Moneybox Reviews – Everything You Need to Know About the Money-Saving App

 

 

 

You’ve found yourself here while on the hunt for Moneybox reviews. You’ve no doubt been investigating the ways where you can make use of your change. Perhaps you’ve been looking for the easiest ways to save and invest, you’ve heard of Moneybox and you want to be sure of how it all works.

Not all Moneybox reviews are equal. You’re going to discover that you’ve happened upon the best. We’re going to cover everything that Moneybox has to offer, with a balanced view so that you can clearly see what’s great and what’s, perhaps, not so. If that sounds like just what you were looking for, then read on.

Moneybox review – a Brief Overview 

The problem with some Moneybox reviews is that you have to wade through a lot of text before you get to really know anything. We thought we’d be different. That’s why we’ve started with our overview to give you a snapshot of what

Moneybox has to offer:

  • You can open savings and investment accounts with just £1
  • There’s a great range of investment accounts such as Stocks and Shares ISAs, a General Investment Account, Junior ISAs, Stocks and Shares Lifetime ISAs, and a Socially Responsible investing account
  • Multiple savings accounts to choose from
  • The opportunity to consolidate your pensions into a Moneybox one
  • The chance to earn competitive rates of interest 
  • The ability to round up your spending and save your spare change
  • Access to a range of useful tools and calculators
  • Confidence brought by the fact that Moneybox is registered with the Financial Conduct Authority and offers protection through the Financial Services Compensation Scheme

How does Moneybox work?

If you want to take advantage of all that Moneybox has to offer, you’re going to need to use your smartphone. While there is a great website, with plenty of information, it’s the Moneybox app that links with your bank account and does all of the magic stuff behind the scenes.

Before you download the app, it’s worth knowing that you need to be at least 18 to open an account. If you’re interested in a pension, a Stocks and Shares ISA, or a Lifetime ISA, you will also need to provide your national insurance number. If you’re interested in a Junior ISA for someone under 18, there’s a separate app that you’ll need to download. 

With the app downloaded, you’ll need to enter your details and create a password. After you’ve verified your email address, you’ll then need to create a 5-digit PIN that acts as an extra layer of security.

Before you’re fully up and running, you have a decision to make. You need to decide the type of account that you’d like to see your spare change going into. If you’re not sure, you’ll find that there are little question marks alongside each of the options. Clicking on these will give you an insight into what’s on offer.

With your account type selected, it’s time to decide how you’re going to add money to it. You can make a deposit, round up your change, or opt for a combination of the two. The minimum amount you’ll need to get started is £1. The Moneybox app will need to connect to your bank to allow the transfers to take place and you’ll need to set up a direct debit so that funds can be sent.

Moneybox works with most banks out there such as:

  • American Express
  • Bank of Scotland 
  • Barclaycard
  • Barclays
  • Clydesdale Bank
  • First Direct
  • Halifax
  • HSBC
  • Lloyds
  • M&S Bank
  • MBNA
  • Monzo
  • Nationwide 
  • NatWest
  • RBS
  • Revolut
  • Sainsbury’s Bank
  • Santander
  • Starling
  • TBS
  • Ulster Bank
  • Virgin Money
  • Yorkshire Bank
  • Yorkshire Building Society 

You’ve probably noticed the credit cards in the list above. That’s because you can round up your credit card spending too.

Your deposits and round-ups are put together to make a weekly savings total. This total is taken from your bank account every Wednesday and added to your Moneybox product the following week. If the round-up comes from your credit card spend, this amount is still debited from your nominated bank account.

The great thing, that not all Moneybox reviews tell you, is that you can set up numerous products with just a single account. That means that you can spread your round-ups with some going into a savings pot and maybe another part of it going into one of the ISAs or even a pension.

Now you know more about how Moneybox actually works, let’s take a look at the savings options that exist.

Using Moneybox as a Savings App

As Moneybox reviews show, the app is a great way to get into the habit of saving. It offers several different products that help you to do this and we’re going to take a look at these in turn:

Simple Savings Savings Account

The Simple Savings Account was launched by Moneybox back in 2021. You can open this account with just £1 and it only takes a matter of minutes to be up and running. In terms of interest, you can expect 0.75% with this account.

This product is provided through a partnership with Shawbrook Bank. This means that any deposits are covered by the Financial Services Compensation Scheme (FSCS) up to £85,000, which also happens to be the maximum that you can put into this account. 

