Moneybox Review UK

Moneybox is a simple mobile app that helps you start saving and investing.

Their automated system makes it easy for people who are struggling to be more disciplined with their finances.

And with as low as £1, you can access customisable investment portfolios. 

Moneybox also offers services that allow you to plan strategically to save for your first home and retirement.

I tried this app for myself and have documented my experience and Moneybox review below.

Read on to see if Moneybox is right for you. 

Introduction to Moneybox

Founded in 2016 by Ben Stanway and Charlie Mortimer, Moneybox is an award-winning application that helps simplify saving and investing.

Due to its low-cost options and easy-to-use app, Moneybox managed to have over 900,000 customers. 

Moneybox was created to help younger people with their finances and bring investment to the masses. The founders want young people to invest little and often, preparing them slowly for their future.

The start-up has received four rounds of funding from venture capitalists, and the company continues to grow its services.

For example, Moneybox now also serves as a platform for creating pension plans.  

The app works just like an old-fashioned piggy bank.

It takes your spare change and then puts it into a savings account.

After you have money in your account, you can invest that fund to grow it further. 

How to Create & Close an Account at Moneybox

Moneybox is only available as an app on your mobile phones, so you first need to download the application.

Then prepare your documents: your government-issued ID, national insurance number, proof of address, and bank account details.

Then you will choose the type of account you want to open and how much money you want to set aside.

You can select roundups, weekly deposits, or one-off deposits. 

You will also need to choose your risk level of investments: cautious, balanced, or adventurous. 

• At the cautious level, you’ll invest 40% of your fund in corporate and government bonds. 
• At the balanced level, 65% of your fund will be invested in shares. 
• At the adventurous level, you’ll have 80% of your fund in global shares. 

You can customise the fund allocation in your setting or choose a Socially Responsible Fund if you want to. 

To close your Moneybox account, withdraw or transfer all your funds to another provider.

Then you can go to settings then choose the “close account” option. 

Moneybox’s Product Range & Features

Once you open your Moneybox account, you’ll have several different account options.

You can divide Moneybox’s products into four categories: investment accounts, savings accounts, first-home savings accounts, and retirement accounts. 

Below is the breakdown of products of each category:

• Investment accounts: You can choose between Stocks and Shares ISA, General Investment Account, or Junior Stocks and Shares ISA.
• Savings accounts: The products are Simple Saver account, 32-Day Notice Account, 45-Day Notice Account, 95-Day Notice Account, and 120-Day Notice Account. The Simple Saver account is provided by Shawbrook Bank, and you can withdraw once per month. Charter Savings Bank provides Notice Accounts where you can “lock” away your money to take advantage of a higher savings rate; the number refers to the days needed for notice of withdrawals. 
• First home savings accounts: You can open Cash Lifetime ISA, Stocks, or Shares Lifetime ISA. You can save for your first mortgage using these options if you’re under 40. There’s also a bonus of 25% top-up from the government if you save under £4,000 a year. 
• Personal pension: You can allocate your pensions into one centralised SIPP at Moneybox. 

To help manage your money, Moneybox offers these helpful features:

• Round up: With this feature, you can save your change by rounding your purchases to the nearest pound. For example, suppose you buy a £4.55 coffee, the system automatically rounds that up to £5.00 and saves the £0.45 to your Moneybox account. If you’d like to take advantage of the roundup feature, skip the Simple Saver account and choose one of the Notice Accounts instead. 
• Mortgage advice: Moneybox offers a Mortgage Advice service for homebuyers where you can access deals from 90 lenders. 

Research & Education Tools

Moneybox’s research tools are minimal because the platform focuses more on pre-selected portfolios.

The platform provides annual reviews of their funds so you can choose your portfolio based on that information.

In terms of educational content, Moneybox offers an adequate amount of content.

This aligns with their initial goal: to make saving and investing accessible for younger people.

The platform offers tutorial videos, blog posts, and the latest news on finance. 

Moneybox Fees

Moneybox has a simple and transparent fee structure; the amount you need to pay will depend on the type of account and funds you choose.

