5 Best Savings Apps to Try This Year
Let’s face it, saving money can be onerous and not as easy as the “put it away and don’t touch it” advice makes it seem. Between all the financial responsibilities constantly tugging for your attention, it’s hard to afford the time to track expenses and savings goals — whether for a large future expense, a trip or emergency fund.
Money-saving apps make the process more manageable for many, but how can you know which ones work the best for your needs? Here’s a list of some of the best savings apps out there.
1. Funded
A favorite on the Apple App Store, Funded is an app that simplifies the way we budget. Targeted toward millennials, this app breaks down savings goals by cash amounts — putting away the big purchases first so that you can see how much money you actually have leftover.
Create goals with a due date or an open-ended fund with no end date, then, with the swipe of a finger, bankroll money away each time you spend. You could also open a credit account and spend your funds on your credit card to take full advantage of your credit rewards.
Pros:
A goal-based app that makes saving easier to understand
Free
Option to earn rewards through their credit account
Cons:
Limited in use to only general goals
Only available on the Apple App Store.
Best for: Millennials who want to save money toward important goals, but are hesitant to jump into a traditional “budget” spreadsheet savings plan.
2. Acorns
You may have heard of the Acorns investing app, which automates micro-investing and rounds up to the next dollar each transaction. This app encourages beginners by making it easy to “save your spare change.”
For example, if you bought a coffee for $4.55 it rounds the transaction to the nearest dollar and invests this extra change into your portfolio. You can then create a portfolio based on Acorn’s recommendations. Acorns investors can set up a one-time payment or a recurring transaction, which seems like a small amount but adds up over time.
There is no minimum to open an account or exchange fees, but you need $5 to start investing. There is, however, a $1 monthly fee, which increases to $2 and $3 tiered monthly fees for each subscription level.
Pros:
Easy to start investing
No minimums or trading fees
Simple, intuitive user interface
Cons:
Large investment fees that could counteract any earnings
Limited trading options
Not the most practical if you are not willing to invest an initial large amount
Best for: First-time investors who are apprehensive about trading and want the ease of hassle-free automated payments as they become more comfortable with investing.
3. Digit
What if you can have a savings plan where you can “set it and forget it” without the hassle? Digit is an app that connects to your account and analyzes savings and spending patterns. Then, it proactively transfers money from checking to the Digit account based on what your balance is.
This app does the hard work for you when it comes to saving. You also never have to worry about accidentally overspending as it has an overdraft guarantee. One thing to note, however, is that Digit account funds don’t earn interest. Instead, Digit offers a cashback reward system with a “saving bonus” for reaching new benchmarks.
Pros:
Withdraw your money penalty-free
Overdraft guarantee
No savings account is required to use the app
Cons:
Annual $5 fee after a 30-day free trial
No earned interest
Only one checking account can be connected at a time
Best for: People who are new to saving money and want to learn the habit of saving will benefit most from this app.
4. Stash
Stash is an app that targets anyone who considers them-self new to the world of investing. This app attempts to simplify investing by selecting your investment portfolio for you according to your needs. Based on a series of questions based on your goals and financial situation, the app suggests a curated portfolio.
Included with the app is educational content to guide you through investing decisions with topics tailored to your account. Also included is their Smart Save feature, which is comparable to Digit. This feature analyzes and exchanges money from your checking account into your investments. With just $5, you can jump into investing without going through a brokerage. This option lets you trade exchange-traded funds (ETFs) through Stash, with the ability to trade into companies like Apple and Amazon.
Pros:
Low investing $5 minimum
Invest based on your passions
Over 200+ ETFs to choose from
Cons:
High fees
Doesn’t actually manage your portfolio
No longer has a free trial period
Best for: Savers who are new to investing and need quick and easy guidance through the process without using a human advisor.
5. Tip Yourself
If you find yourself having a hard time saving, you may prefer the “carrot and stick” approach of the app, Tip Yourself. Did you go to the gym early this morning? Tip yourself! Did your laundry? Tip yourself!
By combining rewards for a healthy lifestyle and savings it's a no brainer, win-win. Sign up for a Tip Jar account, which is linked to your checking account and automatically deposits with each "tip." An integrated social feed creates an online community to help share experiences and encourage discussion around saving. Think of Tip Yourself as your own virtual savings jar.
Pros:
No app fees for the basic subscription
Based on positive rewards and motivation
Follow inspirational posts online
Cons:
No earned interest
Very basic features unless you upgrade to the $9.99 Tip Yourself Pro subscription
Best for: Individuals who’ve struggled with other savings methods in the past, or are more motivated by reaching a lifestyle goal.
This list of handy money-saving apps can help you reach your savings goals. If you need help actually defining your financial goals, we can help. Schedule a call with a financial coach to get where you want to be, financially.