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

As long as it i isn't invested and just saved, your actual savings will be safe they aren't dependent on the stock market or anything else, but they may not attract much/any interest at the moment) but, as long as your savings are below £85k for each U.K. regulated financial institution they are protected. But as long as the institution is regulated in the U.K. it will be covered.

FSCS protection covers the current balance of the accounts up to the £85,000 limit. That includes interest that's been earned and paid into the account. I'm not sure if it includes interest that hasn't yet been paid in.

Is this any good to you?

personal.natwest.com/personal/savings/tools-for-savings/savings-goal-tool.html

Also, TCB have a 'notifier' which pops up whenever you're on a site affiliated to them, that might be worth a look.

www.topcashback.co.uk/cashback-notifier

So.... I need one that is a UK regulated financial institution? And is a savings app not investment? Right, that is really helpful information, thank you :)

I'll be lucky if its £850 by Xmas never mind £85k :o

Oh, and best of luck breaking those new DMs in!

Is any financial institution 100% safe?

I’ve used Chip for the last 4 years, never had a problem. Once you hit withdraw on the app, the funds reach your account instantly. I choose not to hold over 3k with them, I prefer a ‘proper’ bank for larger sums.

Theyre v v comfy! I bought a half size smaller than I used to (sure my feet have shrunk since I started slaloming towards 50!) and they are like foot slippers. Not like the "feet encased in concrete" feel I had when I last bought some!

I use Plum which is FCA regulated and I really like it. I set it to save my change as well as running the algorithm to calculate how much I can afford to save based on my spending patterns - never been able to save before and suddenly I have real life savings.

Thank you @AngryFeminist (are you in the WEP?) I will look into that one too :)

I understand exactly what you are saying, I use the lloyds one, which goes into my lloyds savings account and then every month, it takes £10 out, I may have more in it,but that 310 gets squirreled into a different savings account.

Good thing I did, because that is what we are going to have to use to survive if the lockdown goes on much longer

With Chip (I've not used any others) the money you save is effectively looked after by Barclays, so if Chip go bust, your money is safe, but it's not FSCS registered so if Barclays go bust you don't get compensated.

I figure the risk of that is pretty small, and I withdraw before I have a fortune in there. It doesn't gain interest (you used to be able to boost interest rates up to 5% a year by referring friends but not sure if that's still the case) but I'm less bothered about gaining interest as I see it as shorter term rainy day money.

@ViciousJackdaw

Thank you, missed your post earlier, I will look into that

Thanks @Lellochip