Are you looking for better returns on your cash savings? Or do you want to enter the wold of investing? Well, the Moneybox app certainly has a lot of options to help you get started. Let’s take a look at how this finance works and whether it’s worth using.
Moneybox summary
Pros and cons:
✅ Lots of accounts available – even a Lifetime ISA
✅ Interest rates are competitive
✅ Tools to help you learn about money
✅ Useful round-up feature
❌ No unique features
❌ The app takes a while to get to grips with
❌ The basic savings account only allows one withdrawal per month
Moneybox
What is Moneybox?
Moneybox is an app aimed mainly towards savers and novice investors. By linking to your current account, it will collect small amounts from your bank each week. The idea is, within a few months, you’ll have a good sum saved with Moneybox. Any money you save can be placed in one of Moneybox’s many accounts – more on those below.
Also worth reading
If you want to enter the world of investing, here are the best investment apps for beginners.
Does it cost?
This depends on the type of account you have with Moneybox. Simple savings accounts are free to use.
However, the investment accounts have platform costs and a £1 monthly subscription fee.
Is Moneybox safe?
Yes, Moneybox is safe. The app has been operating since 2016 and uses 256-bit, bank-level encryption for the transmission of sensitive financial and personal data and will not directly access or store online banking login details.
Moneybox is owned by Digital Moneybox Limited, a UK company based in London and incorporated in 2015. It is regulated by the Financial Conduct Authority (FCA) and is registered as a Data Controller with the Information Commissioner’s Office.
The investments and savings accounts are covered by the government’s Financial Services Compensation Scheme. That means if something should happen to Moneybox, your savings will be covered by up to £85,000.
How does Moneybox work?
Once you’ve created your Moneybox account, you can connect the app to one of your current accounts through open banking. This will be the main account from which Moneybox will withdraw money. You can then turn on the round-ups option. So, every time you make a purchase, Moneybox will round this up to the nearest pound and withdraw it from your bank the following week.
You can connect more than one account for the round-up option. However, money will only ever be taken from your main connected account.
There are other ways you can transfer money over to Moneybox.
- Weekly deposits – arrange a set amount of cash you will transfer over to your account each week by direct debit. This will also tell you your projected earnings over a 10-year period.
- Payday boost – arrange for a set amount to be transferred close to payday.
- Super round-ups – if you find that round-ups aren’t enough, you can double their value with this option.
- One-off deposit – or, if you find yourself with a bit of extra money, make a one-off transfer from your debit card.
What investment and savings accounts are available?
So, what does Moneybox have on offer?
Cash savings
If you prefer a low-risk, guaranteed return, a cash savings account is for you.
Simple Saver – a simple savings account you can add money to. However, it only allows one withdrawal per month.
32 Day Notice account – offers a better interest rate than the Simple Saver, but money can only be withdrawn after giving 32 days’ notice.
95 Day Notice account – this has a better interest rate than the 32 Day Notice account but has a longer notice time.
Cash ISA – a tax-free way to save your cash. There is a minimum balance of £500 and you can only make three withdrawals a year. If you don’t keep to any of these, your interest rate will be reduced drastically.
Cash Lifetime ISA – similar to a cash ISA, but this account comes with a 25% bonus from the government. However, there are a lot of restrictions and the money is not meant to be withdrawn until you reach 60 or you’re buying your first home. Find out more about the Lifetime ISA.
Moneybox interest rates
| Simple Saver | 32 Day Notice | 95 Day Notice | Cash ISA | Cash Lifetime ISA | |
| Rate | 4% | 4.66% | 4.96% | 5% (4.25% +0.75% bonus for 1st year) | 4% (3.25% +0.75% bonus for 1st year) |
| Important to note | 1 withdrawal per month. Withdrawal takes one business day | 32 days’ notice to withdraw | 95 days’ notice to withdraw | 3 withdrawals per year, minimum £500 | 25% government bonus |
Investments
A potential for greater returns is through one of Moneybox’s investment products. Before you invest, you will be asked about your attitude to risk. There are three starting options – Cautious, Balanced and Adventurous. All you need to do is pick one based on your attitude to risk and return.
