The trendy apps that can make the transition from a cup of coffee to a nice nest

A new kind of smartphone apps can help you build a saving method without trying.

Some work by automatically completing payments to the nearest pound and eliminating the difference. Others analyze your spending pattern and indicate how much you can pay.

With Britons saving less than ever, experts say the apps are an easy way to get started and encourage parents to encourage children to sign up.

Smart saver: a new kind of smartphone apps can help you build a savings practice without trying

Smart saver: a new kind of smartphone apps can help you build a savings practice without trying

But you have to prevent cash from wasting away in these accounts – they probably don't offer the best interest rates.

Here Money Mail explains how the apps work – and the catches to watch out for …

TANDEM

Since its launch in 2014, Tandem has collected more than 500,000 customers. It was the first savings provider that insisted that you manage your account via a mobile phone.

How does it work? First download the Tandem app on your mobile phone and link it to your checking account via Open Banking – a system that allows banks and third parties to securely share your financial information.

To do this, you must enter your online bank details. Every time you use your debit card, your expenses are rounded to the nearest pound.

The extra is moved to a flexible savings account that pays 0.5 percent interest once a week. You will first be informed to give you a chance to change your mind. You can withdraw money at any time.

Tandem's Safe-to-Save function checks your expenses and calculates how much extra you can deduct each month. The maximum that is recommended is 15 percent of your income.

Is it safe? Up to £ 85,000 of your money is covered by the Financial Services Compensation Scheme (FSCS).

free.

Monzo

Monzo Bank started offering current-only current accounts at the end of 2017 and now has more than one million customers. It launched its Coin Jar savings instrument in March 2018.

How does it work? To sign up, download the Monzo app and open a current account. Then create a & # 39; pot & # 39; and select the option to complete transactions automatically.

Use an app to place your change from a cup of coffee into a nest egg

Use an app to place your change from a cup of coffee into a nest egg

Use an app to place your change from a cup of coffee into a nest egg

You can set multiple pots for different purposes, for example to save for a holiday or home depot.

All payments over £ 1 are rounded up to the nearest pound and the extra is placed in the pot of your choice.

You can also reward yourself for good spending behavior or set up a penalty box. You can agree to automatically charge £ 5 each time you order a takeaway. You always have access to cash.

Is it safe? Yes, up to £ 85,000 is covered by the FSCS.

Free.

CHIP

Savings App Chip, launched in 2016, analyzes your expenses and determines how much you can pay. It has more than 100,000 users.

How does it work? Download the Chip app and link your current account via Open Banking. Every two to three days, Chip checks which purchases you have made and compares these with your usual spending patterns.

If you have spent less than expected, the difference is tucked away. You can also choose to transfer an additional £ 100 from your current account to Chip six times a month. You will not earn interest on what you save.

If you refer people to the app, you will get 1 percent per person for a year, up to a maximum of 5 percent. Withdrawals can be in your current account the same working day.

Is it safe? Your money is protected in a Barclays account, where up to £ 85,000 is protected as usual under FSCS.

Free.

PLUM

The London savings app Plum was launched in 2017 and has approximately 375,000 customers.

Just like Chip, you can save by estimating how much you can afford.

How does it work? Go to withplum.com and set up the app using the Facebook messaging service. You must enter your email address and bank account information.

With Britons saving less than ever, experts say the apps are an easy way to get started and encourage parents to encourage children to sign up

With Britons saving less than ever, experts say the apps are an easy way to get started and encourage parents to encourage children to sign up

With Britons saving less than ever, experts say the apps are an easy way to get started and encourage parents to encourage children to sign up

Plum analyzes your daily spending pattern and transfers small amounts about five times a month to a savings account.

You can choose from six settings: & # 39; Normal & # 39; is the default setting, while & # 39; Beast & # 39; mode, for example, increases the amount you save by 75 percent. However, you will not earn any interest.

Withdrawals are paid within 24 hours on workdays.

You can also choose to invest your money. Choose from three risk options: conservative, balanced or growth. You can choose the types of companies you want to invest in, such as ethical or technical companies.

If you need your investment back, this can take a week.

Is it safe? Just like with Chip, up to € 85,000 in cash and investments are protected in a Barclays account.

Costs: free if you hold money. The investment option is free for the first month and is thereafter £ 1 per month. There is also a payment of 0.15 percent on the value of your fund investments, which is charged monthly.

MONEY BANK

Since its launch in 2016, more than 150,000 customers have signed up for the London-based Moneybox. Instead of saving your money in cash, the money is invested.

How does it work? Download the Moneybox app, enter your bank details to link it to your account and open a Isa share.

You can choose to make one-off payments or simply use the round-up option. There are three investment options to choose from: careful, balanced and adventurous. Withdrawing money can take two weeks.

Is it safe? Up to £ 85,000 of your money is protected under the FSCS investment limit.

Costs: there are no subscription costs for the first three months, after which you pay £ 1 per month. In addition, there are monthly 0.45 percent platform costs and fund costs between 0.12 percent and 0.3 percent.

BIG BANKS

Lloyds and TSB also offer automatic savings schemes to customers with current and savings accounts, so you don't have to share your data with a third party.

Enable Lloyds & # 39; Save the Change function by logging in to your online banking, visiting a branch or calling 0345 300 0000. TSB has a similar schedule that counts spare changes.

However, large banks rarely pay the best rates. For example, the Easy Saver account from Lloyds pays 0.2 percent. The Easy Saver from TSB pays 0.5 percent.

a.murray@dailymail.co.uk