MONEYBOX REVIEW

Moneybox Review

This article will provide a comprehensive review of Moneybox, one of the UK’s leading investment apps. If you’re interested in saving money, planning for the future, and exploring investment options, this article is crucial to providing an overview of Moneybox. 

This will include an evaluation of its background, user experience, features, and performance. By the end, you’ll have gained essential insights into its operation, benefits on offer, and its comparison to other platforms. 

This review guides through various aspects of the service, from its general investment account to the Moneybox cash lifetime ISA, to the stocks and shares ISA. 

It will also delve into the customer service and experience, talking about essential aspects such as the rounding up feature and the user-friendly mobile app. 

Therefore, regardless of whether you’re a beginner or a more seasoned investor, this review will equip you with invaluable information to help with your investment decisions.

Table of Contents

Background to Moneybox Review

Moneybox is an innovative investment app, which was founded in 2016 and is based in London, UK. As of November 2022, Moneybox had over 600,000 customers. 

It offers a unique approach to saving money by rounding up any purchases to the nearest pound and investing the spare change. 

This method of saving has attracted a significant number of Moneybox customers, providing them a simple way to start saving which requires little thought.

Moneybox is authorised and regulated by the Financial Conduct Authority (FCA) in the UK. It is also covered by the Financial Services Compensation Scheme (FSCS) up to £85,000 per eligible investor. 

It offers various saving and investment products, such as the Moneybox cash lifetime ISA and the stocks and shares ISA. These products can be accessed through setting up a simple saver account, meaning that saving and investing is made easy for everyone.

Moneybox is not just an app for investing, but is also a savings account provider. It has partnered with Charter Savings Bank and Shawbrook Bank to offer competitive interest rates on its savings accounts. 

In addition, the company offers a general investment account, providing a range of investment funds. This includes tracker funds and exchange traded funds.

The Moneybox app has won multiple awards for its innovative approach to saving and investing. It has also gained great Moneybox customer reviews, highlighting the app’s user-friendly interface and its high level of accessibility. 

However, like any financial service, it’s crucial to understand Moneybox’s full operation before deciding if it’s the right option to suit your needs.

You can also watch this video on Youtube here.

Moneybox Features

To provide a comprehensive Moneybox review, we’ve delved into the various aspects of the app, including its features, performance, and user experience. 

We’ve also looked into the various investment accounts which are on offer, including the cash lifetime ISA, the stocks and shares ISA, and the general investment account.

One of the standout features of Moneybox is the rounding up feature, automating savings by rounding your purchases up and investing the loose change into a fund. 

This is ideal for those who find saving money regularly or independently to be too much effort. It allows you to save money without thinking, integrating it seamlessly into your everyday life.

While the rounding up feature attracts many users, it’s important to also evaluate Moneybox’s investment options. 

The app provides access to a range of index funds and ETFs from providers such as Vanguard and iShares. Consequently, these can be tailored to suit your risk tolerance and financial goals.

In addition to investment accounts, Moneybox offers cash savings products which are provided by partner banks such as Charter Savings Bank and Shawbrook Bank. These include fixed-term savings with competitive interest rates and a cash lifetime ISA. 

The lifetime ISA comes with a 25% government bonus on contributions up to £4,000 per year, alongside tax-free benefits.

Here is an overview of the fees in involved with different Moneybox features:

  • Account fees: Moneybox does not charge any account fees or platform fees. This means that opening and maintaining an account is free.
  • Dealing fees: There are no fees for standard trades. Rather, Moneybox uses fractional share investing so you can invest very small amounts commission-free.
  • ISA fees: The ISA fee is £1 per month. This applies if you have over £1 in an ISA with Moneybox.
  • Fund fees: Like any investment platform, Moneybox does not set fund fees. However, they do apply based on the funds you choose to invest in. These fees range from 0.06% to 0.95% per year, depending on the fund. Moneybox charges an annual platform fee of 0.45% on general investment accounts.
  • Withdrawal fees: Withdrawing money from Moneybox is free, although it can take a few days for funds to reach your bank account.
  • Inactivity fees: Moneybox does not charge any inactivity or low balance fees.

