Moneybox is the perfect choice for people who don't have the time or energy to spend hours researching investments and just want to start saving for their future in a simple, straightforward way.
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Moneybox is a mobile app that focuses on microsavings, using them to invest in the stock market, as we showed in our Moneybox review. This is a new company to keep an eye on!It has gathered attention from awarding bodies such as the Times, Boring Money, Moneyfacts Consumer Awards, and AltFi for its 300.000 users across both platforms.
One of the features worth mentioning about Moneybox is its ability to encourage you to invest. Whenever you make a transaction, the app will round up the amount to the nearest pound and invest those few pennies for you.
Moneybox is the place to go for UK residents looking to save and invest.
The company offers ISAs of different types including a new Lifetime ISA which is available both as a Stocks & Shares and Cash option. The interest rates offered by the Lifetime Cash ISA are among the best on the market.
They have the following investment accounts:
- Stocks and Shares ISA
- Stocks and Shares Lifetime ISA
- Junior ISA
- GIA (General Investment Account)
They also offer a regular cash savings account options; if you need the funds in an emergency, the 95 Day Notice account may not be the most useful since it offers a pretty competitive rate, 1.65%, compared to UK banks, but can only be withdrawn with – you guessed it – 95-days notice.
They also offer a Stocks and Shares and Cash lifetime ISA, which is part of a new government program, but is often overlooked by brokers. The ISA review below goes into greater detail about this ISA.
Moneybox does not let you pick the exact funds you want to invest in, instead their expert team at Moneybox chooses the funds and reviews them every year. Investing has been distributed between the Fidelity Index World Fund, iShares Global Property Equity, iShares Overseas Corporate Bond Index, iShares Overseas Government Bond Index, and Legal and General Cash Trust during the past few months.
You can find more up to date details of the fund allocation on their website.
The fees you pay at Moneybox depend on the type of account you have and the funds you’ve allocated. It’s refreshing to see such simple pricing as opposed to page after page of options for SIPPs, ISAs, phone transactions, and stock purchases, for instance.
Standard Monthly Subscription Fee
A £1 monthly subscription fee covers all investment accounts with Moneybox and the first three months are free for new clients.
Fees for using the platform
Platform fees are charged by Moneybox at 0.45%, which is higher than most other providers. As a result, the slightly higher fee can be attributed to the fact it’s pretty much an all-encompassing service, so it makes sense.
Charges drawn from fund providers
They range between 0.12% and 0.30%, which is fairly standard but does depend on which funds you choose to invest in. While Moneybox can choose funds with lower fees – so investors can benefit from those savings – they have little control over the rates.
Fees for pensions
The platform fees Moneybox charges pension funds are on a sliding scale, not a subscription fee.
In the case of pensions worth less than £100,000, the platform fee is 0.45%. Those with pension pots over £100,000, however, can enjoy reduced fees at as little as 0.15%, so their services are very useful up to £250,000.
Moneybox is safe, and those who are erring on the side of caution should not hesitate to use it. A Financial Services Compensation Scheme (FSCS) protects your money up to £85,000 and Moneybox and its app is regulated by the Financial Conduct Authority (FCA).
Moneybox accounts are incredibly easy to open, and you do not have to answer the multitude of questions you would with a traditional broker. It’s all done on an app, which is very user-friendly.
In terms of information you’ll need to verify (on top of your personal details and address – of course) only your bank details since you’ll need to create a direct debit to get started.
There’s an option to add a lump-sum investment on payday to make sure you don’t miss out on your money (so you won’t miss out on it). Additionally, they have shown you how much money you will have in 10 years based on the various choices you make during the signup process.
Moneybox allows you to transfer investments to their account by completing a form on their website or in their app. They will then need to receive it via postal mail.
In contrast to mainstream brokers, the process takes a little longer here. The process could take up to 30 days. This is two to three times longer than other investment providers.
In addition, Moneybox will be unable to invest your money in the same funds or shares that you currently hold unless those are the same as what is offered by Moneybox. This is because the company has already selected the investments for you.
With Moneybox, you can dip your toes into the world of investing without having to do a lot of research to select funds and do your own analysis. Obviously with this method you’re relying on another person’s opinion. Nevertheless, it’s a great way to get started.
If you have trouble saving money, this is a great option for you because it encourages you to put away small amounts frequently for a potentially big return.