Best Money Saving Apps in the UK

Updated On: Jun 19, 2024
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Halimah Omogiafo
Author: Halimah Omogiafo
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Money saving apps UK


Best Money Saving Apps

We’ve put together a list of the best money saving apps in the UK. These include a range of open banking savings apps that round up and save your spare change and payment cards that enable you to save money through fair exchange rates, free ATM withdrawals and more.

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

Here are the best money saving apps in the UK:

Plum - Round up purchases; Auto-save and invest; Up to 5.17% AER

Plum Logo
0% - 5.17% AER
£0 - £2.99 per month
Green check mark indicating yes
FSCS Protection

Plum is a top-rated savings app in the UK that automates your savings and helps you reach your financial goals more efficiently. With its smart algorithm, Plum analyses your income and expenses to ensure intelligent saving and offers various saving modes like Round Ups, Weekly Depositor, 52 Week Challenge, Rainy Days, Pay Days, Naughty Rule, and the 1p Challenge to help you deposit more effectively. You can earn up to 5.17% AER with the Plum Cash ISA and create customised pockets for your savings targets.

Security and privacy are paramount with Plum, which employs face and fingerprint ID and 256-bit TLS encryption. The app provides outstanding customer support, with a dedicated team available seven days a week. Plum is compatible with both iOS and Android devices and offers tiered interest rates for Premium, Pro, Ultra, and Basic subscribers, with some requiring a subscription starting from £2.99 per month.

Opening and managing your account with Plum is straightforward, with no minimum deposit or upper limit. UK residents aged 18 or over can manage their accounts exclusively through the Plum app. Users can withdraw money from their Plum Interest Pockets at any time, with no limits or fees, and withdrawals are processed within the same working day (up to 3 pm). Combining automated savings, competitive interest rates, and a user-friendly interface, Plum stands out as one of the best saving apps in the UK for individuals seeking financial control and success.

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Chip - Save the change; £50k Prize account; Up to 5.10% AER

Chip logo
0% - 5.10% AER
£0 - £5.99 per month
Green check mark indicating yes
FSCS Protection

Chip is an automatic savings app that empowers you to save money in two ways: Automatic Savings powered by AI and Recurring Saves. Automatic Savings lets Chip identify idle money or spare change in your bank account and save it for you automatically. Recurring Saves is similar to a direct debit or a regular savings plan, where you instruct the app to save the same amount of money on a regular basis.

Chip offers two main types of savings accounts: an Instant Access Savings Account and a Prize Savings Account. With the Instant Access Savings Account, you can earn competitive interest rates on your savings up to £250,000. The interest is paid monthly, and you can start saving with as little as £1. The Prize Savings Account is similar to a premium bond where you do not earn any interest on your savings but stand a chance to win £50,000 in each monthly draw. Every £10 deposit represents one entry into the draw. In addition to the £50,000 monthly prize money, you could be one of 50, 100, 500, or 2,000 people who win £100, £50, £25, or £10, respectively, each month. Previous winners are also eligible to win more than once. Chip also offers a 90-Day Notice Account and an Easy Access Account via third-party financial institutions.

The Chip app is free to download on Android and iOS. All Chip savings accounts are protected by the Financial Services Compensation Scheme (FSCS) up to £85,000 per person.

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Monzo - Round up purchases; Set savings goals; Up to 4.92% AER

Monzo logo
0% - 4.92% AER
Green check mark indicating yes
FSCS Protection

Monzo is a leading digital bank in the UK that simplifies the process of saving, helping you achieve your financial goals more efficiently. With Monzo Savings Pots, you can earn interest, customise pot images, automate savings, and round up spare change, all while enjoying the protection of a fully regulated UK bank.

Creating an Easy Access Savings Pot with Monzo requires a £10 minimum deposit, offering variable interest rates perfect for short-term savings goals, such as holidays or a new bike. You can access your savings instantly, any time you need, with interest paid monthly. Additionally, Monzo allows you to enable Round-ups, which automatically rounds up transactions to the nearest pound and add the change to your Savings Pot. Automated savings features also help you build a consistent saving habit by putting money aside every time you spend.

