A digital piggy bank refers to an electronic or software-based platform or device that mimics the function of a traditional piggy bank, but instead of physically storing coins or paper money, it helps users save, monitor, and manage their money digitally.
These digital platforms might provide features such as savings tracking, goal setting, automated savings, notifications, security, interest or rewards, integration with other platforms and educational features.
In essence, a digital piggy bank combines the concept of traditional saving with the advantages of digital technology, often aiming to make the saving process more engaging, efficient, and insightful.
In this article we have grouped the best digital piggy banks on the market.
To choose the best ones, we considered these factors:
- The quality of service
- The fees content
- The possibility of rounding up deposits
- The possibility of reinvesting savings
- The possibility of setting up automatic deposits
|Digital Money Boxes
What are the best digital piggy banks?
Below our curated list of the best digital piggy banks, with details of features and characteristics.
Is saving money really useful?
Saving money is very useful if you have a predetermined end goal, such as a trip, a birthday gift, or a large expense such as buying a car. However, saving money by leaving it in your account can be counterproductive because it will be eroded by inflation.
For this reason, if you have no particular goals but want to accumulate wealth, you should also think about how to reinvest some of the money you do not spend.
If you are experienced in the financial markets, you can try taking a look at the best brokers on the market that will allow you to trade different assets such as forex, stocks, and more.
On the other hand, if you have no experience and prefer to have others reinvest the money for you, you can take a look at Robo Advisors that will allow you to entrust your savings to professionals directly from apps.
Costs of digital piggy banks
Digital piggy banks can charge three types of fees:
- The annual fee
- Commissions on deposits and withdrawals
- Transfer fees (wire transfers)
In any case, digital piggy banks may not charge any of these fees since the goal of these services is to give users the opportunity to save small amounts of money.
By charging numerous fees, in fact, users would see their savings shrink over time which goes against the basic concept of saving money.
The most common of those fees, however, is the annual fee, which is often not even applied directly to the piggy bank but to the service itself.
Pros and cons of digital piggy banks
- Very low fees
- Automated savings features
- Allow you to enjoy compound interest
- Not all digital piggy banks allow money to be reinvested
- Saving without reinvesting can be counterproductive
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