If you struggle to save money, then an automatic savings app may be just what you need. Saving is in many ways similar to eating right. You know maintaining a balanced diet is vital for better health but you don’t give it the attention it deserves.
The same way we all know we should start saving money for retirement, emergencies and personal goals, but doing it becomes a challenge.
Saving may seem impossible, especially if you have kids. If you’re struggling to make ends meet, you are not alone. Approximately 57 percent of Americans have less than $1000 in savings. Are you part of that statistic?
The problem most savers have is treating savings as an afterthought. Some people make an effort to save manually by making small contributions now and then, but their inconsistency and infrequency jeopardize their efforts.
Others save whatever is left over after paying bills. It’s not easy to keep yourself from spending money when it’s sitting idle in your bank account.
Setting up An Automatic Savings Plan
If you have been fruitlessly trying to get your finances in order, the tool to help you with this could be right in your hand – your smartphone. Thanks to advancements in the financial technology field, there is a wave of mobile financial tools and budgeting apps that you can take advantage of now.
They include easy-to-use, secure and consistent automatic savings apps that take the human element out of saving, making your journey to financial freedom easier and more fun. These apps sync with your savings account and work in the background to save a portion of your income. You will be saving more without having to make tough spending choices.
The trick here is paying yourself first and having two separate accounts: savings and checking. These apps will let you set aside a fraction of your monthly income easily in a separate account. A separate savings account will curb the temptation of splurging carelessly.
Create a budget to figure out the amount of money you need to cover your monthly expenses. If your expenses surpass your income, look for alternative ways to make money or cut down on unnecessary expenses. This year is coming to an end and now is the best time to start planning to save smarter.
Different apps have their unique approaches, so it’s up to you to find an app that best suits your needs. Keep reading to find out our top picks for the best automatic savings apps. When picking the right money saving app for you, it is vital that you consider the following factors:
- Ease of use
- Options to pick goals
- Monthly fees
- Platforms supported
- Interest rates
App-Based Banking: 10 Automatic Savings Apps That Will Help You Save
Most of the automatic savings apps on our list are free to download. We understand you intend to save more money instead of spending paying for apps.
This micro-investing app works a bit differently compared to other apps in this list. It lets you invest in a personalized and diversified portfolio. Mutual funds are gaining popularity as worthy investments.
With multiple holdings and professional management, these funds reduce risk and generate significant returns. With Acorn, you will not have to worry about substantial initial investments.
Whenever you use your debit or credit card, the app rounds up the money spent to the nearest dollar amount. The remaining amount is set aside for an investment of your choice. Students invest for free and referring a friend earns you a $5 bonus, how cool is that?
The only downside is that have to pay a fee of $1 per month if you’re not a student. Acorn is available on both Android and iOS platforms.
This free money saving app saves spare change whenever you shop for a product or pay for a service using your credit or debit card. Qapital lets you set savings goals conveniently.
You can choose to make scheduled transfers, round up your credit and debit card purchases or even fine yourself for breaking a personal rule. There are NO monthly fees, and you will receive interest on your savings. Qapital is also FDIC-insured meaning your money is safe.
Managing your money can be tedious especially when you lack the financial know-how. This app takes care of this little problem by building investments that match your values, interests, and goals.
You can begin investing smartly with as little as $5. You will be asked a series of questions before receiving investment recommendations. Stash is free for the first month after which you will be required to pay a dollar monthly.
One of the newest automatic micro-saving apps on this list, Rize uses your goals to set up an automatic saving plan. Launched just last year, you simply need to spell out your individual goals, and the app will generate a customized roadmap that will help you get there.
Compared to many big banks and traditional financial institutions, Rize pays a better interest rate(1.65 percent). Referring a friend earns you and your friend $5 each. Available on both Android and iOS platform, Rize has NO hidden charges.
Available on both Android and iOS platforms, this visually-appealing personal money saving app has money-saving features that will help you get your savings under control. Signing up takes just 2 minutes. The app will generate a budget for you according to your past income and expenditure and connect your bank accounts.
This way it will suggest ways you can spend less. You will receive periodic tracks and reports. To lessen your bills, MoneyBrilliant will find cheap deals for electricity and gas based on your energy usage data.
If you are new to saving, Digit is an excellent place to start. After installing the app, signing up and connecting it to your bank account, Digit automatically syncs with your checking account and gives you real-time data by analyzing info such as your income and spending habits.
The app then goes ahead and quietly deducts money it knows you would not miss and deposits it into your savings account.
By the time were writing this article, over $1 billion has been saved by app users. Every three months, you will receive a 1 percent annual saving bonus. The app is available on both Android and iOS platforms to US residents.
Having this app in your smartphone is like hiring a financial advisor, but for free! This app tracks your spending habits and the flow of your money through your bank accounts. By analyzing your spending, the app provides you with practical ways to save money.
If you exceed your budget, the app will give you helpful suggestions on how to cut down unnecessary spending. The app also cancels idle subscriptions and suggests discounts. This free savings app is available on both Android and iOS platforms.
Simple works is similar to Qapital. This online bank app is only available for US residents. Upon signing up, you will receive a savings and checking account, and a Simple Visa debit card. Simple allows you to set a specific amount of money you want to save and a timeframe.
The app will then suggest ways to reach your financial goals. You will enjoy zero monthly maintenance fees, no minimum balance, and no overdraft. Referring a friend to Simple earns you a cool $20.
If you want to save for a car, college or a vacation, you should seriously consider this online piggy bank. This app allows you to achieve both your short-term and long-term goals and earn interest (1.4 percent) while at it.
After installing the app and signing up, you can schedule deposits on an automated basis. The app lets you generate multiple saving goals. You can then set up the frequency and amount of deposits towards each goal.
After downloading and signing up, this money saving app syncs with your checking account. The app then rounds up your purchases on linked
debit and credit cards to the nearest dollar and automatically puts the money towards your debt.
The app charges a monthly fee of $1.99. The fee is deducted from your savings. For instance, if the app saves you $100, you will receive $98.01.
Benefits of using automatic savings apps
- When you use an automatic savings app to save your money in a separate savings account, you teach yourself to be financially disciplined. You will no longer view the money as spending money.
- When you save a portion of your income with a money saving app, you learn to work with whatever’s left. When you make it a habit to live on less, you will stop missing the extra money.
- Saving your money will be effortless since it happens automatically. You will not have to do math or remember stuff. These apps give you the much-needed peace of mind by letting your savings take care of itself.
- Automatic saving apps allow you to save for different goals at once. Maybe you want to save up for a better car or a vacation. By setting up a different savings account and allocating a fixed amount monthly, you will be on track to save for different goals.
The most significant advantage of automatic savings apps is that you can set it and forget it. Your savings will take care of itself. You can also make adjustments to your savings plan when you experience modification in your financial situation.
Welcoming a new member to your family is a blessing, but you will need to update your household expenses to reflect your current savings plan. Life is full of surprises, and not all surprises are pleasant.
If saving automatically sounds like fun to you, take advantage of our list and use one or a combination of the apps to reinvent the way you save. Watch your savings grow automatically today!
Let us know in the comments below if you’ve ever tried an automatic savings app or if you know of one we missed.