The tap-and-go nature of payments makes it so much easier to impulse buy these days, putting your savings at risk and increasing the chances of going into your overdraft. But it is not just the impulse buying that is the problem. We have also lost our habit of putting spare change in the piggy bank.
One way to bring back micro-saving is via round-ups on our money apps. When a Costa coffee sets us back £3.40, a round-up means that 60p goes to a savings pot, so the purchase is a full £4.
But does removing the conscious choice to save from every transaction help us or hurt us?
How Do Round-Up Apps Work?
Round-up saving is popular through apps outside of bank accounts and this is made possible by open banking, a framework that allows your savings app to monitor your current account transactions and reshuffle your money accordingly.
There are options for a double or triple round-up too, the latter of which would mean paying £5.20 for that Costa latte, with £1.80 of that amount going to the savings pot. This would be quite an aggressive savings strategy to pursue, but while losing its literal “round-up” meaning, it will still remain effortless saving.
With over a million customers, Moneybox is one of the best money-saving apps and claims its average UK customer saves £12.37 a week on round-ups. This means that starting a savings habit has saved those customers £643 a year and some of the people surveyed said they didn’t even notice that money leaving their main account.
Round Up Savings Pros and Cons
The main advantage is psychological. It is all about helping with budgeting fatigue, which many people experience when they are penny-pinching. Going out of your way to save 40p here and there is a constant reminder that the money is hard to come by and can feel futile. Personal finance automation helps overcome that.
But there is another advantage – savings are tied to spending and this can help fight lifestyle creep. When you get a pay rise, your card spending increases, leaving people feeling like they are no better off. Setting up an explicit link between savings and spending helps overcome this.
It is therefore a good saving method for those with a good disposable income and the 13.1 million UK adults with low financial resilience.
On the negatives, one problem with round-up saving is that it creates a low interest trap, because many round-up pots pay negligible interest. This makes it profitable for the round-up apps, but not for you. Though in 2026, some have a “sweep” function to clear your balance (to a high-interest savings pot) each month. Automating your finances strikes again.
Another problem with this saving method is that it depletes your current account faster and can make you think that you have less money than you actually do. And then there is also a risk of creating a spend-to-save paradox, but only you know if you fall into it.
Still, the mental dividends are high for many. A University of Bristol study confirmed that the habit of regular saving, regardless of the amount, has a stronger link to high life satisfaction than the size of the pot itself. It is the sense of progression, even if it is not the best way to save money in the UK.
It Can’t Replace Budgeting
Round-ups can be great for those lacking the discipline to do it themselves. But in any case, it can never replace a rigorous 60/30/10 budget method – it simply is not enough to save under a pound on each purchase, especially in 2026, when the pound is not what it once was.
With UK household saving falling to 9.5%, it is clear that the rise in round-ups is not making up for more structural problems like lower incomes, high spending and a lack of a clear budgeting strategy. Round-up savings help, but they are not enough on their own.
