Best Economical Apps – NerdWallet
Money-saving apps can ease the process of saving money over time. You can fill your piggy bank automatically to reach your savings goals without stress. Check out some of our favorite apps below.
Tassels: Great for investment options
Qapital: Ideal for goal setting
Number: Ideal for simplicity
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Ideal for investment options
How it works: Acorns is an investing app that rounds your purchases to the nearest dollar and automatically adds the difference – taken from a linked expense account – to an Acorns investment account. This money is invested in a portfolio based on your income and goals, and you will get a return on your investment.
A basic Acorns account costs $ 1 per month. (The monthly fee is $ 3 for an option that includes a retirement and chequing account, and $ 5 if you add children’s investment accounts). Each Acorns portfolio is made up of exchange-traded funds (usually a basket of stocks and bonds), with options ranging from conservative (having a higher percentage of bonds) to aggressive (having a higher percentage of stocks). ).
Advantage: If you make purchases with one of the company’s partners, such as Apple and Walmart, using a linked debit card, the partner reimburses your Acorns investment account.
Disadvantages: Since investments are not guaranteed, your balance may decrease if there is a drop in the investments where you have allocated your funds. Withdrawing the money from your account may also take several days, as the shares of the invested ETF must first be sold.
How it works: Qapital allows you to define rules to automate savings. For example, whenever you spend money from a linked fundraising account, Qapital may round the total to the nearest dollar (or more) and transfer the amount to a target account insured by Federal Deposit Insurance. Corp. amount to your fund on a regular basis. You win 0.10% interest – which is low for an online savings account, but not a bad rate to check out.
You will need an external current account to log into Qapital and finance your goals. Withdrawing money from a Qapital account takes one to two business days.
Benefits: Qapital gives you the opportunity to create common goals with your family or friends. You can set various spending rules just like you would for individual goals.
Disadvantages: You must be a member to use the app, and there are three tiers of membership that cost $ 3, $ 6, or $ 12 per month, respectively, with higher tiers offering more personalization and educational resources. Additionally, although the Qapital Spending account debit card is free for transfers and purchases, a fee may be charged for using ATMs. (Qapital won’t charge you, but the ATM owner might.)
compare some of nerdwallet’s favorite savings accounts
How it works: Digit calculates what you can save based on your expenses and income in a linked bank account. Then it transfers the money you can save to an FDIC insured account. There is a 30 day free trial period when you sign up for Digit, but after that it costs $ 5 per month.
Advantage: You will win a 0.10% Annualized savings premium paid every 90 days, based on the average daily balance held in your Digit account during that period.
Disadvantage: While you can set a maximum daily amount to transfer from your external bank account, you do not otherwise have control over the exact amount that Digit transfers each day. This means that Digit’s automatic savings could theoretically cause an overdraft on the external account. To avoid this, you will need to pay close attention to your balance and transfer patterns. You also have the option of suspending digit transfers. In addition, Digit will reimburse up to two overdraft fees triggered by such transfers.
Use apps to save money
If you’re struggling to build up a savings balance, using an app that does it automatically for you can be a good first step. Getting into the habit of regularly putting money aside – and seeing your balance go up and up – can put you on the right track to successfully managing your income and expenses. (Learn more about how compound interest works.) Once you’ve put some money aside, you can take the next step and open or contribute to a regular savings account.
How to open a savings account
If you don’t have a savings account, you can open one by submitting an application, either online or at a bank branch. You will need to provide your social security number and contact details, as well as at least one piece of identification, such as a driver’s license or passport. (For a joint account, anyone wishing to access the account must provide this information and ID.) You can usually deposit money in cash (if in person) and by check, as well as with a wire transfer. from an existing account.
How much should I have in savings?
For a savings account that holds your emergency fund, work to cover three to six months of basic living expenses. You can start small: having only $ 500 saved can help you pay for some financial emergencies without going into debt.
For short-term needs, it can be helpful to have multiple savings accounts or an account divided into “buckets,” especially if you are setting aside money for specific goals, such as a vacation. But once you have an emergency buffer, try starting to create a retirement account with investments, where those dollars will earn more than they would in a savings account.
Calculate your savings
Ready to build up your bank balance? Check out our savings calculator to find out how much you can save.