to think these savings apps cant be safe?

[PyongyangKipperbang]

The old saying "If it looks to good to be true then it probably is" springs to mind.

I would like to use something like this to squirrel away the odd few £ here and there, that I wont really notice. I have realised how much I waste day to day since I havent been able to. For example, I couldnt afford to buy myself a new pair of DM's as they are expensive even though cost per wear, per year, means that over time they are the most cost effective option for me as I will get through 4 £20 pairs a year (they are my go to work shoes). But since lockdown I have been able to buy a pair without thinking about it because of the money I havent wasted elsewhere. I get paid on Friday and still have money in the bank, this is unheard of for me!

But.......while I think these app type savings would suit me, I want one that is safe, backed by....who? FCA? Is it? I dont know! I cant research them as I dont know what to look for, and I think that they rely on them. Just seen an ad that reminded me, it talked about putting money in investments, but who is backing these investments, could I lose my (pittance of) savings?

I guess my AIBU is "Am I being an idiot"?! :o

and I think that they rely on them

I think they rely on THAT.....so people just sign up not realising that they are taking a risk

Savings rates are so crap at the moment I wouldn't bother OP. Stick it in a tin/jar/under your mattress! :)

But, due to reasons I would rather not go into, I am not good with doing that. I would raid it, and not put it back.....

I am not bothered about interest rates, the pittance I would save would never attract big rates anyway, if anything at all! I would just like to have a little bit put aside so I dont have to go cap in hand to bank of mum and dad when the car fails its MOT (as it did last year).

2 years after kicking abusive ex out, I am finally swimming instead of fighting to not drown, and I would like to take control back in baby steps. I made the mistake of trying to do it all at once 18mmonths ago and fell on my arse when I couldnt!

OP anything that says “your investment could go down as well as up..?”

Start an ISA?

X post

Of you’re nervous of spending it and just want to put it somewhere, maybe an account with notice for withdrawals?

Ok this is going to sound stupid but the pressure to save would mean I wouldnt save.

It doesnt make sense, I know, but its to do with my past "YOU MUST PUT £XX AWAY EVERY MONTH" would mean I wouldnt. Its not an avoidant thing, its a fear thing. I dont want to go into it more than that.

Thats why making a ....say £26.98 purchase but the app taking the change from £30 and popping it in the savings for me, would be a good way for me to do it. Because in my head, when I am working out what I have spent, I always round up anyway, so its already gone.

But I dont want to do that and pick the wrong company and lose my meagre scrapings.

Its really does sound too good to be true!

Oh and I had an ISA, managed to get to about £200 I think and then ..... nothing since. I dont have a savers brain!

Which bank are you with?
I'm with Halifax and I have a savings account which 'saves the change' so if I spent £4.70 it puts 30p in the pot.

Or what about premium bonds?
It takes a few days to withdraw money so that might put you off taking it out of its not instant

Halifax are a real bank who do that, so why not set up an account with them instead of using a company you're unsure about?

I hear you OP.

I used to be terrible with money but managed to turn it around and it was the best thing I have ever done for my mental health.

Have you checked with your bank whether they do a similar thing?

I am with the Halifax and they have a "save the change" option on their accounts.

All I can say is do your research before opening anything or paying any money in. The FSCS is the compensation scheme for UK savings, and they have a website where you can search for banks and other providers to see if they're covered.

www.fscs.org.uk/check-your-money-is-protected/

With FSCS protected savings your money is not at risk. If inflation exceeds interest the real value will decline, but £1000 paid in will remain £1000.

Investments by contrast are risky - you may get back less than you paid in. To be honest any "investment" advertised on the internet is very likely to be a scam of some sort.

Or what about premium bonds?

I think their minimum investment is £100, I would rather "save the change"

I am with Natwest, dont want to change banks

I have a standing order that pays into my savings account the same time I get paid, i also use save the change adding to my savings when i buy anything.
Ive managed to build up a small amount, enough to ease my anxiety from where I was a year ago.
I also pay into a share save scheme through work, again a small amount but i cant touch it for 3 years and hopefully will make gains on it.

Try Chip...really easy app to use. Automatically saves me an amount based on my sending patterns, every 4 days or so and it’s FCA authorised.

Another way of making a few quid (and forgive me if you know this already) but if you shop online, sign up to cashback sites.

I am with Topcashback and made almost £400 in just over a year.

You can then save that up and when you have enough for a new pair of DMs just make a withdrawal which takes about 3 days.

Again, the halifax have a "cashback Extras" function so you can earn money through that.

It all adds up!

@safariboot

Idiot alert.

So..... if I pay into a savings app that is a savings app and not an investment one and I get (for sake of easy maths) a 100% interest rate, and I pay in £100 then my £100 is safe? But the £100 interest would not be? Yes?

Sorry, the above being based on the savings app "bank" being backed by the FSCS

I cant believe I am so dumb about this, if I told you my IQ.... :o:o

Lloyds also do a save the change feature which rounds up to the nearest pound whenever you buy anything using your debit card...

Who is offering 100% interest? That doesn't sound right.

I am signed up to Topcashback but I always forget to use it, maybe I should make it my homepage instead of MN....

@Swooningmonkey How do you know its safe? I am interested, but how do you know its safe, where is the money once it is taken, how do you get it back when you need it?

Who is offering 100% interest? That doesn't sound right.

Nowhere.

As I said in that post, it was just an example for easy maths.

Sorry, I realised as soon as I posted!

Check if NatWest does a 'save the change' type scheme. As pp said above, Halifax do for sure, NatWest may do similar.

I know you said the pressure of saving x amount doesn't suit you. Why don't you just set up a savings account with NatWest, and set up a standing order from your current account to savings account for £5/£10 a week, or even like £1 a day! It's such a small amount you won't notice it, but it soon builds up.

Either that or set the account up and just transfer money when you feel like it.

If it's access to the money that worries you, set up an isa where you can't easily withdraw it.