How Trustworthy/Safe is Moneybox?

s11218

Hello, I opened an account with Moneybox over a year ago, with the view of saving via their Lifetime ISA.

it makes me quite nervous depositing money into it, as in it just appears less safe/secure than a bank!

If anyone can provide advice or assurance on this it would be very much appreciated.

twopenny

Well it came in the Which list for top providers but I didn't read what 'best' was.

It seems to be a private limited company which has been running for some time supplying financial products.

Is it only through an app? No other contact?

Woodstok2000

https://forums.moneysavingexpert.com/discussion/6679540/how-trustworthy-safe-is-moneybox

It seems to have the same protections as any other bank with regards to failure of the business:

https://www.moneyboxapp.com/fscs-protection/

Is there something in particular that is concerning you?

dunstonh

How Trustworthy/Safe is Moneybox?

They are FCA regulated. Just like other FCA-regulated firms

it makes me quite nervous depositing money into it, as in it just appears less safe/secure than a bank!

Seeing as Moneybox isn't a bank (it doesn't have deposit permissions), you shouldn't expect it to be the same as a bank. However, it has the regulatory permissions for the areas of business it deals in. And the appropriate FSCS protections that go with that

starboyx

https://forums.moneysavingexpert.com/discussion/6679540/how-trustworthy-safe-is-moneybox

I had the same concerns initially, but Moneybox is regulated and has the appropriate protections in place. Being app-based doesn’t necessarily make it any less secure than a traditional bank.

s11218

https://forums.moneysavingexpert.com/discussion/comment/82100255#Comment_82100255

Thank you, it is just via the app I am using it. It just makes be feel uneasy as I haven’t used any other financial product/service other than a bank before. Feel much happier given your & others replies.

s11218

https://forums.moneysavingexpert.com/discussion/comment/82100259#Comment_82100259

Concern was really just how well regulated it is & how safe & secure also.

gm0

Your unease is a helpful initial stance to prompt diligence.

Where registered for the relevant permissions to qualify for whichever UK FSCS/FCA protection regimen - savings deposit etc. as applies to a product. And where it is a bank. Then is it a UK bank with a UK banking license - or understand what you may be getting into transnationally - it's been problematic before at least temporarily. When crises hit, foreign investors are well down the list of any government's concerns.

"App only" providers bring their own cost cutting and technology related joys - with software support and updates, phone compatibility over time, failed app updates and the support channel being inside the app - which is now dead. Happened to another poster on Revolut this very week.

So personally - I would use a product like that for an isolated and proportionate thing. Like holiday currency. Or a modest pot of savings to get a specific hot rate.

Would I build my business or life around it as a primary financial setup. Not a chance.
However charming they tried to be in their marketing.

But then I am a "resilience" focused thinker. The care free will not agree. So each to their own.