Money box save and invest.
SS67
Posts: 3 Newbie
MoneySavingExpert.com Insert:
Hi, if you're looking into app-based banking we have a fully researched guide that may help.
App-based banking
Back to the original thread...
Hi
I'm just wondering if anybody on here is using or has any experience with the above app, I found it on the App Store and it hasn't long been released. It seems a pretty good idea in general, they basically round your purchases up from spending and invest them in a stocks and shares ISA, you can also add extra funds aswell. I have no experiance with investing so I was just looking for views from people with a bit more experiance in this kind of thing. This is my first post so please be gentle lol.
Hi, if you're looking into app-based banking we have a fully researched guide that may help.
App-based banking
Back to the original thread...
Hi
I'm just wondering if anybody on here is using or has any experience with the above app, I found it on the App Store and it hasn't long been released. It seems a pretty good idea in general, they basically round your purchases up from spending and invest them in a stocks and shares ISA, you can also add extra funds aswell. I have no experiance with investing so I was just looking for views from people with a bit more experiance in this kind of thing. This is my first post so please be gentle lol.
0
Comments
-
Welcome, bienvenue and come on in.
Your first post and you appear to be promoting a brand new financial product.
You are brave at least.0 -
Not promoting, I have no link to this app, it's just something I think I might be interested in trying and I am am after people's opinions on the idea of it.0
-
Giving benefit of the doubt that you're a genuine prospective customer and not a shill
Thing is with money box, if you only use it to "invest the change" and round up your purchases every time you buy something with a debit card (a bit like Lloyds "save the change" feature on its current accounts) you will have very small amounts invested and the pound a month fee will be crippling.
And you have to give it access to read your bank account details which may be against the t&c of your bank,aside from being a privacy concern for some people. And the ISA wrapper is completely unnecessary on that amount of money, given the large annual dividend and CGT allowances we all get.
Whereas, if you use it for periodic bigger contributions which are actually going to make use of your ISA allowances, then the USP of having an in-your-hand gadget to make investments by deploying an extra tenner a month is not really that useful.
It's an interesting niche for the Snapchat /Instagram generation who might never go near an investment product if left to their own devices (excuse the pun). But whether it actually blows up into something that has a sustainable business model, with enough critical mass to stay afloat, remains an unknown.
There's no shortage of entrepreneurs and VCs willing to put some capital into fintech minnows at the moment, but many will fail, and anyone with a decent amount of money to invest already has no shortage of "traditional" investment platforms to choose from. Generally these platforms are implementing progressively better and more accessible front-ends - so you can instead use a web or app-enabled product from a business which has financial stability and operating history together with track records of customer service.
I'm sure they'll get some signups from kids, but once people are using it to "get interested in investments" then they would presumably migrate to something with greater investment choice or more control etc.
From looking at their website they don't even cater for android yet, so that's me out (well, and the fact I already have a decent ISA provider).0 -
Not promoting, I have no link to this app, it's just something I think I might be interested in trying and I am am after people's opinions on the idea of it.
My opinion is, its a rubbish idea for the financially clueless and you could do better simply by setting up a standing order to put say £25-£50 month into an ISA, or a HTB ISA, or a pension, rather than have trivial amounts fed in in random dribs and drabs.0 -
Thanks for the replies so far, I like the idea of it but I do agree with the comments that have been made with regards to the small amount of money being invested and the fee on top. I'm interested to start saving long term so will need to look elsewhere.0
-
If someone is sufficiently skint that they can only afford to invest a few pence or couple of pounds and not setup a DD each month then they probably shouldn't be investing but should build an emergency fund first and only look to invest afterwards.Thanks for the replies so far, I like the idea of it but I do agree with the comments that have been made with regards to the small amount of money being invested and the fee on top. I'm interested to start saving long term so will need to look elsewhere.Remember the saying: if it looks too good to be true it almost certainly is.0 -
I have a Moneybox account and a separate ISA account - my Moneybox returning 3.35%, ISA returning 0.4% - hhhmmmmmStashbusting 27/500
-
bowlhead99 wrote: »Thing is with money box, if you only use it to "invest the change" and round up your purchases every time you buy something with a debit card (a bit like Lloyds "save the change" feature on its current accounts) you will have very small amounts invested and the pound a month fee will be crippling.
Whether it's "very small" depends on how many transactions there are: When I used the Lloyds Bank "Save The Change" I averaged around £10 a week and that's about the same with Moneybox. So worked out monthly that's 10 multiplied by 52 divided by 12 which is £43.33 per month. So the fee isn't such a big chunk to pay.
Where it falls down or at least is cumbersome to some extent is where the round-up account is a credit card and the direct debit is a bank account: The round-ups are totalled and added to the direct debit weekly.
Best to illustrate that with myself: I use my bank current account for the direct debit and I use my Amex green card for everyday purchases and that is my round-up account. All my purchases are rounded up but the round-ups are taken from my bank current account and not from my Amex card. It all evens up though when I pay the balance of my Amex card from my bank current account.
But of course it all works if a bank account is for direct debits and that same bank account's debit card is the round-up account.0 -
Whether it's "very small" depends on how many transactions there are: When I used the Lloyds Bank "Save The Change" I averaged around £10 a week and that's about the same with Moneybox. So worked out monthly that's 10 multiplied by 52 divided by 12 which is £43.33 per month. So the fee isn't such a big chunk to pay.
A 2.3% initial fee is 2.3% more than you would pay under a more competitive platform with better features.0 -
Hi Folks, I am new to this and I am looking for some advice, have £40,000 to invest, I am
currently retired and have a pension and savings to cover me for at least 5years, I am looking for low risk, high return investments (no surprise there then!). I have looked at Blackmore offering 9.9% over 5years..but look a bit dodgy, I've also looked at MJS Direct-Property-Investment offering 10%over 1 year. I do not want to lose my initial investment..is there anyone offering anything that is safe and at least above inflation?0
This discussion has been closed.
Categories
- All Categories
- 343K Banking & Borrowing
- 250K Reduce Debt & Boost Income
- 449.6K Spending & Discounts
- 235.1K Work, Benefits & Business
- 607.8K Mortgages, Homes & Bills
- 173K Life & Family
- 247.8K Travel & Transport
- 1.5M Hobbies & Leisure
- 15.9K Discuss & Feedback
- 15.1K Coronavirus Support Boards