In today’s technology driven world, apps are all about making your life easier. Need dinner but too tired to cook? You can Postmate your next meal. Need a gift ASAP? Amazon Prime it.
The personal finance world has also embraced technology to simplify your life. There are even automatic savings apps that can help turbocharge your savings and make it effortless.
To learn more about what’s out there, let’s take a look at Chime Bank and Rize. These banking apps can get you on the right path to saving without the hassle. Read on to decide which of these apps is best for you.
Chime Bank: A Saving App That Takes the Work Out of Saving
Chime is a fee-free bank that is mobile-only and offers great automatic savings features. If you sign up as a Chime member and open a Spending Account (like the equivalent of a checking account), you can also have a Savings Account with automatic features that help you save money.
Chime Bank Automatic Savings Features
Using Chime, users can round up all of their purchases to the next dollar and save the difference. In other words, you get rewarded every time you make a purchase and the additional savings helps balance out some of your spending.
Let’s say you go out to lunch and spend $12.35. In this case, you’d pay $13 yet 65 cents would be deposited into your Savings Account. It may not seem like a lot but you have to think about the compound effect. It’s not just saving this time but it’s saving every time you spend money. This kind of consistency is what successful saving is built upon.
Aside from rounding up, you can also automatically save when you get paid. You may have heard that you should “pay yourself first” and Chime takes this to the next level by ensuring that you are saving the basic recommendation of 10% of your earnings. Chime savings accounts also earn an Annual Percentage Rate (APR) of .01%.
One last thing: Chime is not only an automatic savings app but a fee-free, full-service bank account that can help you better manage your money.
Rize App for Saving and Investing
Another automatic savings app on the market is Rize, and it is an app that can help you save for short and long-term goals.
Using Rize you can set an unlimited amount of goals and save automatically. Want to save for your next trip and your next car? How about your daughter’s college fund and your birthday? You can save for all of the above, at the same time. The Rize app lets you set up your own savings schedule and earn 1.43% interest on your deposits.
Rize also helps you invest. For example, if you’re saving for long-term goals, the Rize app will actually invest your money into exchange-traded funds, which are a mix of stock and bonds, as well as cash. It’s important to note that Rise charges a 0.25% fee when investing for your long-term goals.
Aside from this, you can also supercharge your savings using Rize’s ‘Accelerator’ feature, which helps users increase their savings by one percent each month. Rize also has a ‘Boost’ option that transfers spare change up to five dollars or five percent, whichever is less.
Lastly, Rize has a ‘pay what you want’ model. This means you can contribute a few bucks a month or nothing at all – if that’s what you wish. The app does recommend paying at least two dollars per month to access the investing part of Rize, unlike Chime, which offers their services at no cost to their customers.
Chime vs. Rize: Switch to Chime for Full Service Banking & Automatic Savings
Chime and Rize each have their own benefits as automatic savings apps. Chime is a great option if you’re looking to save for a rainy day while also accessing fee-free banking. Rize is a bit more robust in that you can save and invest, but it charges fees.
If you’re looking to ditch a big bank while also automating your savings in a simple, effective way, you should get started with Chime. But, if you’re looking to maximize your long-term savings goals and do more than save for a rainy day, Rize could be the better go-to option for you. Since Chime is a fee-free bank and not just a savings app, you could use both Rize and Chime together to save and invest for your short and long-term goals.
Whatever you decide to do, the key is to get started with an automatic savings app. This way you’ll save more money – effortlessly.