There is an app for almost everything now, including spending less and saving more. Some of them make a real difference with very little effort. Others are mainly designed to get you shopping, which is the opposite of what you want.
We are not going to recommend particular brands here. Instead, this guide explains the main types of money-saving tool, what each is good for and what to watch out for, so you can decide which ones fit the way you live.
Cashback sites and apps
Cashback sites earn a commission when you click through to a retailer and buy something, and they pass some of it back to you. Cashback apps work in a similar way, sometimes by linking to your bank card so offers are applied automatically.
Good for: purchases you were going to make anyway, such as insurance renewals, broadband deals or a planned bit of shopping.
Watch out for:
- Cashback can take weeks or months to confirm, and it may be cancelled if you return the item.
- Tracking does not always work. Keep your receipts and confirmation emails in case you need to claim.
- Some sites have a minimum balance before you can withdraw your money.
- A big cashback offer is not a reason to buy something you do not need.
Round-up savings tools
Round-up features take each card payment up to the next pound and move the difference into savings. Spend £2.60 on a coffee and 40p goes into a pot. Many banks offer this in their own app, and some standalone apps do the same.
Good for: people who find it hard to save a lump sum, as the amounts are small enough not to notice.
Watch out for: where the money ends up. Check whether the pot pays interest and how that compares with a proper savings account. Our guide to savings accounts explained explains the main types. It also pays to check whether your money sits with a bank protected by the Financial Services Compensation Scheme (FSCS). Some apps hold money as e-money instead, which does not have the same protection.
Price trackers and alerts
Price trackers watch an item for you and send an alert when the price falls. Some work as websites, others as browser extensions or features in shopping apps. They can show you whether a sale price is really a bargain or the same price it was a few weeks ago.
Good for: bigger purchases you can wait for, such as appliances, furniture or a new laptop.
Watch out for: browser extensions, which may be able to see what you browse. Read the permissions before you install one, and only use tools from sources you trust.
Bill reminders and subscription trackers
Many banking apps now show upcoming direct debits and flag regular payments, which makes it easier to spot subscriptions you have forgotten about. You can also set reminders in your phone's calendar for things like contract end dates, car insurance renewals and your MOT.
Good for: avoiding late fees and remembering to shop around before something renews. If your mobile contract is one of those renewals, our tips for a better phone deal are a good place to start.
Budgeting apps that use open banking
Open banking lets you give an app permission to see your bank account data, so it can pull all your accounts into one view and sort your spending into categories. You connect through your own bank's app or website, so you never have to share your bank login details with the budgeting app itself.
Good for: seeing at a glance where your money goes each month, especially if you have accounts with more than one bank.
Watch out for:
- Check that the provider is authorised or registered with the Financial Conduct Authority. You can search the FCA Register for free.
- Only give access to the accounts you want the app to see, and remove access you no longer need.
- Be wary of any app that asks for your bank password directly or pushes you towards borrowing.
Choosing the right mix
You do not need every tool on this list. One budgeting view, one way of saving automatically and a handful of reminders is enough for many people. Delete any app that leaves you spending more than before. If you would prefer something simpler, our guide to budgeting methods covers approaches that work with just pen and paper, and MoneyHelper has a free budget planner too. This article is general information, not financial advice.
