A guide to money-saving apps: make your money go further

Looking to make saving easier? Whether you’re after the best deals, automated savings, or budgeting help, there’s likely an app to help you save money. On this page, we’ll look at the different types of money-saving apps in the UK, what makes a good app for saving money, and how to choose the most appropriate one for your saving style and goals.

When it comes to money-saving apps in the UK, you have a wide variety of options to choose from: 

There are many different types of money-saving app, but most of them fit into one of the following categories:

Round-up apps, as the name suggests, work by rounding up your purchases to the nearest pound and stashing away the spare change into a savings account. To use these apps, you typically have to link your bank accounts or cards so that the app can track your transactions and automate the saving process.

Cashback apps help you find ways to save money by offering special deals, discount coupons, cashback, or vouchers. Perhaps you’re looking to save on your energy bills, groceries, or train travel, or maybe you’re on the lookout for special discounts for students - you’ll find a variety of apps for saving money.

Money management apps offer budgeting tools to keep your spending under control, and help you set personalised savings goals to keep you motivated. These cash-saving apps typically require access to your bank accounts, so that they can track where your money is going. They can also categorise transactions so you have a clearer view of exactly what types of expenses you might be able to cut back on. 

Savings platforms offer a single point of access to a wide range of savings products from various partner banks. Instead of opening multiple accounts directly with different providers and managing several passwords, you register just once. This allows you to manage your entire savings portfolio easily in one place. 

For example, the Raisin UK app lets you compare and apply for competitive savings accounts from multiple partner banks. You can view options like fixed rate bonds, notice accounts, and easy access accounts. This makes it simple to compare accounts by Annual Equivalent Rate (AER) to find the right fit for your financial goals. When you use a platform like Raisin UK, your eligible deposits are protected under the Financial Services Compensation Scheme (FSCS) up to £120,000 per person, per banking group. 

Automated savings apps go one step further, analysing your spending habits using clever algorithms to work out how much you can afford to save. You usually have to link your bank accounts and cards, (although some might just have “read-only” access), and the app takes care of the rest, automatically transferring money into your virtual savings account based on your chosen plan. So, while you’re going about your day spending your money, you’re also steadily building up your savings without realising it.

When it comes to choosing the best money-saving app for you, there are a few key factors to keep in mind. Firstly, and most importantly, consider your savings goals. The clearer you are about what you want to achieve, the more likely you are to find an app that matches your needs.

Next, you might take a look at the app’s features. Do you need budgeting features, investment options, or perhaps savings goals? And if an account is offered, what type of account is it? Some savings apps tend to offer the same types of accounts you’ll find in high street banks, including ISAs, easy access accounts, and current accounts. Also, it can be a good idea to check for any fees associated with the app to avoid any surprises down the line. 

If budgeting is what you’re after, it’s important to note that some budgeting apps track your income and expenses automatically, whereas others may require you to put this information into the app yourself, which can be a bit more time-consuming. In some cases, it can be easier to create your own budget using a budget planner such as the one on our how to budget page. You get a clear overview of your incomings and outgoings and can work out a budget based on that.

Making sure you’re comfortable with the terms and conditions of the app is also particularly important when deciding on the best money-saving app for you. And remember that cash-saving apps may need access to your bank account, so you may want to choose one from a reliable provider.

While money-saving apps can seem like a cure-all for your financial difficulties, being aware of their limitations can help you decide how best to manage your finances.

With the rise of mobile banking, money-saving apps have become increasingly popular as a convenient way to save money without the hassle of manual tracking. Whether you want to save for a special purchase such as a holiday or wedding, build an emergency fund, or simply save for a rainy day, these savings apps can make the whole process much smoother. 

Because they are so integrated into your everyday shopping, they allow you to save without thinking, making it easier to reach your financial goals. As such, money-saving apps can help if you want to get into the habit of saving easily and consistently.

However, one of the main drawbacks of using an app for saving is that they may not offer competitive interest rates, leading to your savings accumulating minimal growth.

To maximise your savings potential, you could explore alternative options such as a savings account with Raisin UK. You can easily compare savings accounts by AER to find competitive returns on your hard-earned money. Eligible deposits also provide the security of deposit protection from the Financial Services Compensation Scheme (FSCS) up to £120,000 per person, per bank.

While there’s no one-size-fits-all approach to saving, a popular budgeting method is the 50 30 20 rule. Following the 50/30/20 rule, you divide your post-tax income into three categories: 50% for needs, 30% for wants, and 20% for savings or debt repayment. By taking this approach consistently, you can gradually work towards your savings goals while covering your monthly 'needs' like bills and groceries.

When it comes to finding the best money-saving app for you, consider your individual financial goals and what you want from a money-saving app. Do you like the idea of putting aside spare change every time you make a purchase, or are your savings goals more ambitious? 

If you’re deciding on the best app for managing money, you might look for features like transaction categorisation, goal setting, bill management, and spending alerts.

Where many of these apps tend to fall short, however, is the interest rates they offer on their accounts. If your main goal is to get a good return on your savings, you might be better off looking at more traditional savings accounts. 

With the Raisin App, you can easily apply for competitive rate savings accounts that aren't available on the high street You can use the app to easily manage your accounts on the go. Plus, you get the benefit of FSCS protection, which means deposits of up to £120,000 per person, per bank, are protected.