If you feel like saving any money at all at the moment is nigh on impossible, an auto-savings app could help you build up a nest egg – without you even noticing.
These apps use clever technology to work out how much you can afford to save and then automatically move money from your bank account into a separate savings pot. They can also ’round up’ your purchases to the nearest pound and save the change for you. The idea is that by squirrelling small amounts of cash away regularly, you can build up a healthy pot without thinking about it.
If you’re feeling the pinch one month, you can always tell the app to save less, or withdraw the money back into your current account if you need it.
Just bear in mind that while these apps can help you save more, most interest rates can be beaten elsewhere – so to maximise returns (in a way that’s kind to the planet too), see our top-paying sustainable savings accounts.
Here are our top three auto-savings accounts for 2023:
Moneybox
Moneybox is just that – a moneybox. Once you connect a bank account, the app will round up your transactions to the nearest pound and set aside your spare change for you to save or invest.
For example, if you buy a coffee for £2.60, it will round the transaction up to £3 and then put the spare 40p in your “digital moneybox”. You can set your round-ups to be moved automatically, or choose to do it manually for each transaction.
If you want to have quick access to your savings, Moneybox offers a ‘Simple Saver’ account, with a two per cent (AER variable) interest rate and no account fees or charges. Withdrawals are limited to one per month.
If you’re happy for your money to be locked away for a while in return for a higher interest rate, Moneybox offers four notice accounts – from 32 days’ notice at 2.22 per cent to 120 days’ notice at 2.94 per cent. Your money is covered by the Financial Services Compensation Scheme up to £85,000.
Moneybox also gives you the option of investing your money in a Stocks and Shares ISA, Junior ISA, Lifetime ISA. General Investment Account or Self-Invested Personal Pension (SIPP) – just remember that with investing your capital is at risk.
With Moneybox, your savings are protected by the Financial Services Compensation Scheme (FSCS) up to £85,000.
The Good Stuff
The Moneybox app is clear and easy to use, and it scores highly on customer service (with a 4.6 out of 5 score on Trustpilot). It also offers “socially responsible” options for your investments.
What’s the cost?
There are no fees for Moneybox’s savings accounts. You can find out about fees for investing, here.
Plum
Plum is a smart money ‘robot’ that helps you budget, save and invest all through automation. The app links to your bank account and uses artificial intelligence to analyse your income and spending habits.
It calculates an amount it thinks you can afford to save each week, and automatically transfers this to a Plum account. If you turn on ‘Round-Ups,’ Plum will round up your transactions to the nearest pound and save your spare change.
You can transfer this money into “Interest Pockets” that are assigned to different goals. Plum’s free plan gives you one ‘Easy Access Interest Pocket’ with an interest rate of 1.50 per cent. Under its paid-for plans (more here), you can have more pockets to help you save towards different goals and the interest rate goes up to 1.95 per cent or 2.45 per cent depending on your subscription.
You can withdraw your cash for free at any time. Another option is to invest your savings in a Plum Stocks and Shares ISA or SIPP. As always with investing, remember your capital is at risk.
Note: To qualify for FSCS protection with Plum, your savings must be kept in one of its ‘interest savings pockets’ – this includes the free pocket.
The Good stuff
We like that Plum makes saving money super easy. It also offers a range of sustainable and ESG (environmental, social and governance) funds for its ISAs and SIPPs.
What’s the cost?
Plum is free at the basic level (including automated savings transfers, round-ups and one Interest Pocket). If you want to benefit from its more advanced budgeting features and investment options, you can upgrade to Plum Pro for £2.99 per month (first month free), Ultra at £4.99 or Premium at £9.99. See its fees for investing, here.
Monzo
Monzo has a Savings Marketplace within its app where you can pick from an ever-growing number of providers and competitive interest rates to suit your savings goals. With the Monzo app, you can set savings goals, round up your transactions and automatically save the spare change into a savings pot.
Monzo has also built automatic savings triggers to put money aside for you, such as putting a fiver into a Rainy Day Pot every time it gets hotter than 20 degrees.
The bank offers an Easy Access savings pot with 2.25 per cent interest (AER variable), a Fixed (for 12 months) account at 3.55 per cent and an Easy Access ISA at two per cent.
With Monzo, your savings are protected by the Financial Services Compensation Scheme up to £85,000.
The Good Stuff
We like the Savings Marketplace within the Monzo app. This allows you to pick from a growing number of providers and interest rates to suit your savings goals.
What’s the cost?
Monzo does not charge for its savings pots.
Other options
Banks an building societies such as Tandem, Starling, Halifax and Nationwide also offer round-up savings features.
