Saving for a new sofa? Or desperately trying to put money aside for a deposit on a house? This Martin Lewis auto-saving apps tip could help save you £100s.
The founder of MoneySavingExpert spoke about the handy savings apps on ITV’s Good Morning Britain. He explained that they are great for those who are struggling to get into the habit of saving.
‘The apps have an algorithm that looks at your bank account and sees how much money you can put aside, and automatically does it for you,’ the savings guru explains.
‘There’s lots of these auto-saving apps coming out, people really like them and ask me ‘are they safe or not?’ The answer is they’re good. But the interest isn’t that good and they’re relatively safe but not as safe as a savings account,’ he adds.
So while the apps are handy to help you put money aside each month, Martin suggests moving your savings to a normal savings account every few months. Pick the account with the best interest rate to make your money work harder for you.
Martin Lewis auto-saving apps tip
The money saving expert recommends four auto-saving apps:
The app uses an algorithm uses your bank account to determine how much you can save every four days. Becuase the savings account offers no interest, remember to move you money to a normal account every few months.
Working in a similiar way to Chip, the Tandem app lets you make regular deposits and one-off deposits. However, it will also give you 0.5 per cent interest on your savings.
Originally a ‘chatbot’ on Facebook messenger, the app works out what you can afford to put away and moves it to your Plum account. The savings account has no interest, but you can invest in stocks and shares. Simply enter the level of risk you’re willing to take.
This simple app rounds up your transactions. If you pay £2.90 for a latte, it will pop 20p into savings. The money can be saved into a Lifetime ISA or a 95-day notice account with 1.65 per cent interest.
Will you be using an auto-savings app to help put money aside for your next big home makeover project?