But remember, investments can go down as well as up.
General Investment Account (GIA) – invest in thousands of global companies via a range of tracker funds. You can choose the funds that appeal to you based on past performance, expected returns or opting for a socially responsible fund.
Stocks and shares ISA – similar to a GIA, but this is a tax-efficient way to save. You can invest up to £20,000 into a stocks and shares ISA each year. When you open your account, you can make an initial payment and arrange a monthly standing order.
Stocks and shares Lifetime ISA – with this tax-efficient account, you can deposit up to £4,000 per year and the government will add a 25% bonus until you reach 50. The money from a LISA can be withdrawn when you purchase your first home or reach 60. If you withdraw for any other reason, you will lose your bonus and be penalised.
Investment fees
On top of the £1 charge, you need to pay the following:
0.45% of the value of your investments per year. This fee accrues daily but is charged monthly by selling down your largest holding.
In addition, you will also pay the fund management fee levied directly by the fund providers. These fund fees range from 0.12% to 0.30% per year and are incorporated into the daily fund valuation.
Any other Moneybox features?
Junior ISA – Moneybox offers two types of Junior ISA: stocks and shares and cash. They come with the same benefits and warnings as the adult accounts above. You need to consider whether you want a safe and steady return with cash or opt to invest for better returns but a risk of losing some of your investment.
Personal pension – you can create a new pension or consolidate your old pensions into one place.
Tools – the app contains various tools, such as a mortgage calculator and a pension calculator, as well as some helpful blog posts to assist Moneybox users in learning more about the financial world.
What other people say
When writing my app reviews, I always look online to see how others find their experience. On Trustpilot, Moneybox scores an excellent 4.5 out of 5 from well over 1,000 reviews. On the positive side, users say it’s easy to use and a great way to start investing. On the downside, there have been negative reviews from people who have had issues moving their money – mainly involving their Lifetime ISAs.
My Moneybox review conclusion
I have mixed feelings about the Moneybox app. It has a lot of accounts on offer, far more than other finance apps… but that’s not always a good thing. There’s a lot to say about keeping things simple and Moneybox doesn’t do it.
The interest rates are competitive but not the best. And the accounts are a little frustrating. Why does the Simple Saver only allow you to withdraw money once per month? And why does it take a day to receive your money when rival apps often do it within minutes? if they offered the best rate on the market, I might understand it. But they don’t.
When it comes to investing, it’s OK. But seasoned investors probably won’t be interested, partly because they can’t buy individual stocks and shares. It seems more geared towards novice investors, but that £1 monthly charge is quite hefty. If you’re a new investor with £100 in your account, that’s a 12% fee every year. And that doesn’t include the other platform fees.
On the plus side, it offers the Lifetime ISA, a great account many banks seem to have steered clear of.
Click on the button below to find out more.
Moneybox alternatives
There are rival apps, such as Plum, that use an algorithm to calculate how much you can afford to save. Take a look at my Moneybox vs Plum review to see how they stack up against each other.
FAQ’s
Is there a Moneybox referral code?
You’ll find a referral code in the invite a friend section of the app. However, after years of using the app and referring people, it doesn’t seem to provide any benefits.
What is micro investing?
Micro investing is investing small amounts as often as you can. Doing this consistently over a long period will soon build up your balance. Moneybox is an app that allows you to micro invest.
Are Moneybox fees high?
Because Moneybox is an intermediary between you and the investment company, their fees are higher than going directly to the investment company.
When does Moneybox invest?
Your savings are collected at midday on Wednesday and will be invested the following Thursday (ie eight days later).
How long does it take to withdraw from Moneybox?
Withdrawing from a stocks & shares ISA or GIA usually takes between 2 to 3 weeks. You can only request one withdrawal at a time.
What happened to Moneybox+?
Moneybox+ was a feature that allowed you to earn cashback when you shopped at certain retailers. This was closed in 2023.