What is a savings pot and how can they be used?

Savings pots – sometimes called money saving pots – are a clever way to organise your finances and stay motivated to save. Rather than keeping all your money in one place, you can set up separate pots for different goals. This digitised jam jar method can help you reach specific savings goals and encourages good spending habits.

Key points:

• There is no one-size-fits-all approach – saving pots can be tailored for any goal, big or small, to suit individual needs and lifestyles
• Some banks offer features like automatic round-ups, where spare change from purchases is transferred into a savings pot that earns interest
• Major events, such as weddings or milestone birthdays, often have long lead times, so starting to save early in a dedicated pot can help you prepare without financial stress
• Using savings pots can help you manage impromptu plans that don’t fit your financial goals, helping you stick to your budget
• With Chase, each savings account is its own account with a unique account number, offering more control and flexibility compared to traditional pots

When you use savings pots, you’re not just saving for the sake of it – you’re giving your money a purpose. Without a clear goal, it’s easy to lose motivation and hard to know when you’ve saved enough. By setting up savings pots, you can track your progress and celebrate when you hit your targets.

People who use money savings pots as part of their financial routine may find it easier to stay on track with their goals. Some banks (including us) even offer a bank account with pots, making it simple to manage your money and stay on track.

How to set up a savings pot

Many banks now let you set up savings pots within your account, making it easy to separate your money for different purposes. With Chase, each saver account is its own account, complete with its own account number – so you can manage your money directly from each one. This gives you more control and flexibility than traditional pots, and you can move money in and out as you need.

To get started, simply log in to your banking app, create a new savings account or pot, and give it a name that matches your goal. For example, you might have a “Holiday fund” or “Emergency pot”.

Types of savings pots

There’s no one-size-fits-all approach to saving. Saving pots can be used for all sorts of goals, big or small. Here are some popular saving pot ideas to get you started:

Emergency pot

An emergency pot is one of the most common money saving pots. It’s there for those unexpected expenses – like a broken boiler or a surprise car repair – when your regular income just won’t stretch. If you’re able to, build up three to six months’ worth of expenses in your emergency pot. If that sounds like a lot; you can build it up gradually over time. Having an emergency pot could be a safety net for life’s little surprises.

Cheeky treats

Everyone deserves a little treat from time to time. A dedicated pot can help you plan for those small luxuries, like a fancy coffee, a pastry or a spontaneous lunch out. By setting aside an amount each week, you can enjoy your treats while being mindful of your overall finances. This approach supports sticking to your budget pots and helps keep your savings on track.

Fun fund

A fun fund is your preparation for enjoying life’s adventures – nights out, concerts, events or spontaneous activities. Decide how much you want to spend on entertainment each month and pop it into your fun fund. This way, you can enjoy yourself without worrying about overspending. Plus, it gives you a tangible reason to say no to plans that don’t fit your financial goals.

Spare change

Saving doesn’t have to be hard work. With a spare change pot, you can save effortlessly. For example, if you spend £17.71, you can round up the transaction to £18 and pop the extra 29p into your savings. If you have an account with Chase, you can set up your account to automatically round up your spending and move the difference into a Chase round-up account that pays interest. It’s a simple way to grow your savings without even noticing.

Jam jar saving

Jam jar saving is the old-school way to manage your money using physical pots, such as glass jars or piggy banks. Simply label each jar with a specific goal and add money whenever you can. Each jar or pot keeps your savings separate, making it easy to see your progress at a glance. Whether you’re saving for something big or small, this hands-on approach helps you stay organised and motivated as you (literally) watch your money grow.

Major event funds

Big events can come with big price tags. A major event fund is a dedicated saving pot for those milestone moments – think weddings, milestone birthdays or destination celebrations. By planning ahead and saving a little each month, you can enjoy these special occasions without worrying about blowing your budget. Major events often have long lead times, so starting early means you’ll be ready when the big day arrives.

These are just a few pot ideas to try. Pots can be specific to your life and needs. Think about the obligations, goals and lifestyle habits you have to build a pot system that works for you.

Make your money work harder with savings pots

Setting up savings pots – or even multiple saver accounts with their own account numbers, as offered by Chase – can transform the way you manage your money. By giving each goal its own space, you may find it easier to stay motivated, track your progress and reach your targets. No matter your goal, savings pots help you take control of your finances and make your money work harder for you.

18+, UK residents. A Chase current account is required to open a saver account.