Best Automatic Savings Apps in the UK

Updated On: Nov 24, 2022
Best Automatic Savings Apps UK 2022

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.


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

Compare some of the best automatic savings apps in the UK:


Chip - Auto-save and invest; Set savings goals; £10k Prize Account

Chip Logo
Interest
0%
You could win £10k+
Cost
£0
£85,000
Green check mark indicating yes
FSCS Protection

Chip saves you money by analysing your bank transactions, identifying spare change and automatically setting it aside for you. With Chip, you can access automatic savings, investments, and speedy withdrawals. Users who want to grow their savings with Chip can take advantage of its easy-access, non-interest-bearing account. For every £10 you deposit into the easy-access savings account, you will have a chance to win over £10,000 in prizes each month, provided you have at least £100 deposited at the end of each month. The account does not pay any interest, but on top of the £10,000 prize money, there will be 250 smaller prizes of £10 awarded each month. Previous winners are also eligible to win more than once.

Chip also offers investment products such as a Stocks and Shares ISA and a General Investment Account.

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Monese - Round ups; Savings pots, Travel money; Up to 5.10% AER

Monese Logo
Interest
0% - 5.10% AER
Cost
£0 - £14.95/month
Red cross mark indicating no
FSCS Protection

Monese allows you to save money in two ways - savings pots and interest accounts. Saving pots are a great way to put money aside, keeping it separate from your main account, but you do not earn interest on them. You can create pots in multiple currencies and withdraw money from them whenever you like. You can also round up your spare change and save the difference into up to 10 different pots per account. If you’re looking for a savings account with interest, Monese has a marketplace partnership with Raisin that allows you to open interest-bearing accounts. These interest accounts have FSCS protection, so you can rest assured that your savings are protected. All you need to open a Monese account is your ID and a selfie photo. No credit checks are required.

Monese also offers travel money, international money transfers and multi-currency accounts.

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Revolut - Auto-save and invest; Round-ups; Goals; Up to 2.25% AER

Revolut logo
Interest
0% - 2.25%
Cost
£0 - £12.99 per month
£85,000
Green check mark indicating yes
FSCS Protection

Revolut is a personal finance and money management app that allows you to budget, save, invest and withdraw your cash instantly. With Revolut, you can fund your account with one-off transfers to fund as you go or make it effortless with scheduled deposits and spare change round-ups. With the round-up feature, Revolut rounds up your card transactions to the nearest pound and saves the difference. Money deposited in Revolut Savings Vaults is protected by the FSCS up to £85,000 and deposited with a trusted partner bank. Revolut also allows you to stash your cash in 30+ currencies, including cryptocurrencies and commodities, and you can get 1% cashback stored with your Vaults when you upgrade to Revolut Metal.

It’s free to start saving with Revolut. However, to access more advanced features and cashback, you need to upgrade to Plus, Premium or Metal for £2.99/month, £6.99/month and £12.99/month, respectively.

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Plum - Round up purchases; Auto-save and invest; Up to 1.95% AER

Plum Logo
Interest
0% - 1.95% AER
Cost
£0 - £2.99/month
£85,000
Green check mark indicating yes
FSCS Protection

Plum calculates how much you can afford to set aside and automatically saves it for you. The app gives you an overview of your finances and analyses your spending to help you keep track of your money. Plum also identifies if you're overpaying on bills and can switch you to a better supplier automatically to help you save extra. If you feel the app is putting away too much or too little, you can always adjust the save amount. You can also withdraw your money from the app whenever you want. Plum has some fun deposit features such as Round Ups, Pay Days, 52-Week Saving Challenge, and Rainy Day Savings Rule.

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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Monzo - Round up purchases; Set savings goals

Monzo logo
Interest
0% - 1.81% AER
Cost
£0
£85,000
Green check mark indicating yes
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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Moneybox - Round up purchases; Auto-save and invest

Moneybox
Interest
2.00% AER
Cost
£0
£85,000
Green check mark indicating yes
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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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.

Apart from FSCS protection, these apps also claim to use the same encryption technology as all major banks to protect your personal information. They are also regulated by the FCA, so you can rest assured that their activities are monitored by the financial watchdog.


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. Monese - Round ups; Savings pots, Travel money; Up to 5.10% AER
  2. Chip - Auto-save and invest; Set savings goals; £10k Prize Account
  3. Revolut - Auto-save and invest; Round-ups; Goals; Up to 2.25% AER
  4. Plum - Auto-save and invest; Automatic utility switch; Up to 1.95% AER
  5. Moneybox - Round up purchases; Auto-save and invest
  6. Monzo - Round up purchases; Set savings goals


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