It’s important to check the terms and conditions, as you’ll need to share your banking data with your savings app (unless the app is provided directly by your bank).
1. Oportun
Oportun is an automated savings app that analyzes what goes in and out of your checking account. It then periodically moves funds from your checking to your savings in amounts that the algorithm deems safe to store.
Oportun identifies itself as a spender, not a saver, and is a good option for those who prefer to outsource their decision-making.
After a 30-day free trial, Oportun charges subscribers $5 per month. Once you pay that fee, you get automatic savings features and the ability to set savings goals using the app.
If Oportun thinks it can’t spare any money, it won’t withdraw anything until you’re safe to save. If you attempt a transaction that would overdraw your account, Oportun will generally simply decline the transaction without charging you any fees.
Although Oportun itself is not a bank, funds deposited in Oportun savings accounts are held at affiliated banks that are insured by the Federal Deposit Insurance Corporation (FDIC), so you can receive up to $250,000 per depositor and per bank. protected. Account ownership category.
Prior to March 2023, the app was called Digit. It was acquired by fintech company Oportun in 2021. In addition to the Oportun Visa credit card issued by WebBank, you can also apply for a loan through Oportun.
•Best use for: Outsourcing savings decisions
•Cost: Free for 30 days, then $5/month
2. Capital
Qapital also aims to make it easy to save small amounts of money, but with a twist: it allows users to set so-called savings rules. For example, you can set up a guilty pleasure rule so that the app stashes money in your savings every time you buy takeout. Like some investment apps, Qapital also allows you to round up your purchases and put that money toward savings. For example, if he buys a $4.50 latte using his debit card, the app will take 50 cents from his check and put it into savings. You can also set rules to round up to the highest value.
This app is often praised for its visual goal-based approach. Attach a photo to your goal and the portal will act as a digital vision board for your money.
There are several options to use this app. You can link your existing checking account or sign up for a Qapital Spending account that comes with a debit card. In addition to Qapital Investment accounts, you can also open Qapital Goals savings accounts. What products you get depends on the plan you pay for.
•Perfect for: People who want to visualize their goals and increase their motivation to save
•Cost: Basic plans start at $3 per month, with tiered plans added on. A 30-day free trial is available.
3. You have plenty of room on your budget.
Goodbudget uses a virtual version of the traditional envelope budgeting system to help you spend and save each month. This app can help you manually create a budget, save money, track your spending, and pay off debt. The app can also be downloaded by family members and synced to their phones, giving everyone access to their finances.
Use the app to choose a name for the envelope specifically for each category, such as housing, utilities, groceries, transportation, savings, and more. When money is spent in a particular category, you subtract money from that envelope.
Goodbudget doesn’t sync with your bank accounts, credit cards, investment accounts, or loans, so it requires more work than more automated apps. Every time you make a purchase or pay a bill, you must enter your spending in the app.
The app provides a handy snapshot of the money in each envelope, as well as colorful pie charts and tables showing your spending history.
•Perfect for: Anyone looking for a no-frills budgeting and savings app who wants to enter their spending manually.
•Cost: The free version includes 10 regular envelopes and 10 annual envelopes and can be accessed on up to 2 devices. The paid version costs $8 per month or $70 per year and includes unlimited envelopes and the ability to sync up to five devices.
4.Chime
Chime, a digital-only brand, has attracted millions of customers since its launch in 2014. The company offers bank accounts with several automatic savings features.
If you deposit money directly into your Chime account, you can also establish a Chime rule that puts a portion of your paycheck into savings. Rounding up options are also available to help you save. Chime Savings Account Annual Percentage Yield (APY) is well above the national average.
Like other challenger banks, Chime is not technically a bank and does not store bank deposits. Customer funds are held by our FDIC-insured partner banks Bancorp Bank and Stride Bank.
Chime apps are highly rated on Google Play and App Store. In addition to setting automatic savings rules, you can receive daily account balance notifications.
•Perfect for: People who want to store their coins in a banking app
•Cost: Free
5.Currently
Current is a fintech company that offers savings accounts that combine checking and savings account features, including a debit card and the ability to earn interest on a portion of your funds. Account holders have access to a variety of financial health tools through the mobile banking app. Customers can set savings goals, called “pods,” to automatically set aside funds for a goal of their choice, such as a rainy day fund or vacation. You can also move money directly into your savings pod.
