Americans Saving More; Auto-Save Apps Could Strengthen Trend

Robosavers take some of the work and thinking out of the equation for consumers when it comes to setting up automatic withdrawals and savings deposits. This can certainly add to the appeal for some potential savers, particularly of the Millennial generation. After all, they’re used to just about auto-everything

Americans both earn more and save more these days. The U.S. Department of Commerce reports American personal income saw a $39 billion increase in August 2016. In the same “Personal Income and Outlays” report, the government listed the total personal savings among U.S. households at nearly $800 billion. This indicates a personal saving rate of nearly 6 percent.

While there are undoubtedly a number of factors driving this jump in personal savings, new savings apps could be playing a role (or have the potential to in the coming months and years).

These auto-saving apps or “robosavers,” examples of which include Acorns and Digit, are gaining some notoriety in the digital banking world. Along with offering automated financial advice, some of the apps track users’ patterns and habits, then automatically deposit what is determined to be the appropriate amount into an FDIC-insured savings account.