Plum vs Moneybox 2022: Whether you should invest your money in a Plum or a Moneybox. Both of these investments have their pros and cons, so it can be difficult to decide which is the right option for you.
In today’s market, there are a plethora of investment options to choose from. You can invest in stocks, bonds, real estate, and a variety of other assets. But which is the most suitable alternative for you? In this post, we’ll compare two popular investment options: plums and moneybox. Which will come out on top? Keep reading to find out!
What is Plum?
At first glance, Plum may seem like an unusual choice for investors. This online platform is based on a unique concept: investing small amounts of money over time to build up your savings. Unlike many traditional investment platforms, plum allows you to invest as little as $5 at a time – making it an ideal option for investors with smaller budgets.
There are two key ways that plum helps you grow your money: by investing it in a diversified portfolio of assets, and by automatically transferring small amounts of money into your account each day. plum calls this concept ’round-ups’.
For example, let’s say you spend $3.50 on a coffee every morning. plum automatically rounds up your purchase to $4, and invests the extra 50 cents into your savings account. Over time, these small amounts of money can really add up – helping you grow your wealth over time.
While plum is a relatively new investment platform, it has already attracted a large number of users who appreciate its simple and convenient approach to saving and investing.
What is Moneybox?
Moneybox is another popular investment platform that allows users to grow their wealth over time. Like plum, moneybox offers a simple and convenient way to invest small amounts of money each day.
However, there are a few key differences between plum and moneybox. For starters, moneybox invests your money in a set portfolio of stocks, bonds, and other assets – whereas plum offers a more flexible approach to investing. Another key difference is that plum allows you to round up your purchases on a daily basis, while moneybox takes a more traditional approach – allowing users to invest once or twice a week.
While plum and moneybox both offer a simple way to grow your wealth, they differ in terms of their approach and investment options. Ultimately, the choice between these two platforms comes down to your personal preferences and goals. Do you want to invest small amounts of money every day, or do you prefer saving up a larger sum to invest once or twice a week? Think about your options and make the best decision possible.
Investment Options: Plum vs Moneybox
You may invest your money, with the Plum tax-free wrapper of Stocks & Shares ISA. Alternatively, if you already have a Stocks & Shares ISA elsewhere, you can do so investment in a generic General Investment Account (GIA). This way you can enjoy tax exempt investment up to £20,000 per tax year.
In the realm of investing, Plum provides a simple and clear interface that will be appreciated by newcomers. You can invest your money in various “niches,” each of which is made up of stocks and bonds from various companies. For example ‘Rising Stars’ category includes new companies of Asia and Africa which are becoming giants. While on the other side, ‘Best of British’ includes shares from largest 100 public companies.
Moreover, there are 3 basic Portfolios (slow and steady, balanced bundle, or growth stack) to select from, each with a different range of loss probability depending on allocation percentage between bonds and equities.
On the other side, MONEYBOX offer a wealth of investment options. The app allows you to create a pension pot, and general investment account. If you’re a complete novice to investing and aren’t expecting to save large sums of money, the GIA is most likely your best option. Moneybox also offers savings only account with a name Cash Lifetime ISA it pays 1% AER and has no other charges.
Moneybox’s portfolio choice is straightforward. It’s ideal for individuals who don’t want to deal with the hassle of choosing funds and only require a passive investment strategy. The investment portfolios namely are; Cautious, Balanced, and Adventurous.
Fees and Charges: Moneybox vs Plum
Moneybox is also free to begin with, just like Plum. The charges are £1 a month after your trial period has ended. There is another recurring charge of 0.45% that applies per annum. Additionally, a 0.3% max charge is also applicable for fund provision each year, but its payable on monthly basis. Moreover, it’s worth noting that this fund provision charges varies with portfolio.
On the other side, Plum is completely free to use right away if you only want to save money. That’s sure to attract the interest of anybody new to a financial management platform. Furthermore, there are no limits on how much money you may put in and withdraw.
Plum fees varies with the investment product, this will add extra costs will in total pricing of your account. On average you will pay 0.51% in terms of annual charges and provider charges. You’ll pay just £1 per month for “Plum Plus” investing services. Up to a maximum a fund provider fee of 0.9% and management fee of 0.15% will also apply.
Plum Pro is available at a monthly subscription for £2.99. Both Plus and Pro subscriptions are free throughout the first month and may be canceled at any time during that period.
Plum Pros and Cons
- Best for newcomers as free version is available
- No need to manage your savings.
- Easy to use interface
- Offers a variety of investment options
- Monthly fees apply after the free trial period ends for premium plans
- Plum fees vary with the investment product, which can add extra costs to the total price of your account
- More advanced investors may find the platform too simple or limited in terms of features and customization options
MoneyBox Pros and cons
- Wide range of investment options, including stocks, bonds, and other securities
- Simple and easy to use interface that is suitable for beginners or casual investors.
- Low fees and charges compared to other platforms.
- Ability to create a pension pot or general investment account
- Limited functionality and customization options compared to more advanced platforms.
- May not be suitable for more experienced investors who want more control over their accounts.
- Fees can add up over time, depending on the investment strategy you choose to follow with moneybox.
Is my Investment Safe with Moneybox or Plum?
At all times, there is some risk associated with any investment. But thankfully, Moneybox and Plum both are regulated by the FCA. This means you’ll get protection of up to £85,000 in case of bankruptcy.
Both plum and moneybox offer investors a simple way to grow their wealth over time. There are, however, some significant distinctions between the two platforms.
Plum allows users to round up their purchases on a daily basis, while moneybox takes a more traditional approach – allowing users to invest once or twice a week. Plum also offers a more flexible approach to investing, while moneybox invests your money in a set portfolio of stocks, bonds, and other assets. Ultimately, the choice between these two platforms comes down to your personal preferences and goals.
Do you want to invest small amounts of money every day, or do you prefer saving up a larger sum to invest once or twice a week? Consider your options and make the choice that’s right for you. Whether you’re a novice or an experienced investor, plum offers a variety of investment options to suit your needs. However, with its relatively low fees and straightforward interface, plum may not be ideal for more advanced investors who require greater.