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When you sign up for automatic saving, you give a bank or fintech permission to regularly put some of your money aside in a separate bank account, wallet or pot. These banks or fintechs use their technology to estimate how much you can afford to save and then save that amount for you automatically. Several new apps focus on auto-saving, but we have highlighted below, the essential need-to-knows of the popular ones. While many big banks have also begun offering auto-savings, in this post, we focus on the new apps that specialise in auto-savings.
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We've summarised the most important need-to-knows of 5 popular auto-saving apps - Tandem, Plum, Chip, Cleo and Moneybox. Click on the tabs below to compare them.
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Free
0.5% AER*
Yes. Tandem is a fully regulated UK bank.
Yes, but only if you want to. To personalise the amount Tandem puts aside for you, it requires read-only access to your bank account through Open Banking.
In your Tandem savings account.
Your money is protected by the FSCS up to £85,000. This means that if Tandem goes out of business, you will get your money back up to £85,000.
No
Free
£2/month to access features such as 52-Week Challenge, Rainy Days, Pockets and Diagnostics Report.
None, but you can put your money to work and earn interest by investing.
Yes, to carry out payment services activities.
Yes, to personalise the amount Plum puts aside for you and to identify when you are being overcharged on utility bills, it requires read-only access to your bank account through Open Banking.
An e-money wallet administered by PayrNet (a subsidiary of Railsbank), which is regulated by the FCA.
The e-money wallet is not FSCS protected. This means you won't be entitled to the £85,000 per person protection offered by savings accounts. However, Plum has said the wallet is subject to strict European regulation. In the unlikely event that both Plum and the bank go bust, you will get your money back.
Yes. Earn £15 for each 3 successful referrals. Download the app and use the 'invite' tab in the app to share your referral code.
Free if you save less than £100 every month OR
£1 on every £100 you save in a month.
None
Yes, to carry out payment services activities.
In your Chip account. Your money is kept in an e-wallet and stored in a ring-fenced account in Barclays.
Chip is not a savings account and doesn't have FSCS protection. This means that you won't be entitled to the £85,000 per person protection offered by savings accounts. Since, your money is held in Barclays, your money is safe provided Barclays doesn't go out of business.
No
Free
None
Yes, to carry out payment services activities.
In your Cleo wallet which is powered by a third party, MangoPay.
Your Cleo wallet is not a savings account and doesn't have FSCS protection. This means that you are not entitled to the £85,000 per person protection offered by savings accounts. However, your funds are protected in a 'ring-fenced' account in a European bank. Cleo also pledges to provide protection for up to £85,000 in losses to UK bank accounts and credit cards where the losses are attributable to Cleo's technology.
Yes. Share your unique referral link with a friend, and you'll both get £5. As soon as your friend signs up, connects their bank account(s) and creates a Cleo Wallet, you'll receive a message with instructions on how to claim your £5.
Free
0.5% AER variable* plus a 0.5% introductory bonus on savings for the first year (Cash Lifetime ISA).
0.60% AER variable* (95-Day Notice Account).
Yes, to carry out payment services activities.
This savings account is powered by their partners, Investec. Investec is an FCA regulated bank.
According to Moneybox, your savings are protected up to £85,000 by the FSCS.
No
AER* 💷
AER or Annual Equivalent Rate allows you to easily compare different savings or current accounts. It illustrates what the interest rate would be if interest were compounded and paid once each year.
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