When you invest money, your capital is at risk. Investments can go down as well as up in value, so you could get back less than you put in. A rule of thumb is to hang on to your investments for at least five years to give them the best chance of providing the returns you are hoping for.

Best Automatic Investment Apps

Updated On: Apr 22, 2021
Best Automatic Investment Apps UK

Contents:

What is Automatic Investing

When you sign up for auto-investing, you give a finance app permission to regularly invest your spare change in the stock market. Automatic investment apps use their technology to estimate how much you can afford to invest and automatically invest it for you.


Best Auto-Investment Apps in the UK

Below, we have highlighted the most important need-to-knows of two of the best auto-investment apps in the UK. Compare Plum and Moneybox below.

Please note, as with all investments, your capital is at risk.


Plum LogoMoneybox

Plum - Start investing with as little as £1

Top Features
  • Plum calculates how much you can afford to set aside and invests that amount automatically.
  • When you subscribe to Plum Plus or Plum Pro (from £1 a month), you can choose to invest your money in a variety of funds.
  • You choose your investments based on what matters to you. For example, you could choose to invest in emerging markets as well as technology, ethical, American, British or European companies.
  • The risk level of each portfolio is shown with the ‘chilli emoji’ - and it goes up to 8 chillies.
  • Money is invested in funds provided by established fund managers such as Vanguard and Legal & General.
  • You can invest either through a Stocks and Shares ISA or a General Investment Account.
Minimum ISA Deposit

£1

ISA Charges

Subscription Fee: £1 per month (first month free)
Annual Investment Cost: 0.48% (average)
Trading Fee: £0
Exit Fee: £0

FCA Regulated?

Yes, to carry out payment services activities.

Does it connect to my bank account?

Yes, to personalise the amount Plum puts aside for you. They also use the information on your incomings and outgoings to identify when you are being overcharged on utility bills. The app requires read-only access to your bank account through open banking.

Is my money safe?

Your money is protected by the Financial Services Compensation Scheme (FSCS) up to a maximum of £85,000. Note that this does not cover losses arising from the performance of any of your investments.

Can I withdraw my money anytime?

You can withdraw at any time, but it takes around 7 working days to sell your investments on your behalf and transfer the money back to your Plum account.

Referral Scheme?

Yes. Earn £15 for every three successful referrals. Download the app and use the 'invite' tab in the Plum app to share your referral code.

How do I get the app?

Visit Plum's website here.

Moneybox - Round up and invest spare change

Top Features
  • Moneybox helps you invest your spare change by rounding up your card transactions to the nearest pound and investing the difference (e.g. if you spend £2.30 on a snack, MoneyBox invests 70p for you).
  • It also allows you to make weekly or one-off deposits into one of three investment options based on your risk appetite - cautious, balanced or adventurous.
  • It offers Stocks & Shares ISA, Lifetime ISA, pensions, Junior ISA, General Investment Account and socially responsible investments.
  • It invests in funds managed by established brands such as Legal & General, BlackRock and Fidelity.
  • Moneybox also offers auto-saving. Learn about Moneybox's auto-saving here.
Minimum ISA Deposit

£1

ISA Charges

Subscription Fee: £1 per month (first 3 months free)
Platform Fee: £0.45% per year (billed monthly)
Annual Investment Cost: 0.12% - 0.30%
Trading Fee: £0
Exit Fee: £0

FCA Regulated?

Yes, to carry out payment services activities.

Does it connect to my bank account?

Yes, but only if you want to.

Is my money safe?

Your money is protected by the Financial Services Compensation Scheme (FSCS). Note that this does not cover losses arising from the poor performance of any of your investments.

Can I withdraw my money anytime?

Withdrawals take up to 2-3 weeks to complete.

Referral Scheme?

No

How do I get the app?

Visit the Moneybox website here.

Who should use an Auto-Investment App

Automatic investing apps could be right for you if:


  1. You are new to investing and would like to see how things work without dedicating too much time to researching the markets;
  2. You want to earn higher interest on your savings (remember that this is not guaranteed as the value of your investments can go down as well as up);
  3. You aren't sure how much to invest or when;
  4. You would like to invest small amounts regularly; or
  5. You are saving towards a long term goal such as buying a home or retirement.

Advantages of Auto-Investing

  1. These apps help you invest regularly with little or no effort, but you should monitor your investments to make sure they are still right for you.
  2. You could earn more than the interest you currently earn on your savings or current account, but as mentioned this return is not guaranteed as the value of your investments can go down as well as up.
  3. Sometimes, investing bits of money regularly could turn out to be a better investment strategy than simply investing a lump sum once.
  4. They can be a fun way to learn about money, saving and investing.

Disadvantages of Auto-Investing

  1. Some of these apps are quite expensive and more often than not, you could get a much cheaper deal if you went directly to the investment providers these apps use. Click here to view our top investment providers.
  2. You need a smartphone to use them.

You might also like 🤓

  1. Best Investment Apps
  2. Nutmeg vs Moneyfarm
  3. Plum vs Nutmeg
  4. Chip vs Plum
  5. Best Stocks and Shares ISA
  6. Best Share Dealing Accounts
  7. Compare Investment Platforms
  8. Compare Online Brokers
  9. Compare Robo Advisors
  10. Investing for Beginners


728x90.gif
Koody Man with Laptop

Subscribe to The Plug

Every month, we'll send you The Plug - a curation of the best personal finance content in the UK. We share real-life stories, how-to guides, top personal finance news, popular community questions, and tips to help you stay on top of your money.

Thank you! Your submission has been received!
Error: This email cannot be added because it may already be on our list. Please enter a different email address.

Read The Plug