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Digital Banking

Top current account & autosaving apps

app-based banking
Rosie Bannister
Rosie Bannister | Edited by Johanna Noble
Updated 14 April 2020

There's now a wave of banking and savings apps that give you a helping hand with budgeting, saving and managing your cash in a way traditional banks don't – though the biggies are starting to catch up. If you're not smartphone-savvy or you prefer banking in branch, see Best Bank Accounts instead.

Best banking apps

In this guide

Who's this guide for? Anyone wanting to try an app-based current or savings account that can help you manage your cash.
 

Not what you want? Other related guides... 
Best Bank Accounts | Top Savings Accounts | Prepaid Cards | Prepaid Travel Cards | Cards for Under-18s

What is digital banking?

Our focus in this guide is on the new app-only banks with all the gizmos, such as giving spending notifications and letting you ring-fence cash for savings etc. But some of the traditional high street banks have popular apps, and are catching up with their newer competitors, so we also feature them.

Digital banking is on the up – almost 22 million people regularly used a banking app in 2017, according to trade body UK Finance, with 174 app logins every second.

While the purely app-based banks don't have a high-street presence, most have in-app customer support, with dedicated teams on hand to offer assistance if you've any questions or issues.

All apps featured in this guide are free to download – though some have costs associated with running them, which we clearly explain in our best buys below.

Quick questions

  • Does it matter what kind of smartphone I have?

    The apps in this guide all work with Android and iOS phones, so you should be able to download them if you've one of those. Alternatively, several of the apps let you download them to an iPad or other tablet if it runs on Android or iOS.

    Unfortunately, if you have a Windows Phone or other smartphone/tablet, you WON'T be able to get any of the new apps in this guide – though you can get traditional banks' apps (see Cheap Mobile Tips if you want a new phone).

  • How do I deposit cash and cheques when using an app?

    Many apps, including Starling and Monzo, allow you to deposit cheques by posting them to an address.

    With cash deposits, Starling allows you to pay cash in for free at any Post Office branch. With Monzo, you can deposit cash anywhere with PayPoint – though it costs £1 per deposit, so is worth avoiding if you can. For apps from the big names, such as Barclays and NatWest, you can head into a branch.

Rather watch than read? This helpful little video gives you the app-based banking lowdown...

Video player requires JavaScript enabled. You can watch this video here: https://www.youtube.com/watch?time_continue=2&v=CUGdruYqBCs

The seven need-to-knows

To get your head around app-based banking, read the following: 

  • 1. The apps can help with budgeting and tracking spending

    apps to track spending

    Although these apps aren't solely meant for budgeting, a lot of the ones we feature in this guide can also help with keeping your finances in check.

    Many give real-time notifications when you spend or save – so for example, if you bought something for £5 in Boots, you'd get an instant pop-up on your phone telling you what you've spent.

    Another feature they have is to give you insights into your spending habits. This means you'll easily be able to see how much you spend in one particular shop each month (coffee addicts beware!), or more generally how much you spend on entertainment or travel.

    This should make it easier to budget and keep track of your money, allowing you to cut the cloth where needed.

  • 2. Your money's not always protected in the same way as a traditional bank

    your money is protected

    When it comes to your finances, you want to be sure your money's safe – so it's important to understand how your money's protected. UK-regulated banks such as Barclays and NatWest have the full £85,000 Financial Services Compensation Scheme (FSCS) protection (see more on this in our Savings Safety guide).

    Some of the apps below, including Starling and Monzo, also have FSCS coverage, but a few don't. Instead, many digital banking apps have an 'electronic money' licence. This means they have to hold your cash in a bank account ring-fenced from their operating cash – this is normally with a big bank such as Barclays or NatWest.

    Should the digital bank go bust, assuming it's done things by the book, your money would be protected as it'd be in a separate account.

    But there's an important caveat. If the bank or building society in which your money was ring-fenced went bust, your money may NOT be protected. This is because it's not counted as a deposit, in the way that cash in a savings account would be, and so it's not as clear-cut – the FSCS has told us that it would have to decide on a case-by-base basis whether or not it would cover your cash.

    For providers in this guide, we tell you how your money's protected – it's up to you whether you want to take the risk of a big bank that's holding your money going under.

