their bonus investments. Acorns subscription plans range from $3 to $12 per month.
Qapital – Best for Engagement
Qapital helps people save in a fun and engaging way by setting goals, rounding up purchases, and participating in savings challenges. The app applies principles of behavioural psychology to make money management effortless and natural. Its “set-and-forget” tools alleviate the burden of decision-making from your savings and budgeting routines, while personalisation features help better visualise your goals.
Qapital offers more than a dozen ways to put money aside. With programmable routines, you might choose to contribute to a savings account once a month on a set date, along a flexible payday schedule, while shopping, or even each time you go for a run or buy your guilty pleasure items. You can also set a shared financial goal and contribute to it with joint efforts as a family or friend group.
Along with regular savings options, the app offers a few investment possibilities. Available investment plans are customised based on your target amount, timeline, and risk level. They range from ‘conservative’ to ‘aggressive’ so you can choose what’s best for you.
The basic saving plan costs $3 monthly, while ‘complete’ subscription also includes investing tools for $6, and the premier one is valued at $12 a month. The subscription tiers beyond basic offer a Payday Divv feature that automatically breaks up your paycheck toward each selected goal, and other budget tracking tools, making it easier to keep your financial goals on track. The premier plan users can participate in Money Missions – fun challenges that provide helpful insights into money management and help develop healthy financial habits.
Wealthsimple – Best for Ethical Investing
This Canadian-based fintech platform is designed to simplify investing, savings, and financial management. It provides several way to invest your money, including regular portfolio, Socially Responsible Investing (SRI) portfolio with bonds certified by the Climate Bond Initiative and supporting various green initiatives around the world, and Halal investing portfolio with ETFs certified and audited by a board of Islamic researchers as well as a committee of Shariah scholars.
Wealthsimple creates and manages diversified investment portfolios tailored to users’ goals and risk tolerance. Portfolios consist of low-cost ETFs across various asset classes like stocks, bonds, and commodities. Automatic rebalancing ensures your portfolio stays aligned with your desired allocation over time.
Besides, just as other savings apps, Wealthsimple has a “Roundup” feature which rounds up everyday purchases to the nearest dollar and invests the spare change, making it easy to invest small amounts regularly. It offers a few savings accounts including a tax-advantaged retirement account, tax-free flexible savings account, first home savings account, non-registered account without tax advantages, high-interest cash chequing account, spousal account, education savings plan, corporate accounts, and more. For users seeking guidance, Wealthsimple connects them to professional advisors for personalised advice.
In addition to all the other standard investment methods, the Canadian app supports crypto trading, offering an automated function of buying a chosen amount of selected coins on a schedule. The app also allows you to stake crypto tokens and earn rewards.
Conclusion
Whether you are looking for automated savings, micro-investing, engaging challenges, or ethical investment options, there is a fintech app to suit your needs. By leveraging these apps, you can build better financial habits, achieve your savings goals, and make your money work smarter for you.