Your money in Monzo Savings Pots is protected up to a total of £85,000 by the Financial Services Compensation Scheme (FSCS). The Monzo app keeps your Savings Pots separate from your spending balance, ensuring a clear distinction between the two. With custom images for your Savings Pots, you can stay motivated and on track to reach your goals. Round-ups and automatic savings triggers, such as depositing a specific amount into a Rainy Day Pot based on weather conditions, encourage micro-saving, making it easier to boost your savings. By joining the Monzo Savings Squad, you can share tips and engage with the community to improve your savings journey. With its user-friendly features and competitive interest rates, Monzo stands out as one of the best money saving apps in the UK.

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Moneybox - Round ups; Auto-save and invest; Up to 4.75% AER

0% - 4.75% AER
Green check mark indicating yes
FSCS Protection

Moneybox is a highly recommended savings app in the UK that simplifies your savings journey and helps you reach your financial goals more efficiently. With its Cash ISA, you can earn an impressive 4.75% AER variable interest and access your money up to three times a year without impacting your rate. Withdrawals are available on the next working day, limited to one per calendar month, providing a great balance between saving and flexibility. One of Moneybox’s standout features is the Round-Up, which allows you to save spare change by rounding up your card transactions to the nearest pound and saving the difference. For example, if you spend £2.30 on a coffee, Moneybox automatically saves 70p for you, making it easy to save without even thinking about it.

Security and privacy are top priorities with Moneybox, as the app employs bank-level encryption for your personal information. Also, deposits in the Moneybox Simple Saver are protected by the Financial Services Compensation Scheme up to £85,000. The app is compatible with both iOS and Android devices and offers an award-winning platform recognised by industry experts and customers alike.

Opening and managing your account with Moneybox is a breeze, with no account fees or charges and a maximum deposit of £85,000. UK residents aged 18 or over can manage their accounts exclusively through the Moneybox app. Users can make payments into their savings account via direct debit arrangements, ensuring a seamless experience. Combining flexible savings, competitive interest rates, and a user-friendly interface, Moneybox stands out as one of the best savings apps in the UK for individuals seeking financial growth and success.

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Kroo - Round ups; Overdrafts; Bill splitting; Up to 4.35% AER

Kroo Logo
0% - 4.35% AER
Green check mark indicating yes
FSCS Protection

Kroo is a new digital bank offering an award-winning current account with an impressive 4.35% AER interest on balances up to £85,000. The account is free to open, and with zero fees on spending abroad and a UK-based customer support team, Kroo ensures a hassle-free banking experience.

The Kroo app features intuitive spending, real-time spending insights, transaction categorisation, up-to-date notifications, spare change round-ups, and the ability to manage bill splitting and group expenses seamlessly in-app, providing users with comprehensive financial management. The account comes with no monthly fees, and applying for an overdraft is possible by invitation only (subject to status). For added security, Kroo offers biometric authentication, 256-bit encryption, and FSCS deposit protection up to £85,000 per customer. Users can also freeze and unfreeze their Kroo debit cards instantly within the app.

Kroo stands out not only for its competitive interest rate but also for its commitment to sustainability. In partnership with One Tree Planted, Kroo plants two trees for every new customer who opens a current account, aiming to plant 1 million trees by 2024. With a user-friendly interface, transparent fees, and a focus on both user benefits and environmental responsibility, Kroo is a good choice for individuals seeking a well-regarded savings app in the UK. Tap the button below to download Kroo. If you are on a desktop device, you’ll need to scan the QR code with your mobile phone after clicking the button below.

