Moneybox app review

How we rated Moneybox's investment features

Moneybox is a saving and investing platform that’s quickly becoming a fan favourite across the UK. It might look tidy and cute, but it’s an app that packs quite a punch.

There’s a lot going for Moneybox and like a fine wine, it only seems to be maturing with age. Find out what we thought about the features, fees, accounts and much more when it comes to investing with Moneybox.

What is Moneybox?

Moneybox is a saving and investing app that aims to make both of these things a seamless part of your everyday life.

With as little as £1, you can invest in top US stocks, ready-made portfolios or index funds and exchange-traded-funds (ETFs) for a broad approach.

By connecting your bank card to the Moneybox app, you can set up an investment account from your mobile phone in a couple of minutes. This gives those with little or no investment experience an easy starting point.

Moneybox fees

Overall, Moneybox provides a cheap place to start investing. There’s no commission for buying or selling investments, and the platform fees are extremely competitive.

There’s a flat £1 monthly subscription fee (free for the first 3 months) and you’ll also pay an extra 0.45% platform fee (based on the size of your portfolio). This applies across all account types, so if you open additional investment accounts, you still just pay the flat £1 monthly subscription fee.

Moneybox charges no commission to buy or sell US stocks, but there is a 0.45% FX fee based on the size of your trade. The other fees to be aware of is that funds will each have ongoing costs (maximum around 0.58%) – these are charged by the funds, not Moneybox.

Other than those, there’s no extra charges or hidden fees you need to pay which is why we scored Moneybox so highly for its fees.

Moneybox investment choice and stocks

Moneybox has limitations when it comes to investment choice, but that’s on purpose. This isn’t a guns-blazing, invest all over the place sort of app. The whole point of Moneybox is to make investing straightforward and accessible, while still providing a decent choice of options.

The main investments available are:

• US stocks
• Exchange-traded funds (ETFs) and index funds
• Ready-made portfolios

There’s only around 20 US stocks on the app, so you’re not going to be drowning in choice. It’s worth bearing in mind you can only invest in individual US companies with the stocks and shares ISA.

If you want to invest in ETFs and funds, there’s around 20 options – enough to cover most investment areas that a beginner would want.

Finally, for the ready-made portfolios, there are 3 to choose from, which it calls “starting options”:

• Cautious. This fund aims for modest growth with lower-risk investments with a heavier weighting towards bonds and cash.
• Balanced. A slightly more aggressive fund that holds no cash, fewer bonds and more equities.
• Adventurous. Aims for the highest amount of growth with riskier investments, meaning a higher allocation towards equities and only a small amount invested in bonds.

Each starting option includes a global shares fund and you can opt for this to be a socially responsible ESG fund if you prefer.

What’s also great is that you can actually customise these ready-made portfolios by choosing your own allocations and even adding in more investments once you learn the ropes and want more control over your portfolio. This is something that most platforms don’t offer.

Is Moneybox safe?

Moneybox is authorised and regulated by the Financial Conduct Authority (FCA) and covered by the Financial Services Compensation Scheme protection. So your deposits of up to £85,000 are covered in the event that Moneybox goes bust. Moneybox also uses 256-bit TLS encryption to protect your personal data.

Like any other type of investment, your capital is at risk when you invest using Moneybox and you may end up with less than what you originally invested. The performance of investments will vary, and there is no guarantee of return.

Moneybox account types and products

Moneybox scores highly for this category and offers a full-house of personal account options, including:

• General investment account (GIA)
• Stocks and shares ISA
• Junior ISA (JISA)
• Self-invested personal pension (SIPP)
• Lifetime ISA (LISA)
• Cash savings accounts
• Cash ISA
• Notice savings accounts

Keep on reading to find out more about these products and the main differences between them.

Moneybox general investment account

This is Moneybox’s basic trading account. It’s typically used once you’ve used up your ISA allowance and you may need to pay capital gains tax on profits over the £3,000 tax-free allowance, or if you earn dividends above the £500 allowance.

You can invest in a range of individual funds which can get you exposure to thousands of companies. Or, you can use the starting options for a simple approach.

Moneybox ISAs

Moneybox has a few different individual savings accounts (ISAs). These include your typical stocks and shares ISA, which lets you invest your money.

There’s also the lifetime ISA (LISA) for saving for your house or retirement, and the junior ISA (JISA), to save for your child.

Moneybox stocks and shares ISA

The Moneybox stocks and shares ISA lets you invest without paying tax on most profits.

There’s an ISA allowance each year, which is the maximum amount that you can invest in all ISAs combined (cash ISAs, stocks and shares ISAs and LISAs). The ISA allowance for the 2024/2025 tax year is £20,000.

As with the general investment account, you can invest in thousands of companies through tracker funds but you can also invest in individual US stocks if you want as well.

Moneybox LISA

The Moneybox LISA lets you save or invest towards your first home or retirement. You can invest up to £4,000 per tax year in a LISA.

The government adds 25% to whatever you put in, so for every £4,000 you invest, you get an additional £1,000 added in from the government.

The money has to be spent on either a house or retirement, though. If you withdraw it for anything else, you suffer a 25% loss (that’s what the government added and then some extra for good measure), so make sure you know what your intentions are before contributing.

With the Moneybox LISA, you can choose to keep it as cash and earn interest or invest it in an attempt for higher returns.

