A guide to money-saving apps: make your money go further

Looking to make saving easy? Whether you’re after the best deals, automated savings, or budgeting help, there’s sure to be an app to help you save money. On this page, we’ll look at the different types of money-saving apps in the UK, what makes a good app for saving money, and how to choose the best one for you.

When it comes to money-saving apps in the UK, you have a wide variety of options to choose from: 

Budgeting and money management apps:

Examples: Starling Bank, Emma

Features: Track spending, set savings goals

Available on: iOS and Android

Cashback apps/apps that help you save money:

Examples: Quidco, TopCashback

Features: Earn money back on purchases at various retailers, find discounts and vouchers

Available on: iOS and Android

Round-up apps:

Examples: Chip, Moneybox

Features: Automatically round up purchases to the nearest pound and invest spare change

Available on: iOS and Android

Savings account apps:

Examples: Plum, Monzo, Raisin UK

Features: Analyse spending habits, save money automatically, manage your accounts

Available on: iOS and AndroidDepending on how much you want to save and what you want to do with your savings, there’s likely to be a money-saving app that fits your needs.

Each savings app has different functionalities. 

Here, we’ve listed an overview of the main app types:

• Round-up apps, as the name suggests, work by rounding up your purchases to the nearest pound and stashing away the spare change into a savings account. To use these apps, you typically have to link your bank accounts or cards so that the app can track your transactions and automate the saving process.

• Cashbacks apps help you find ways to save money by offering special deals, discount coupons, cashback, or vouchers. Perhaps you’re looking to save on your energy bills, groceries, or train travel, or maybe you’re on the lookout for special discounts for students - you’ll find a variety of apps for saving money.

• Money management apps offer budgeting tools to keep your spending under control, and help you set personalised savings goals to keep you motivated. These cash-saving apps typically require access to your bank accounts, so that they can track where your money is going. They can also categorise transactions so you have a clearer view of exactly what types of expenses you might be able to cut back on. 

• Automated savings apps go one step further, analysing your spending habits using clever algorithms to work out how much you can afford to save. You usually have to link your bank accounts and cards, (although some might just have “read-only” access), and the app takes care of the rest, automatically transferring money into your virtual savings account based on your chosen plan. So, while you’re going about your day spending your money, you’re also steadily building up your savings without realising it.

When it comes to choosing the best money-saving app for you, there are a few key factors to keep in mind. Firstly, and most importantly, consider your savings goals - the clearer you are about what you want to achieve, the better you’ll be able to find an app that matches your needs.

Next, you might take a look at the app’s features - do you need budgeting features, investment options, or perhaps savings goals? And if an account is offered, what type of account is it? Savings apps tend to offer the same types of accounts you’ll find in high street banks, including ISAs, easy access accounts, and current accounts. Also, it can be a good idea to check for any fees associated with the app to avoid any surprises down the line. 

If budgeting is what you’re after, it’s important to note that some budgeting apps track your income and expenses automatically, whereas others may require you to put this information into the app yourself, which can be a bit more time-consuming. In some cases, it can be easier to create your own budget using a budget planner such as the one on our how to budget page. You get a clear overview of your incomings and outgoings and can work out a budget based on that.

Making sure you’re comfortable with the terms and conditions of the app is also particularly important when deciding on the best money-saving app for you. And remember that when you opt for a cash-saving app, it’ll usually need access to your bank account, so you may want to choose one from a reliable provider.

While money-saving apps can seem like a cure-all for your financial difficulties, being aware of their limitations can help you decide how best to manage your finances.

• Automatic savings: The app does the heavy lifting by automatically setting money aside for you, which could be suitable if you find it difficult to save on your own.

• Spending insights: You get a better handle on where your money goes with detailed insights into your spending habits.

• Financial guidance: Some apps offer personalised help and advice on growing your savings and budgeting.

• Safety concerns: Depositing funds into money-saving apps can pose security risks, as they may not offer the same level of protection as established banks and building societies, potentially leaving your money vulnerable to theft or loss. Savings apps may also be unsuitable for use on a public Wi-Fi connection.

• Technology issues: If you are keen to use a money-saving app to manage your finances, it’s worth noting that you may face technical issues or data breaches. 

• Limited interest: Accounts in money-saving apps tend to offer lower interest rates compared to other savings accounts like fixed rate bonds or notice accounts.

With the rise of mobile banking, money-saving apps have become increasingly popular as a convenient way to save money without the hassle of manual tracking. Whether you want to save for a special purchase such as a holiday or wedding, build an emergency fund, or simply save for a rainy day, these savings apps can make the whole process much smoother. 

Because they are so integrated into your everyday shopping, they allow you to save without thinking, making it easier to reach your financial goals. So, money-saving apps do work, particularly if you want to get into the habit of saving easily and consistently.

However, one of the main drawbacks of using an app for saving is that they may not offer attractive interest rates, leading to your savings sitting there accumulating minimal growth. What’s more, any funds you store in an auto-save wallet may not be as well-protected as those in a typical savings account.

To maximise your savings potential, you could explore alternative options such as a high-yield savings account from Raisin UK. You can easily compare savings accounts by AER, ensuring that your hard-earned money gives you optimal returns. And you also have the security of deposit protection from the Financial Services Compensation Scheme (FSCS).

While there’s no one-size-fits-all approach to saving, a popular budgeting method is the 50 30 20 rule. Under this rule, you divide your post-tax income into three categories: 50% for needs, 30% for wants, and 20% on savings or paying off debt. By taking this approach consistently, you’ll be able to gradually work towards your savings goals while ensuring you have enough to cover your monthly “needs”, including rent or mortgage payments, groceries, and household bills.

When it comes to finding the best money-saving app for you, it all boils down to your individual financial goals and what you want from a money-saving app. Do you like the idea of putting aside a little spare change every time you make a purchase, or are your savings goals a little more ambitious? 

Some of the most popular apps for saving include Chase, Chip, and Plum, and each has its own set of services. If you’re deciding on the best app for managing money, you might look for features like transaction categorisation, goal setting, bill management, and spending alerts.

Where many of these apps tend to fall short, however, is the interest rates they offer on their accounts. Even those on the best savings app lists can be fairly low. If your main goal is to get a good return on your savings, you might be better off looking at more traditional savings accounts. 

With the Raisin App, you can easily apply for some of the top-interest savings accounts available away from the high street. You can use the app to easily manage your accounts on the go. And you’ll be notified of any interest rate increases, so you’ll be the first to hear about the best offers. Plus, you get the benefit of FSCS protection, which means deposits of up to £85,000 per person, per institution, are protected.