It’s getting easier and easier to save money and to make smart investments from your phone. However, with all the platforms on offer, it can sometimes get confusing which options are worth the price of admission, and which aren’t. Some of the most popular automated savings and investment services available to users in the UK right now are money management apps. Plum and Moneybox are examples of apps that help you manage your money better. Both offer similar services – but which is the best choice for you?
Let’s take a quick look at
Plum vs Moneybox: Quick Summary Plum& Moneybox let you save and invest money automatically. Please note: as with all investments, your capital is at risk.
Plumand Moneybox are free to use, but they also offer premium versions providing more features to manage your money.
- Both premium versions of these services offer a savings account and the option to invest in various investment funds.
- Both services are FCA-regulated and are fully encrypted.
Plum, you connect your bank account(s) and credit card, with Moneybox, you connect a card you make payments from.
Plum is a money management app which has been around since 2016. In that time, it has built itself up as a leading platform in this space.
You’ll even be able to communicate with the service through a sophisticated chat bot. It’s here where
Your savings with Plum are either stored in an e-wallet (the Primary Pocket) or they are stored in Easy Access Interest Pockets offering 0.20% AER for basic accounts and 0.40% AER for Plus and Pro accounts (more about these later). These interest accounts are provided by Investec bank, who do have the right to change the rate at any time.
Plum Investment Options
In terms of where your money is invested,
There’s also a simple 3 option risk level to choose from which vary in levels of risk based on the breakdown of stocks vs bonds within the selected portfolio; Slow & Steady, Balanced Bundle or Growth Stack. Please remember, as with all investments. your capital is at risk.
Interested in Free Stocks?
Check out our guide on how to get free stocks in the UK
Plum Account Options
- Earn interest on your savings (up to 0.20% AER)
- 1 Pocket to store your savings
- Auto-deposit rules (algorithm & round-ups)
- Get alerts when overcharged on bills
- Connect multiple accounts to see all transactions and regular payments in one app
All of the above plus:
- Earn interest on your savings (up to 0.40% AER)
- 3 Pockets for savings (e.g. split holiday savings from house deposit)
- Beginner friendly investments (automated, simple, jargon free)
- Access to all investment funds from £1
All of the above plus:
- Goals (set savings targets, track progress)
- Unlimited Pockets
- Exclusive saving rules (52 week challenge, ‘rainy days’ and ‘pay days’)
- True balance after your bills & other regular payments
- Monthly spending diagnostics vs lookalikes
- Cashback on brands such as Nike, ASOS or Groupon
Is Plum Safe?
What Fees do
Here’s the best part –
Depending on the investment product you choose, of course, separate fees will apply. The average annual fund management and provider fee is 0.51%. This means you’ll pay just £1 each month for access to Plum Plus’ investment services, and there’s a max rate of 0.9% fund provider fee and 0.15% fund management fee on the subscription fees you pay annually. Plum Pro is £2.99 a month. Both subscription tiers are free during the first month and you can cancel anytime during your trial. Although again, please remember that as with all investments. your capital is at risk.
What is Moneybox?
Moneybox has been around just as long as
How Does Moneybox Work?
To start saving money with Moneybox, you’ll need to set up a credit card or debit card that you make payments with. This means that, each time you pay for something on that card in public or online, the app will detect change and set it to one side.
You can choose from one of three setup levels, too, meaning that if you’re unsure if you want to throw yourself right into the app, you can take things at a slower pace if need be. You’ll also be able to login and invest money through various options.
Moneybox Investment Options
Moneybox offers some great choices for the curious investor. You can set up a pension pot through the app, as well as a general investment account GIA. A GIA is likely to be your best default option if you are completely new to investing and are not likely to be saving huge amounts of money.
Related: Looking to invest a set amount?
If you are looking to invest a lump sum or a set amount of money each month then you may want to consider a more traditional platform such as Nutmeg or Moneyfarm. Click the link below to read our comparison.
You might also want to invest up to £20,000 a year into a stocks and shares ISA, or £4,000 in a stocks and shares LISA, before you have to worry about paying for tax. Although do keep in mind that a lifetime ISA (LISA) will count towards your total annual ISA limit of £20,000. You can even set up a junior ISA to manage cash for your children.
In terms of portfolio options Moneybox have a simple approach. Ideal for those who don’t want to get involved in picking funds and just need a passive investment option. The three portfolios on offer are based on risk level – Cautious, Balanced and Adventurous.
Is Moneybox Safe?
There are always going to be some risk with any investment, and thankfully, Moneybox is backed by the FCA. This means that you will benefit from plenty of protection up to £85,000. As with
What Fees do Moneybox Charge?
Moneybox is, like
You’ll also be charged 0.3% max for fund provision each year, though expect to pay this each month. Whereas
Again, similar to
Plum vs Moneybox: Pros and Cons
So – it’s time to break things down even further. What are the pros and cons of each service?
Plum Pros and Cons Plumis free to use for the savings and basic money management aspects with the option of paid premium accounts to get into investing and additional money management features. Plumwill actively set aside money for you so you don’t have to remember to do it yourself.
- The in-app notifications are great and keep you well informed about your finances.
- Plus and Pro accounts are great paid upgrade options at just £1 and £2.99 per month respectively.
Plumoffers a roundup, 52 week challenge, rainy days and payday options as well as the core service of automated savings.
- Plum offers you easy in-app switching for bills and utility providers which are overcharging you.
- There is some concern over customer service availability in that there’s no 24 hour coverage, although that’s unlikely to be a major issue for most.
- FCA regulated with plenty of encryption.
Moneybox Pros and Cons
- Moneybox offers a huge range of investment options, including personal pension services.
- Fund charges are very reasonable, as are annual rates.
- Investments are free to get into for the first three months.
- It’s extremely easy to use and get used to.
- FCA-backed with plenty of encryption.
- Withdrawals are quick and easy, and very flexible (although granted Plum are even quicker).
- However, Moneybox’s fees may not be a great fit for anyone looking to invest very small amounts.
Plum vs Moneybox: Which is Better?
In terms of investment options Plum offers more fund options and is cheaper overall. So if you are looking for more focus on starting to save money and smart ways to do so, and potentially looking to make a start with investing then Plum is likely to be the best choice for you.
As an added bonus if you sign up to Plum you can get a free 30 day trial to try out Plum Pro (then £2.99 per month).