  • 3. The bank accounts are cool and high-tech BUT you can often get better rewards elsewhere

    One thing that many financial technology firms – or fintechs – are trying to do is become fully-fledged banks, offering an alternative to the main high-street players. Like their high-street counterparts, they offer debit cards, overdrafts, direct debits, standing orders and more. These challenger banks sell themselves on their high-tech, easy-to-use features, but it's still worth being aware of the old-school brands.

    Many high-street banks offer incentives of £100+ if you switch to them, or ongoing rewards such as in-credit interest or cashback on bills, something the challenger banks don't tend to do. For full options of these, see Best Bank Accounts.

    But it's worth noting that you don't HAVE to switch to open an app-only account, you can simply open one as an extra. This might be a good option if you aren't convinced of the benefits of app banking but are keen to see what all the fuss is about.

    Quick question

    • Can I switch easily to one of these app-only banks?

      Yes. If the provider's signed up to the Current Account Switch Service (CASS), this process is quick and seamless and works the same way as switching to a traditional bank. It takes seven working days, all payments going in, eg, salary, and out, eg, utility bill direct debits, are moved to your new account, and any wrongly applied charges will be refunded. For more on this, see Best Bank Accounts.

      However, if a bank isn't signed up to CASS, you'd have to switch using the older, manual process, which takes longer and doesn't offer the same guarantees. We note in our top digital bank accounts section whether or not each bank is signed up to CASS.

  • 4. They can make saving automatic

    Most of the apps are designed with you in mind, with oodles of clever tech that makes managing your money as easy as pie.

    In this guide we feature apps for saving, which have functions such as calculating how much you can afford to save each week and automatically moving money into a separate savings account – though you can always tell the app to save less if you're feeling the pinch, or move the money back into your current account if you need it.

    This is intended to help you save without having to think about it, which should lead to higher savings building up.

    While these apps can help you save more, they generally don't pay top rates – see our Top Savings Accounts guide to boost your returns.

  • 5. It's easy if you lose your card or forget your PIN

    If you bank with a traditional provider and misplace your debit card or can't remember your PIN, it used to involve calling to cancel the card or waiting for a new PIN to be posted.

    But new banks are making it easier to manage if you lose your card or have a lapse of memory – they tend to let you freeze or unfreeze your debit card with the touch of a button, and can give you PIN reminders in-app. You'll still need to enter a passcode or use 'touch ID' fingerprint recognition to get into the app though, anyone can't just use your phone and steal your PIN.

    Some of the big names have also started to adopt these newer technologies – we list which in our table below.

    So no more cancelling your card and then finding it seconds later at the bottom of your bag...

  • 6. Want a bank account or overdraft? You'll need to pass a credit check

    All providers featured in this guide perform 'know your customer' (KYC) checks – this means they need to prove you are who you say you are when you apply, and will often ask for proof of identity and address.

    These ID checks appear on your credit file as a 'soft search', which other lenders usually can't see, unlike a 'hard search' which is visible to other lenders searching your report and can lower your credit score (see Credit Scores for more).

    But if you're applying for a bank account, you'll likely be subject to a credit check when you apply. These help providers assess if you're someone they want as a customer, and also let them see if they'd be willing to give you an overdraft. This is usually a 'hard' search – which can impact your credit score (exceptions are Starling Bank and Monzo, more on them below).

    Banks use credit checks, plus data on your application form, to decide whether to accept or reject you. Sign up to our Credit Club to see your free Experian credit report and find out who's checked you, and what sort of search they've done.

  • 7. Banks now have to let you give authorised apps access to your current account

    apps to access current accounts

    Many apps, including the automatic savings apps below, require you to give them access to your existing online banking, so they can see your current account and credit card info. This is to give you insights into your spending habits, calculate how much you can afford to save, or combine multiple accounts in one place.

    This sometimes means giving the app your login details so it can access your data. And because of a regulation snappily called 'the second Payment Services Directive' (PSD2) and reforms to the banking industry called Open Banking:

    Banks now must share your banking data with authorised third parties if you've given permission.

    By 'authorised' we mean those third parties, such as apps, which have special licences from the Financial Conduct Authority (FCA) or other European regulators – see our Open Banking explained guide for more. Banks may still share your info with unauthorised firms if they choose to. However, if you choose to do this with an unauthorised firm or app, you may be liable for any fraud affecting your bank account.

