Wednesday, March 29, 2023

The perfect standalone financial savings apps in 2023

Studying Time: 5 minutes

Financial savings apps are rising in popularity – however who ought to use them and which is the most effective? This information helps you determine if financial savings apps are finest for you.

Do you’ve huge plans and nice concepts in your cash? A vacation, a brand new automobile, a deposit for a brand new flat and even one thing so simple as a giant night time out with your mates can all be a terrific financial savings aim.

We’ve all been there, the entire dream boards and plans of grandeur that fall by the wayside as a result of saving is difficult. The previous trustworthy change jar simply isn’t going to chop it – particularly in an more and more cashless world. Nicely, there’s an app for all the pieces lately and perhaps one in every of them is the reply to your saving wants.

Financial savings versus inflation

When enthusiastic about saving money, it’s important to additionally take into consideration inflation and the way that may have an effect on your financial savings in the long term. That is particularly essential now when inflation is so excessive. Inflation makes a giant distinction on whether or not you’re going to make a revenue. Say you place your cash in a checking account that pays you curiosity at 2%. A 12 months later you’ll have 2% more cash – nice, proper? Probably not!

If inflation is greater than 2% in the identical 12 months, you’ve really LOST spending energy in your cash. Except your financial savings rate of interest is identical or greater than inflation, what you might’ve purchased for £1 final 12 months may cost £1.20 the following 12 months. In case your curiosity means your £1 saved is now value £1.02, you’re 18p down on each pound saved.

Nevertheless, don’t let that put you off saving! Having a necessary emergency fund for sudden prices – or to pay in your dream vacation – is a vial a part of cash administration. In the mean time, financial savings charges are all atrocious – so it’s all about discovering methods to save lots of which are handy and easy to do. That’s the place financial savings apps are available!


Is my cash secure with an app?

Savings apps can help you make money

Financial savings apps that provide curiosity or investments are regulated by the Monetary Providers Compensation Scheme (FSCS) or the Digital Cash Laws (EMR). Each of those schemes defend clients of economic companies which have failed.

You must guarantee that when you’ve got financial savings above £85,000 you unfold them throughout completely different banking teams. This protects you beneath the FSCS scheme – something above that in the identical banking group gained’t be lined.

Nevertheless, with standalone financial savings apps, they’re a barely completely different instrument. Your cash will not be protected in full – however you possibly can simply entry it and switch it at any time. Many financial savings apps are additionally linked to ‘ring-fenced’ high-street financial institution accounts. This implies your cash goes into the checking account with the FSCS-legislated financial institution, who can’t use these funds for any investments. Your cash sits there within the checking account prepared for you (and infrequently protected) once you want it.

We have already got some articles on the best way to make money using apps, however now its time to indicate you the best way to put that further money to make use of.



One of many greatest names in financial savings apps is Moneybox. However what do they provide that others don’t? It’s the flexibleness of choices out there. You may select from:

  • A Lifetime ISA account, for first-time patrons or retirement financial savings (together with a 25% Authorities top-up bonus)
  • The 95 day notice account for short-term financial savings targets
  • An equities ISA to put money into the inventory market
  • A pension plan for long-term retirement planning
  • A junior account to save lots of in your youngsters

You merely have to attach your present account to the app and also you’re good to begin saving. From penny spherical ups to full pound spherical ups (spend £7.10 and it’ll spherical as much as £8 for £0.90 saved) and can help you save the roundups manually or mechanically.

You’re allowed one in every of each account when you like! It’s straightforward to save cash as and once you like, with separate direct debits for every account you maintain with them.

With Moneybox being protected by the FSCS your cash is protected as much as £85,000.



Plum takes an analogous, but completely different method to the financial savings app bundle.

While penny-pinching and investments are each out there with Plum, they maintain the cash in an e-money account. This implies they aren’t protected by FSCS however as a substitute by EMR. Fret not: in the event that they do go bust you’ll nonetheless get your a refund.

Plum accounts are  a great way of making a behavior to funds, and squirrel away pennies every month to slowly construct a financial savings pot (that you might then switch into an interest-paying account when the time’s proper).

The Simple Entry Curiosity Pocket gives an rate of interest of 1.95% AER variable for Plum Professional or Plum Extremely subscribers, and 1.5% AER for Plum Fundamental clients. These on the Premium Plan can take pleasure in an rate of interest of two.45%. The Curiosity is calculated day by day on the cleared stability within the account utilizing the rate of interest relevant on that day and is paid into the Curiosity Pocket month-to-month.

Plum additionally keep watch over your month-to-month payments, and provide a fast change service to maintain you on the most effective offers for power and different utilities.



Use savings apps to get in the habit of saving

Financial savings apps don’t come a lot less complicated than Hyperjar and that isn’t a nasty factor!

In contrast to different apps, there’s no roundup function. As a substitute, you switch cash in your self to completely different jars as and once you like. You’ve obtained full management – and it’s not linked to your spending, so when you can’t handle these auto-roundups, you don’t want to fret!

Hyperjar provides a brand new dimension to the financial savings app sport by providing shared jars; these are Hyperjars instantaneous joint accounts. These could be arrange between you and your mates or household to separate and pay payments, or save for an important day.

In addition they provide a novel function known as a Service provider jar. This jar have to be allotted to one in every of their companions equivalent to Lidl, Really feel Distinctive, notonthehighstreet, Shell and plenty of extra. This pot is sort of like a grow-your-own-gift-card in your chosen retailer and accrues a 4.8% reward per 12 months. You may solely use the cash put aside for the chosen retailer solely and can’t be become money. Take a jar allotted to Lidl for instance. Chances are you’ll determine to pay in small quantities right here and there by way of the 12 months till Christmas comes round, and you’ve got just a little further money in your store.

There’s no danger of shedding your cash as HyperJar don’t make investments your money. It’s a instrument that will help you divide your cash that will help you funds higher!



Cleo has a extra casual and enjoyable method to the financial savings app meta. Advertising themselves as “The clever assistant in your cash”, Cleo affords a enjoyable and casual means that will help you save and funds your money. And let’s face it, who amongst us can truthfully say they’ve by no means wished to be insulted by a robotic for our spending habits? It’ll definitely hold you in your budgeting toes!

Whereas all the opposite apps to this point provide their very own financial savings or funding accounts, Cleo don’t. So don’t anticipate any curiosity since you’re nonetheless solely utilizing your common present account. As a substitute, what it does provide is recommendation and a serving to hand. Cleo will funds for you and put cash apart. It notifies you once you’re near your overdraft and rather more.

Uncertain when you can justify that third takeaway this month? Ask Cleo and so they provides you with a solution primarily based on how a lot cash you’ve left, when your payments are due and the way lengthy till your subsequent payday.


Ask a query

Do financial savings confuse you – or do you wish to know extra about completely different account varieties? Have you ever obtained your eye on investing however you’re unsure the place to begin? Maybe you wish to know the best way to make further money to construct your financial savings pot.

Jump on over to our messageboard and ask your burning query!

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