There are no fees or charges. You’re limited to one withdrawal every calendar month and you receive your funds into your nominated bank account. 

32-Day Notice Savings Account

As the name suggests, this product sees you needing to keep your money in the account for at least 32 days. By committing to this, you’re rewarded with a higher rate of interest – 1.4%. Interest is calculated on a daily basis and paid monthly. 

Again, you only need £1 to get this account up and running. Through a partnership with Investec, your deposit is protected by the FSCS.

45-Day Notice Savings Account

If you’re prepared to leave your spare change untouched and only access it with 45 days’ notice, you’ll be rewarded with an interest rate of 0.95%. As with the other products that we’ve seen so far, £1 is enough to get you started.

This product is provided through a partnership with Charter Savings Bank. This means that, again, you’re protected by the FSCS. 

Sadly the 45-day account is available at the moment, but hopefully moneybox will bring it back if enough people want. access to it!

95-Day Notice Savings Account

Again, the name gives it away, but with this account, you’ll need to give 95 days’ notice to withdraw any of your funds. This gives you an interest rate of 1.4% but you need to be sure that you’re comfortable with the notice period that’s needed.

This is another product provided in partnership with Investec meaning that FSCS protection is in place. 

120-Day Notice Savings Account

You can get the best rate of interest (1.45%) by opening an account where you need to give 120 days’ notice to withdraw your funds. Again, be sure that you’re comfortable with this notice period before committing.

This product is provided through a partnership with Shawbrook Bank and so comes with FSCS protection.

Moneybox Lifetime ISA

A Lifetime ISA is for those aged 18-39 and can only be used for two reasons: saving to buy your first home or saving towards your retirement. What’s really appealing about this option is that you benefit from your returns being tax-free and you also get a monthly 25% bonus paid by the government. This means that for every £4 that you pay in, you’ll get another £1 on top.

You can save up to £4,000 a year meaning that you could benefit from up to £1,000 in bonuses. In terms of interest, Moneybox offers 0.85%. This is made up of a base rate of 0.25% and then a bonus rate of 0.60% that applies for the first year. 

You need to be certain that you can commit the funds to the two allowed reasons. If you withdraw for any other reason, you’ll have to pay a charge of 25% to the government.

Savings Accounts Comparison Table*

Simple Savings 32-Day Notice 45-Days Notice 95-Days Notice 120-Days Notice Lifetime ISA
Interest Rate: 0.75% 1.40% 0.95% 1.40% 1.45% 0.85%
Charges: None None None None None None however there is a 25% government charge if you withdraw funds for any reason other than buying your first property or for your retirement.
Features: Interest is calculated on a daily basis and then paid monthly. Withdrawals are restricted to one per calendar month. 32-days notice required to withdraw. Interest is calculated daily and paid monthly. 45-days notice required to withdraw. Interest is calculated daily and paid every month. 95-days notice is required to withdraw. Interest calculated daily and paid monthly. 120-days notice required to withdraw. Interest is calculated daily and paid monthly. Maximum that can be saved is £4,000 per year. 25% bonus paid monthly by the government.

*be sure to check the rates yourself as these could be changed in the future.

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How to use Moneybox for Investing

Of course, Moneybox reviews aren’t just about savings: there are investment options to consider too. Please note that this isn’t advice, only education on the options, so make sure you’re satisfied you have all the information you need to make your own iniformed choice.

You’ll need to be at least 18 before you can open any of these accounts.

Here’s a look at what Moneybox has to offer:

Stocks and Shares ISA

With an ISA, there is a yearly maximum that can be invested. This is currently £20,000. You can invest this full amount into a Moneybox Stocks and Shares ISA and achieve returns that are free from tax. When your round-ups are invested, you have a choice when it comes to your portfolio. Depending on your attitude to risk, you can choose between a portfolio that is cautious, balanced, or adventurous. Bear in mind, that Moneybox can’t advise which is right for you so be sure to explore the ins and outs before committing. 

It’s worth mentioning that there is a Junior version of this ISA. This allows you to build up funds for someone who can’t access them until they reach the age of 18.

General Investment Account

With this option, you can invest in one of the portfolio types and can put in as much as £85,000 a week. The big difference here is that any returns are subjected to tax.

Moneybox Personal Pension

A great way to take advantage of what Moneybox has to offer is to plan for your retirement. You can use your round-ups and combine existing pensions so that they’re all in the same place. There is a yearly allowance of £40,000 and a lifetime one set at £1,073,100.