    We note below if an app which connects to your bank account is authorised to provide these 'account information services' – if it's not yet, you need to decide whether or not you're happy to take on the extra risk.

    Quick question

    • What if I use an unauthorised app?

      If you use a third-party provider that's not authorised, you won't get the same levels of protection against fraud. So if you lose money through it, your bank may not pay out.

      You should always check a provider before you give it access to your accounts – you can do so on the FCA Register. If it's not authorised, ask what security measures it has in place.

      However, if you're happy with a provider, you can choose to give it access even if it's not authorised, but you need to be aware of extra risks.

      We asked the FCA what you should do if you have doubts about a provider. It said: "If you're unsure about whether a company is legitimate, you should ask them for more information, for example, who they are regulated by.

      "If you don't know who you are talking to, or there is reason to suspect that the provider is not who they claim to be, don't disclose your banking security credentials or other personal or financial information."

      Bear in mind too that using a firm that's yet to be authorised doesn't automatically mean you're not protected – some apps already adhere to other regulations, such as the e-money regulations, which means your money is safeguarded.

Top new current account apps

For the challenger banks below offering current accounts, you apply through their apps and the process is quick and easy, typically taking a couple of minutes. Both banks have the full £85,000 UK savings protection under FSCS.

These accounts can be beaten if you're looking for free cash to switch or high interest, but if you're after snazzy features such as budgeting help and instant notifications, read on for our top picks.

Starling Bank*

Useful spending notifications, great for budgeting + top for overseas use

Apply*

App-based Starling Bank* offers a full current account that you can open in a couple of minutes. It gives you real-time notifications when you use your debit card, insights into your spending and lets you set up savings goals. You also earn a small amount of in-credit interest.

As an added boon, there are no fees for spending or cash withdrawals abroad, making it a top-pick debit card overseas, though it's possible this'll change in future.

There are no branches, but you can still deposit cash and cheques – full info in the FAQs below.

How Starling rates on
service

86% GREAT
5% OK
9% POOR
DATE: FEB 2020. VOTERS: 181

Minimum monthly pay-in: None
In-credit interest: 0.05% AER variable on up to £85,000
How to get the app: Download for iOS (rated 4.9/5) or Android (rated 4.7/5)
Member of CASS? Yes
Does it credit check? ID checks only, unless you apply for an overdraft
Overseas fees: None

  • What else can the app do?

    As well as providing spending notifications and insights, the app lets you freeze and unfreeze your debit card at the touch of a button, report it lost or stolen or get a PIN reminder in-app. You can also turn off certain functions of your card such as online spending, contactless payments or ATM withdrawals if you want to control a specific type of spending.

    Starling also has a 'marketplace', which lets you use other companies' services through its app. There are only a few companies featured at the moment, but in future it'll offer ISAs, savings accounts and insurance, among other products.

  • Are there limits on using the card?

    You can make up to six cash withdrawals a day, totalling a maximum of £300.

  • What exchange rate will I get overseas?

    The debit card is a Mastercard, so you'll get the Mastercard rate, which you can check here. There are no fees to use your card abroad, making it a top pick for overseas use.

  • Will Starling credit-check me?

    When applying for an account, Starling will run an initial credit check – this is a 'soft' search – which won't affect your creditworthiness. From this, it'll decide whether it'll accept you for the account, and how much it could offer you as an overdraft. If (and only if) you say 'yes' to the overdraft, Starling will then record a 'hard' credit application on your credit report, which could have a minor impact on your credit score.

  • Is my money protected?

    Yes, Starling has full FSCS protection, so your money saved with it is safe up to £85,000.

  • How do I deposit cash and cheques?

    You can deposit cash at any Post Office branch using your card and PIN if you have one of Starling's newer vertical cards (if not, you can contact Starling to request one).

    There are two ways to deposit cheques:

    • If the cheque's for £500 or less, you can take a photo of it in-app. The app will read the cheque details and - if it's kosher - add the money to your account within a couple of working days.

    • If the cheque's for over £500, you can mail it for free to 'FREEPOST Starling'. Make sure you've written your last name and eight-digit account number on the back of the cheque.

  • How do I contact the bank?

    If you have any problems or questions, you can contact Starling via the in-app messaging service. Alternatively, you can email help@starlingbank.com. 