Here is the breakdown of the fees at Moneybox:

• Monthly subscription fee: Moneybox is free for the first three months, but you must pay £1 monthly afterward. This covers all your investment accounts at Moneybox. 
• Platform fees: The platform fee at Moneybox is 0.45% to manage your whole portfolio for you.
• Fund provider costs: This fee can vary depending on the funds you invest; the range is between 0.12%-0.58% annually. 
• Pension fees: If you only open a pension fund in Moneybox, there’s no subscription fee. In turn, you will need to pay pension fees: 0.45% for pension pot under £100,000, and 0.15% for pension pot over £100,000

How to Withdraw from Your Moneybox Account

You can request a partial or full withdrawal from your current savings balance by going to settings and then “withdraw.”

Withdrawing is free of charge, and the fund usually arrives within a day in your bank account.

Withdrawal usually takes 3-5 working days for investment funds, as the investments must be sold first. 

You can make multiple withdrawals simultaneously and track the progress in your recent activity tab. 

Safety & Security

Moneybox is safe because it’s authorised and regulated by the UK Financial Conduct Authority or FCA.

Your money will also be protected by the Financial Services Compensation Scheme (FSCS), which makes you eligible for compensation of up to £85,000 should anything happen to your money. 

Customer Support Review

The Moneybox customer support team is available seven days a week, from 9.00 – 17.00. You can contact them via chat section, phone, or email.

The chat service uses Intercom as the operator, so getting a response might take some time. I tried this feature and received an answer within an hour, which is acceptable. 

I also checked out the Trustpilot review from other customers. The platform scored 4.6 out of 5, which is excellent standing.

All recent reviews were positive, highlighting knowledgeable customer support and user-friendly features.

There’s only one recent negative review due to brief app downtime, but the problem has been resolved.

Who Should Use Moneybox?

Moneybox has a great product range that can help you save for different purposes, from your first house to retirement.

Moreover, you can choose one of their investment portfolios to help you start investing quickly. 

That’s why the platform suits people struggling to save and beginner investors with limited knowledge.

But if you’re an experienced trader, there might be a better app because the platform has limited analysis tools compared to a brokerage website. 

Alternatives to Moneybox

If you find that Moneybox isn’t right for you, here are some of the best alternatives:

• Plum: Another platform that provides automated savings. Plum has a free feature, but you will need to upgrade to the paid version to gain access to more investment options. At Plum, you will link your bank account and have their algorithm analyse your finances to calculate how much you can save each month. Read my full Plum review. 
• Moneyfarm: Moneyfarm offers savings and investment products, and one of its strengths is its investing advisor feature. To invest in Moneyfarm, you need at least £500 starting fund in your account, which is much higher than Moneybox. At Moneyfarm, you can take advantage of their 1-year free management fee.   
• Monzo: Monzo is one of the first online banks in the UK. It offers current accounts, savings accounts, and lending products for personal or business customers. With Monzo, you can have an automated saving system, roundup system, and goal setting. One of Monzo’s strengths is its competitive interest rates, with up to 3.9% interest in its fixed account.   
• Revolut: This is an excellent platform to save in different currencies. Revolut is a new bank and fintech company that offers online banking services. At Revolut, you can set savings goals, invest, save in multiple currencies, and round up spare change for automated savings. Read my full Revolut review.
• Nutmeg: If you’re more interested in investing than saving, try Nutmeg. Nutmeg offers a more diverse range of portfolios and features to choose from. The platform has a questionnaire you can fill in during sign-up to determine your risk level and types of investments – this is great for beginners who need more clarification on their choices. Their starting fund is £500 to open an ISA, GIA, or Pension or £100 to open Lifetime ISA and Junior ISA. Read my full Nutmeg review.

Pros & Cons of Moneybox

Pros:

• A simple way to get started in investing and saving
• Good range of account selection
• Good customer support
• Low starting fund for investment

Cons:

• Limited investment selection
• Limited research tools

Moneybox Review UK – Final Thoughts

Moneybox stands out as a platform for streamlined financial management, offering convenience with its automated saving and investment features. With Moneybox, you can grow your wealth effortlessly by letting their system do it for you. 

However, their investment funds and research tools selection might be too limited for active traders. Nevertheless, Moneybox is still an exceptional platform as a budgeting app, providing effective tools with affordable prices. 

Hopefully, my review has given you a better insight into Moneybox and whether it’s a platform that can benefit you.

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