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This Moneybox review covers everything about this savings and investing app, including whether it is safe and worth using. Saving money can be tricky, but not doing it leaves you vulnerable.
Moneybox aims to make saving money easy. But does it work? And should you trust this personal finance app?
What Is Moneybox?
Moneybox is one of the best-automated savings apps. It rounds up your purchases and puts the difference into a savings or investment account. You can save money without even noticing.
Moneybox was founded by Ben Stanway and Charlie Mortimer in 2015 in London. The Moneybox app launched in 2016 and now has over one million customers.
Is Moneybox Legit?
Moneybox is legit and not a scam. The company behind Moneybox is Digital Moneybox Limited, a registered UK company. Moneybox is also regulated by the Financial Conduct Authority (FCA).
Moneybox Customer Reviews
On Trustpilot, Moneybox has an average score of 4.6 out of 5.0. Overall, 85% of users gave Trustpilot the highest ratings (great or excellent).
What Is Trustpilot?
Overall, there are over 150 million reviews on Trustpilot. You can generally get a good understanding of the legitimacy and customer-friendliness of a company.
Is Moneybox Safe?
Moneybox is safe to use. Moneybox users enjoy protection by the Financial Services Compensation Scheme (FSCS). In case of bankruptcy, the FSCS will compensate up to £85,000 per customer. This protection does not cover investment losses.
Moneybox also does not access or store your online banking login details. Instead, Moneybox is a registered third-party provider (TPP) of open banking technology.
Moneybox Fees
Moneybox costs £1 per month but is free for the first three months. There are also fees for investing, but saving doesn’t cost extra.
| Fee Type | Amount |
|---|---|
| Account fee | £1 per month |
| Investment platform fee | 0.45% per year (calculated daily) |
| Investment fund fee | 0.58% per year |
If you want a free app, read my Moneybox vs Plum comparison.
Moneybox Savings Account Review
When you start saving with Monebox, you decide where Moneybox puts your money. You can choose between the following saving accounts:
- Simple Saver (2.32% interest)
- 32-Day Notice (3.2% interest)
- 45-Day Notice (3.2% interest)
- 95-Day Notice (3.25% interest)
- 120-Day Notice (3.46% interest)
- Lifetime Individual Savings Account (LISA) (3.5% interest)
The Simple Saver account has no notice period. In return, it pays less interest than the other saving accounts. Notice means that if you make a withdrawal request, you receive your money after the number of days has passed. For example, with the 32-Day Notice account, you would get your money after 32 days.
Monebox LISA
Moneybox offers a cash Lifetime ISA (LISA). Lifetime ISAs are for saving for house deposits or retirement. They come with withdrawal restrictions, but you can get a government bonus of 25% on your savings. You can pay £4000 per tax year into your Lifetime ISA.
The Moneybox Lifetime ISA pays a 2.75% base rate (variable) and a fixed one-year bonus interest rate of 0.75%.
Moneybox Investment Account Review
You can also invest money with Moneybox using the following accounts:
- General Investment Account (GIA): standard investment account
- Stocks and Shares ISA: tax wrapper that enables you to save up to £20,000 tax free per tax year
- Junior ISA: ISA account for children under 18. You can pay in up to £9000 per tax year
- Self-invested Personal Pension (SIPP): to save for retirement
- Lifetime ISA: to save for retirement or a house deposit
With your investment account, you can choose between 24 funds or 20 US stocks. You cannot buy non-US stocks. If you want to invest in Vanguard funds, read my Vanguard vs Moneybox comparison.
The Moneybox pension has no subscription fee. Account fees depend on how much you have invested.
Premade Portfolios
If you are a beginner investor, you can invest in Moneybox’s premade portfolios. Moneybox offers three premade plans, which are also available as socially responsible (ESG):
| Plan | Components |
|---|---|
| Cautious | 40% bonds |
| Balanced | 65% shares |
| Adventurous | 80% shares |
If you want more portfolio options, read my Nutmeg vs Moneybox comparison.
How Does Moneybox Work?
Moneybox works by rounding up your purchases and helping you save and invest. The app will transfer your spare change to your savings or investment account. Moneybox can do this by connecting to your bank account through open banking.
The app also offers a free mortgage advice service.
1. Opening a Moneybox Account
When you download the Moneybox app, it will guide you through the sign-up process. As with all investment platforms, you must verify your identity and provide proof of address. This is a standard process required to prevent fraud.
You can then choose how you want to deposit and whether you want to save or invest.
2. Depositing
Moneybox has different options for funding your account:
- One-off deposit
- Weekly deposit
- Payday boost (monthly deposit)
- Round up
The minimum deposit is £1.
3. Supported Banks
Moneybox works by connecting to your bank account via open banking. From there, Moneybox can round up your purchases and save the difference. Moneybox works with the following banks:
- American Express
- Bank of Scotland
- Barclaycard
- Barclays
- First Direct
- Halifax
- HSBC
- Lloyds
- M&S Bank
- MBNA
- Monzo
- Nationwide
- NatWest
- RBS
- Revolut
- Sainsbury’s Bank
- Santander
- Starling
- TSB
- Ulster Bank
- Virgin Money
- Yorkshire Building Society
Moneybox Pros and Cons
Pros
- Easy to use and beginner friendly
- Makes saving money easy
Cons
- More expensive than other platforms for investing
- Limited features (e.g. cannot move money between accounts)
- Limited investment options
Is Moneybox Worth It?
Moneybox is worth it. The app’s biggest drawback is that you need to pay a fee. However, this fee is only £1, and you can compensate for it with decent interest rates. If you struggle to save money, Moneybox will make it easier.
Yet, if you already have your finances under control, there is little you can gain from the app. If you want to invest, you can get better options using a dedicated broker.
Alternatives to Moneybox
If you don’t like this budgeting app, try the following sites like Moneybox:
- Chip App. Chip is an automatic savings app that provides detailed spending analyses. Read more in my Chip review.
- Moneyfarm. Moneyfarm is a robo-advisor that will build an investment portfolio for you. Read more in my Moneyfarm review.
Moneybox Review Summary
Moneybox is an automated savings and investment platform. Moneybox can round up your purchases, or you can set up weekly or monthly deposits. The app offers a variety of savings accounts, but has limited investment choices.
Overall, Moneybox is great for beginners and those struggling to save money. However, if that is not you, you may prefer to use a cheaper platform. In this case, have a look at the best investment apps in the UK.
If you wonder if Moneybox is better than Wealthify, read my Wealthify vs Moneybox comparison.
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