Moneybox JISA

The junior ISA (JISA) is a savings account that you can set up for your child. Here are the key features and things to consider:

• For under-18s
• Has an annual allowance of £9,000 per year
• Choose between saving or investing
• Need to be an existing Moneybox customer to set one up/li>
• Other family members and friends can contribute
• The child gets access to the money once they turn 18
• Must be opened by a parent or guardian

Moneybox SIPP

You can now apply for a Moneybox private pension. You can move your old pensions to Moneybox if you want too.

To set up a Moneybox SIPP, you can create a SIPP from scratch or transfer over old pensions.

However, Moneybox won’t accept a pension you or your employer are currently paying into, or any old pensions that provide guaranteed benefits when you retire.

With your Moneybox SIPP, there’s no additional fee and you can pick funds or invest in the starting options.

Read the full review of Moneybox’s pension

Moneybox savings accounts

For now, Moneybox offers the following savings accounts:

• Notice savings account. This can be opened with as little as £1. You get the option to pick 32/45/95/120 days notice.
• Cash ISA. You can use part of your yearly ISA allowance to hold cash with Moneybox and it will pay you interest. The minimum deposit is £500.
• Simple saver. This account is like an easy-access savings account and you can open with just £1 but can only withdraw once a month.
• Cash LISA. All the same rules as an investment LISA apply, you can open with £1 and the only difference is this holds your funds as cash earning interest instead of investing it.

Moneybox ease of use

Moneybox scored pretty well in our ease of use assessment. We like that there are a couple of ways to get hold of its online customer support team.

On the App Store, Moneybox scores an impressive 4.8 out of 5, and on Google Play it has an equally impressive 4.7 out of 5 (as of January 2024).

There’s no desktop platform and you can invest only with the Moneybox app but you can tell a lot of care has gone into building a great app.

Moneybox customer reviews

In the 2024 Finder customer satisfaction survey, 79% of Moneybox customers said they’d recommend the platform. Several felt it was simple, straightforward and easy to use.

One customer commented:”It makes the process extremely easy, particularly if you’re starting out on your investment journey.”

Another said: “They offer a user friendly interface with helpful customer service advice.”

Trustpilot reviewers gave Moneybox a 4.4 out of 5 “excellent” rating (as of January 2024).

Moneybox tools, resources and features

With the goal of keeping things simple, Moneybox has a limited range of tools and resources.

However, there’s still a decent amount packed into the Moneybox app like:

• Investment charts and info
• Fund video explainers
• ESG investing options
• Ready-made portfolios
• Round up ability

Although the investing features may be limited, there’s still lots else on offer with Moneybox when it comes to saving – things like being able to add partners to see combined LISA savings and getting mortgage advice, for example.

Frequently asked questions

• Does Moneybox give financial or investment advice?

  No. Moneybox leaves it up to you to decide whether and how to invest your money. Monitoring your investments is also your responsibility.

• What do I need to sign up?

  You will need your bank account details to set up a direct debit, your national insurance number to open a stocks and shares ISA (not required to open a general investment account) and your debit or credit card details if you’d like to use round ups.

• Are there benefits of a stocks and shares ISA over a cash ISA?

  Yes and no. Stocks and shares can provide higher returns than cash over the long term. According to Moneybox, over the last 50 years, stocks and shares have returned 5.4% per year compared to cash at 1.9%. However, the risk of loss is also higher and past performance is not a reliable guide to future performance.

• Is the investment profit taxable?

  Yes, any income from the investment may be subject to tax. How much you would pay depends on your personal tax rate and tax bracket. For more information, please contact your local tax office directly.

• How can I withdraw my money from my stocks and shares ISA or general investment account?

  As long as the amount has fully settled, meaning it has been about 2 weeks after that amount was collected during the Wednesday midday collection, then you can withdraw your money at any time. You can only have 1 withdrawal request active at a time.

• Are there limits to how much money you can invest?

  Yes, there’s a limit. According to Moneybox’s website: “The maximum you can pay into an ISA for the 2024/2025 tax year is £20,000. The annual LISA contribution limit is £4,000. Please note that the £20,000 ISA limit is shared between any ISAs you have open in that tax year (including cash and stocks and shares ISAs and LISAs). There is no limit to what you can invest in a GIA (general investment account) but there is a £20,000 limit to the amount you can invest in any one week.”

• What is the 0.45% platform fee taken from?

  The 0.45% platform fee is taken from the value of your investments per year. This fee accrues daily but is charged monthly by selling down your largest holding. Please note though that daily fee won’t show in the daily valuations posted within the “messages” section of the app. It is only reflected on the daily valuation at the end of that month when you will be charged.

• Will I be charged £1 per month no matter how much I put in?

  The £1 per month fee is a standard fee for using the platform. However, it will only be charged every month after 3 months. Whether you have invested £20, £100 or £500 – whatever amount, you’ll be charged that flat rate of £1 after 3 free months. But there are other charges to think about too – other fees include platform fees and fund provider fees.

• How do I open a savings account with Moneybox?

  From the app. If you don’t have a Moneybox account yet, you’ll need to download the app and provide your personal details first.

• How do notice accounts work?

  They’re a bit of a hybrid between an easy access and a fixed rate savings account. We’ve explained it properly in this guide.

• I got lost in the LISA bit of the review. What are LISAs? How do they work?

  No worries, we’ve got a full guide on LISAs too. Just follow this link to read all about them.