Investing through an app? You can do it with Moneybox!

... Credit :
Caroline Stronkhorst in Saving Money

Last updated: 10 February 2020, 10:21 GMT

If you want to explore investing your money but are not sure on how to do this, Moneybox is a great app for you. It takes investing back to basics and allows you to take little risk (remember that investing always comes with some sort of risk!). How does Moneybox work and is it worth using? Here is our guide.

How does it work 

Simply download the Moneybox App to get started. You’ll need to connect Moneybox to your current account, which works on most traditional and digital banks. With Moneybox you don’t need to worry about setting money aside, because the app rounds up all your transactions to the nearest pound. These round-ups are then invested and this is how you can (hopefully) make some money! To get started you will need to deposit a minimum of £1. You can add money with a weekly, monthly or manual deposit if you want to invest more money.

Although Moneybox obviously can’t guarantee you a good return, the company is regulated by the FCA and it’s a legitimate business.

Before you invest with Moneybox it’s important to note that it takes a while before you can take your money out. Withdrawing money takes several weeks as you need to sell off your investments. Don’t use Moneybox for money you need to access quickly. If you want to invest with Moneybox, we recommend keeping enough money in a different account for emergencies.

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What’s the risk?

Moneybox offers you three different investment plans when you sign up: cautious, balanced and adventurous. Whichever plan you go for, your money is invested in the same types of funds, it is simply the proportions that changes.  The types of funds are:

  • Cash (lowest risk)
  • Global equities (highest risk)
  • Global properties

 If you wish, you can change the ratios manually, but Moneybox recommends sticking to their plans.  

With the cautious plan, your proportions are as follows:

  • 85% cash fund
  • 10% global equities fund
  • 5% global properties fund

 In a balanced plan, your breakdown is:

  • 30% cash fund
  • 45% global equities fund
  • 25% global properties fund

And the adventurous plan is made up of:

  • 5% cash fund
  • 60% global equities fund
  • 35% global properties fund

 You can chance your plan later if you’re feeling more or less adventurous!


What does it cost?

Moneybox charges you a monthly fee of £1 out of your investment, but it is free for the first three months. Additionally to this, there is a 0.45% platform fee, and 0.22%-0.24% fund fees. Using investment apps like Moneybox is never free!

Moneybox gives beginner investors an opportunity to get used to the process. Moneybox make it easy for those who are not familiar with investments and the language surrounding it. Will you try it for yourself? Sign up here.