Moneybox – The Key Points
Positives:
- Funds held in Moneybox savings or investment accounts are covered by the Financial Services Compensation Scheme.
- Moneybox gives investors the choice of 3 levels of risk for their investments – Cautious, Balanced and Adventurous.
- Whilst Moneybox do offer investments, which always carry risk, they do not offer more risky investment instruments such as cryptocurrency or CFDs.
- Moneybox use Open Banking to connect to your financial data, which is a well regulated and secure system.
Potential Concerns:
- Part of the Moneybox product is investment based, and all customers should be aware that investments always carry the risk of losing money.
- Moneybox is a relatively recent startup, and as such they are not profitable, and continue to lose money.
What Is Moneybox?
Moneybox is a very apt name for the app, as their aim is to be a digital version of a piggy bank. The central function of the app is that they connect to your bank via Open Banking, and then they will round up any payment you make to the nearest pound. They will then automatically move these funds into your Moneybox account. Once in Moneybox, they offer a variety of saving and investment options so you can grow your money.
Moneybox was founded in 2015, and in 2021, them claimed over 700,000 customers we using their app, with a combined £1 billion of funds under their management.
Is Moneybox Safe – The Details
Regulation:
Moneybox is a UK company, and is regulated by the Financial Conduct Authority to operate payment services and investments.
Protection/Insurances:
Moneybox are not directly covered by the Financial Services Compensation Scheme. However, all of their savings and investment products are provided by partner banks and investment companies who are. Therefore, all customer funds with Moneybox are covered by the FSCS up to £85,000 per customer.
Credit Risks:
Moneybox do offer investments as part of their offer. All investments have a risk, and customers should always be aware that there is always the possibility of the value of investments going down, and even that you will lose all of your initial investment.
Moneybox give customers a choice of the level of risk they wish to take with their money – from cautious, to balanced, to adventurous. Always bear in mind that whilst you may have higher returns with the adventurous level, it will carry a higher risk of losing money.
Moneybox focus their investments on stocks, shares and funds, and do not offer more risky financial instruments to invest in such as cryptocurrency, forex or CFDs.
Company:
Moneybox was launched in 2015, and are not yet profitable, and indeed have made larger losses in recently years. However, they do appear to be well funded, and continue to grow both the amount of customers they have and the amount of money under management.
Data Security:
Moneybox will access your banking data to analyse your spending. However they use Open Banking to do this, which is a well regulated and secure system, which ensures they never have access to your banking logins, and only have read-only access to your data.
Resources:
Trustpilot:
https://www.trustpilot.com/review/moneyboxapp.com
Is Moneybox Legit?
Moneybox are well-regulated and have all of the things in place you would expect for an financial app. They do offer investments, so potential customers should always be aware of the risks of investment. As a relatively recent startup, the company has lost increasing amounts of money over recent years as they have grown, but appear to continue to be well funded.