Americans have struggled to build their savings over the past year. Only about a third (30 percent) of U.S. adults had more emergency savings in 2024 than they did a year before, while 32 percent had less savings compared to a year before, according to Bankrate’s Emergency Savings Report. To many, stashing away some money each month may seem like an impossibility.
One way to get started with building up savings is by using a money saving app. Several mobile banking apps come with features that help to make saving money more automatic.
Whether you’re planning to start your savings from scratch or pad an emergency fund, these banking apps can aid in developing helpful savings habits.
Key takeaways
- Mobile apps and bank account features can help you develop saving habits without making you think about it.
- These apps use various forms of automatic transfers to move money to a savings account at certain intervals.
- Take precautions to ensure you don’t overestimate how much you can save and run into problems like overdraft fees.
Ally Bank Surprise Savings
The Surprise Savings feature offered by Ally Bank is a convenient option for consumers who want to save money effortlessly. The feature analyzes a linked checking account to look for places where money can be saved and automatically transfers the funds to an Ally savings account that pays a solid interest rate (though not the highest savings rate available).
There are safeguards to prevent the Surprise Savings feature from making too many transfers. The limit is transfers of $100 or less and no more than three times a week.
Best for: Unexpected savings
Cost: Free
Available for: Android or iOS
Huntington Bank Money Scout
Huntington Bank’s Money Scout is an automatic savings tool designed to help the regional bank’s customers figure out how much they can save.
The Money Scout tool analyzes customers’ spending habits, income and recurring expenses to determine how much money can be moved from checking to savings. When Money Scout finds money that’s not being used in checking, it transfers the amount ($5 to $50 ) into savings. The feature sends an alert each time a transfer is made, so that consumers can monitor their account balances for any overdraft risk and cancel the transfer if the funds are needed.
To use the Money Scout, both a checking and a savings account with Huntington are required. The bank offers a couple of interest-bearing checking accounts for a monthly fee, and it has one free checking account option that doesn’t earn interest. There are also ways to get the fees waived, such as by maintaining a minimum account balance.
Best for: Small transfers
Cost: Free. But a Huntington checking account and savings account are required to use the feature. Some fees may apply to use these accounts.
Available for: Android or iOS
USAA savings tools
USAA, a bank that serves military members and their relatives, offers several automatic savings options. A notable feature is the Text Savings Tool, which analyzes consumers’ checking accounts to see if they can afford to automatically transfer $1 to $9 into savings every few days.
USAA sends a daily text with the amount available in your checking account, and if the amount falls below $100, no money is transferred into savings.
To take advantage of the savings tools, both a USAA Bank checking and savings account are required. Neither account charges monthly fees, and there’s no extra cost to use the savings tools.
Best for: Military members and veterans and their families
Cost: Free
Available for: Android or iOS
Fifth Third Bank Smart Savings
Fifth Third Bank’s mobile Smart Savings tool makes automatic savings transfers for customers with a Fifth Third checking account and a Fifth Third Momentum Savings account.
Account holders can customize their automatic savings by setting limits on how much can be transferred each week.
In addition to Smart Savings, Momentum Savings account holders can also set up specific savings goals in the Fifth Third app — up to four at a time — and apply specified amounts of money to each goal.
There is no monthly service fee for Momentum Savings accounts.
Best for: Achieving specific goals
Cost: Free
Available for: Android or iOS
Varo Bank Save Your Pay
Varo Bank is an online-only, FDIC-insured bank that offers two automatic savings tools. The standout tool is called Save Your Pay. It’s useful for those who receive direct deposit payments, as it allows you to designate a percentage of each direct deposit to be automatically transferred into a savings account.
Save Your Pay comes at no cost. It requires a Varo checking and savings account to use, but neither of these accounts charges a monthly fee. Save Your Pay can apply to any type of direct deposit, whether that be from an employer or from the government, and customers can set up automatic transfers for any percentage amount.
With a Varo Savings account, customers also have access to a Save Your Change feature, which rounds up the dollar amount on eligible transactions and transfers that change into the savings account.
Best for: Those who receive direct deposits
Cost: Free
Available for: Android or iOS
What to watch out for
As you explore mobile app savings options, there are several precautions to keep in mind.
- Use multi-factor authentication. Jacob Dayan, CEO of Community Tax, an accounting and tax advisory firm, says “multifactor authentication can be annoying, but this is one way to make sure no one will be hacking into your account.”
- Understand the risk of potential overdraft charges when there isn’t enough money in your checking account to cover spending. “You’re better off setting up an alert to let you know if your balance gets too low rather than relying on overdraft protection,” says Lacy Rogers, the founder of financial advisory firm The Dedicated Dollar.
Bottom line
Automated savings features from bank accounts and mobile apps can help take the need for motivation out of saving money. Using these tools wisely can help you build up your emergency fund without much effort on your part, as these features are designed to siphon away small amounts of money you won’t miss.
Like all tools, these savings automations should be used with caution as your good intentions to save could cause you to take away too much from everyday checking. In this case, overdraft fees could decrease the amount you save. So while it’s helpful to set up automated savings deposits, you should still keep an eye on your accounts to ensure you’re on track with your goals.
Read the full article here