People often have different financial goals based on their current scenario. However, increasing their savings is part of most individual goals. The target amount may vary from £10 to £1000 or more per week, depending on the household income and expenses.

Budgeting helps to lower existing costs, increase savings, and avoid late payment charges. Neo banks provide an easy method of increasing personal and family savings. It comes with round-up capabilities that increase savings over time.

However, neo banks remain digital with no physical branches. But, a post office visit can resolve any financial queries persisting to such a bank. Also, money withdrawal is available through any ATM. Additionally, neo banks can boost savings with categorization and

3 Ways to Boost Savings Through Neo Banks

Round-Up
Every day we incur expenses through online transactions, but many times fail to contribute the minimum amount into the savings account. Neo banks can help to build consistent savings by adding the nearest round-up pound to the savings.

For example, if you bought a coffee for £5.50, 50p would contribute to your savings. At first, the contribution might seem unconvincing, and over time it will increase. Therefore, neo banks help to create an everyday habit of savings without building unnecessary stress.

Besides this, many neo banks offer the facility of contributing two to three times the nearest pound. It means instead of 50p; it will transfer £1 or £1.50. If the bank's savings become significant, you can clear instalment loans for bad credit from direct lenders only or other debts.

Diversification
All neo banks offer diversification of funds into different categories. Therefore, the bank owner can view rent, food, bills, general shopping, miscellaneous expenses, etc., under various heads.

As a result, the neo bank owner can make lifestyle changes to reduce outgoing expenses. For example, if the monthly coffee charges from a local shop cost £200, it is better to find coupons for the same shop, utilize offers, or switch to another store.

Besides this, the necessary expenses remain highlighted; however, a few of them become avoidable in the long run. For example, clearing existing debts would remove loan repayments and increase savings.

A conscious habit of finding money savings solutions before visiting a restaurant, club, traveling, etc., develops. As a result, the money in the account keeps increasing, and the expenses diminish significantly.

Savings Jar
Many neo banks offer the facility of creating savings in different sections or jars. However, the overall funds remain saved in a single account. Therefore, the bank account owner doesn't undergo a lock-in or requires a separate ATM card.

The money remains available to the account holder at all times. Therefore, savings can act as emergency funds whenever required. Besides this, having different saving jars helps to disseminate funds for various purposes.

The increased sectional savings helps to accommodate more considerable funds as opposed to a single jar. Moreover, the nearest pound is distributed into the different sections based on the account holder's criteria.

So, a particular section can have two times the nearest pound, another one can include thrice, and the primary can continue as fundamental.

Important Facts to Remember
Although neo banks remain completely digital, however, they have customer service representatives for assistance. Moreover, unlike traditional banks, they don't have high waiting periods on call.

Also, keep in mind that money-saving preferences differ from one person to another. Therefore, one of your known people can choose a traditional bank based on physical branches. Meanwhile, another person would remain comfortable with a comprehensive mobile app.

However, neo banks can help to contribute towards your savings with minimal deposits significantly. According to a source, Revolut was one of the most famous UK banks in 2019. Its customer base increased from three to eight million between 2018 and 2019.

A few other prominent neo banks include Yolt, Monese, Monzo, and N26. During the same tenure, their market share growth was 4.82, 7.49, 16.06, and 18.73 percent. Revolut had a 42.82 percent market share growth.

Also, neo banks like Volt have been encouraging customers to boost savings by taking proactive steps. It bought weekly, monthly, and fortnight challenges, besides automated reminders to help users start the initiative.

Millennials love neo banks, incredibly tech-savvy, want to research spending insights, use innovative tech and tools, and travel. Unlike traditional banks, neo banks like Revolut, Hay, and Pelikan don't charge overseas fees on withdrawal up to a specific limit.

Besides the three renowned fintech, many others don't charge any overseas ATM withdrawal fees. Unfortunately, there is no surety from the ATM provider.

Therefore, the account amount remains deductible only with the withdrawal amount and no other expenses. As a result, you can travel without worrying about unscrupulous withdrawal charges, and even contribute an estimated amount towards savings.

Additionally, neo banks like Revolut also help to save money through interbank transfers. According to a source, the fintech offers a limited transfer amount to twenty-seven currencies at an interbank rate for its standard users.

Therefore, people that send a fixed amount to their relatives, family members, friends, co-workers, or freelancers can save cash. Conclusively, neo banks help to create savings in many different ways.

Ella

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