Moneybox cuts fees and launches three new actively managed investment funds
Investment platform Moneybox has launched three new actively managed ready-made funds and significantly reduced its fees in a move that positions it more competitively against rivals in the increasingly crowded UK investment market.
The platform, which was founded in 2016 by Ben Stanway and Charlie Mortimer and now serves over 1.5 million customers managing more than £10 billion in assets, has cut its account fee to 0.15% for the new funds. This represents a substantial reduction from the 0.45% it charges for other investments.
Ready-made funds appeal to investors who prefer professional management over selecting individual stocks. Investors simply choose their risk appetite based on their financial goals, and the fund manager handles the rest.
The three new funds, created in partnership with Amundi, Europe's largest asset manager with over €2 trillion in assets under management, offer different risk profiles: cautious, balanced and adventurous. Amundi was created in 2010 through a merger of Crédit Agricole Asset Management and Société Générale Asset Management, and ranks among the top 10 global asset managers.
Customers can access the new funds through Moneybox's stocks and shares Isa and personal pension accounts. The platform has also scrapped its £1 monthly subscription fee for customers holding £5,000 or more across qualifying investing and savings accounts.
How Moneybox compares with competitors
The fee reduction makes Moneybox more competitive in a market experiencing intense pricing pressure. In 2026, the UK investment platform sector has seen a pricing war, with new entrants like InvestEngine, Trading 212 and Freetrade offering zero-fee or very low-cost platforms. Even established players have responded – Hargreaves Lansdown reduced its headline account charge from 0.45% to 0.35% from 1 March 2026.
At 0.15% annually, Moneybox now matches AJ Bell Dodl's platform fee. However, for investors with less than £5,000, AJ Bell Dodl may prove cheaper because Moneybox retains its £1 monthly charge on top of the platform fee for smaller accounts. That £1 subscription is only waived once balances reach £5,000.
AJ Bell Dodl offers a broader selection of eight ready-made funds, compared to Moneybox's three, plus a range of exchange-traded funds and UK and US shares. The platform is part of the larger AJ Bell group, which has operated since 1995.
Monzo charges a higher 0.25% platform fee, or 0.2% for customers on its paid Plus, Premium, Perks or Max accounts. The fee is capped at £250 annually (£200 on paid plans), and customers with an Aura credit card pay no fees on Isa or investment accounts. Monzo offers three ready-made funds and a selection of themed funds.
Plum operates on a subscription model, charging £3.99 monthly for its Plus tier or £14.99 for Premium. The full range of investments, including access to 26 mutual funds and over 3,000 stocks, is only available to Premium subscribers.
Total cost considerations
When evaluating Moneybox's new funds, investors should consider both platform and fund management fees. The underlying 0.29% fund management fee, combined with the 0.15% platform charge, results in a total annual cost of 0.44%. This represents competitive pricing for actively managed investments targeting novice investors.
However, Moneybox's retention of the higher 0.45% platform fee for other investments creates a two-tier pricing structure. This may steer customers toward the cheaper ready-made funds rather than building their own portfolios.
For do-it-yourself investors seeking a wider range of investments than Moneybox's ready-made options, lower-cost platforms like Freetrade and Trading 212 may offer better value.
Moneybox's broader product range
Beyond investment accounts, Moneybox offers cash savings products and has established itself as a leading provider of Lifetime Isas. Its cash Lisa currently pays 4.65%, which includes a fixed 1.85% boost for 12 months.
The Lifetime Isa allows savers to contribute up to £4,000 annually and receive a 25% government bonus, intended for first-time home purchases or retirement after age 60. However, unauthorised withdrawals incur a 25% penalty on the entire balance, effectively costing savers the government bonus plus 6.25% of their own money.
In the 2022-23 tax year, over 15,000 Lifetime Isa savers faced penalties of £1,000 or more, with the top 25 unauthorised withdrawals averaging £11,000 in penalties. Over £200 million has been paid in Lifetime Isa withdrawal penalties to date, and in 2023/24 more people paid these penalties than used their Lisa to buy a home.
One important restriction to note: Moneybox's terms prevent customers from reopening a Lifetime Isa after transferring it away from the platform, even if they wish to return later.
Market context
The UK retail investment market has experienced significant growth. UK investor funds under management increased by 5% in 2024 to £1.49 trillion, with tracker funds reaching a record high of £383.7 billion, representing 26% of industry funds under management.
Moneybox's fee cuts and new product launches reflect the platform's response to this growing but increasingly competitive market. The company originally built its reputation on a signature 'round-up' feature that automatically invests spare change from everyday purchases, making investing accessible to beginners.
For novice investors who value simplicity and are comfortable with Moneybox's ready-made approach, the reduced 0.15% platform fee makes the service more attractive. However, investors should carefully compare total costs, available investment options and account features against alternatives before committing their money.
