Moneybox App - Thoughts?

TheBunting

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Hey all,

I have seen this app and read into the concept of it so I downloaded it and started using it. Over 4 months I have used it in a trial period and it seems not bad with a 4% growth over the 4 months since opening it up. Although,for the round ups feature they havent yet connected with BoS accounts so I can't quite yet use that feature.

However, was just wanting to know what others thought about it? If theres any catches I havent quite noticed? If so then all I will need to do it just transfer it to a new S&S ISA where I might get better performance with my money.

Thanks.

george4064

There have plenty of previous threads about the MoneyBox app, check out here: http://forums.moneysavingexpert.com/search.php?searchid=171081224

In short you would be much better off setting up a small regular saver into a global index tracker fund, lower charges and would provide better returns.

volc25

Really good advertising for this app, I had a question regarding the stock and shares ISA part.

Problem is I already have a stock and shares ISA with my stock broker which I have an active portfolio on, am I correct to say that I cannot open one with moneybox then?

masonic

volc25 wrote: »

Problem is I already have a stock and shares ISA with my stock broker which I have an active portfolio on, am I correct to say that I cannot open one with moneybox then?

Not if you have paid into your current S&S ISA this tax year, unless you wait until the next. But why would you? This Moneybox app is designed to exploit those who have never invested before and don't know they are being ripped off.

volc25

masonic wrote: »

Not if you have paid into your current S&S ISA this tax year, unless you wait until the next. But why would you? This Moneybox app is designed to exploit those who have never invested before and don't know they are being ripped off.

I did think the way it presents the investment part was quite basic, but I havent done any sums so I didn't assume for it to be expensive. I liked the idea of rounding it all up and then investing the difference but I could quite easily do this myself. Probably will anyway because my next years SS ISA will be with the same brokers

Anthorn

Just to note that money can be invested in a general investment account, not necessarily a stocks and shares ISA and a stocks and shares ISA can be transferred into it.

Ticks my boxes with FCA and FSCS.

I initially downloaded the Moneybox app just to see what it's all about but was then impressed by it because the adventurous (Fox) option invests in much the same funds as my portfolio with Hargreaves Lansdown. There can't be many S&S ISAs which invest in tracker funds such as Blackrock Global Property Shares Fund, Henderson Cash Fund and Vanguard Global Equity Fund for a minimum investment of just £1 a week.

Three problems: The first is the flat fee of £1 per month which if the minimum of £4 per month is invested represents a flat fee of 25% initially but then as the investment builds the flat fee expressed as a percentage reduces. The second problem is that there are other fees too which are pretty much standard: 0.45% platform fee plus fund managers fee which Moneybox estimates at an average 0.23%. The third problem is that fees are expressed in the valuation with fees paid by selling down the largest holding. I would have preferred a cash account from which to pay fees as I do with Hargreaves Lansdown.

So far we encounter a make or break situation if the app is viewed only in terms of the fees: Pay the fees and go with it or don't pay the fees and don't go with it. There is no middle ground.

There are advantages too such as cheap trades due to the flat fee - 157 trades per month cost 7p each and withdrawals are free.

Moneybox cannot be viewed in terms of entertainment value because it's about as interesting as life insurance. Initially the investment strategy is chosen; the method of payment is chosen which is either spare change or direct debit or both; lastly whether it's to be a S&S ISA or general investment account; then it's all automatic and nothing more needs to be done by the user except read the regular in-app messages such as contract notes.

Lastly do tell your nearest and dearest about it or place a note in your investment documents file if you invest with it. It's contained in a mobile app and if you die they might not find it.

Lastly, needless to say that I use it and I find it useful.

Anthorn

For those who think that £1.00p per month flat fee plus 0.45% of capital is a great amount of money but are interested in Micro-investing, there is Moneyfarm which is better known than Moneybox mainly because it has been established longer. No fees for total capital less then £10K but there is still the fund managers fee quoted as an average 0.25% the same as Moneybox.

Much the same as Moneybox with ready-made strategies based on risk level and the choice of S&S ISA or General Investment Account but without the round-up feature. There is no obligation to invest anything at all so you can register and get the app and have a good look around to help you to decide. Minimum investment of £1 but if you deposit less than £1,500 you'll be nagged to deposit that amount or start regular saving.

https://www.moneyfarm.com/uk/

JohnRo

They're fee free until you exceed the £10K loss leader, a marketing gimmick, anything above that and their excessive charges kick in and claw back all of what amounts to a deferred charge and a lot more on top.

It's just another investment toy, no one serious about building a substantial invest pot for future use, financial independence or retirement would use these apps unless they have money to burn or they're a bit dim.

MF's platform charges comparison graphic is intentionally misleading. That says everything anyone should ever need to know about these here today, gone tomorrow apps and those behind them.

I suspect the drive for most of the people behind these is to build up enough AUM before the wheels fall off so that they become attractive acquisitions. Then sell up to a larger more established platform and move on.

jimjames

Anthorn wrote: »

There can't be many S&S ISAs which invest in tracker funds such as Blackrock Global Property Shares Fund, Henderson Cash Fund and Vanguard Global Equity Fund for a minimum investment of just £1 a week.

Yes, there is good reason for that. If you can only afford £4 per month then you should build up a suitable emergency fund first. It really isn't the sort of amount suitable for investment especially with charges of 25%.

Anthorn

Here's an interesting and comparatively balanced review of Moneyfarm. Anyone thinking about using Moneyfarm might be better using the offer in the review to extend the no management fees to 15K of capital for the first year:
http://moneytothemasses.com/saving-for-your-future/investing/moneyfarm-review-right-investment

If you actually get to over £10K total capital then the management fee is 0.6% plus fund management fees of 0.25% average and that's per month folks. According to Moneyfarm their management fee for capital of £50,000 is £20 per month.
https://www.moneyfarm.com/uk/pricing/

What I like best about Moneyfarm and Moneybox is their transparency of the fees charged: We know exactly what we're going to pay if we proceed!

Obviously Moneyfarm is in a different league to Moneybox.

JohnRo

Anthorn wrote: »

What I like best about Moneyfarm and Moneybox is their transparency of the fees charged: We know exactly what we're going to pay if we proceed!

The obvious retort being, that'll be more than you should be!

(or would be paying elsewhere)

FYI 'transparency' isn't a USP of these investment toys. The RDR is four years old and all retail investment platforms are explicit about their charges.