Moneybox Review: Features, Fees & Charges (Updated 2024)

Written by Amy Baum Last Updated: May 8, 2024

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Investing is an excellent way for people to increase their wealth. Unfortunately, it’s easy to be put off due to complex investment methods, terms, and so on.

This seems particularly true for young adults. But in recent years, anyone and everyone can easily invest their money thanks to smartphone apps.

Moneybox app is one micro-investment app that’s ideal for beginners. This tool lets you use your spare change for investing. Minimal effort is required on your end; Moneybox helps you throughout the entire process. Read on to learn more about how you can benefit from this investment app.

Direct Link To Moneybox App

Table of Contents

The History Of Moneybox

Moneybox was founded in 2015 by entrepreneurs Ben Stanway and Charlie Mortimer. These co-founders have an excellent track record working in asset management.

They’ve also built other consumer companies, so Moneybox is not their first venture. Additional team members have experience working with Google, Hotels.com, and more.

Despite being a newer app, it quickly gained financial backing and a good reputation. Two of their major financial backers include Oxford Capital and Stanford Investments.

The app raised £3.4million from these backers during pre-launch. Since the app’s debut, it’s been positively reviewed by This Is Money, Financial Times, Techworld, and Mirror.

As you’ll notice in reviews, this app is geared towards the millennial generation. Moneybox wants to make investing as easy possible for young adults. That’s why users only have to invest spare change to start with their investments.

Moneybox App Pros And Cons

I’ll start off by showing you some genuine Moneybox feedback. Despite being a fairly new company, there are a lot of Moneybox reviews and plenty of user feedback. I created a quick Moneybox pros and cons list using these resources.

Pros:

Featured in many popular newspapers and publications.
4.0-star average rating based on Google Play reviews.
3.7-star average rating based on App Store reviews.
Simple and user-friendly app design.
Ideal for young people and others with no investment experience.
Backed by major financial investors including Oxford Capital and Samos Investments.
4.4-star average rating based on Facebook reviews.
Investments are made with spare change, so there are no major financial risks.
Spare change comes from rounding up everyday purchases, so investing is easy.

Cons:

Only available to UK residents.
Some users report that Moneybox customer service responses are slow.
Users are charged two small service fees.
Fees can be higher than monthly profits if the app isn’t used regularly.
Some users report that their UK-based banks aren’t compatible with Moneybox.

Overall, the pros outweigh the cons for current and potential Moneybox users. The only con worth noting is that you can lose money if you don’t use the app regularly. This happens when you’re charged the service fees but you aren’t investing spare change.

Avoiding this issue is pretty easy by rounding up your everyday purchases. Moneybox has a very solid reputation overall, and the app is designed to make things simple.

This app is a good pick if you’re a UK resident and want to test the waters of investing.

Who Can Use The Moneybox App?

The eligibility criteria for Moneybox is super easy to meet. Moneybox is available to all UK tax residents that are 18 years of age or older. In most cases, this means you’re currently a physical resident of the UK.

You’ll also need an iPhone or Android smartphone to access the app. To make investments with the app, you need to provide your bank account details and your National Insurance number. I’ll discuss the Moneybox security features later on so you can learn how your information is protected.

How Does Moneybox Work?

Moneybox is pretty straightforward, and the app walks you through each step once you download it. There are unique features based on your investment preferences and more. To keep things simple, I’ll highlight the major points about how Moneybox works.

Your spare change is invested when you round up your daily purchases. For example, let’s say you order a £3.50 cappuccino three times a week. You can round up your purchase to £4, so you invest £0.50 three times a week.
You link your bank account details and credit cards to Moneybox to round up. The app has many security features in place to keep your financial details safe. Learn more about rounding up by watching this Moneybox YouTube video.
You can also invest by making weekly deposits and one-time deposit through the app.
You can view all of your purchases in the app and decide which ones to round up. Swiping right rounds up your purchase, and swiping left ignores your purchase. This gives you a lot of flexibility and control over your investments.
Alternatively, you can allow all your purchases to be rounded up automatically. This happens every 48 hours and is a more passive option. You can turn off this feature if you want to avoid accidental rounding up.
According to Moneybox, the average user makes about 30 transactions per week.
The average round-up amount is £0.28. This adds up to £8.40 per week or £440 per year.
Moneybox uses your spare change to invest in major companies. Some companies you can invest in include Netflix and Disney.
You decide how you want your money to be invested. When you set up your account, you choose Cautious, Balanced, or Adventurous for your investments.
Your weekly savings are split between three tracking funds. The amount that goes into each fund is based on whether you choose Cautious, Balanced, or Adventurous.
The three tracking funds are cash shares, global shares funds, and property shares funds.
If you choose Balanced, most of your funds go into cash shares. If you choose Balanced, your funds are divided up equally. If you choose Adventurous, most of your funds go into global shares and property shares.
Moneybox lets you invest your money in over 6,000 companies worldwide. Your options include Apple, Facebook, Netflix, Disney, and other major companies.

This pretty much covers everything you need to know. If you want to learn more, there are for informational videos on the Moneybox website.

How Do I Get Started?

Now that you know how Moneybox works, you can set up your account. Most reviews say the process is very easy and only takes a few minutes. Here’s a step-by-step guide to get started with Moneybox.

Install the app and register your e-mail address.
Choose a deposit method – round ups, weekly deposits, or one time deposits.
Connect the login details for your bank account or credit cards.
Choose how you want your money to be invested. The three starting options are Cautious, Balanced, and Adventurous. I provided a bit of info about this above. You’ll learn more about each option through the app.
Decide where you want your money to be invested. Your two options are an Individual Savings Account (ISA) or a General Savings Account (GSA). If you’re not familiar with the two options, I recommend checking out the two links I provided.
Provide your National Insurance number if you choose to open an ISA.

That’s all you need to do! Once you’ve completed these steps, you can start investing your money in a way that completely suits you.

Download Moneybox Here

Moneybox App Fees

Moneybox charges two types of fees for the comprehensive investment services they offer, but these fees are very low. You’ll be charged:

A subscription fee of £1 per month for the first three months. This small amount covers your investment costs, transactions, and all other Moneybox app features. The fee is charged at the end of the month and is taken from your largest holding.
A platform fee equal to 0.45% of your yearly investments. This fee is also charged on a monthly basis and is taken from your largest holding.

To learn more about each fee, visit the Moneybox website link above.

Is Moneybox Safe To Use?

Whenever you provide financial details to an app or website, you’re likely curious about how safe your info is. The Moneybox Security FAQ page provides lots of details about their security features. I’ve highlighted these features below.

The app and website use 256-bit encryption.This is a high level of encryption used by banks and major financial institutions. When you provide your personal and financial details, the info is protected by this encryption.
Moneybox is authorized and regulated by the Financial Conduct Authority. The Financial Conduct Authority is a UK-based financial regulation company. The FCA carefully regulates over 56,000 financial services and markets.
Moneybox is registered as a Data Controller with the Information Commissioner’s Office. This is a regulatory body that ensures your data is protected.

Overall, Moneybox definitely seems to have their bases covered with security and safety. And as I mentioned before, the app is backed by extremely reputable financial institutions. This adds a lot of credibility to the app and the services they offer.

More Investment Apps And Tools

If Moneybox sounds appealing to you, you’re sure to love other simple opportunities for investing. Frugal For Less covers the latest investment tools, offers useful tips, and more. Read these posts to get started on the right track:

As you can see, you have tons of great options to consider. All you need is spare change or a few dollars to start making money by investing.