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Savings and investment apps

I've seen adverts for various savings apps and stock investment apps such as, for example, Plum. The customer reviews are very mixed with people saying its the best thing since sliced bread and they are making/saving lots, whilst others are complaining about lost money, locked money, taking from their accounts without permission and so on.
So i'm very confused. Can anyone guide me through these sorts of apps and recommend the best and most reliable and how they actually work??

thanks in advance.
russ 

Comments

  • What do you aim to achieve by using these apps? What are your savings/investing goals?


  • colsten
    colsten Posts: 17,597 Forumite
    10,000 Posts Seventh Anniversary Photogenic Name Dropper
    First check I would do on any of these is whether they come with FSCS cover. If they don't, I wouldn't give them a second look.
  • ZeroSum
    ZeroSum Posts: 1,131 Forumite
    Fifth Anniversary 1,000 Posts Name Dropper
    I've had a look at a few & the fees are quite high. Many have a fixed £1 a month subsription on top of the fund fees, which if you're only investing relatively small amounts it's quite expensive. 
  • kinger101
    kinger101 Posts: 6,522 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    edited 4 August 2020 pm31 4:58PM
    Just looking at the Plum website, this is the sentence I find most alarming.
    "Our smart algorithm analyses your spending and helps you save without even thinking about it".
    This us complete and utter BS. I gives the false impression that there is some shortcut to saving money.  There isn't.  If you really want to save money, you have to analyse where you're spending your money and why.  Unless I'm mistaken, and the app blocks your bank card when it catches you buying sandwiches every day in Pret or taking 1 mile Uber rides. 
    "Real knowledge is to know the extent of one's ignorance" - Confucius
  • barnstar2077
    barnstar2077 Posts: 1,574 Forumite
    Eighth Anniversary 1,000 Posts Name Dropper Photogenic
    I think these apps are counter productive in the long run.  Work out a budget with a sensible allowance for entertainment, whatever is left is what you can save.  If you want to save more then start looking at your outgoings in more detail.  There is no problem with buying a sandwich or a £3 coffee while you are out, as long as it comes out of the entertainment budget.  The best way to save is to think in terms of value for money.  Buy a sandwich and coffee, or bring your own lunch and buy a book that will keep you entertained for a week or two.  Remember, if you are working then the money you have is in exchange for your time.  Before you buy something (other than the basics) work out how many hours you would have to work to pay for it and then imagine working that amount of time and your boss doesn't pay you, just hands you the item you are hankering for.  Still think it is worth it?  Works great for me!
    Think first of your goal, then make it happen!
  • barnstar2077
    barnstar2077 Posts: 1,574 Forumite
    Eighth Anniversary 1,000 Posts Name Dropper Photogenic
    I say counter productive, because they discourage people from actually saving properly, and once released from the guilt of worrying about not saving, people are likely to increase their spending. safe in the knowledge that a small fraction of the money is being collected.

    When I was in my early twenties I had a credit card that used to award me money off vouchers when I spent.  It was a false economy for sure!

    Think first of your goal, then make it happen!
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