Smartphone app MoneyBox makes the investment process easier for first time investors.
New app Moneybox is the digital equivalent of putting your spare change in a piggybank. Users of the app simply link it to an online bank account, and choose to either invest their spare change by having their card payments rounded up to the nearest pound, or set up a regular weekly payment. One-off deposits are also an option.
Your ‘MoneyBox’ is linked to an online bank account and allows card payments to be rounded up to the nearest pound. The spare change is then moved into one of three funds – picked by the customer according to whether they choose to be cautious, balanced, or high-risk.
The app aims to be a manageable way for people to invest with little cash to spare and without having to deposit a lump sum in one go.
Similar apps have been available for a while in the US and Australia, however to date MoneyBox is the only one of it’s kind in the UK.
The company’s website boasts that by investing money instead of having it in a current or savings account, you can reap greater long term returns – a 5.4% average, over a bank account’s 1.9% average.
For those interested, the app is free for the first three months, and then costs £1 per month plus 0.45% a year on the value of the user’s investments.
While all investment carries a risk, MoneyBox is regulated by the Financial Conduct Authority, and the ISA Manager is Greyfriars (whom the payments from your account will be taken by).