Micro-savings is characterized by the fact that it is carried out periodically by people with low incomes. By making regular contributions to an investment fund, flexibility, liquidity, diversification and planning are achieved.
Let’s look at what microsavings really is…
Periodic contributions and personalized savings
Periodic contributions consist of the monthly investment of a certain amount in an investment fund. The main difference with other types of investments is that instead of making a total disbursement for the whole amount, it is done through small monthly amounts.
Periodic contributions allow for personalized savings and enjoy numerous advantages.
Advantages of micro-savings
- Flexibility. The investor can decide the amount they contributes monthly and can increase it, reduce it or suspend it according to his/her preferences.
- Liquidity. It is not necessary to get rid of all the savings, so it is possible to make use of them.
- Discipline. Helps create the habit of saving and encourages financial discipline.
- Diversification of market risks. By investing a monthly amount, you are less affected by variations.
- Savings planning. It is possible to set long-term savings and investment goals without compromising financial stability.
In addition to these advantages, it is also common to dispose of the money by selling the units. As far as taxation is concerned, no taxes are paid until the shares are sold.
Save and invest in the same app
By installing it on a smart cell phone it is possible to save and invest in some of the applications that have been launched by financial institutions and other institutions.
The operation is quite simple and has several options.
First, the user can make periodic contributions that the application invests in different products, depending on the customer’s preferences.
On the other hand, there is the possibility of activating the rounding of purchases. The purpose of this system is to transfer the difference of the purchase and the rounded money to another account for the user’s savings. It is also possible to invest the resulting sum of money in a product.
In this way, the client will always have at hand all the information about his savings and investments and will be able to consult reports about profitability and other aspects related to savings.
Achieve your goals with just one click with micro-savings
When it comes to achieving financial goals, the ideal is to be able to achieve them in the simplest possible way.
With the use of secure and specific applications for savings and investment, it is possible to achieve good results and have all the available options at your fingertips.
With a single click it is possible to make regular contributions, pay bills, consult the status of different bank accounts or make any other transaction.
It is only necessary to set the objectives and the application will begin to guide the user in the steps to follow to reach the goals. In this way, it will warn the user when the initially established budget is going to be exceeded, when a bill has to be paid or when it detects a new transfer received.
To get started, all you need is a cell phone to download and install the application of your choice.
Which microsavings app is right for me?
Don’t worry, here are some of the most used…
Micro-savings applications
Many of the most widely used financial institutions around the world have launched their own microsavings applications to make it easier for their customers. This microservice is integrated thanks to the collaboration with a Fintech that provides the necessary technology to carry out the project.
Let’s take a look at some examples of micro-savings apps
- Hucha Santander. With this application it is possible to save money through the initial configuration of automatic application rules, such as periodic contributions or rounding of card purchases. In addition, it includes gamification and personalization by, for example, generating contributions every time your favorite team scores a goal or wins a match.
- Hucha Evo. This app allows you to set initial personalized rules where you will make automated and periodic contributions wherever you want. Investments, pension plans, safes and many more options that you can increase without realizing it by rounding up your digital purchases.
- Cling-Cling. Of course, micro-savings can also be present in an insurance company. This application is a savings plan that helps with actions such as rounding off purchases with cards contracted with other credit institutions. It also offers the possibility of investing these contributions in stock markets without the need to be an expert.
- BBVA Rounding Account. With this system, the cents of card purchases are rounded up to the next euro and sent to another account of the customer in the same entity.
- Abanca’s Cuenta Calderilla. Unlike other applications, it is not used for every purchase. It is activated on purchases over 15 euros and will round up the amount to the next five.
In recent years, applications have been created in which it is possible to save and invest at the same time. With this type of platform, all transactions can be accessed with a single click. Some financial institutions, such as Banco Santander or Evo, have created their own micro-savings applications to offer their customers this new and beneficial service.
