Saving money is a difficult habit to get into, especially if it feels like you’re already living paycheck to paycheck. However, with a few minor changes to your budget, lifestyle, and mindfulness, you can get a savings account started quickly.
It literally takes the guesswork or even your knowledge out of the equation. They’ll set aside a predetermined amount into a separate account before you even see the money!
Yes, it can be that simple!
How do round up savings apps work?
There are some savings apps that round up your purchases, putting the extra change into a designated savings account.
Round-up apps connect to your bank and credit card accounts to monitor new transactions. Each time you make a purchase, the app calculates what would happen if you had made a purchase with cash.
For example, if you buy lunch for $6.85 with your credit card, the app would round up to $7.00 and transfer 15 cents from your checking account to your goal.
Some apps offer the option to amplify your savings by investing it for you.
Who are these apps for?
If you’re the type of person who has to spend money as soon as you get it, these apps will be great for you.
Even if you’ve always been a smart saver, the act of an app setting aside money automatically can help anyone grow their savings accounts exponentially.
5 Savings Apps That Round Up
There are a growing number of apps that help people save money regardless of their starting point. These apps require only a checking account and a smartphone.
If you do get a round-up app, be on the lookout for fees. Saving money is great, but it may not be worthwhile if you have to pay a lot to transfer your money from one account to another or even just to use the app.
Here are a few of the top apps that can make saving money super simple!
1. Qapital
Qapital is an app that offers several different ways to help you save your extra money.
1. This app gives you the opportunity to save toward a goal or with “rules” that you can apply to your savings.
2. Qapital keeps track of your income & spending habits to set aside money daily, weekly, monthly, or when you get paid.
If you want to make saving a regular habit without crunching your own numbers, Qapital will determine how much you can transfer to your savings and when.
You can show Qapital how much you need to designate toward certain commitments (bills, spending) so the app knows it can save the remainder.
This takes the guesswork out of it for you and you can be confident that you’ll still have enough to get your bills paid.
3. Qapital even lets you team up with others to reach a shared goal.
Have a big trip that you want to take with a group of friends? Or maybe you’re saving up to buy a new tv with your roommates.
This is a great way to get everyone in on the saving.
4. There’s a round-up option for saving your spare change. Each time you make a purchase with your linked account, Qapital will round up to the nearest dollar and deposit the difference into your savings.
For example, if you spend $9.43 at the deli, Qapital will take the remaining 57 cents (rounding up to the next dollar) and put it into your savings account. Therefore your charge will actually be $10, but you’re saving a portion of it.
Fifty-seven cents doesn’t seem like a lot, but if you do this on every purchase it can really add up!
5. Qapital uses a pre-built portfolio that’s ideal for beginning investors. It can take your savings money and invest it for you to maximize your potential earnings.
You give them a timeline of when you need the money by and they’ll do the rest. They’ll even diversify your funds so you don’t have all your eggs in one basket.
This is a great app if you’re not too financially savvy, but want to start growing your savings for the future.
6. There are many features of this app that you can use for free without paying any monthly fees. However, if you want to upgrade to get the maxmum benefits of it, you can pay a small fee.
2. Digit: Offers a $5 Sign-Up Bonus
Similar to Qapital, Digit analyzes your spending patterns to find you money that you didn’t even know you had. The app keeps close tabs on your spending and transfers savings to your Digit account a few dollars at a time.
You’ll barely know it’s missing until you see your account growing!
You can set short-term goals like bachelorette party money or long-term ones like house down payment. You can adjust how much should go toward each goal and transfer it out whenever you wish.
If Digit ever gets it wrong and overdrafts your account, they’ll reimburse you for any fees. If you decide to keep your account after the first 30 days, you’ll pay a $2.99 monthly fee.
3. Acorns
The Acorns app is the perfect way for the non-financially savvy person to start savings and investing at the same time.
How it works: You link your checking and credit card accounts through the app. Acorns tracks your purchases from any retailer and rounds up each transaction to the nearest dollar.
It takes that remaining change and puts it in your Acorns investment account where it can start earning for you.
Once your account is set up, Acorns will add $10 to help you get started. Then, Acorns will make smart investments for you as you contribute money to it.
They include easy to understand videos and tutorials for people who don’t have a good understanding of investing their money.
The monthly fee starts at $1 to keep your account, but it can definitely be worth it if you use it the right way.
4. Tip Yourself
Tip Yourself is another app that safely transfers small increments of money into an FDIC-insured savings account without any effort from you.
Skipped an impulse purchase? Made it to the gym three times this week? Got a pat on the back from your boss?
Use these positive experiences to motivate you and give yourself a tip! It’s time to get your finances on track and savemoney toward your goals.
5. Chime
Chime is a mobile and online banking that allows you to grow your savings automatically.
There are no hidden fees and you can even get your paycheck up to 2 days early with direct deposit, have fee-free overdraft when you’re in a pinch, and manage your finances like a boss using the highly-rated Chime mobile banking app.
Are these savings apps that round up right for you?
Rounding up your purchases may not make sense for everyone.
If you are bound by living paycheck to paycheck and know you can’t spare any small additional savings, these apps may not be right for you. Even if you keep a very low checking account balance, you could accidentally overdraw due to an automatic transfer.
However, for the majority of people, savings apps that round-up are great.
They can help you save more, invest more, and pay off debt without having to think about it. That’s a win for everyone!
Eugene is a Chemical Engineer with a passion for personal finance and is constantly learning new tricks to make his money work for him. He obtained an MBA part time and hasn’t stopped finding ways to make money, save money, and properly invest money. He currently lives at the Jersey Shore with my wife and two children.