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Monese - Round ups; Savings pots; Travel money

Monese Logo
0% AER
£0 - £14.95 per month
Red cross mark indicating no
FSCS Protection

Monese is a top choice among the best money saving apps in the UK, offering innovative Money Pots and interest-bearing accounts to help you achieve your financial goals. With Monese, you can create up to 10 Money Pots in multiple currencies, name them according to your specific goals, and access your funds whenever needed. Monese also enables you to build your savings faster with features like Recurring Payments and transaction round-ups, which can be multiplied by up to 10.

Through its partnership with Raisin, Monese also provides interest-bearing savings products with FSCS protection, allowing you to grow your money more quickly. The user-friendly Monese app, available in 14 languages and supported by a multilingual team, makes managing your savings effortless. Opening a Monese account requires just your ID and a selfie photo, with no credit checks involved. For couples looking to plan, save, and manage their finances together, Monese offers joint accounts, allowing both partners to create and track up to 10 Money Pots for shared goals.

While Monese Money Pots are safeguarded under the EU Electronic Money Directive 2009/110/EC and UK Electronic Money Regulations 2011, keep in mind that regular Money Pots do not earn interest. If you’re seeking interest on your savings, Monese’s partnership with Raisin offers a range of attractive savings products. In addition to its savings solutions, Monese provides travel money, international money transfers, and multi-currency accounts, making it a comprehensive and secure platform for managing your finances and achieving your financial goals.

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Starling Bank - Round up spare change; Set savings goals

Starling Bank
0.05% AER
Green check mark indicating yes
FSCS Protection

Starling Bank’s current account is an app-based, fully licensed service that aims to help you maximise your money by providing award-winning features. There are no monthly fees, and you can apply in just a few minutes from your smartphone. The account offers protection for your money up to £85,000 from the Financial Services Compensation Scheme.

Starling Bank’s current account is anything but average. You can do everything you used to do in a branch, from opening and managing your account to locking your card if it goes missing, all on your phone. The account offers instant payment notifications and smart tools to help with budgeting and saving, as well as round-up transactions to help you save effortlessly. You can put money aside in virtual change jars, set up additional accounts for free, and access fixed-rate savings accounts with competitive interest rates.

With Starling Bank’s current account, you can also withdraw cash from ATMs, deposit cheques by simply scanning them with your phone camera, and withdraw cash from any one of the Post Office’s 11,500 branches. The account earns 0.05% AER on current account balances up to £85,000 and has no fees for overseas transactions or ATM use. The Starling Bank current account also offers a new way to pay, settle up IOUs with a simple payment link, send money to nearby Starling customers, or split bills with a tap. With 24/7 support, a UK-based customer service team, and competitive rates, Starling Bank is one of the best money saving apps in the UK for anyone seeking financial control and success.

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How Do Money Saving Apps Work?

Money saving apps offer a variety of features and perks that can help increase your savings and improve your spending habits overall. These will depend on the type of saving apps you wish to use.

Automatic savings apps help you 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, whilst payment cards offer a number of benefits, including fair FX rates, fee-free foreign ATM withdrawals and more.

Most money saving apps will require you to link to your bank account so that you can easily access your funds when setting saving goals, putting money aside or making payments and withdrawals abroad.

Best Ways to Save Money

Here are some of the best ways to save money:

  1. Keep note of your expenses: Recording your expenses is a great starting point when it comes to saving money. This means taking into account every grocery shop, meal out with friends or utility cost to gain a clearer picture of your spending habits.

    Once you’ve listed each expense, you can place them into separate categories and set realistic spending limits for each. By tracking your category totals, you’ll spot the areas where you may be overspending. Budget by Koody is an excellent resource for tracking and categorising your spending.
  2. Regularly check your bank transactions: Regularly keeping an eye on your bank transactions is one of the best ways to save money. Without this step, you could risk missing a sudden increase in a regular subscription fee or an incorrect charge to your account.

