A financial app that automatically rounds up your change and saves or invests the difference can change your life for good.
You know you need to start saving money like yesterday, but you aren’t. Thinking about saving money to build wealth and increase your net worth and actually doing so are totally different things.
You may forget. You may put off saving by a day, week, month, or year, or save sporadically so that you end up with nothing or very little money put aside for your future.
Think I’m being too drastic? Well, let’s look at what the numbers say:
- 69% of Americans have less than $1,000 in their savings accounts
- 40% of Americans have less than $10,000 saved for retirement
- 32% of Canadians between the ages of 45-64 have nothing saved for retirement
The good news is that you no longer need to rely on your memory or discipline to reach your savings or investing goals.
There are now automatic savings apps that can help you start putting money aside immediately with little to no effort on your part.
Best Automatic Savings and Investment Apps
Below, I have compiled a list of some of the best personal finance and money management apps you should consider today to start saving effortlessly.
1. Questwealth
Questwealth is one of Canada’s most popular online wealth managers. When you sign up for their investment service, your personalized portfolio is automatically managed on your behalf at a low cost.
Questwealth also offers an online trading app for buying and selling stocks, ETFs, mutual funds, options, currencies, GICs, and more (Questrade). You can learn more here.
Open a Questwealth account and invest up to $10,000 free for the first year.
2. EQ Bank Savings
EQ Bank is an online-only bank in Canada, similar to Tangerine. It offers a FREE high-interest savings account that functions like a hybrid between savings and chequing.
The EQ Bank app makes your day-to-day banking easy-peasy, and you can use your savings account to make direct deposits, pre-authorized debits, electronic fund transfers, Interac e-Transfers, and more.
More importantly, you can set up automatic Savings Goals and watch your account grow. EQ Bank has one of the highest non-promotional savings rates in Canada today, and there are no monthly fees.
Your deposits are insured by the Canada Deposit Insurance Corporation. Learn more about EQ Bank accounts.
3. KOHO
KOHO is a different type of money management app. It combines budgeting, cash back, and automatic savings in one place. It offers a free reloadable prepaid Mastercard prepaid card and app in Canada you can use to earn cash back on all the purchases you make with a debit (prepaid) card.
In addition to earning cash back on all purchases, KOHO users earn interest on their balance, and the app allows them to automate their savings using preauthorized contributions on a schedule.
KOHO has both free and premium accounts. When you sign up here you get a $40 welcome bonus after funding your account.
4. Moka (formerly Mylo)
The Moka app takes your spare change and invests it for you. It is like the Canadian version of the Acorns app in the United States.
If you have pushed back investing until when you have more money, the Moka app is for you. To start, download the Moka app and link your bank account.
Whenever you make a purchase and pay with any of your debit or credit cards, the apps will round up your payment to the nearest dollar and invest the difference.
For example, say you walk into Starbucks and buy coffee costing $2.75. Moka will round it up to $3.00 and invest the 25 cents ($0.25). It is so easy, you won’t even notice the money left your account!
Moka will invest your money using a personalized and diversified portfolio of low-cost ETFs and grow your net worth. The app also allows you to set investment goals or make one-time deposits if you wish.
You can withdraw money at any time, and your account is insured by the Canadian Investor Protection Fund (CIPF) up to $1 million.
Moka charges a flat fee of $4.99 per month. Whenever you refer a friend, you are awarded a $5 referral bonus. You also get a $5 bonus when you sign up.
5. Trim
Trim works a bit differently from the other automatic savings apps.
While the Trim app won’t put away money into a savings account for you on a schedule, it works like your personal finance assistant and monitors your bank accounts for ways to save money, including:
- Finding and cancelling subscriptions that are no longer useful
- Negotiating your utility bills and lowering it by up to 30%
- Searching for better deals on your insurance
- Tracking all your spending and more
Signing up for Trim is FREE, and there are no monthly fees. However, they will take 33% of any savings they achieve on your behalf.
The service is only available in the United States at this time.
6. Acorns
The Acorns app is one of the most popular apps for micro-investing in the United States, allowing users to invest for as little as $5.
This automated savings tool takes your loose change and invests it in a personalized and diversified portfolio. You can also choose to make one-time lump-sum payments whenever you want.
Acorns is a great app for those starting out in investing or who want a hands-off easy approach. Your account is protected by the Securities Investor Protection Corporation (SIPC) for up to $500,000.
Fees charged vary depending on your account type, starting at $1 per month. Students get to invest for FREE. When you invite friends to use the app, you get a $5 referral bonus.
Here are some alternatives to Acorns if you live in Canada.
7. Digit
The Digit app takes the “chore” out of saving money.
After downloading the app, signing up, and connecting your bank account, the app automatically analyzes your spending pattern and every now and then moves money from your chequing account into your Digit savings account.
Digit is programmed to move money you won’t miss as you do your normal day-to-day spending. It is currently only available in the U.S.
If you have a goal you are saving for, Digit can budget for you to help you reach your goal early. When you need the money, you can simply withdraw it. So far, over $1 billion has been saved by users of the app.
Your funds are held at an FDIC-insured bank and protected up to $250,000.
8. Qapital
Qapital is actually a bank that offers an automated savings app and is available to residents of the U.S.
The savings app saves the change whenever you make a purchase. Like other savings apps, this is done automatically without requiring your input.
You can set savings goals easily and can even connect with If This Then That (IFTTT) to create custom rules that initiate an action, such as saving some money every time it rains or you hit your fitness goals.
Qapital pays you interest on the funds in your account, and savings are protected up to $250,000.
9. Stash Invest
The stash app will help you start investing with as little as $5. You do not need to know about investing to build a portfolio that suits your goals, interests, and beliefs. The app automates and simplifies the process with personalized guidance.
After downloading the app and linking your bank account, Stash automatically invests your spare change. If you want, the app also allows you to create an automated investing plan where it deducts a certain amount at the interval you specify.
Funds you keep with Stash are protected by SIPC for up to $500,000, and it is only available in the United States at this time.
Related:
- 15 Passive Income Ideas To Make Money
- Best Stock Trading Apps
- 20 Best Cash Back Apps That Pay You To Shop
- 100 Ways Frugal People Save Money
- 18 Ways To Up Your Financial Game
- Best Online Brokerages in Canada
- Alternatives to the Robinhood App
Best Automatic Saving and Investing Apps
Overall
Summary
Here are some of the best personal finance apps to automate your savings and reach your financial goals. In this review, we cover savings and investing apps like Acorns and Wealthsimple that help you build wealth.
Is there any Canadian app similar to Qapital?
@Carole: Take a look at Moka (formerly Mylo).
Wondering if you have recommeded or even recommend use of a financial planner. Also how to
protect onself using one.
I love the idea of saving money every time it rains! My husband has a round-up savings app that sounds similar to Mylo…maybe it is Mylo since there probably aren’t tons of options for Canadians.
@Suchot: Our neighbours on the South have a lot more options when it comes to automatic savings apps. However, Mylo is a great replacement for Canadians. I have used it for a few months and like the stealthy way it withdraws money…you don’t even notice it!