Moneybox vs Moneyfarm: Which is Best to Invest With? 

When it comes to making investments, apps seem to be taking over! They’re great at helping us make instant investments and building tailored portfolios. And, as investing has become increasingly available to the general public, more and more apps have found their way onto our phones. 

Two of the biggest apps you may have heard of today are Moneybox and Moneyfarm. But, what makes them different, what are their pros and cons, and ultimately, which one is best to invest with?

I’ve looked at both in previous match-ups here at PFF – but today, it’s about time to put the leviathan battle of Moneybox vs Moneyfarm to the test.

Quick summary 

If you don’t have time to read through the whole of my guide today, here are the main points to take away:

• Moneybox is a free mobile app that allows you to invest in stocks and shares ISAs, Lifetime ISAs, personal pensions, and general investment accounts. 
• Moneybox charges a simple flat fee of £1 per month for its use, as well as a percentage of the investment amount. There’s no subscription fee for the first three months.
• You can expect to pay fund charges and platform fees depending on the type of investment accounts you run. 0.45% appears to be the flat charge.
• Moneybox allows you to invest in one of three portfolio styles based on your perception of and attitude towards risk. You can choose between Cautious, Balanced, and Adventurous.
• Moneybox also has a round-up feature that allows you to invest any spare change you might have from everyday purchases. 
• Moneyfarm, meanwhile, is a robo advisor. It provides its users with a range of investment portfolios based on individual risk preferences and investment goals. 
• Moneyfarm uses a combination of algorithmic investing and human expertise to manage individual portfolios. 
• This app charges a management fee from 0.35 % to 0.75%, depending on the investment amount. It does not charge any account or transaction fees. 
• Moneyfarm offers seven different portfolio profiles on a sliding scale of risk, determined by your investor profile. These revolve around ETFs, or Exchange Traded Funds.
• Moneyfarm also provides users with pension and cash savings accounts. 

What is Moneybox? 

Moneybox has been around for quite some time now, and is known for being a pretty reliable and easy-to-use app. More specifically, it is a savings and investment app that allows you to round up your everyday purchases to invest whatever spare change you have left over into one of three different investment options. 

For example, if you spend £9.22 on food shopping, Moneybox will save the 78p that’s left from the whole last pound. You can then either put that money into a cash savings account, a lifetime ISA, or in a stocks and shares ISA. 

One of the great things about Moneybox is that you can either set it up to make regular deposits into your app account or simply put money in whenever you can. 

It’s an award-winning app that will certainly be worth the £1 monthly subscription fee if you want to save yourself some money and invest wisely. 

How does Moneybox work? 

Once you download the app and pay the first £1 subscription fee, you’ll then be able to add the credit or debit card you usually use to make payments. (Psst – for your first three months, you won’t pay a penny!)

That way, whenever you use the card in a shop or online, the app will automatically know of the purchase and use it to make investments. 

However, you do not have to choose the round-up savings option by default. Moneybox also allows you to make set weekly deposits, a monthly payday boost, or general one-off payments. 

One of the key features of this app that I absolutely love is that you don’t have to dive in headfirst. You get to choose from three set up levels. That way, if you’re unsure about using the app, you can go at a slower pace, and learn how to use it properly and how it works, before committing yourself to it.

Then, the money you’ve saved or deposited can be invested via the app – nice and easy!

Keep in mind, Moneybox will also charge some fees per month depending on investments that enter your account. The representative platform fee, for example, is 0.45%.

What account options does Moneybox offer? 

Moneybox offers multiple account options – you can choose from simple savers, ISAs, LISAs, SIPPs, GIAs, or cash lifetime ISAs. 

What portfolio options does Moneybox provide?

If you’d prefer to invest with Moneybox, the great news is the service is highly flexible. You’ll get a choice between three different ‘starting options’ – which are labelled Cautious, Balanced, and Adventurous.

All three allow you to customise your investments however you wish, but are weighted based on your attitude to risk and potential savings goals. You’ll start with a range of different tracker funds, and you can also choose to make your portfolio socially responsible if you prefer.

