Cash saving apps

jygee

Does anyone have experience with these. They round up card sales to nearest whole pound and save that up over time. Some say they then invest the savings too.
Anyone have any recommendations? Or experience.

Thanks

Reaper

There are various app based banking options that do this such as Monzo and Chip. I haven't used them but MSE has a write up here:
https://www.moneysavingexpert.com/banking/digital-banking/

Also do a forum search for "Monzo", "Chip" etc to see previous threads on the subject.

webjaved

I know quite a few people that are using "Plum" which is another alternative.

AnotherJoe

These are gimmicky wastes of money*. Just save a known amount of money each month rather thana random amount that depends how many lattes you bought at Starbucks (and dont give you the stupid idea that by buying stuff you are saving either)


* Even a £1 a month works out as a very high negative interest rate.

TomPucci85

One of the better known apps for this is probably Moneybox. It rounds up every spend up to £1 and then invests it to portfolios at a risk you choose.

However, what got me with this is the £1 a month. Especially if you're just using the app in the way the app is design to be used, as in for rounding up, as you will have incredibly small amounts invested and the £1 month fee would be awful.

For it to make sense, you need to put away a lump sum to justify the £1 a month charge. Which then on top of that you need to consider the 0.45% platform fee and provider fee on that lump sum, which is same it costs for Hargreaves Lansdown.

You're better off with a cheap provider like AJ Bell or Cavendish who charge 0.25% and below.

The small percentage doesn't sound like a lot, but the compounding effect across many years adds up.

user1168934

I remember Lloyds used to do that when you enable "save the change" option somewhere. If you use Lloyds by any chance may ask them.