Saving money often fails for a simple reason: it relies on remembering to do it. Digital tools can take some of that effort away by moving money automatically, alerting you when prices drop and reminding you before a bill renews.
Rather than reviewing individual products, V5 Solutions has organised this guide around three goals. Pick the goal that matters most to you, set up one or two tools for it, and add more only if they help.
Goal One: Save Without Thinking About It
The most effective savings habits are automatic. There are two main ways to set this up.
Scheduled transfers
A standing order from your current account to a savings account on payday is the simplest automatic saving tool there is, and it costs nothing. Many people start with an amount they will not miss and increase it when they can.
Round-ups and saving rules
Some banking and savings apps let you set rules, such as rounding every card purchase up to the nearest pound and saving the spare change, or putting aside a fixed sum each time you buy a takeaway. These small, regular amounts build a habit, though they may grow slowly on their own.
Wherever the money goes, look at the interest rate and the protection. Deposits with UK banks and building societies are normally covered by the Financial Services Compensation Scheme up to a limit, but money held by an e-money firm usually is not. Our article on savings accounts explained explains your options.
Goal Two: Spend Less on Things You Already Buy
These tools aim to lower the price of purchases rather than stop you making them.
- Cashback websites and card-linked offers return part of what you spend with certain retailers. Payments can take a while to clear and may be reversed if you return goods, so treat cashback as a bonus rather than money in the bank.
- Price alerts tell you when an item you are watching drops in price. They are most useful for non-urgent purchases, and they help you judge whether a sale is genuine.
- Supermarket apps can show offers and member prices before you shop. Use them alongside a list, as described in our guide to saving money on your food shop, so offers do not lead you off course.
Goal Three: Stay on Top of Bills and Subscriptions
Missed payments, auto-renewals and forgotten free trials all cost money. Several tools help here:
- Banking app notifications. Many current accounts let you see scheduled payments, set low-balance alerts and view recurring card payments in one place.
- Calendar reminders. Add renewal dates for insurance, broadband, mobile contracts and memberships a month before they fall due, so you have time to compare.
- Budgeting apps. Apps that connect to your accounts through open banking can group your spending into categories and highlight subscriptions you may have forgotten.
How Do You Keep Your Money and Data Safe?
Money apps often need access to sensitive information, so a few checks are worthwhile before you sign up.
Is the firm regulated?
Firms providing open banking services must be authorised or registered by the Financial Conduct Authority. Search the firm's name on the FCA Register before connecting your accounts.
How does the app connect to your bank?
A legitimate open banking app sends you to your own bank to approve access. You should never be asked to type your online banking password into a third-party app. You can withdraw permission at any time.
What permissions does it ask for?
Browser extensions and some apps request wide access to your device or browsing. If the permissions seem more than the tool needs, give it a miss.
Keeping Your Toolkit Simple
A handful of tools that you use regularly will do more than a phone full of apps you rarely open. Review them every few months and remove any that are not saving you money. If you prefer to start with the basics, the free budget planner from MoneyHelper and our guide to the key numbers in your budget are both good starting points.
This article is general information, not financial advice. For free, impartial help with your own situation, visit MoneyHelper.