Arranged overdraft cost: 15%, 25% or 35% EAR variable. The rate you get depends on your credit history.
Unarranged overdraft cost: None

APPLY*

Monzo

Budgeting help & good for overseas use

Apply

Monzo, like Starling above, gives real-time notifications when you use your debit card and insights into your spending. You can also set money aside in 'pots' and choose to round up every purchase you make to the nearest pound, with the difference going into a pot.

Monzo has no fees for spending abroad. Plus overseas ATM withdrawals are totally fee-free in the UK, EU, Iceland, Liechtenstein and Norway, and fee-free up to £200 in any 30-day period elsewhere (3% fee above).

There are no branches, though you can deposit cash anywhere with PayPoint for a £1 fee and cheques by post – full info in the FAQs below.

How Monzo rates on
service

94% GREAT
4% OK
2% POOR
DATE: FEB 2020. VOTERS: 297

Minimum monthly pay-in: None
In-credit interest: None
How to get the app: Download for iOS (rated 4.5/5) or Android (rated 4.4/5)
Member of CASS? Yes
Does it credit check? ID checks only, unless you apply for an overdraft
Overseas fees: No spending fees. ATM withdrawals fee-free in UK, EU, Iceland, Liechtenstein and Norway; fee-free up to £200/30-day period elsewhere (3% above).

  • What else can the app do?

    As well as providing spending notifications and insights, the app lets you freeze and unfreeze your debit card at the touch of a button, report it lost or stolen or get a PIN reminder in-app.

    You can also set up 'pots', which let you assign money in your account to goals such as saving for a rainy day, or a specific purchase. And unless you've chosen a fixed-term savings pot (see below), you can move money back into your current account whenever you want. Be aware that any money you have in a pot won't be included in your main account balance.

    You can open a 'regular pot' or, if you've at least £500, a 'savings pot'. Cash in a savings pot is held by one of Monzo's partners (with full UK savings safety protection) – these are Paragon, OakNorth Bank, Investec and Charter Savings Bank. The interest you can earn with them isn't the best, so it's worth looking at top savings accounts too.

    Monzo also has a feature called 'Bill Tracker' which alerts you if a regular direct debit leaving your account is higher or lower than usual – helpful if, for example, you've been moved on to a higher energy tariff or racked up a big phone bill without realising.

  • Are there limits on cash withdrawals?

    You can withdraw up to £400/day from ATMs, up to a maximum of £5,500/month.

  • What exchange rate will I get overseas?

    The debit card is a Mastercard, so you'll get the near-perfect Mastercard rate, which you can check here.

  • Will Monzo credit-check me?

    Yes, if you apply for an overdraft. If you don't apply for an overdraft, it'll just run an ID check on you, which will appear as a 'soft' check on your credit report and won't affect your creditworthiness.

  • Is my money protected?

    Yes, Monzo has full FSCS protection, so up to £85,000 is safe when saved with it.

  • How do I deposit cash and cheques?

    You can pay in cash anywhere that has PayPoint (find your nearest), though it costs £1 per deposit. You can pay in £5-£300 (max £1,000 every six months).

    To deposit a cheque, you must write your account number on the back and send it to 'Freepost Monzo'.

  • How do I contact the bank?

    If you have any problems or questions, you can contact Monzo via the in-app messaging service. Alternatively, you can email help@monzo.com or call 0800 802 1281.

Arranged overdraft cost: 19%, 29% or 39% EAR variable. The rate you get depends on your credit score.
Unarranged overdraft cost: If you have an arranged overdraft but go over your limit, you'll be charged the same interest rate. If you don't have an arranged overdraft, it's 39% EAR variable (max £15.50/mth).

APPLY

Top-rated traditional banks' apps

You may want a slick app, but from a banking name you know. We ran a banking apps poll to ask which apps are best – and while Starling and Monzo (above) came out on top for features and ease of use, the two below were the best-rated big names.

For now, neither of these apps offers the same budgeting help as the newer players, but they're decent options if you want to stick with a name you know and normally do a lot of internet banking.

  • Barclays – 57% said the app's 'great to use and has lots of features'. As well as letting you check your balance, see transactions and manage payees and recurring payments, the Barclays app lets you temporarily freeze your card and get PIN reminders. Download for iOS (rated 4.8/5), Android (rated 4.4/5) or Windows Phone (rated 3.7/5).

