" class="no-js "lang="en-US"> Moneybox Launches App to Help Parents Discover the Power of their Spare Change - Fintech Finance
Tuesday, February 27, 2024

Moneybox Launches App to Help Parents Discover the Power of their Spare Change

From this April, parents will be able to open a Junior ISA via a mobile app for the very first time thanks to Moneybox. The new Junior ISA can be opened in minutes from a mobile phone and users can invest with as little as £1 – no need for bank queues, filling in forms or being placed on hold.

A first of its kind in the UK, the Moneybox app will help parents to round up the cost of everyday purchases to the nearest pound and invest the spare change into a Junior Stocks & Shares ISA. With a 99% chance that investing in shares will give higher returns over 18 years than cash savings accounts*, Moneybox takes the hassle out of saving and investing.

With just one easy swipe, parents can round up everyday purchases to the nearest £1, making it easy to save little and often. When picking up a morning coffee for £2.40, the app will round up the total to £3 and invest 60p, or for an Uber journey home that costs £12.20, Moneybox will round it to £13 and invest 80p. The digital piggy bank also allows users to make weekly and one-off payments, so they can set money aside in the way that suits them best.

According to Moneybox, the average user makes around 30 transactions per week, saving an average of £12 in round ups. This grows to over £600 per year, highlighting how small but frequent payments can stack up to substantial savings. If two parents set aside this amount of spare change for 18 years, they would save over £20,000 by the time their child reaches adulthood. Average historic returns mean that this lump sum would have grown to £30,000 had it been invested in a service such as Moneybox – highlighting the power of investing in stocks and shares.

There are three simple starting options for parents to choose from – the cautious squirrel, the balanced owl and the adventurous fox. Each starting option invests in over 6,000 global companies including Netflix, Unilever and Disney via three tracker funds. The Moneybox Junior ISA app enables parents to invest up to £4,128** for their child each year tax-free. Funds can be accessed when the child reaches 18 years old and provide a helping hand when starting university, heading off on a gap year or saving for a property deposit.

Charlie Mortimer, co-founder of Moneybox, commentsAs the father of two young daughters, I know it can be hard to find the time to sort out savings accounts for your children! We hope that our new app will make it easier than ever for parents to open a Junior ISA and start planning for the future. By investing little and often, we believe parents will be able to build up significant sums of money for their children over the long term, and give them the best possible chance for the future.”

Moneybox can be downloaded for free from the App Store for iOS.

Moneybox is a company helping people to invest their spare change. Launched in August 2016, Moneybox aims to empower people to reach their goals by making it easier than ever to save and invest. Users can round up their everyday purchases to the nearest pound and invest the change into thousands of global companies via three tracker funds. For peace of mind, all Moneybox products are fully authorized by the Financial Conduct Authority and covered by the Financial Services Compensation Scheme for deposits up to £75,000.

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