Have you ever thought about making a small investment in the stock market but not sure what’s involved or where to start?
Perhaps you are looking for an easy, hands-off, online solution?
Applications like MoneyBox app take away the complications out of making an investment and allows you to control how much you wish to commit each week or month.
Read through our Moneybox review below to see what we think of the application and to find out everything you need to know.
What is Moneybox?
Moneybox is a savings and investment app available on iOS or Android that allows people to invest in tracker funds. It aims to make investing easy by taking money out of your bank account or credit card and placing it into investments that will hopefully provide strong financial returns.
How does Moneybox work?
Once Moneybox is connected to your bank account or credit card, you then have to choose between one of the following:
- Stocks & Shares ISA
- Stocks & Shares Lifetime ISA
- Junior ISA
- General Investment Account
- Socially Responsible Investing
You then select your level of risk, which ranges from conservative, to balanced and adventurous, which will tell the app which trackers to place your money into. Then you can add as little as £1 with the further option to add funds manually or to allow the app to top up every week or month.
Moneybox also has a round-up option available, which is what distinguishes it from other apps. This allows you to round up your debit or credit card payments to the nearest pound.
For example, if you buy a sandwich from the local supermarket at lunchtime every day for £2.50, you can set it so this shows up as £3 on your bank statement, with 50p being put aside for investment.
Over a week that is £2.50, or £10 a month and a total of £120 a year, so it all adds up. Plus you always have the option to double the amount set aside in the app settings.
Withdrawing your balance from the app is straightforward, although you will have to wait 2 or 3 weeks before it arrives in your own bank account.
Does Moneybox charge to use their app?
Moneybox is not free to use as there are charges involved. There is a fixed subscription of £1 per month, although the first three months are free.
Moneybox says this is to cover all the costs associated with the transactions and investments. The fee is charged by selling down your largest holding at the end of the month.
There is also a platform fee of 0.45% that is accrued on a daily basis and billed monthly by selling down your largest holding.
You will have to pay a third cost set by the fund providers for the fund management charges. This can be anything from 0.12% to 0.30%, depending on your level of investment.
Is Moneybox safe to use?
Moneybox is regulated by the Financial Conduct Authority (FCA) and all investments made are protected by the Financial Services Compensation Scheme (FSCS). This means investments up to the amount of £50,000 are covered if Moneybox declares bankruptcy.
In terms of using the app itself, Moneybox uses 256-bit TLS encryption on all personal information, which is the standard level used by all large financial institutions. Moneybox also states they do not share any of your details with third parties without consent.
Should your mobile device be either lost or stolen, you can get in contact with the support team who will be able to suspend your account.
Does Moneybox have customer support?
You have the choice to contact the customer support team via the app itself, or you can send an email to the support address.
Should I get Moneybox?
Moneybox will definitely be of interest for first-time investors who want to dip their toe into the market without committing too much money. It’s very easy to set-up and use and because you can withdraw your funds at any time, you are always in control and can stop whenever you want to.
If you are unsure about using an app to make investments on your behalf but are still interested in making investments, then you may prefer to get in contact with a company that will provide one-on-one advice and guidance.