Best Automatic Savings Apps in the UK

Updated On: Jul 26, 2021
Best Automatic Savings Apps UK

Contents:

Best Automatic Savings Apps

We've compiled a list of some of the best automatic savings apps in the UK. These are open banking auto-savings apps that help save spare change by regularly moving small amounts of money into a separate savings account or rounding up your purchases and automatically saving the difference.


Compare some of the best automatic savings apps in the UK below.

All the apps listed here are available on Android and iOS and regulated by the Financial Conduct Authority (FCA).


Chip - Auto-save and invest; Set savings goals; Up to 1.25% AER

Chip Logo
Interest
0% - 1.25% ‘bonus’
Cost
£0 - £3 per month
£10,000
Green Check Mark
FSCS Protection

Chip analyses your bank transactions to identify spare change, then automatically saves it for you. By adjusting the save level, you can decide whether you want to take things at a steady pace or go full speed ahead and save money faster. You can review and tweak each auto-save before Chip moves your money. You can even skip a save altogether. Chip's technology will learn from your tweaks and adjust your future saves to fit. Chip has some fun deposit features such as Payday Put Away and Save Streaks. And you can withdraw your money from the app whenever you want.

Chip also offers automatic investments.

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Plum - Round up purchases; Auto-save and invest; Up to 0.40% AER

Plum Logo
Interest
0% - 0.4% AER
Cost
£0 - £2.99/month
£85,000
Green Check Mark
FSCS Protection

Plum calculates how much you can afford to set aside and automatically stashes it away for you. The app shows you an overview of your finances and analyses your spending to help you keep track of your money. Plum has some fun deposit features such as Round Ups, Pay Days, 52-Week Saving Challenge, and Rainy Day Savings Rule. If you feel the app is putting away too much or too little, you can always adjust the amount. You can also withdraw your money from the app whenever you want.

If you're interested in automatic investments or want to earn interest on your savings, Plum Plus or Plum Pro might be for you.

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Cleo - Auto-save; Set savings goals; Up to 1.5% AER

Cleo Logo
Interest
0% - 1.5% AER
Cost
£0 - £5.99
Red Cross Mark
FSCS Protection

Cleo is a fun automatic savings app that helps you set money aside regularly. The service is essentially a chatbot on Facebook Messenger or the mobile app that helps you manage your finances in an entertaining way. If you find finance and savings boring, this app might just change your mind forever.

While Cleo does not offer FSCS protection like the other automatic savings apps listed here, it pledges to cover you up to US$250,000.

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Moneybox - Round up purchases; Auto-save and invest; 0.25% AER

Moneybox
Interest
0.25% AER
Cost
£0
£85,000
Green Check Mark
FSCS Protection

Moneybox's Round Up feature allows you to save spare change by rounding up your card transactions to the nearest pound and saving the difference. (e.g. if you spend £2.30 on a coffee, Moneybox automatically saves 70p for you). You can choose to save your money in either a 45-Day Notice Account or a 95-Day Notice Account. If you want to take a break from saving or feel the app is putting away too much, you can always turn off Round Ups. You can withdraw your money from the app once a month.

Moneybox also offers automatic investments.

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Monzo - Round up purchases; Set savings goals; Up to 0.7% AER

Monzo logo
Interest
0% - 0.7% AER
Cost
£0
£85,000
Green Check Mark
FSCS Protection

Monzo Bank has a Savings Marketplace within the Monzo 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 spare change and automatically save the difference into a savings pot.

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What is an Auto-savings App

An auto-savings app helps you save small amounts of money regularly by estimating how much you can afford to save and moving it into a separate savings account or wallet for you.

You usually have easy access to the money, and if you choose one of the standard savings accounts on offer, most of the apps will provide full FSCS protection.

The apps we feature on Koody are open banking auto-savings apps that help save spare change by regularly moving small amounts of money into a separate savings account or rounding up your purchases and automatically saving the difference.


Advantages of Auto-savings Apps

  1. These apps help you set money aside regularly with little or no effort from you.
  2. They help you build good saving habits.
  3. They can be a fun way to learn about money.
  4. In some cases, you earn some interest.
  5. Your money is usually in a separate account, so the temptation to spend it all is reduced.


Disadvantages of Auto-savings Apps

  1. Some of the apps don't have full Financial Services Compensation Scheme (FSCS) protection - we'll tell you which.
  2. You need to have a smartphone to use them.
  3. Some offer very little interest on savings, if at all.

1. Are automatic savings apps safe?

Banks such as Barclays and HSBC have the full £85,000 Financial Services Compensation Scheme (FSCS) protection, which means that if you bank with them, you can get your money back up to £85,000 per financial institution if they go bust.


Automatic savings apps are quite different. They only have FSCS protection on the money you keep in a standard savings account with them, not an e-wallet or electronic money account. 


This doesn't mean your money in an e-wallet isn't protected. Instead of the FSCS protection, your money is held in a bank account ring-fenced from their operating cash - this is normally with a big bank such as Barclays or HSBC. Should the automatic savings app go bust, your money will be protected since it's held separately from the firm's own money.


2. Are automatic savings apps regulated by the FCA?

Yes. All the apps listed on Koody are regulated by the Financial Conduct Authority (FCA).


3. How can I make my savings automatic?

There are two ways to automate your savings:

  1. Set up a standing order: Use your bank app to set up a standing order to move money from your current account to your savings account every payday. This way, you are saving money immediately you receive your salary. If you have an investment account, you should also consider setting up a direct debit to automate transfers to your investment account.
  2. Use an automatic savings app: Automatic savings apps help you save small amounts of money regularly by estimating how much you can afford to save and moving it into a separate savings account or wallet for you.

4. Should I automate my savings?

You should automate your savings if:

  1. You have spare cash you'd like to save.
  2. You don't know how and when to save money.
  3. You aren't sure how much to save.
  4. You constantly struggle to save.
  5. You are saving towards a short, medium or long term goal.

5. What is the best app for saving spare change?

Here are some of the best apps for saving spare change:

  1. Chip - Auto-save and invest; Set savings goals; Up to 1.25% AER
  2. Plum - Round up purchases; Auto-save and invest; Up to 0.40% AER
  3. Cleo - Auto-save; Set savings goals; Up to 1.5% AER
  4. Moneybox - Round up purchases; Auto-save and invest; 0.25% AER
  5. Monzo - Round up purchases; Set savings goals; Up to 0.7% AER


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