    Most banks today offer an online banking service that makes tracking your spending very straightforward. A five-minute daily scroll through your banking app could save you a fair few pounds in the long run.
  3. Budget for savings: Here at Koody, we recommend setting aside roughly 20% of your monthly earnings for savings and investments. This recommendation comes from the 50-30-20 budgeting rule, which encourages spending 50% of your income on needs, 30% on wants, and then saving the remaining 20%.

    When you budget, you must think realistically about how much money you can afford to spend against your monthly income. Budget by Koody is an excellent tool to help you on your personal budgeting journey. You can track your spending, categorise expenses, get spending insights, access learning resources, and so much more, all without the need to connect to your bank.
  4. Set saving goals: Incentivise your savings by setting personal goals. Whether you’re saving for a short-term goal like a wedding or vacation, or a longer-term goal such as retirement, it’s important to consider how much you’ll need to set aside over time. Commit to putting away a small amount each week or month to reach your goals and enjoy the rewards you’ve saved for.
  5. Find ways to cut back on your spending: You should always look for ways to cut back on spending, especially if you find that your expenses are too high compared to your monthly income. Here are some clever ways to limit your spending so that you can grow your savings pot further.
  • ~~Set yourself an ‘eating-out limit’ or a ‘coffee limit’. The amount that we spend on food and drink each month can add up rapidly, so limiting yourself to four coffees a month instead of eight or opting for cheap eats over an expensive restaurant could make all the difference.
  • ~~Shop second-hand. If you’re in need of a specific household item, furniture or even new clothes, there are several apps that will allow you to buy second-hand products that are in need of a new home, usually at a discounted price. You’ll not only save money, but you’ll be opting for a much more environmentally friendly option too.
  • ~~Go through your subscriptions every few months. Going through a list of active subscriptions every quarter might serve as a reminder that you’re spending too much on services that you either don’t use enough or don’t use at all. It’s easy to forget what you’ve opted into, particularly if you signed up a long time ago, so this is an essential step in identifying what subscriptions you should cancel.
  • ~~Allow yourself a cooling-off period. If you find yourself tempted to make a relatively large purchase, wait a few days before going ahead with it. In this time, you may realise that you’re perfectly fine without it, or you may have increased your savings and therefore be in a more comfortable position to make the purchase.

How to Stop Spending on Unnecessary Things

Here are our top tips to help you curb spending on unnecessary items and make more informed financial decisions:

  1. Create a Needs vs Wants list: Differentiate between essential expenses and discretionary spending by categorising your purchases. Prioritise necessities like rent, groceries, and household bills over non-essential items such as designer clothing or luxury items. This list helps you allocate your budget effectively and make smarter spending choices. Budget by Koody is an excellent tool for categorising expenses.

  2. Bring lunch from home: When commuting to and from work, it’s easy to fall into the habit of buying lunch daily. Instead, consider preparing your meals at home and bringing them to work. Allow yourself occasional treats by dining out once or twice a week. This simple change can save a significant amount in the long run.

  3. Shop with a list: Avoid impulse purchases by creating a shopping list for all your needs, whether it’s groceries, clothing, or household items. A well-structured list keeps you focused on essential items and reduces the temptation to splurge on unnecessary products.

  4. Reduce subscription services: Regularly assess your ongoing subscriptions, such as streaming platforms, magazines, or fitness memberships. Cancel those you no longer use or don’t provide sufficient value for the cost. This practice frees up funds for more important expenses or savings.

  5. Utilise cashback and discount apps: Make use of apps that offer cashback, discounts, or coupons for everyday purchases. These tools help you save money on items you already plan to buy, stretching your budget further. Some popular cashback and discount apps in the UK include TopCashback, Quidco, Honey, and VoucherCodes. Banks like Barclays and Lloyds also offer cashback on their current accounts. Check to see if your bank does too.

  6. Opt for quality over quantity: Invest in high-quality, durable items that will last longer rather than buying cheap products that may require frequent replacements. Although the initial cost may be higher, you’ll save money in the long run by reducing the need for constant replacements.