Investment Accounts Comparison Table

Stocks and Shares ISA, Lifetime ISA, General Investment Account and Junior ISA Moneybox Personal Pension
Monthly subscription fee – £1

Annual platform fee – 0.45%

Fund costs range – 0.12% to 0.58%

Monthly subscription – N/A

Annual platform fee – 0.45% up to £100,000 and then 0.15% for over this amount

Fund costs range – 0.15% to 0.58%

No fee for the first three months

The amount that can be invested into an ISA is limited to £20,000 each financial year

With a general investment account, you can invest up to £85,000 per week

There are annual and lifetime contribution limits to be aware of

 

Investment Portfolios – Where Does Your Money Go?

The portfolios used for ISAs and General Investment accounts use the following tracker funds:

  • Fidelity Index World Fund
  • iShares Global Property Equity
  • iShares Overseas Corporate Bond Index
  • iShares Overseas Government Bond Index
  • Legal and General Cash Trust
  • Fidelity Index Emerging Markets Fund P Acc
  • Legal and General Global Health and Pharmaceuticals Index
  • Legal and General Global Technology Index
  • Royal London Emerging Markets ESG Leaders
  • HSBC Islamic Global Equity Index Fund YCGBP

There are also a range of ETFs (exchange traded funds) to choose from.

If you’re looking for investments that are socially responsible, Moneybox offers:

  • Royal London Emerging Markets ESG Leaders 
  • Old Mutual World ESG Index Fund

The options when it comes to pensions, among others, include:

  • Fidelity World Index Fund
  • Old Mutual World ESG Index Fund
  • HSBC Islamic Global Equity Index Fund
  • BlackRock LifePath Fund

Moneybox Investment Performance 

Moneybox provides figures on its website that show how its investments have performed. It bases its examples on an investment of £1,000 back in 2012 with monthly contributions of £50 up until the start of 2022.

If a cautious portfolio had been invested in, it would now be worth £9,068.10. The balanced portfolio would now be valued at £13,633.13. The adventurous portfolio comes out on top with a worth of £14,856.81.

It needs to be remembered that just because these figures have been achieved in the past, there is no guarantee that they’ll repeat in the future.

How Much Does Moneybox Cost?

An important part of all Moneybox reviews is considering the fees that are charged. When it comes to a savings account, there are no fees at all. If you decide to invest, rather than save, there is a £1 per month fee. There is also a platform fee of 0.45% to consider.

With a pension, you’ll be charged a 0.45% platform fee if your balance is £100,000 or less. Over this amount, the fee drops to 0.15%.

Is Moneybox safe?

In short, yes. Given that MoneyBox is regulated by the Financial Conduct Authority, it has to be transparent as well as ensuring that customers are treated fairly. If you ever have any complaints, these can be pursued through the Financial Ombudsman Service.

What if Moneybox goes bust?

If the worst should happen, your savings and investments are provided for by 3rd parties, not through MoneyBox, but they state on their website that the institutions they use are protected by the FSCS, you are covered for up to £85,000 should any of them go bust. 

Moneybox vs. Plum

You can read all about Plum by clicking here, but in short, Plum offers a very similar service to that offered by Moneybox. Plum acts by analysing your monthly spending and letting you know how much you can comfortably afford to save.

Saving here, just like with Moneybox, is free. When it comes to investing in an ISA, there is a £1 monthly fee and a provider fee that comes in at 0.48%. There are a total of 10 funds to choose from and these have differing levels of risk.

Moneybox Reviews – In Summary 

That brings us to the end of our Moneybox review. To sum up, here’s a look at the main pros and cons:

Pros:

  • A great way for beginners to invest
  • Allows you to save automatically while you’re spending
  • You can set an account up in  a matter of minutes 
  • It costs as little as £1 to get started 

Cons:

  • If you’re only investing spare change, it can take a while for this to build-up
  • You can’t move your fund from one account to another

Overall, Moneybox provides a fantastic way to save and invest. You’ll find that the app is extremely easy to use and navigate. There are providers out there that charge lower fees and it can get frustrating watching your funds only grow slowly, but that doesn’t take away from the fact that this is a perfect introduction to saving and investing for newbies out there.

Alternatively, take a look at our post detailing the best investment apps in the UK to see what other options are out there.

Until next time,

 

 

 

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