Best Money Saving Apps in the UK

Updated On: Mar 20, 2023
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.

Compare the best money saving apps in the UK:

Kroo - Round ups; Overdrafts; Bill splitting; Up to 3.33% AER

Kroo Logo
3.33% AER
Green check mark indicating yes
FSCS Protection

Kroo is a new fully-licensed UK bank offering an exciting current account that pays customers interest like a savings app. With Kroo, customers can earn a competitive interest rate on the balance in their current account up to £85,000. Customers can also access 24.9% EAR/APR on overdrafts, manage bill splitting and group expenses seamlessly in-app, take advantage of zero fees on purchases at home or abroad, enjoy speaking directly to a UK-based customer support team and stay on top of their money with up-to-date notifications, spare change round-ups, expense categorisation and real-time budgeting. Kroo has ambitious plans to plant one million trees in 2023, so it currently plants two trees for every new customer that joins the app.

The Kroo app is free to download on Android and iOS. There are no monthly fees with Kroo, so it can serve as a great savings app for UK residents looking for interest on savings.

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Raisin UK - Savings account marketplace; Up to 3.00% AER

Raisin Logo
0.05% - 3.00% AER
Green check mark indicating yes
FSCS Protection

Raisin UK is a free, easy-to-use savings account marketplace that connects you with a range of banks offering deposit-protected savings accounts with competitive, high street-beating interest rates. With Raisin, you can apply to open as many savings accounts as you like and manage everything under one roof, with no fees. Once registered, you can choose from the wide range of savings accounts on offer without having to fill out a new application form each time you want to open a new savings account.

Raisin UK customers can select from several easy access savings accounts, notice accounts and fixed rate bonds.

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Plum - Round up purchases; Auto-save and invest; Up to 2.90% AER

Plum Logo
0% - 2.90% AER
£0 - £2.99 per month
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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Revolut - Auto-save and invest; Round-ups; Goals; Up to 2.76% AER

Revolut logo
0% - 2.76% AER
£0 - £12.99 per month
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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Moneybox - Round ups; Auto-save and invest; Up to 2.32% AER

2.32% AER
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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Monese - Round ups; Savings pots, Travel money

Monese Logo
0% AER
£0 - £14.95 per 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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Monzo - Round up purchases; Set savings goals

Monzo logo
0% - 1.81% AER
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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Currensea - Save on FX fees when travelling abroad

Currensea Logo
£0 - £10 per month
Red cross mark indicating no
FSCS Protection

Currensea allows you to save money on FX fees when travelling abroad with your Currensea card. Depending on your chosen Currensea plan, you can save anywhere from 85% to 100% on FX fees worldwide. Currensea conveniently connects to your bank account through Open Banking without the need to prepay, top-up or create a new bank account when you sign up for a card. Each Currensea plan offers fee-free ATM withdrawals of up to £500 per month, and £750 per month for Elite members.

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Starling Bank - Round up spare change; Set savings goals

Starling Bank
0.05% - 0.50% AER
Green check mark indicating yes
FSCS Protection

Starling Bank’s "Saving Spaces" feature works as a virtual piggy bank, allowing you to set saving goals and set money aside from your main balance. You can personalise your Saving Space with an image and title to help incentivise your savings and use the Round Ups feature to put your spare change into a space of your choice. You’ll still earn interest on your savings up to the applicable account limits.

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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 that you may be overspending in. 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 stop spending on unnecessary things:

  1. Create a Needs vs Wants List and focus on the needs.
    While it can be tempting to splash on a new wardrobe or designer bag, you want to avoid prioritising such items over your needs, i.e. rent payments, groceries and household bills. A Needs vs Wants List allows you to spend on necessities first, and then make an informed decision on whether your budget would allow you to spend on the wants.
  2. Bring lunch from home.
    If your job involves commuting to and from an office, it’s very easy to fall into the trap of buying your lunch every day. Instead, you could make and bring in your own lunch whilst treating yourself to a meal out once or twice a week. It could be the difference between spending £40 a week or just £24!
  3. Shop with a list.
    A simple and effective way to avoid spending on unnecessary items is to create a shopping list - and this works for any type of shop, not just your groceries. By creating a list, you’ll stay focused on the things you need and less likely to be tempted to splurge on the things you want.

Advantages of Money Saving Apps

Here are the advantages of money saving apps:

  1. If you choose to use an automatic savings app, it usually requires little to no effort from your end to save money - most of the work is done for you!
  2. Money saving apps encourage good saving habits and help incentivise your savings through personalisation.
  3. They offer 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.
  6. If you’re using a payment card to save money abroad, you may get access to extra perks including airport lounge access, various leisure discounts and cashback.

Disadvantages of Money Saving Apps

Here are the disadvantages of money saving apps:

  1. Some apps do not 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 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. Kroo - Round up spare change; Overdrafts; Bill splitting; Up to 3.33% AER
  2. Plum - Auto-save and invest; Automatic utility switch; Up to 2.90% AER
  3. Revolut - Auto-save and invest; Round-ups; Goals; Up to 2.76% AER
  4. Moneybox - Round ups; Auto-save and invest; Up to 2.32% AER
  5. Monzo - Round up purchases; Set savings goals

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. Kroo - Round up spare change; Overdrafts; Bill splitting; Up to 3.33% AER
  2. Raisin UK - Savings account marketplace; Up to 3.00% AER
  3. Plum - Auto-save and invest; Automatic utility switch; Up to 2.90% AER
  4. Revolut - Auto-save and invest; Round-ups; Goals; Up to 2.76% AER
  5. Moneybox - Round ups; Auto-save and invest; Up to 2.32% AER
  6. Currensea - Save on FX fees when travelling abroad

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