These fees can reduce any returns, making it crucial to factor them into your yearly budget. However, given the convenient and simple nature of the app, many users find these fees to be reasonable. 

All fund fees involved are in line with industry averages, with no trading commissions, account fees or withdrawal fees.

It is also useful to note that Moneybox offers mobile apps for iOS and Android. The app provides features such as rounding up, daily/weekly deposits, as well as the ability to open various accounts.

User Experience with Moneybox

The Moneybox app is user-friendly and easy to navigate. It offers ranging features which are designed to make saving and investing a simple and straightforward process. 

The rounding up feature, in particular, has been very well-received by its users. This is because it automates saving and allows users to save money without thinking about it.

As well as this, the app provides a wealth of information to help users to make informed investment decisions. 

It offers detailed insights into the different investment options available, providing further guidance on how to choose the right investment for your circumstances.

Furthermore, users have given Moneybox good reviews on its customer service provided, describing it as a great app. This could be because the company offers a free mortgage advice service, and is known for being prompt and helpful to anyone that has queries. 

However, like any service, Moneybox has not been without criticism. Some users have reported issues with their direct debit payments and withdrawals, whilst others have found the app to be too much effort. 

Consequently, Moneybox has been working to improve the stability and performance of its app.

Overall, the user experience with Moneybox is generally positive. The app is easy to use, provides a wealth of information, and offers a range of features designed to make saving and investing straightforward for the general population.

Evaluating Moneybox Performance

When evaluating Moneybox’s performance, you must consider both the returns on investment, as well as the user experience. 

The app offers a range of investment options, including tracker funds and exchange-traded funds. This has the potential to deliver reliable returns for many users.

However, it’s important to remember that investment returns can fluctuate when using any provider, and past performance is not a guarantee of future returns. 

It’s also worth pointing out that Moneybox stocks charge a yearly platform fee and investment fee, consequently impacting your overall returns.

Despite the criticisms of technical issues with the app, Moneybox remains a popular choice for many users. 

This is because its unique approach to saving and investing, combined with its range of features and investment options, make it a compelling choice for both beginner and experienced investors. 

According to data from MoneySavingExpert, 71% of Moneybox users rank the app 4 or 5 stars out of 5. However, the app only has a 2.5 star rating on Trustpilot based on over 1,700 reviews.

"Moneybox is an innovative investment app, which was founded in 2016 and is based in London, UK. As of November 2022, Moneybox had over 600,000 customers."

Moneybox Pension and Personal Finance 

Moneybox offers a personal pension plan, which is a type of self-invested pension. This allows you to take complete control of your retirement income and manage your investment portfolio directly through the user-friendly Moneybox app. 

This makes it an excellent choice for both beginner and young investors who are looking for an affordable pension plan.

Moneybox’s SIPP provides access to a range of index funds from providers such as Vanguard and BlackRock. Based on their risk appetite, users can build diversified portfolios. It is also important to note that the SIPP fee is 0.45% per year.

Furthermore, managing your personal pension with Moneybox is a straightforward procedure. The app provides a clear overview of your pension income, combining your contributions, investment returns, and Moneybox fees into one pot. 

As well as this, you can consolidate old pension savings into your Moneybox account, making it easier to manage all retirement savings together.

In addition, Moneybox offers free retirement planning guidance to support users to make necessary decisions about their pension contributions and investments. In addition, users also have access to online financial education resources.

Moneybox Features

Moneybox Ethical Investing and Fees

Ethical investing is a major priority for Moneybox, meaning that they offer socially responsible investment portfolios. Therefore, they only invest in companies that meet certain ethical requirements. 

This is a great option for account holders who want their investments to align with their personal values of sustainability and ethics.

However, Moneybox, compared to other providers, charges higher fees for some of its services. These include a platform fee and investment fees. Therefore, it is important to consider these fees when evaluating the cost-effectiveness of investing with Moneybox. 

However, the fees are competitive, and many users find the convenience and features of the Moneybox app to be worth the expense.

Investing with Moneybox, whether in ethical stocks or more traditional investment options, can also provide some tax relief. Many of the investment accounts on offer, including the personal pension, come with tax-free benefits. 

