If you live in the UK and are looking for an easy way to save or invest, you must have heard of Moneybox. It is a mobile app-based platform that has become very popular with new users due to its simplicity and especially its famous ‘round-up’ feature.
But when it comes to your money, the biggest question that arises is, “Is Moneybox a legit company in the UK?”
The short and simple answer is yes, Moneybox is completely legitimate, legal, and a well-established financial technology (Fintech) company in the UK.
Let’s take a closer look at this answer and see why you can trust Moneybox. We will look at its regulation, security, customer reviews, and how it works.
What is Moneybox and how does it work?
Moneybox is basically an app designed to help ordinary people save and invest. Its most unique feature is its ’round up’ feature, which allows you to save or invest even the smallest amount of money left over from your everyday purchases.
For example, if you buy something for £2.40, Moneybox will round it up to the next whole pound (i.e. £3.00), and put the extra 60p into your savings account. This feature helps people start small and build good financial habits.
Moneybox is not a bank but a financial platform that offers a variety of products:
- Savings Accounts: such as Cash ISAs and Notice Accounts, which often offer good interest rates.
- Investing Accounts: Such as the Stocks & Shares ISA and the General Investment Account.
- Lifetime ISA (LISA): Especially for first-time home buyers, with an additional 25% bonus from the government.
- Personal Pension: Through which you can pool your old pension in one place and save for retirement.
With over a million customers and assets worth billions of pounds, Moneybox has become a big and established name in the UK financial market.
The basis of trust: Regulation and Protection
Before you trust any financial company, it is very important to look at two things: who regulates it and how your money is protected.
1. Authorised and regulated by the FCA
Moneybox is authorized to operate under the UK’s largest financial regulator, the Financial Conduct Authority (FCA).
- What is the FCA? This is the body that oversees UK financial companies to ensure they operate honestly, transparently, and professionally.
- Registered with the FCA (firm reference number 712935). This means that the company has to comply with strict rules to keep your money safe, adhere to security standards, and be transparent with customers.
This FCA regulation is the biggest proof that Moneybox is a legitimate and serious company operating under the jurisdiction of UK law.
2. Protection by the FSCS
In the UK, there is a safety net for consumers in the event of financial companies failing, called the Financial Services Compensation Scheme (FSCS).
- Investment protection: If Moneybox (as a company) fails, the FSCS can, under certain conditions, cover your investment losses of up to £85,000 per person. This protection is against the company going bankrupt, not against the price of your investment going up or down (which is market risk).
- Cash protection: Moneybox deposits your cash and savings with third-party banks other than itself. These banks are also protected by the FSCS. So, if that bank fails, your savings will also be protected up to £85,000 per person.
Moneybox always keeps its customers’ money and assets separate from the company’s own funds (called ‘Client Asset Segregation’), which is another strong layer of security.
What do customers say about Moneybox?
The integrity of any company can also be judged by the opinions of its customers. Moneybox generally receives very positive feedback, especially from those just starting out in saving and investing:
- High app ratings: This app has very high ratings on the App Store and Google Play Store, where users praise its simple interface, ease of use, and features like roundups.
- Positive review score: Moneybox consistently receives ‘Excellent’ ratings on review platforms like Trustpilot.
While more experienced investors may find the choice of investment funds limited, overall, Moneybox provides a successful and reliable solution for its target market (new and easy-going users).
Final Words on Moneybox Legitimacy
Looking at whether or not Moneybox is legit, we can draw a clear conclusion:
Moneybox is a completely legitimate, safe, and secure app in the UK.