  • Lloyds – 49% said the app's 'great to use and has lots of features'. Lloyds' current accounts don't currently feature in our top picks, but if you want the app it's well-rated by MoneySavers. It lets you check your balance, see transactions (including pending ones), manage payees and temporarily freeze your debit card. Download for iOS (rated 4.8/5) or Android (rated 4.6/5).

What can other banks' apps do?

In addition, we wanted to know what other banks are doing in terms of offering budgeting help and letting you freeze your card.

  • We asked 17 banks what features their apps have...

    Provider Can you freeze card in-app? Instant spending notifications? Spending categories? Turn off certain spending?

    Any other features?
    Bank of Scotland Yes, debit and credit cards No No Yes  Future spending predictions
    Barclays Yes, debit and credit cards No Yes Yes Lets you view current accounts with other banks in app
    Co-op No No No No -
    First Direct No No No No -
    Halifax Yes, debit and credit cards No No Yes -
    HSBC Yes, debit and credit cards No No No -
    Lloyds Debit cards only No No Yes -
    Metro Bank Yes, debit and credit cards No Yes No In-app alerts when there isn't enough money in your account for a likely spend or when there has been a change in the amount of money paid to a regular supplier
    Monzo Debit cards only Yes Yes Yes Set spending budgets
    Nationwide Debit cards only No – but looking at for future
    		 No No Set savings goals
    NatWest Credit cards only TBC TBC TBC -
    RBS Credit cards only TBC TBC TBC -
    Santander No No No No -
    Sainsbury's Bank No No No No -
    Starling Debit cards only Yes Yes Yes -
    Tesco Bank Yes, debit and credit cards TBC TBC TBC -
    TSB No No  No  No  Company logos to see where you spend
    Last updated June 2019

Top autosaving apps

As well as current accounts, there are other apps that focus on helping you save. This is especially useful if you don't want to switch bank, or you find it difficult to put money aside to save. These apps use tech to automate your savings. It's important to note that some of them may NOT be FSCS-protected, but we'll let you know if that's the case.

Autosaving apps PROS...

  • They're an easy way to get into saving (or investing), as they do it all for you
  • They're quick to set up
  • Some offer cash bonuses

Autosaving apps CONS...

  • They pay little or NO interest (to max returns on existing savings, including any you've built up using the apps below, see Top Savings Accounts)
  • Most don't have full savings safety protection
  • You need a smartphone to use them

If you want to give 'em a go, here are our top picks...

Tandem*  

Choose from four different ways to save, plus get 0.5% interest

Apply on your device: Apple* or Android*

With Tandem (download on your device through the App Store* or Google Play*) you can save in a few different ways. Once you've connected your main bank account, you can set up one or more of its three saving rules:
 
- Round-ups, where you save up to the next whole pound (eg, if you buy a 30p banana, it'll save 70p for you)
- Regular deposit, where you choose how much you want to save each week
- Safe to save, where its algorithm works out how much you can afford to save each week from the account(s) that you have linked

Or, for occasional deposits, you can also manually pay up to £500 a week into your Tandem savings from a linked current account.

Tandem pays interest of 0.5% on whatever you save. This is easily beaten by normal easy access accounts, but with those, you need to actively save in to them. With Tandem, it's done for you, so it'd suit those who find it hard to save on their own.

Important: Tandem has its own banking licence, so up to £85,000 of savings is protected under the FSCS.

Interest rate: 0.5% AER variable
Max savings: £250,000
How to get the app: Download for iOS* (rated 4.4/5) or Android* (rated 4.1/5)
Protection: FSCS-protected up to £85,000

  • How does Tandem know how much I can save?

    Tandem has two ways you can save through it where you're not in direct control of the total:

    1. Round-ups. Here, it just rounds up any debit card purchases you make to the nearest £1. You can link a credit card for the round-ups feature, but it will only ever take your round-up savings amount from your debit card, not your credit card.

    2. 'Safe to save'. When you turn this on, you're asked what level you'd like to set it at. Tandem has five levels from 'minimum', where it looks to save around 5% of your regular income, to 'maximum', which is 15%.

    To turn either of these ways on, you will need to give Tandem read-only access to your current account so it can see the transactions going out and work out how much is 'safe to save' for you. 