Funds deposited into savings pods earn a moderately competitive rate on balances up to $2,000 per pod. Banking services are provided by Choice Financial Group and Cross River Bank, both FDIC-insured banks.
Users can also use the app to buy and sell cryptocurrencies without transaction fees.
•Perfect for: Anyone looking for an alternative to banking.
•Cost: To access Current’s financial tools, you must have a Free Savings Account with Current.
6. Acorn
If you already have emergency savings and are willing to take on some risk, you may decide to invest. Acorns is one of the most popular apps that allows you to deposit small change into your investment account.
When you link your debit or credit card to a fintech app, Acorns rounds up your purchases to the next dollar and invests the extra money into a diversified investment portfolio based on your goals. You can also set up recurring transfers to Acorns.
In November 2023, the Mighty Oak debit card was launched by Acorns with actor and former professional wrestler Dwayne Johnson. Like other linked cards, people with the Mighty Oak Card can invest the change they make on purchases with the card.
The Mighty Oak Card is associated with a banking service deposit account issued by Lincoln Savings Bank or NBKC Bank, member FDIC. This account offers a competitive APY, with the checking portion earning 3 percent APY and the savings (“emergency fund”) portion earning 5 percent APY.
•Perfect target: Beginner investors
•Cost: From $3/month
7. Rocket Money
Rocket Money offers a variety of savings and budgeting features. You can link your bank, credit card, and investment accounts to automate your savings, receive balance alerts, track your spending, and manage your subscriptions. Includes colorful graphs showing your spending history, credit score, and net worth.
The app can use your billing history to identify your subscriptions and list them in one dashboard. You can view this to see if there’s anything you’re paying for but aren’t using. The paid version also provides support for subscription cancellation and bill negotiation.
•Perfect for: savers who need help with subscription management
•Cost: A free version is also available, but the premium version (costing between $3 and $12 per month) includes additional services such as subscription cancellation assistant, net worth tracking, savings account, and credit cards.
8. You need a budget
You Need a Budget (YNAB) allows you to set a budget and track your spending. The way it works is that you allocate the money you currently have in your bank account to different categories in your budget. Setting savings goals this way will help you stick to your spending plan. Every dollar in your account is calculated and assigned to work.
Through the app, you can only assign categories to dollars that are already in your bank account. On your next payday, you’ll be able to distribute your work with new dollars.
The app has the option to link external accounts, credit cards, and loans so they can be automatically included in your budget. If you don’t want to link an external account, you can enter your balance information manually.
YNAB claims that people who start using it can save an average of $600 in the first two months and more than $6,000 in the first year.
•Perfect for: People who prefer a hands-on approach to budgeting.
•Cost: Free for 34 days, then pay $14.99 monthly or $99 annually
Are money saving apps safe?
Fintech companies take multiple security measures to protect your data. App security varies by company, so check the terms of service to make sure you’re happy with how that company handles your financial data.
Before choosing to fund a fintech bank account, make sure the fintech is affiliated with a chartered bank that offers insurance through the FDIC.
Why you should use a money-saving app
If you tend to spend before you save, these apps can help you adjust your behavior patterns. It’s also a great option if you’re just starting to save. Rather than charging you a large lump sum like a traditional savings account, these apps move small amounts of money into savings on a regular basis, so they require less effort to work with.
Once you have some savings, you may want to consider moving your money into a high-yield savings account. Yields can vary widely from bank to bank, so it’s a good idea to shop around. You can often find better interest rates at online banks than at brick-and-mortar banks. If you don’t need access to your savings for a period of time, you can also consider storing your funds in a certificate of deposit (CD).
conclusion
If you can spend less and save more with a little guidance and automation, a money-saving app can give you just that. Factors to consider when choosing the best app include whether you are looking to open a bank account that fits the app and the level of automation you desire.
The price of these apps is also something to consider, especially if you want to lower your bill and stay on budget. Fortunately, many money-saving apps are free or relatively affordable.
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