The Cautious option is great for low risk, but growth tends to be a little slower than you might expect. Balanced gives you the best of risk protection and growth potential, while Adventurous is the riskiest route – but you’ll stand to get the highest rate of growth.

Moneybox will also support custom allocations, meaning you can build your own portfolio from scratch from a range of different funds and international stocks.

What is Moneyfarm? 

Moneyfarm is an online wealth management platform that has been running since around 2016 in the UK. 

Moneyfarm creates investment portfolios for its users based on their personal investment goals, risk comfort level, and financial situations. 

One of the best things about Moneyfarm is that it doesn’t rely solely on the algorithm within the app. It also uses actual human expertise to make the most informed and reliable decisions possible. 

The only slight catch is you will need to make a minimum investment of £500 to get started. While there are no subscription fees, this is definitely not small change! 

What’s more, instead of a set subscription fee, Moneyfarm will charge you a management fee based on the size of your portfolio, so what you pay will most likely not be the same as what your friend on the same app pays. This varies from 0.35% to 0.75% – and the more you invest, the less you pay each year (in terms of percentage).

It is important to note that – while this may seem like a lot – these fees are well spent! You’ll trust this app with managing, monitoring, and, when needed, rebalancing your portfolio, which is no small task. 

And, don’t worry about going into it blind. The app also provides educational tools to help you make the best decisions about your investments at the time of investing. 

You can rest assured that you’ll be working with a trustworthy app, as it is monitored by the FCA (Financial Conduct Authority). 

How does Moneyfarm work? 

When you sign up for Moneyfarm, you will be asked to complete a questionnaire. This will be to assess your investment goals, risk choices, and general financial habits. 

Then, once you’ve completed the questionnaire, Moneyfarm will recommend seven different portfolios, classified based on risk, for you to choose from. 

From here, you will need to make a minimum investment of £500 to start investing within the app. 

You can ask for support or assistance in your choice, and the app will use genuine human professionals to help you make the best decision possible for your financial goals.

What account options does Moneyfarm offer? 

Moneyfarm offers stocks and shares ISAs, junior ISAs, SIPPs, and GIAs as account options. 

What portfolio options does Moneyfarm provide?

Moneyfarm’s portfolio options are weighted along a numbered scale, running from one to seven. ‘Portfolio 1’ offers the most protection and lowest growth potential, while ‘Portfolio 7’ provides the biggest growth opportunities at a much higher risk of financial loss.

Moneyfarm offers a huge amount of data to help show you which portfolio option is likely to fit your investing needs the closest. They match you to a portfolio using your ‘investor profile’ – a smart way to automate your portfolio choice without having to worry about digging into the minutiae.

Moneyfarm’s portfolios arrive managed by experts, and you can also reach out for a consultation with an expert if you’re unsure of what options suit you best. You’ll have a pick of passive ETFs, but you can also select from fixed allocation portfolios if you’d like to save more money along the way.

Moneybox vs. Moneyfarm: Pros and cons 

Now we’ve looked at both of these apps in some detail, let’s break down a few of what I think are the most important pros and cons of either service.

Moneybox pros and cons 

Pros: 

• Low subscription fee 
• No minimum investment amount 
• Round-up savings option 
• Award-winning app 

Cons: 

• …there’s a subscription fee!
• Limited assistance within the app 

Moneyfarm pros and cons 

Pros: 

• No subscription fee 
• Great investment opportunities 
• Guided investments 
• Professional robo and human support 
• Portfolios tailored to you 

Cons: 

• Minimum £500 investment to get started 

Moneybox vs. Moneyfarm: Which is better? 

If you are looking at dipping your toes in investment opportunities, or are eager to grow your investments, then Moneyfarm is the best option. It’s tailor-made to support new investors and old hands alike. And, should you ever require professional assistance, you can find it directly in the app with approved professionals. 

On the other hand, if you’re looking to save yourself a bit of money and want to make the most out of your monthly savings, then Moneybox is a great option. It is only worth the subscription fee if you use it frequently, but, as long as you do, you can keep track of your purchases, savings, and investments all in one place. 

FAQs