    Your savings from this will be set aside once a week (you'll get an app notification telling you how much), and you'll have two days to adjust the amount – for example, if you have an upcoming big expense and you need to keep more cash in your current account. The amounts are taken by Tandem as a charge on your main linked debit card.

  • Which providers does Tandem work with?

    The app works with most of the big banks, including Bank of Scotland, Barclays, Danske Bank, First Direct, Halifax, HSBC, Lloyds, M&S Bank, Monzo, Nationwide, NatWest, Revolut, RBS, Santander, Starling, TSB and Ulster Bank.

  • Is my money safe with Tandem?

    Tandem is a bank in its own right, which means that your cash is protected up to £85,000 under the Financial Services Compensation Scheme. If you have other savings accounts with Tandem, then the protection is shared across all of them.

    For more information on how your savings are protected, read the Safe Savings guide.

APPLY*

Plum* 

Automatic saving and free £5 when you first save. There's no interest, but you can choose to invest

Apply*

Plum* is a savings tool which works in Facebook Messenger or via its own app. It uses an algorithm to work out how much you can afford to save, moving the sum automatically into a 'savings' account. Apply via our link and keep your account active (don't pause savings) and you'll get a £5 bonus added to your account within 30 days of Plum making your first automatic save.

Plum doesn't pay interest on money saved, but you can choose to invest through it with a choice of funds managed by the likes of Vanguard and Legal & General – though if you do this, you need to be aware that you could end up getting less back than you put in, depending on the performance of the stock markets. See our Investment for beginners guide for more information if you're new to investing.

Important: It stores your money in an 'e-wallet' and DOESN'T have the usual £85,000 per person protection via the FSCS (see FAQs for more).

Interest rate: None
Max savings: £5,000 per save (no max per day)
How to get it: Sign up through Facebook Messenger* or download for iOS* (rated 4.7/5) or Android* (rated 4.6/5)
Protection: Not FSCS-protected, money is ring-fenced (see FAQs)

  • How does it work?

    To sign up to Plum, you need to download the app or connect it to your Facebook Messenger. Then you link it to your current account, giving it read-only access so it can see your transactions.

    It uses its algorithm to analyse your spending and build a 'unique saver profile' for you, and then – through a direct debit – it siphons off a few pounds every four to five working days into your Plum savings account. You can tell it to save more or less, or to pause automatic saving.

    You can keep money saved in your Plum account or you can invest it in a choice of funds managed by the likes of Legal & General and Vanguard – this comes with a £1 monthly fee, a 0.15% annual management fee plus underlying fund fees (0.08%-0.90%).

  • Which providers does Plum work with?

    Plum works with most major banks including Barclays, First Direct, Halifax, HSBC, Lloyds, NatWest, RBS, Santander, TSB, as well as Starling and Monzo.

  • Is my money protected?

    If you don't choose to invest, any money you save with Plum is put into a 'wallet' operated by Payrnet, an FCA-authorised e-money institution. Plum says money in this 'wallet' is held in a ring-fenced account at the Bank of England so it'd be safe if Plum were to go bust.

    It's also important to note the risks involved if you decide to go down the investing route with Plum: returns aren't guaranteed and you could lose your cash. For more on this, see our Investment for beginners guide. 

APPLY*

App to drip-feed into investments

If you're happy to up the risk, in theory it can be possible to earn bigger returns than those currently available from top cash savings or ISAs – and the player below is hoping to weave investing into your day-to-day life. Though always remember that with investing it's possible that you'll lose money, not make it.

Investing's not something you should dive into headfirst if you don't know at least the basics – so take a look at our top 10 investment tips for beginners if you're unsure where to start.

  • ALWAYS remember the five golden rules of investing...

    1. The greater return you want, the more risk you'll usually have to accept.

    2. Don't put all your eggs in one basket. Try to diversify as much as you can to lower your risk exposure, ie, invest in different companies, industries and regions.

    3. If you're saving over the short term, it's wise not to take too much of a risk. It's recommended you invest for at least five years. If you can't, it's often best to steer clear of investing and leave your money in a savings account.

    4. Review your portfolio. A share might be a dud or you might not be willing to take as many risks as you did before. If you don't review your portfolio regularly, you could end up with a share account which loses money.

    5. Don't panic. Investments can go down as well as up. Don't be tempted to sell or buy shares just because everyone else is.

