Simple bank trick will save you £650 a year without you even noticing

Saving can be tough for many, with various hurdles to overcome depending on your personal situation. Yet, a simple banking feature might just be the easy fix you've been looking for.

Over 10 UK banks now provide 'round up' services that help you save money automatically with each card purchase. Jason Higgs, a senior deals strategist at Bountii and a money expert, has shed light on how the clever tool operates.

After setting up one of these accounts, every time you buy something, the bank rounds up the cost to the nearest pound and pops the difference into a separate savings pot. Jason said: "This way, you save without consciously setting aside money."

Take buying a coffee for £3.40 as an example; the round up mechanism would charge you £4, stashing the spare 60p into your savings. These little sums quickly accumulate - Moneybox's app reveals the average user tucks away £12.37 weekly using round ups, totalling £650 annually without any effort.

If your balance is low, the round up won't trigger. This means there's no fear of unintentionally dipping into your overdraft.

While these round up accounts simplify saving, Jason emphasises the importance of picking one with a good interest rate. He said: "Look for accounts that pay interest rates higher than inflation to ensure your savings grow in real terms."

Jason advises seeking out accounts offering interest rates above the current 2.3% inflation rate to ensure your savings grow in real terms. He also added: "Round ups are a great way to build the savings habit, with the added bonus of earning strong interest too."