Robo-Investment Cashback Deals
Invest in funds & get cashback
Robo-funds are being heavily advertised. They're far simpler than normal investing but you're tied to a 'portfolio' of funds. We think this is somewhat restrictive. However, sometimes these robo-funds offer cashback via a special link when you invest, which'll get you a head start over other funds.
Without the cashback, they're fighting against other standard investments, and we'd always tell you to look for lower fees and a bigger choice. But as some of this cashback has been equivalent to up to a 10% head start, other products would need to do very well to beat them.
MoneySavingExpert.com's speciality is not what to invest in – we only look at these as deals, as we can't tell you what is going to be a good or bad investment. So the most important thing to understand is:
We're not saying to go for these funds – we're just saying that if you're going to go for these anyway, then make sure you get the cashback.
Instead, your money will be invested in a basket of funds selected by the robo-provider and based on your risk profile (the firm will ask you a number of questions when you sign up to assess the level of risk you're willing to take).
Because even small fees year after year can eat into your investment.
If you invest more than the minimum needed to receive the cashback, do remember that you'll be more reliant on market movements to boost your returns in relation to the cashback.
As with any investments, the value of your funds can go down as well as up, and while it's unlikely, you could lose all your money.
If you want to open an ISA, remember that everyone in the UK aged 18+ has a £20,000 ISA allowance for 2020/21. For more options, see our Stocks & Shares ISAs guide. You can only contribute to one stocks & shares ISA each tax year.
If this is the first time you've considered any type of investing, it's worth reading our beginners' guide to investing to get a broader idea of what's involved.
Get £40 cashback if you invest £400 for six months
Update Tue 25 Jan: This offer launched three weeks ago, and there are currently about 1,000 deals still available.
Robo-provider Wealthify* is offering £40 cashback to the first 3,500 new customers who open a stocks & shares ISA, junior ISA, general investment account or self-invested personal pension via our link, and pay in a minimum of £400 by 5 April 2021.
- When do I need to fund the account by? You need £400 in your account by 5 April 2021 (and be one of the first 3,500 to do it – so don't wait too long). You can either:
- Pay in £400 in one lump sum, OR
- Pay £300 in one go, then in further top-ups of a min £20 each – as long as the £400 is in by 5 April 2021.
- When will I get the cashback? Once your full £400 investment is in the account, it'll need to stay there for six months for you to get the cashback. Once you hit that six-month point, you'll need to wait up to a further 30 days for the cashback to arrive.
- When I can withdraw my funds? You can withdraw money at any time, but if you do so before the cashback comes you won't get any cashback.
- What fees will I pay? Wealthify charges annual fees of 0.6% for managing your investments. There are also fund manager charges of about 0.16% a year for its 'original' plan and 0.56% for its 'ethical' plans. So if you were to invest the minimum £400 in an 'original' account for six months, you'd pay about £1.52 in fees (£3.04 annually). On a £400 investment after fees, the £40 cashback is equivalent to a head start of about 9.6%.
You'll be investing in a fully managed portfolio of funds based on the level of risk you're willing to take (Wealthify will ask you a few questions to assess your risk profile).
Important. The fact we've included Wealthify in this guide doesn't mean we RECOMMEND Wealthify – we don't do investment tips. It's just if you're going to use Wealthify anyway then you can get cashback.
Annual platform fee: 0.6%
Annual fund manager charges: 0.16% (original plan), 0.56% (ethical plans)
Min deposit: Normally £1, but £400 by 5 April 2021 to get £40 cashback
Exit fee: None. If funds are withdrawn before six months, no cashback is paid