For example, you don’t have to pay capital gains tax on any returns when investing in your pension pot.

Long Term Savings with Moneybox 

Moneybox is designed for long term savings, consequently encouraging users to regularly put money into their accounts. Therefore, this facilitates a significant savings pot over a longer duration. 

This makes Moneybox a good choice for those looking to save for the future, whether through a pension pot, a Lifetime ISA, or a general investment account. 

Their round-up feature has increased customer savings, as this requires little effort or thought from the customers side.

Alongside their Simple Saver account, which is just a regular savings account, they offer fixed notice savings accounts too. This means that you can lock your money through notice accounts for a period of time, consequently earning interest by doing so. 

The fixed notice periods include: 32 days 45 days (provided by Charter Savings Bank) 95 days 120 days (provided by Charter Savings Bank) The longer you save, the higher interest. Therefore, these are great accounts for those who struggle to save.

Finally, it’s worth noting that your money is safe with Moneybox. The company is covered by the Financial Services Compensation Scheme, using personal details such as your National Insurance number to verify your identity and protect your account security. 

This helps to provide peace of mind for customers that are saving, ensuring that their investments are safe.

User Experience with Moneybox

Moneybox as an Investment Platform

Moneybox established itself as a user-friendly investment platform from its beginning, establishing it as a popular choice for beginner investors. The app’s interface is designed to be intuitive, therefore making it easy to navigate. 

This ease of use, combined with its innovative features like ’round ups’, makes Moneybox a good investment platform for those looking to save and invest without any hassle.

The app offers a variety of investment accounts, including a self-invested personal pension and a junior ISA. The junior ISA is a tax-free savings account for those under 18, which can be a beneficial and easy way to start saving for a child’s future over time. 

Meanwhile, the self-invested personal pension provides control and independence to users surrounding their retirement investments. 

One of the standout features of Money Box as an investment provider is its focus on transparency and authenticity. It provides clear information about its fees on the app, which are low cost compared to many traditional platforms and companies. 

It also gives you regular updates on your investments, allowing you to see how your money is doing and make any necessary adjustments.

Moneybox and Lifetime ISAs

Moneybox offers a Lifetime ISA, which is a type of savings account alongside a government bonus. For each pound you put into a Lifetime ISA (up to £4,000 a year), the government will add 25% on top, up to a maximum of £1,000 per tax year. 

However remember that going over this limit results in penalties and tax charges.This makes Lifetime ISAs appealing for those looking to save for their first home or an extra retirement fund.

The Lifetime ISA is tax-free up to the annual contribution limit. Returns from investments within the ISA are not subject to capital gains or income tax, and anyone aged 18-39 can open one. 

However, there is a 25% withdrawal charge if any money is taken out before 60 years old. This excludes some exceptional circumstances, or if you are buying your first home.

The Moneybox app makes managing your Lifetime ISA straightforward. You can see your balance conveniently, track any contributions, and see how much of your government bonus you’ve received whenever you like. 

The app also provides useful information and advice about the Lifetime ISA rules. Consequently, this helps you to understand how to get the most out of this type of account. 

All of these features, combined with the safety of your money, make Money Boxes Lifetime ISA a great choice for long-term or retirement saving.

Bringing the Moneybox Review to Life in A Case Study

Many people, specifically those who are new to personal finance and saving, should relate to this example.

Meet John, a professional aged 30 who’s just starting to think seriously about later retirement. He’s heard that Moneybox is good for beginner investors, so he decides to give it a go. This leads him to download the user-friendly app and set up a self-invested personal pension. 

John appreciates the control which he has over his retirement savings. He likes being able to choose where his pension pot is invested and enjoys watching his savings grow and change over time. 

Moreover, he finds the app easy to use and appreciates the regular updates on his investments.

John also sets up a regular savings account with Moneybox. He loves the ’round ups’ feature, which rounds up his purchases to the nearest pound and puts any spare change into his savings account. 

When John compares Moneybox to other investment platforms, he’s satisfied with his choice. He likes its low fees, the range of investment options, and the tax-free benefits that come with his personal pensions

He also appreciates the security of knowing his money is safe and secure with Moneybox’s extensive security features. 

