Moneybox Review UK: What is it, Offering and Fees

Managing finances through innovative apps has become increasingly popular in today’s digital age. Among these, Moneybox is a remarkable option for those looking to save and invest effortlessly in the UK. In this review, we will explain in depth what Moneybox is, its regulations and protection schemes it adheres to, the product offering, the main conditions, and all the relevant factors to help you see the big picture.

What is Moneybox?

Moneybox is a UK-based financial technology company founded in 2016 by entrepreneurs Ben Stanway and Charlie Mortimer. The company provides a mobile app designed to help users save and invest their money. Since its launch, Moneybox has aimed to make financial management accessible to everyone, regardless of their financial situation. The app offers a variety of savings and investment products, and it’s tailored to be user-friendly. Moneybox has grown significantly since it launched its services, reaching 1 million users.

Moneybox logo review Rankia UK

Their offer is mostly focused on long-term savings such as ISAs, Pension, Mortgage calculations or Round-ups with a special focus on UK residents to maximize their earnings and tax benefits.

Moneybox: Regulation and Protection Scheme UK

Moneybox safety and regulation

Moneybox Regulation

Depending on the service contracted via Moneybox, the regulation might vary as the Financial Conduct Authority (FCA) is not the same regulator for investments or ISA accounts as for mortgage services. In this case, Moneybox is regulated by the FCA with the number 712935 for the investment services part and with the number 792703 for payment services activities (round-ups, transfers, etc.).

Mortgage Advice Bureau Limited and Mortgage Advice Bureau (Derby) Limited provide mortgage services authorized by the FCA, where Moneybox operates as a licensed advisor.

In addition, two companies serve as trustees to hold the clients’ assets: Moneybox Share Nominee (for the investments part) and Moneybox Pension Trustee (for the pension side).

Moneybox Protection Scheme: Is it safe?

Moneybox, as an FCA-regulated company in the UK, is registered with the Financial Services Compensation Scheme (FSCS), which provides coverage per individual up to £85,000 (not per account in case you have more) for (only) the investment products in case of any shortfall or event of firm insolvency. Furthermore, Moneybox uses the UK broker Winterflood Securities to hold the investment as a custodian, which is also covered by the FSCS in the same amount.

Please note that Moneybox has segregated accounts and different entities away from the company, so these are safe in the worst-case scenario. It’s not part of the company’s balance sheet, meaning the debtors cannot access it.

In the case of the Cash ISA, Moneybox uses several banks, such as HSBC, Santander, Lloyds, or Bank of Scotland, among others, to hold the cash. As a protective measure, they cannot hold more than 50% of the total funds in a single bank at any given moment.

Given all these protective measures, we can definitely say that this company is safe to use. However, depending on the services, we highly recommend checking the parties that provide the services, as this might change and become more complex.

Moneybox Product Offering UK: ISAs, Investments and Fees

Moneybox offers a wide range of long-term savings products with tax efficiency granted by investment savings accounts (ISAs), pension plans, savings accounts, and round-ups. Let’s dig further into them:

Stocks and Shares ISA

This type of Investment Savings Account (ISA) offered by Moneybox allows you to invest in the stock market. It offers an annual allowance of £20,000. As with any other ISA, all the profits generated within those £20,000 invested are tax-free.

Moneybox Stocks and Shares ISA

Under this account, you can invest in individual US stocks, exchange-traded funds (ETFs) or investment funds offered by different providers such as iShares or Fidelity.

Finally, all your non-invested cash will have an interest of 3,8%* AER (variable) within the same account. Furthermore, thanks to their round-ups and automated investment plans, it allows you to deposit and invest periodically.

Applicable fees and conditions:

  • Monthly Subscription fee: £1 (free for the first 3 months)
  • Moneybox Platform fee: 0.45% annually – This is 0.45% of the value of your investments per year. This fee is calculated based on the amount at the end of the day but is charged monthly.
  • Currency conversion fees: 0.45% —This is the exchange rate fee applicable when investing in a base currency other than GBP, such as USD. For example, if you invest 1000 GBP and convert it to USD, you would pay approximately 4,5 GBP for such an exchange.
  • Transaction fees: £0 (no fees)
  • Deposit/Withdrawal: N/A
  • Minimum amount: £1

Cash ISA

Within the same ISA setup as the previous one, Moneybox offers a Cash ISA account to generate interest on your allowance. As with any other ISA, all the interest generated within the first £20,000 added is tax-free.

Moneybox cash ISA

Applicable fees and conditions:

  • Current rate: 4.25% AER (variable*) – Promotion of 0.5% bonus for the first 12 months
  • Monthly Subscription Fee: This does not apply to this account.
  • Moneybox Platform fee: This does not apply to this account.
  • Deposit/Withdrawal fees: N/A

*Variable: this fee is updated as of 1st June 2024. Rates can change.

Important: There are a few conditions, as the applicable rate for amounts lower than £500 is 0.75%. This rate also applies if you withdraw your funds more than four times within a 12-month period.

Junior ISA (JISA) – Stocks and Shares ISA

A Junior ISA (JISA) allows you to invest in your child’s future with tax exemptions. Under these accounts, you can place an annual allowance of up to £9,000. These accounts are only available as long as the child is under 18. Once they reach that age, they can access the money.

With this account, you can invest in individual US stocks, exchange-traded funds (ETFs), or investment funds from various providers, including iShares and Fidelity.

Additionally, any cash in your account that you haven’t invested will earn an interest rate of 3.8% AER (variable). The account also supports making regular deposits and investments through features like automated investment plans.

