If you’re looking to build up a sizable savings pot, you no longer have to go into your local bank branch to open a savings account or send off an application form by post.
Instead, thanks to the rise of mobile savings apps, opening a savings account is much faster, slicker and easier to manage. Many of these savings apps also include innovative features and tools to help you save more, as this guide explains.
Chip – Chip Cash ISA (powered by ClearBank)
| Min. opening balance | £1 |
|---|---|
| Interest paid | Monthly |
| Min. operating balance | £0 |
| Debit card | No |
| Interest rate with bonus | 4.49% |
Plum – Plum Cash ISA
| Min. opening balance | £1 |
|---|---|
| Interest paid | Monthly |
| Min. operating balance | £0 |
| Debit card | No |
| Interest rate with bonus | 2.47% |
Moneybox – Simple Saver Account (powered by Santander)
| Min. opening balance | £1 |
|---|---|
| Interest paid | Monthly |
| Min. operating balance | £1 |
| Debit card | No |
| Interest rate with bonus | 3.5% |
The idea behind mobile savings apps is to help you save more easily and reach your financial goals faster – and with less effort. Many of these apps are equipped with tools and features to help you save without even thinking about it – all you need to do is watch your savings grow.
Applying for one of these savings apps is typically quicker and more convenient than opening a traditional savings account. To apply, all you need to do is download the app itself, provide a few personal details and you’re ready to go. There’s no hassle of heading out to your nearest bank branch or filling in lengthy forms.
Once you’re set up, you can pay money into your account and often start earning interest the same day. By contrast, with a traditional savings account, it might be a few days before your account is up and running.
When comparing savings apps you might come across the following types and features:
Cash ISAs
Some savings apps allow you to open cash ISA accounts so you can shelter the interest you earn from tax. You can pay up to £20,000 into an ISA each tax year. You can pay the full allowance into one account or spread it across different ISA accounts.
Easy access savings accounts
Many savings apps let you open interest-paying easy access savings accounts too. These give you access to your funds instantly and can be ideal for emergency funds.
Savings pots
Some apps might offer different savings ‘pots’ for different purposes. This means you can set them up for a range of savings goals – one for a holiday, one for a house deposit and so on. You’ll typically earn interest on these savings pots, but they might not be the most competitive rates.
Prize draws
Apps like Chip offer a prize savings account, whereby you’re entered into a prize draw instead of earning interest on your money – you could win up to £75,000. The number of entries is determined by your average balance over the month. The earlier you deposit your money, the more entries you’ll have.
Automatic round-ups
Some apps will round up your bank account transactions to the nearest pound and transfer the difference to a savings account – helping you to save without even noticing. For example, if you bought a coffee for £3.50, the transaction would be rounded up to £4 and the extra 50p transferred to your account.
Mobile savings apps can be a convenient way to help you save money with minimal effort. Whether you’re saving for a house deposit or simply want to build up a savings fund for emergencies, savings apps can help you reach those goals faster.
However, when comparing mobile savings apps, watch out for fees and also check whether your funds will be protected under the FSCS (or any other safeguarding scheme).
It’s also worth bearing in mind that many digital banks such as Starling and Chase offer a range of similar features and tools to help you budget and save. So, you might want to compare these too.
What are your chances of winning the monthly prize draw?
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