Monzo has disclosed that the highest amount saved by a single customer using its roundups feature is around £45,000. Roundups function by rounding up each card transaction to the nearest pound, with the spare change automatically funneled into a digital savings pot.
On average, Monzo customers save approximately £109 per year through roundups. Similar roundup features are also offered by other banks like Chase, Starling, NatWest, Lloyds, RBS, Halifax, TSB, and Revolut.
These latest statistics coincide with the approaching ISA deadline. Each tax year provides a £20,000 allowance that can be divided among different types of ISAs. Unused allowance cannot be carried over to the next year.
As the tax year concludes on April 5, it is a good time to assess whether your savings are maximizing their potential. Various saving methods exist, tailored to individual circumstances and savings goals.
To help individuals enhance their savings, Joanne Phillips, General Manager (Wealth) at Monzo, emphasizes starting with simple steps like setting up a roundup. She recommends prioritizing emergency funds equivalent to three to six months’ worth of essential expenses.
Moreover, individuals can consider short to medium-term savings for purposes like holidays and establish a layered approach to savings, incorporating instant access accounts, cash ISAs, and stocks and shares ISAs.
From April 2027, the cash ISA limit for those under 65 will decrease to £12,000, while the overall ISA limit remains at £20,000. This change aims to encourage more people to invest in stocks and shares.
Labour anticipates that the adjustment will prompt increased investments in stocks and shares. However, these alterations will come into effect in the following year, allowing time for education and preparation to help individuals save and invest wisely.
