Having already got a cash ISA I was looking for a way to put a little extra cash away every month.
I wanted to take on more risk but I also wanted an easy life when it comes to making investment decisions.
And that’s when I came across Moneybox.
It only takes a few steps to set up an account.
Connect A Card
First things first you need to connect a card to your account.
This will be the card linked to the bank account you want your money invested from.
The app uses 256-bit TLS encryption to ensure all your personal details remain secure.
Save As You Spend
Then comes the feature that drew me to Moneybox in the first place.
You can add your bank details to your account and make use of save as you spend.
The app gets read access to your account and checks it once a day for any transactions.
It rounds up the purchases to the nearest pound and then lists the differences for you to review.
You can then swipe right to accept the amounts or left to reject them.
Any amounts that you accept are added to your savings pot for that week.
If you want you can set up additional automatic weekly deposits or top up your savings pot at any time.
Invest Into A Stocks And Shares ISA Or General Investment Account
You don’t need to wade through lots of different funds to invest your money.
Moneybox gives you three choices of how you can allocate your investments.
They are designed to suit most investors and offer a cautious, balanced or adventurous approach.
The cautious option aims for modest growth whilst minimising risk.
The balanced option looks to give you more growth by accepting more risk.
Finally, the adventurous option aims for higher growth by accepting a higher level of risk.
Each option allocates your savings into three different funds: A cash fund, a global shares fund and a property shares fund.
Depending on which option you choose determines the percentage of your savings allocated to each fund.
How Much Does It Cost?
You pay a monthly subscription fee of £1 although you get the first three months free.
There’s also a monthly platform fee of 0.45% per year (charged monthly).
The fund managers (BlackRock, Henderson and Vanguard) also charge a fee of between 0.22% and 0.24%.
You can find out how this affects your investment on the Moneybox website.
There’s a handy fees section with a slider to show you total fees for investments of between £100 and £20,000.
Is Your Money Protected?
Any investment you make is covered by the UK Government’s Financial Services Compensation Scheme.
Your money is covered up to a limit of £50,000 should Moneybox go belly up.
It’s also authorised and regulated by the Financial Conduct Authority to ensure they always run their business in the interests of customers.
As I mentioned above, your personal data is also protected by bank level encryption.
What I Like
With Moneybox, I like the fact that I don’t have to invest a huge lump sum or ongoing monthly amount.
Rounding up purchases and investing the difference means I don’t really miss the money I’m putting away for a rainy day.
The charges are low enough that even when investing smaller amounts, they won’t be completely eaten away.
It also makes it much easier that there aren’t a million funds to choose from to invest in. Three choices is enough for me.
Currently I only use the round up facility but I like that you can top up the amount you want to invest each week.
Or if you want to invest a set amount regularly you can do that too.
The mobile app makes it portable so you can make investment decisions on the go.
What Could Be Improved
One thing that feels like it takes an age to complete is the actual investment of your money.
Money is collected at midday each Wednesday, then deducted from your bank account the following Monday.
It then doesn’t get invested until the following Friday and your account is updated with contract note details a few days later.
I would have expected the money to be sent off for investment much quicker once it has been deducted from my bank account.
Finally, it would also be nice to have the option of reviewing my account on a desktop PC, although at this time you can’t do that.
Have You Tried Moneybox Yet?
Have you already taken Moneybox for a spin? If so, what did you think?