In addition, John is pleasantly surprised by how fast the “round-ups” from his everyday spending contribute to his savings account balance. The app’s digital piggy bank feature also motivates him to save more.

After a year of using Moneybox, John has grown his pension pot to over £5,000 thanks to his weekly contributions and the compound growth of his investments. This makes him feel determined to make further progress toward his retirement goals.

This case shows just how easily Moneybox can offer retirement savings. Whether you’re a savings beginner or have been doing it for years, Moneybox offers a range of products to support you in reaching your personal financial goals.

Key Takeaways

Here is a summary of our comprehensive Moneybox review, highlighting any key aspects. These should help you to understand the broadly ranging benefits in using Moneybox and the actions you might consider from reading this article

  • Moneybox offers user-friendly investment platforms, suiting investors from all types of experience.
  • The app provides various investment accounts, including a self-invested personal pension, consequently offering complete control and independence over your retirement savings.
  • Moneybox offers automated “round up” saving which invests the spare change from purchases, allowing effortless saving.
  • It offers tax-relief on certain accounts, such as the Lifetime ISA and personal pensions.
  • Moneybox has security on all its accounts. This means it is regulated by the Financial Conduct Authority and covered by the Financial Services Compensation Scheme, ensuring that your money is in trusted hands.
  • The company owns a digital ‘money box’ or ‘piggy bank’ feature, adding a fun incentive to saving.
  • When compared with other platforms, Moneybox stands out in innovating features to help with saving ethically, along with its user-friendly app. 
  • Overall, Moneybox is a suitable choice if you’re looking for a simple and efficient way to start saving and investing. 
  • When choosing an investment platform, be sure to compare fees, investment options, and account features across providers. Furthermore, make sure to consider your individual financial situation and goals.

Remember, it’s important to choose an investment platform that suits your specific circumstances and what you want to gain from a savings account. Therefore, you should always do plenty of research and consider all your options before making a decision.

Moneybox Pension and Personal Finance

FAQ

1. What is a self-invested personal pension and does Moneybox offer it?

Yes, Moneybox does offer a self-invested personal pension (SIPP). This is a type of pension offering complete control over your retirement savings. This means that you can choose where your pension pot is invested and manage your investment portfolio directly from the Moneybox app. 

Moneybox’s SIPP is designed to be user-friendly and straightforward. It provides ranging investment options, allowing personalisation of your pension pot to suit your risk tolerance and retirement goals. 

With a SIPP from Moneybox, you can take further control of your retirement savings and invest in your future.

2. What are the tax-free benefits of using Moneybox?

Some Moneybox accounts, including the SIPP and Lifetime ISA, offer tax advantages. For instance, capital gains and income generated within a SIPP are not subject to UK tax. However, other Moneybox accounts do not have special tax status.

Also, the Lifetime ISA offered by Moneybox offers tax-relief. Therefore, you won’t have to pay tax on the money you put in, the government bonus, or any interest or investment returns you earn. Consequently, this can make a significant difference to the overall amount of money you can save over time.

3. Is Moneybox a good investment platform?

Yes, Moneybox is considered a great investment platform by its users. It offers a variety of investment and savings accounts, including self-invested personal pension schemes, and a Lifetime ISA. 

In addition, it provides a unique ’round ups’ feature that rounds up your purchases and invests the spare change. This simplifies the saving aspect of your daily life.

Moreover, Moneybox offers a user-friendly app and transparent fees. Many users have praised the app’s interface for accessibility, meaning that they have found it easy to navigate and manage their investments. The company also has a reputation for good customer service and responsiveness.

4. Who owns Moneybox and is my money safe?

Moneybox is owned by Digital Moneybox Limited, a company registered in England and Wales. In terms of safety, Moneybox is regulated by the Financial Conduct Authority (FCA), one of the UK’s financial regulatory bodies. 

It is important to note that the FCA enforces security and strict rules which must be followed by providers.

Additionally, Moneybox is covered by the Financial Services Compensation Scheme (FSCS). This means that if the company goes out of business, your investments would be protected up to £85,000. Therefore, you can be confident that your money is safe with Moneybox.

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