Applicable fees and conditions:

  • Monthly Subscription fee: £1 (free for the first 3 months)
  • Moneybox Platform fee: 0.45% annually—This is 0.45% of the value of your investments per year. The fee is calculated based on the amount at the end of the day but is charged monthly.
  • Currency conversion fees: 0.45% —The exchange rate fee applies when investing in a base currency other than GBP, such as USD. For example, if you invest 1000 GBP and convert it to USD, you would pay approximately 4,5 GBP as commission for such an exchange.
  • Transaction fees: £0 (no fees)
  • Deposit/Withdrawal: N/A
  • Minimum amount: £1

Lifetime ISA (LISA)

A Lifetime ISA (LISA) is a type of Individual Savings Account (ISA) created specifically to help individuals save for their first home or their retirement. With a LISA, the UK government contributes with a 25% bonus up to a £1,000 yearly maximum. The maximum allowance to place every year is  £4,000.

Moneybox Lifetime ISA

Remember that you can use the Lifetime ISA to buy your first house up to the value of £450,000 anywhere in the UK. The account must be opened for 12 months before you can use it to buy a house.

Moneybox offers 2 types of Lifetime ISA: Cash Lifetime ISA or Stocks & Shares Lifetime ISA with very good conditions:

Cash Lifetime ISA

The Cash Lifetime ISA offered by Moneybox allows you to earn interest on your allowance with one of the market-leading interest rates of 4.40% AER (variable) with a 3.50% base rate (variable) + 0.90% bonus rate on top of the 25% annual bonus of the government ISA conditions.

This means that Moneybox will reward you with a 3.5% rate (variable) on your allowance placed and 0.90% on the bonus paid by the government.

As an example:

  • Annual allowance placed: £4,000
  • Bonus ISA: £1,000 (25%)
  • Interest on the allowance generated (if the 4K placed as of the first day): £140 ( 3.50% annual)
  • Interest on the bonus: £9 (0.9%)

TOTAL SAVINGS: £5,149

NOTE: Interest rates might change over time.*

Stocks & Shares Lifetime ISA

The Stocks & Shares Lifetime ISA is similar to the Cash LISA, with the difference that your allowance is placed in funds. This has the pros that if you invest in the long run, it can offer higher returns. However, it’s important to mention that it carries more risk, as you might lose part of your investment as well.

With this option, you can invest in different strategies depending on your risk profile: Cautious, Balanced, or Adventurous. The composition of your investments in each strategy changes, and it could generate more returns with more risk (Adventurous) or less expected returns with lower risk (Cautious).

👉 Stocks and Shares ISAs: the best ISA platforms UK

Applicable fees and conditions:

  • Monthly Subscription fee: £1 (free for the first 3 months)
  • Moneybox Platform fee: 0.45% annually—This is 0.45% of the value of your investments per year. The fee is calculated based on the amount at the end of the day but is charged monthly.
  • Annual fund provider costs: Like any other investment fund, the product could charge entry/exit fees or management fees, depending on the funds invested.
  • Transaction fees: £0 (no fees)
  • Minimum amount: £1

Saving Accounts MoneyBox

One of the most interesting products available at Moneybox is savings accounts, which range from 4% AER to 4.60% AER, depending on the notice period.

What does the notice period mean? It means the number of days you must wait between the order to withdraw your savings and the moment you receive it. It could be from 32 to 120 days.

In the following table, we will mention all the offered savings accounts so you can compare them which one suits you better:

Savings Account TypeInterest applicable (annual) – Variable*Main conditions
Simple Saver account4% AER You can withdraw whenever you want but limited to once per month
32 Day Notice4.66% AERIt takes 32 days from the moment you give the order to withdraw your funds.
45 Day Notice4.34% AERIt takes 45 days from the moment you give the order to withdraw your funds.
95 Day Notice4.96% AERIt takes 95 days from the moment you give the order to withdraw your funds.
120 Day Notice4.60% AERIt takes 120 days from the moment you give the order to withdraw your funds. Account not available to new customers
*Interests are variable and can change over time. Information as of 1st June 2024

All the previous accounts can be opened with just £1 and are protected by the FSCS up to £85,000.

Moneybox Reviews: What do the users say?

When opening an account at any place where we place our money, it’s important to check the opinions of current users to understand their experience.

In our case, we looked at the opinions site Trustpilot, and we noticed that Moneybox has very good opinions, with a 4,3 out of 5 and more than 2,000 opinions.

Moneybox Trustpilot review
Source: Trustpilot

The main positive opinions are regarding their competitive interest rates and great customer service, especially when transferring ISAs from other providers.

Among the worst opinions are the issues with the app for withdrawing the funds, as it takes some days and is sometimes endless.

Our Opinion

Moneybox is a great company for UK residents who want to maximize their investments. They offer a wide range of products under ISA schemes. The product is perfect for those who want to buy a first house with their Lifetime ISA as their main product.

In terms of regulation and protection, we could say that it is safe as it is regulated by the FCA, covered by the FSCS, and uses different entities with segregated assets.

Conversely, we believe that Moneybox is not the best option for non-ISA users as their offer is quite limited, even after offering them investment accounts or savings accounts. There might be better options for these other products if you want to trade in the stock market.

Who owns Moneybox?

Moneybox is privately held by equity after different financing rounds. Currently, it has more than 13 equity investors.

How do you withdraw money from Moneybox?

You can request to withdraw money by clicking on Settings and Withdrawals. Note that penalties may apply depending on the product.

Is Moneybox a bank?

No, moneybox is not a bank but a company with an investment services license and payment license by the FCA. Also, it uses different banks to provide services.

Is Moneybox safe?

Based on the FCA’s regulation and the FSCS’s protection scheme, Moneybox is safe.

How can I contact Moneybox Safe?

You can contact Money Safe via email at support@moneyboxapp.com or by checking their extensive FAQ.

Do they offer a desktop platform?

No, Moneybox is only offered via mobile app.

Related Articles

Leave Your Thoughts

Leave a Comment