Strangely, it could take a lot of effort to start saving money or even investing. But what if I tell you that you can now save or invest your money without you even realizing? Try them out: round-up savings apps.
Understanding how round-up savings apps functions
Round-up savings apps, just like the name, will bulk up the nominal of your purchase transactions. For example, you need to pay $12.75 for your groceries, and you pay it with your credit card. Then the round-up savings apps will take $13, and put the extra 25 cents to your apps account’s savings. Obviously, for these apps to operate, they will need to have access to your bank and credit card accounts.
What happens next with the money you’ve saved with the apps? Unfortunately, you can not directly transfer the money to your saving accounts. The nominal accumulated from your purchases will be stored in the apps. Once it reaches a certain amount, you will get the option to transfer it to your saving accounts. While some of these apps are free to download, they might have extra transfer fees for the money you have saved in the apps. So, make sure you have read the terms and conditions before signing up to one. Also, most importantly, only sign up to trustworthy apps to avoid becoming a victim of data breach.
Round-up apps: multifunctional money management apps
There are quite numerous round-up apps available, and each can be used for different purposes. Investors Junkie suggests Qapital for you who want to focus on saving money. It provides options to save for multiple goals with the round-up savings method and other savings rule. Qapital is also one of the most sought after payment apps in the United States as it supports a lot of banks.
Another app that Investor Junkie recommends is Acorns. A little bit different, Acorns give you access to build an investment portfolio through your round-up savings. Through its Lite accounts, Acorns allow you to invest in a taxable account. However, to use the service, you will need to pay at least $1 per month for the Lite plan. Other plans include the Personal Plan for $3 and the Family Plan for $5.
Acorns is relatively easy to operate and helpful especially for new investors. The app will automatically pick a portfolio stock and bond exchange-traded fund (ETFs) according to your risk tolerance. All you need to do is to pick one out of five portfolios that they have chosen for you, and they will take care of it for you.
Investor Junkie also notes one more helpful app: Qoins. This round-up app is specialized to help you pay off debt. However, the app will cost you another $2.99 per month.
Read also: Making Saving Money A Habit in 4 Steps
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