Pounds I applied to savings fund (7)
I believe the answer is:
pension
'savings fund' is the definition.
'pension' can be an answer for 'fund' (pension fund is a kind of fund). I'm unsure of the 'savings' bit.
'pounds i applied' is the wordplay.
'pounds' becomes 'pens'.
'applied' becomes 'on'.
'pens'+'i'+'on'='PENSION'
'to' acts as a link.
Can you help me to learn more?
(Other definitions for pension that I've seen before include "Retiree's income" , "Bed and breakfast or small hotel in France" , "Retired person's allowance" , "Nice little hotel" , "Retired person's income" .)