Automatic Savings Apps Compared: Which One Is Best for You?

Building a healthy savings habit can feel like an uphill battle. Between forgetting to transfer money and unexpected expenses, it’s easy for good intentions to fall by the wayside. This is where automatic savings apps come in – like having a friendly financial coach working behind the scenes.

These apps connect to your bank account and automate the savings process, helping you stash away cash effortlessly. But with a growing number of options available, choosing the right one can be overwhelming. Let’s compare some of the most popular automatic savings apps to see which one best suits your needs.

The Contenders:

• Acorns: Known for its “investing your spare change” feature, Acorns rounds up your everyday purchases to the nearest dollar and invests the difference in a diversified portfolio. It’s a great option for beginners who want to start small and grow their savings passively. However, Acorns focuses on investing, not traditional savings accounts, and may not be ideal for short-term goals. There are also monthly fees depending on the subscription plan you choose.

• Chip: This app takes a goal-oriented approach. You set a savings target, and Chip automatically transfers small amounts towards it based on your spending habits. It also offers a “Rainy Day Fund” feature to help you build an emergency buffer. Chip boasts a user-friendly interface and is free to use, although there’s a premium option with additional features.

• Plum: This AI-powered app analyzes your income and spending to determine how much you can comfortably save each week. It then automatically transfers these funds into your Plum account. Plum also offers round-ups, multiple savings goals, and “Interest Pockets” to potentially earn some extra return on your money. While the basic features are free, some functionalities require a premium subscription.

• Qapital: This app uses a unique “rules-based” approach. You set up rules that trigger automatic transfers, like saving a certain amount every time you spend at a restaurant. Qapital also offers “Goals” to visualize your progress and stay motivated. There’s a free basic plan with limited features, and premium tiers with additional functionalities.

Choosing Your Champion:

Here are some key factors to consider when picking your automatic savings app:

• Fees: Some apps are entirely free, while others have premium tiers with additional features. Consider your budget and what functionalities are most important to you.

• Savings Goals: Do you have a specific goal in mind, like a vacation or a down payment on a house? Choose an app that allows you to set up dedicated savings buckets for different goals.

• Investment Options: Are you looking to simply save cash or grow it through investments? Acorns focuses on investing your spare change, while other apps offer traditional savings accounts.

• Automation Features: Look for features like round-ups, automatic transfers based on spending habits, and the ability to schedule regular deposits.

• User Interface: A user-friendly interface makes it easier to stay on top of your savings progress and make adjustments as needed.

The Final Round:

The “best” Automatic Savings App depends on your individual financial goals and preferences. Here’s a quick breakdown to help you decide:

• For Beginners: Acorns is a great way to start small and invest your spare change effortlessly.
• For Goal-Oriented Savers: Chip excels with its goal-setting features and “Rainy Day Fund” option.
• For AI-Powered Automation: Plum uses AI to analyze your spending and automate transfers for a personalized experience.
• For Rule-Based Savers: Qapital offers a unique approach with customizable rules for automatic transfers.

Beyond the Apps:

Remember, automatic savings apps are just one tool in your financial toolbox. Here are some additional tips to boost your savings:

• Create a budget: Track your income and expenses to identify areas where you can cut back.
• Pay yourself first: Set up automatic transfers to your savings account as soon as you get paid.
• Increase your income: Look for ways to generate extra income, like a side hustle or selling unused items.

By combining automatic savings apps with these strategies, you can take control of your finances and reach your savings goals faster. So, take some time to explore the options, choose the app that best suits your needs, and watch your savings grow on autopilot!