It's also worth looking at our top picks in our Robo-Funds, Funds, Cheap SIPPS and Stocks & Shares ISA guides for more investment options.

Moneybox 

Invest (or save) with every card purchase

Apply

Moneybox offers 'round-ups', where you connect your debit or credit card to it and it rounds up your purchases to the nearest pound, letting you save or invest the difference (eg, buy a £2.20 coffee and it puts away 80p). We're focusing on the investment option here.

In addition to round-ups, you can make weekly or one-off deposits into one of three investment options – cautious, balanced or adventurous. Read more on the pros and cons of investment or see the five golden rules of investing above.

Any investments you make are taken once a week via direct debit and invested a few days later, and you can choose to hold a general account or a stocks & shares ISA.

It's one option if you want to dip your toe into the world of investing but aren't sure where to start. However, be aware that the charges are relatively high – no surprise as all those payments will mean a lot of management. The app costs £1/mth after the first three months, plus 0.45% a year of whatever you invest (and there are also associated fund charges of 0.12% to 0.30% a year, though you'd pay this anywhere). It can be cheaper to use an investment platform if you're happy to pick your own funds.

  • Here's what you're investing in:

    At sign-up you choose one of three options – cautious, balanced or adventurous. The option determines how your savings are split between cash, bonds, global shares and property shares, and Moneybox invests through what are known as 'tracker' funds. The splits are as follows:

    • Cautious – 40% cash, 20% government bonds, 20% corporate bonds, 15% global shares, 5% property shares.
    • Balanced – 65% global shares, 25% corporate bonds, 10% property shares.
    • Adventurous – 80% global shares, 15% property shares, 5% corporate bonds.

    The funds that Moneybox invests in are from well-established names: the Legal & General cash fund, the Fidelity index world fund, iShares corporate/government bond index funds and global property equity fund, and the BlackRock global property securities fund.

Investment fees: £1/mth per account (free for 3mths) + 0.45% a year + fund manager charges (estimated at 0.12%-0.30% a year)
Min investment: £1 | Max investment: £20,000/week (but £20,000/year if in an ISA)
Transfer-out fee: None, but charges £25 per fund for 'in specie' transfers (where you transfer a fund/holding directly to a new provider without cashing it in first – these are rare)
How to get the app: Download for iOS (rated 4.7/5) or Android (rated 4.3/5)

  • Is my money protected?

    If you save in Moneybox's notice account or cash Lifetime ISA, it has up to £85,000 FSCS protection, shared with either Investec or OakNorth bank (the underlying providers of Moneybox's savings accounts).

    Moneybox also has FSCS protection if you invest, but it's important to know that FSCS investment protection only applies if you lose money due to Moneybox going bust, not if the underlying investment goes bust.

    In other words, if the funds Moneybox invests in for you perform poorly, you've no protection as that's the nature of investing.

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Q&A: Digital banking

  • Are digital banks like Monzo and Starling safe?

    Both Monzo and Starling are fully licensed, UK-regulated banks – just like their high street counterparts. This means they both have the full £85,000 FSCS deposit protection (see more on this in our Savings Safety guide).

    But this isn't the case for all digital banking apps. Many have an 'electronic money' licence instead of a full banking licence. This means they have to hold your cash in a bank account ring-fenced from their operating cash – but FSCS protection may not apply. We’ve flagged where this is the case for each of the providers above so you can decide which is right for you.

  • Is internet and mobile banking safe?

    Yes. Banks have security systems in place that ensure fraudsters can't hack into your account whether you're logged in online or on your phone. But still be careful – never send your online/mobile banking information to anyone.

    If using a mobile app, make sure you download the official version from your app store, and make sure you update the app regularly with any new security features.

    It's also worth keeping your computer up-to-date with free antivirus software, so you're protected from viruses and spyware.

  • What about cryptocurrencies such as Bitcoin?

    Unless you've been avoiding the internet lately, you've probably heard of 'digital currency' or 'cryptocurrency'. The most well-known is Bitcoin, but there are others around such as Ethereum and Litecoin.

    The apps we feature in this guide don't use this sort of currency, which can be EXTREMELY volatile, with prices fluctuating wildly. It's a risky investment and not our speciality. You should only get into it if you're aware of the risks and the fact you might lose all your money. You can read more about Bitcoin in Martin's blog.

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