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. Two of the most popular automated savings and investment services available to users in the UK right now are Plum and Moneybox. Both offer similar services and savings goals support – but which is the best choice for you?
Let’s take a quick look at Moneybox vs
Plum vs Moneybox
Plumlets you save money automatically with targets and a Facebook Messenger function.
- Moneybox connects to your cards and rounds up your purchase, saving or investing your change.
Plumand Moneybox are free to use to begin with.
- Both services offer a range of savings accounts and investment options.
Plumis better suited to people looking to save money in the short term.
- Moneybox is likely to be better for those looking to invest money over a longer period.
- Both services are FCA-regulated and are fully encrypted.
Plum, you connect your personal bank account, and with Moneybox, you connect a card you make payments from.
The Plum savings app has been around since 2016. In that time, it has built itself up as a leading auto-money-saving platform.
You’ll even be able to communicate with the service through Facebook Messenger, which is a really nice touch. It’s here where
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.
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Plum Performance Track Record – is Plum Safe?
Thankfully, there’s not much to worry about here. You’ll benefit from read-only bank integration, along with AES and 256-bit encryption to keep your data safe.
What Fees do
Here’s the best part –
Depending on the investment product you choose, of course, separate fees may apply. This means you’ll pay just £1 each month for investment services, and there’s a max rate of 0.9% on the fees you pay on top, annually.
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.
Moneybox Performance Track Record – Is Moneybox Safe?
Moneybox has a solid track record. It also offers a socially responsible or ethical investment option which will help to ensure you only place your money in services and stocks which are ethically responsible. What’s more, when you start investing, it’s very easy to choose between different options to set your risk level based on your experience.
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. There are £1 fees for investment accounts and competitive rates there on out. Plumwill actively save for you so you don’t have to remember to do it yourself.
- The Messenger style chatbot service is a great touch, and is very easy to use and manage.
- Investing is cheap to get into, and the service benefits from a huge amount of security.
Plumoffers a roundup, 52 week challenge, rainy days and pay day options as well as the core service of automated savings.
- There is some concern over customer service availability in that there’s no 24 hour coverage.
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.
- However, Moneybox’s fees may not be a great fit for anyone looking to make money in the short term.
- Some users feel that Moneybox offers a slow burn – if you have the time to give it patience, it might work well for you.
Which is Better
Plum or Moneybox?
In terms of automated investing Moneybox may just inch it for me as it offers plenty of variety in choice of investment products and a simple risk based portfolio option. It’s also very reasonably priced.
However, if you are looking for more focus on starting to save money and smart ways to do so, and potentially looking to make a small start with investing then Plum is likely to be the best choice for you.