It’s super easy to invest nowadays, but many of us struggle to control our spending while saving money for the future.
One of the quickest ways to automate the process and invest safely is to leverage a money saving app.
These apps work exceptionally well and can save you TONS of extra income over time.
Oh, and you don’t have to lift a finger.
We’ve curated a list of a few of our favorites.
Acorns (Team Favorite!)
How it works – Acorns works similar to Qapital as it automatically transfers money from your bank account to a dedicated investment. However, your money earns revenue over time via investment in diverse stock portfolios.
Fees – Users are required to pay $1 every month if their balance is under $5,000 and 0.25% of the amount if the balance is over $5,000. College students can use the money saving app at no charge for four years.
Making withdrawals – It can take several days to complete a withdrawal because the funds are stored in the form of stocks and bonds.
Best suited for – For people that want their money to earn interest and don’t mind delays in withdrawals and (small to moderate) risks in investment.
Cons – As this platform involves investment, there is an element of risk.
How it works – Download the app and choose a Goal (like a vacation to Jamaica, paying off student loans, a new guitar, or all three). Then set up automatic ways to save for them.
- Round up every purchase to the nearest dollar and save the change
- Save $20 every Friday
- Save the difference when you come in under budget at the grocery store
- Or anything else you can dream up!
Fees – There are no fees for using this app.
Making withdrawals – Withdrawals can take up to two business days.
Best suited for – This app is best suited for people that struggle to remember to save or change their mind at the last moment.
Cons – A traditional savings account with a SOLID influx will provide a reasonable rate of interest while the Qapital account will not.
How it works – Digit doesn’t just tuck away the spare change of every transaction you make, it actually takes a look at your income and spending and then allocates an amount aside, accordingly. This amount can range from $5 to $50 based on your personal habits.
Fees – Users get a 100-day free trial with this save app, and if satisfied after that, they are required to pay $2.99 to maintain the account.
Making withdrawals – Request the amount of withdrawal, and it will be transferred to an account the next day.
Best suited for – Users that want to save more and build up their savings quickly.
Cons – No interest.
How it works – Betterment is an automated investing service that aims to provide optimized investment returns for individual, IRA, 401k, and rollover accounts.
Fees – Fees can range from $0.15 to 0.35% based on the amount you invest in the platform.
Making withdrawals – Withdrawals can take several business days because the investment must be liquidated before the money can be transferred to you.
Best suited for – Users looking to invest.
Cons – Investment always carries a risk and relies on market conditions.
How it works – All you need to do is link the app to an account, mention how much money you want to invest, schedule a transfer, and let the saving app handle the rest. You can trade in specific stocks and earn money from market movement.
Fees – There are no fees.
Making withdrawals – Withdrawals can take several days because the money is invested in stocks and those stocks must be sold before purchase.
Best suited for – For young people looking to invest without paying any fees.
Cons – Market risk is always a concern, and if you’re not careful, you can lose some money.
How it works – All you need to do is register, link your bank account, transfer $5 or more, and choose one of 30 investment themes based on your priorities.
Fees – The fees are $1 per month if a user’s saving money app has less than $5,000 and 0.25% per year if the account has more than $5,000.
Making withdrawals – Withdrawals can take several days because the money is invested in stocks, and those stocks must be sold before purchase.
Best suited for – Young professionals and college students that just want to invest without spending too much.
Cons – Market risks are always a concern and if the investment is too low, you won’t see results.
These are a few of our FAVORITES! For more financial tips, check out more links below!