📈 Investing Made Easy
Today's Highlights
- Moneybox - a safe and easy way to invest
- This Week On BuzzBelow - a recap on this week's topics.
- In Other News - a few interesting developments we're tracking.
Moneybox - a safe and easy way to invest
Moneybox is an investing app that makes it simple and easy for everyone to start. Users can begin investing with as little as £1. They can round up their everyday purchases to the nearest pound and invest the change into thousands of global companies via tracker funds. Users can also deposit money into their account on a weekly or monthly basis.
Users have several options to fund the Moneybox account. If users have a compatible bank account, they can ask Moneybox to ’round up’ every time they make a purchase. So, if users spend £4.80 on lunch, this figure is rounded up to £5 and that spare 20 pence is sent to the Moneybox account at the end of the week. It is like taking spare change. According to Moneybox, users so far are making around 30 transactions per week with an average round up of about 28p. This results in £8.41 savings.
There are several options to fund the Moneybox account. Users can arrange a set amount of cash that will be transferred over to the Moneybox account each week by direct debit and this will also tell the user’s projected earnings over a 10-year period. Users can arrange for a set amount to be transferred close to payday. If users find that round ups aren’t enough, they can double their value with this option. If users find themselves with a bit of extra money, they can make a one-off transfer from their debit card. There are plenty of options once the money has moved to Moneybox. A potential for greater returns is through one of Moneybox’s investment products. Rather than the user choosing to invest in individual stocks and shares, a fund manager pools money from different sources and invests in various funds. Investing this way reduces the risk to the user as investing all the money in one company could result in the user losing everything if they were to go out of business. Before investing, users will be asked about their attitude to risk. There are three starting options – Cautious, Balanced and Adventurous.
The investments and savings accounts are covered by the government’s Financial Services Compensation Scheme. That means if something should happen to Moneybox, the savings will be covered by up to £85,000. Ben Stanway and Charlie Mortimer are the co-founders of Moneybox. They have raised a total of $130.2M in funding.