Moneybox, a digital savings and investment app that rounds up spare change from card transactions into a stocks and shares ISA, has launched in the UK.
The UK-based company, set up last year by entrepreneurs Charlie Mortimer and Ben Stanway, has raised £3.4m in pre-launch funding.
Targeting cash-strapped millennials, the mobile app enables users to round up their everyday card purchases to the nearest pound and invest the spare change into three tracker funds within a Stocks & Shares ISA or General Investment Account. Users can customise their investment choices and choose between cautious, balanced or adventurous investment strategies.
Subscribers can also set up weekly deposits and make one-off payments into their Moneybox account.
A graduate from the Financial Conduct Authority's Innovation Hub programme, Moneybox charges a subscription fee of £1 per month to cover transaction fees, and a platform fee of 0.45% per year.
Ben Stanway, co-founder of Moneybox comments: "Our beta testing has shown that users are making about 30 purchases a week with an average round up amount of 28p - that’s £8.40 per week, or around £440 per year, just from saving your spare change! We’ve also seen that 75% of users are making one-off or weekly deposits in addition to round ups.”