Automated savings offers a solution that is not as overwhelming to manage and requires so little effort that you may not even realise how good it is for you until you check your savings account. 

What Exactly Are Automated Savings?

Setting up automated savings essentially helps you save a predetermined amount of money without a second thought. You can do this with the assistance of a financial advisor at a bank, through online banking, or with the assistance of online tools or apps. 

Once you determine how much money you would like to save, you will also want to determine how frequently you would like to have that money transferred into a savings account. Some people will opt for every paycheck, every month, or a week after every transaction. 

You will also want to consider how you want to save; are you looking to add to a general savings account, set up a retirement savings account, or invest it? If you are unsure where to start when it comes to automating your savings, below are a few tools to help you save money. 

1. Current

Current is an example of a fintech app, a new wave of banking technology that does not require any liaising with a traditional bank. Current offers a variety of accounts, such as checking and savings accounts and banking options for teenagers or young adults who are just starting to earn money. 

Current also helps its users save money through their advantageous savings account that lets you set a savings goal to work towards. Above that, they offer a generous 4% APY towards your savings, so you can earn money on how much money you save. Thus, as you continue to contribute to your Current savings account, you can earn more interest on that balance. 

Their savings accounts are referred to as “pods” that you can set up with a target and have money transferred from your checking account to your savings account automatically, so you do not have to remember to transfer it yourself. 

2. Qapital Savings

Let's face it, most money management apps and tools are dull. With Qapital, your financial activity is laid out in a visually appealing way, making it much easier to digest and understand the information you see in front of you. You can even set up your financial vision board with images you select that will help you visualise your savings goals more effectively. 

There are a few ways you can save money using Qapital. To start, if you want to customise how your automated savings will work, you can set up automatic transfers to your savings accounts entirely under your control. This helps you pivot your savings strategies when you have a change in income or circumstance, so you do not leave yourself without funds.

A second option is having a certain amount of money transferred into your savings when you make a purchase. If you are looking to follow a budget and avoid certain temptations, this could be an incentive to help you avoid those purchases. For instance, every time you go to Starbucks, you can have Qapital transfer money to savings instead of making coffee at home. 

A popular savings feature that Qapital offers that entice many savers is that every time you use your card to make a purchase, Qapital will round that purchase amount to the nearest dollar and transfer that difference to your savings. So, for instance, if you buy something that costs $2.75, 25 cents will be sent to your savings. 

This strategy can build up your savings quickly without a second thought, especially if you mainly make purchases with your card. 

3. Chime

Chime is another financial tool that you can utilise to save money automatically in a manageable manner. While Chime does not offer to check accounts, you can easily connect a checking account to Chime using a safe third-party service. You can also set up Chime so that a certain amount of money from your paycheck gets sent to their savings platform and can even earn interest on your savings. 

Chime also allows you to have your purchases rounded up to the nearest dollar, and the difference between your purchase and that nearest dollar gets put into your savings account. So, as you spend money, you save money with minimal to no effort. 

4. Mint

Mint is a free financial tool that allows you to consolidate and monitor all your banking activity on one streamlined platform. If you have accounts at a few different financial institutions, Mint is worth looking at to make managing your finances much less overwhelming. 

This app has so many features that allow you to budget, set financial goals, make plans to pay down your debt, and so much more. You can also schedule money to be transferred to your savings account automatically at intervals of your choosing, so you’ll save without a second thought. 

5. Acorns

If you are interested in using automated savings for investments, Acorns is an app that helps you do this. You must pay to use this app, but it is much more affordable than hiring a financial advisor. Acorns allows you to transfer money automatically into investments based on your information.

You can set up Acorns to use the round-up method to link your bank account and allow Acorns to see your purchases. Then, that small amount of accumulated change will be sent to an investment. You can also schedule transfers to your Acorn investments from your bank account. 

If you are looking for your savings to earn you some money for your future, Acorns is a viable option to dip your toes into investing. 

Final Thoughts

Saving money does not have to be a chore. Saving money may be something you intend to do but forget to do, and suddenly, you have spent your entire paycheck. By automating your savings, you make sure money is always going into your savings without leaving you with no money left over. Simple steps like this towards saving can pay off in a big way.