  7. Track your spending: Monitor your daily expenses using a budgeting app or spreadsheet. Tracking your spending habits helps identify areas where you can cut back, making it easier to eliminate unnecessary expenses and save money.

  8. Set financial goals: Establish short-term and long-term financial goals, such as paying off debt, building an emergency fund, or saving for a vacation. Having clear objectives motivates you to reduce frivolous spending and allocate funds more responsibly.

  9. Limit exposure to advertisements: Advertisements can trigger impulsive buying decisions. Limit your exposure to commercials and social media marketing by unsubscribing from promotional emails, muting or skipping ads, and unfollowing accounts that encourage excessive spending.

  10. Shop during sales or off-season: Plan your purchases around sales or off-season periods to take advantage of discounts and lower prices. This strategy helps you save on items you genuinely need without sacrificing quality.

  11. Use the 30-day rule: When considering a non-essential purchase, wait 30 days before making a decision. This waiting period allows you to reflect on the item’s importance and determine if it’s worth the investment. In many cases, the urge to buy will fade over time.

  12. Practise mindful spending: Before making a purchase, ask yourself if the item aligns with your financial goals and values. Mindful spending encourages thoughtful decision-making, helping you avoid unnecessary expenses and focus on what truly matters.

  13. Adopt a minimalist lifestyle: Embrace a minimalist approach to consumerism by simplifying your possessions and living environment. This mindset shift helps you prioritise experiences and relationships over material objects, leading to more intentional spending habits.

  14. Learn to differentiate between good and bad debt: Understand the difference between good debt (such as a mortgage or student loan) and bad debt (like high-interest credit card debt or payday loans). Focus on paying off bad debt and avoiding new debt that doesn’t contribute to your long-term financial goals. This will help you allocate your resources more effectively and reduce the burden of unnecessary expenses.

  1. Unsubscribe from marketing emails: To avoid impulse buying and spending on unnecessary items, unsubscribe from marketing emails and notifications from your favourite stores and online retailers. This will help reduce the temptation to purchase items you don’t really need and keep your focus on your financial goals.

By implementing these tips, you’ll cultivate better spending habits, reduce unnecessary expenses, and increase your overall financial well-being.

Advantages of Money Saving Apps

Here are some advantages of money saving apps:

  1. Convenience: Money saving apps are available on your smartphone, enabling quick access to your financial information.

  2. Automatic savings: Money saving apps can automatically transfer funds to a savings account or investment platform, making saving more effortless and consistent.

  3. Customisation: Money saving apps allow you to set personalised financial goals and track your progress.

  4. Encourages better financial habits: By using money saving apps, you become more aware of your spending habits, allowing you to make better financial decisions.

  5. Fun and engaging: Many money saving apps use gamification and interactive features to make learning about money more enjoyable and engaging.

  6. Earning interest: Some money saving apps offer interest on your savings, allowing you to grow your money over time.

  7. Separate accounts: Keeping your savings in a separate account can reduce the temptation to spend, helping you stay focused on your financial goals.
  8. Additional perks: Some money saving apps, especially those associated with payment cards, offer extra benefits such as airport lounge access, leisure discounts, and cashback opportunities.

Disadvantages of Money Saving Apps

Here are some disadvantages of money saving apps:

  1. Limited or no deposit protection: Some money saving apps may not have the full £85,000 Financial Services Compensation Scheme (FSCS) protection, which protects your savings if the app goes out of business–we’ll tell you which.

  2. Low interest on savings: Some offer very little interest on savings, if at all.

  3. Security concerns: As with any online financial platform, there’s a risk of hacking and unauthorised access to your account information.

  4. Limited functionality: Some apps may not offer all the features you need for comprehensive financial management.

  5. Fees: Some money saving apps may charge fees for certain services or for access to premium features.
  6. Reliance on technology: If you’re not tech-savvy, using a money saving app might feel overwhelming or complicated.

