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Best Way to Save Money in 2021

Best Way to Save 2021

If CoronaVirus has taught us anything, it’s the importance of having savings put to one side for a rainy day (or a global pandemic). If you are thinking of making 2021 the year that you finally hit your saving goals then happily there are many ways to help you down the path to success.

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The recommended minimum amount of savings is three to six months of living expenses. This gives you time and breathing space should you lose your income for any reason. Anything over and above this can be used to further grow your wealth in investments or could be money that is put to one side for a specific goal.

One of the best ways to maximise on your savings is to open an account with a savings platform that can utilise various methods to help you painlessly put money to one side. One of the most effective ways to do this is by rounding up payments to the nearest pound and saving the difference in a specified account. Another highly effective strategy is to use complex algorithms and artificial intelligence to analyse your spending and income in order to ascertain an amount that you can safely afford to save. Here are our picks for the best apps currently on offer:


Plum will link seamlessly to your bank account where it analyses your income and outgoings in order to transfer small amounts into a savings account. This happens about five times a month, in increments you won’t even notice, but is a highly effective way of putting money to one side. One of the great advantages of Plum is that this account is totally free, as long as you stick to their cash account. They will also suggest ways to save money on your home energy bills and a small amount can soon add up to significant savings which can then be invested through their investment account.

On the negative side of the coin, there is no interest being offered on the Plum saving account, so you may want to avoid leaving money languishing in there for any significant amount of time. However, you can transfer to the investment account, where you will be charged a small monthly fee of £1 as well as 0.15% of the value of your fund.


Moneybox is another savvy app that links to your account and allows you to engage in microsaving, however, instead of holding your cash in an account, with Moneybox your money is invested straight away. You can choose rounding up or make one off payments and Moneybox also offer a stocks and shares ISA so you can start earning an income from your investments completely tax free. Moneybox is completely free for your first three months, after which you will be charged £1 per month as well as a 0.45% platform fee and fund fees of 0.12% to 0.3% depending on the size of your pot.

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