Fintech Tools That Will Boost Your Cash Savings

Using automated financial technology tools gives people a strong savings mindset, according to a study from Case Western Reserve University. With the average U.S. family in debt to the tune of $155,622, it’s no surprise that 56% can’t afford an unexpected expense of $1,000. But financial technology could be the answer to this problem as the latest fintech developments could help the nation to save more money. Here’s all you need to know about how to use this technology to your advantage.

Automated savings

Statistics show that the average person saves between 6 and 8% of their salary each month. But financial experts don’t believe this is enough. Fintech app Digit works off the 50/30/20 rule which involves 20% being used on savings and debt. The app doesn’t expect users to move this money over themselves, though. Instead, it uses an automation tool to put money into savings. This money is allocated to goals that the individual creates. You can set up as many goals as you like. The idea behind goals and automation is that it makes saving fun and pain-free.

Comparing prices

An increasing number of people are overspending. For example, research shows that 30% spent more than they intended to last Christmas. Fintech aims to help people shop around for the best prices so they have more cash to put into their savings. Apps that can increase savings include WiseList. WiseList compares grocery prices and notifies users of special offers. Nano helps savers as it compares rates on home loans, making it simple for homeowners to refinance their loan at the best price possible and put aside the additional money.

Higher interest rates

Interest rates have been low for some time and it’s only now that they’re starting to creep back up. One of the latest Fintech tools, Current, allows users to earn an Annual Percentage Yield (APY) of 4%. This figure is 60 times higher than the national average APY. So, how does this benefit individuals? First of all, the higher interest rate means you’ll earn more money on any cash you deposit. You can deposit up to $6,000 but it needs to be spread across Savings Pods which can hold up to $2,000. This is ideal if you’re wanting to put money aside for different things as it will help you to stay organized.

Better education

Just 57% of Americans are financially literate. When you don’t understand money, you make poor decisions, including not saving as you should. World of Money is suitable for all age groups and includes lessons, videos, and end-of-module quizzes to help boost your knowledge. Zogo is a particularly exciting app as you get paid to learn about money. You get rewards when you complete modules which include store gift cards. Each lesson only takes a couple of minutes out of your day, so it’s easy to complete too.

The latest financial technology is making it easier than ever for people to increase their savings. So, if you’re finding it difficult to build a decent nest egg, try using these fintech tools.