How to Choose a Money Saving App

When selecting a money saving app, consider the following factors to ensure you choose the right one for your needs:

  1. Compatibility: Ensure the app is compatible with your smartphone’s operating system, whether it is Android or iOS.

  2. Features: Look for an app that offers features aligned with your financial goals, such as automatic savings, round-ups, spending analysis, budgeting tools, or investment options.

  3. Fees: Be aware of any fees or charges associated with using the app. Some apps may have monthly subscription fees, withdrawal charges, or investment fees. Choose an app with a fee structure that fits your budget.

  4. Security: Check if the app uses encryption and other security measures to protect your personal and financial information. Also, the app should be regulated by the relevant financial authorities, such as the FCA in the UK.

  5. User experience: Read user reviews and ratings to get a sense of how user-friendly and effective the app is. A well-designed app with a smooth user interface can make managing your finances more enjoyable and less stressful.

  6. Customer support: Look for an app that offers responsive and helpful customer support. This can be particularly important if you encounter any issues or have questions about using the app.

  7. Flexibility: Choose an app that allows you to easily adjust your savings goals, spending limits, or investment strategies as your financial needs evolve over time.

By considering these factors, you can select a money saving app that best aligns with your financial goals and preferences, helping you make the most of your savings efforts.

1. Are money saving apps worth it?

Money saving apps can be great tools to help improve both your spending and saving habits.

These apps offer many useful features, including automatic savings, round-ups, spare change savings, goal setting, bill splitting, spending insights, utility switching and competitive interest rates.

These tools help you save regularly, reduce your spending and identify areas where you can save more.

2. What app rounds up your money?

Here are the best apps that round up your money in the UK:

  1. Plum - Auto-save and invest; Automatic utility switch; Up to 5.17% AER
  2. Monzo - Round up purchases; Set savings goals; Up to 4.92% AER
  3. Moneybox - Round ups; Auto-save and invest; Up to 4.75% AER
  4. Kroo - Round up spare change; Overdrafts; Bill splitting; Up to 4.35% AER
  5. Monese - Round ups; Savings pots; Travel money

3. How much should I save each month?

You should save at least 10 - 20% of your earnings each month per the 50/30/20 budgeting rule, which suggests spending 50% of your income on Needs, 30% on Wants and 20% on Savings and Extra Debt.

It is important to keep in mind that the 50-30-20 budgeting rule is merely a guide. We all have varied circumstances and saving goals, so adjusting these percentages to make them more realistic and personal to you is still a great way to stick to a specific spending limit and saving plan each month.

4. Are money saving apps regulated by the FCA?

Yes, all the money saving apps listed on Koody are regulated by the Financial Conduct Authority (FCA).

5. Are money saving apps safe?

Yes, money saving apps are safe. They are authorised and regulated by the Financial Conduct Authority (FCA); some even have the £85,000 Financial Services Compensation Scheme (FSCS) protection.

Banks such as Barclays and HSBC are required to have FSCS protection, which means that if you bank with them and they go out of business, you can get your money back up to £85,000 per person per financial institution.

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

This does not mean your money in an e-wallet is not protected. Instead of the FSCS protection, your money is held in a bank account ring-fenced from their operating cash, typically with a big bank such as Barclays or HSBC. Should the money saving app go bust, your money will be protected since it is 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. Additionally, since they are regulated by the FCA, you can rest assured that their activities are monitored by the financial watchdog.

6. What is the best app for saving money?

Here are the best apps for saving money in the UK:

  1. Plum - Auto-save and invest; Automatic utility switch; Up to 5.17% AER
  2. Chip - Save the change; £50k Prize account; Up to 5.10% AER
  3. Monzo - Round up purchases; Set savings goals; Up to 4.92% AER
  4. Moneybox - Round ups; Auto-save and invest; Up to 4.75% AER
  5. Kroo - Round up spare change; Overdrafts; Bill splitting; Up to 4.35% AER
  6. Monese - Round ups; Savings pots; Travel money

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