Nutmeg vs Moneybox: which is the best investment platform?

7 min Read Published: 07 Feb 2022

Nutmeg vs MoneyboxIn this review we compare robo-adviser Nutmeg, with investing app Moneybox to see which is the better investment platform. Although Moneybox is well known for its savings accounts and corresponding round-up feature, it also has an interesting investment component, which stacks up well against Nutmeg's more traditional proposition.

We look at the key features for both Moneybox and Nutmeg and also give details of the offer we have for readers which could provide 12 months fee-free management with Nutmeg.

Nutmeg vs Moneybox - which is better?

Nutmeg (Fully Managed) Moneybox
Minimum investment £500 (£100 for JISA and LISA) £1
Management fees Up to £100,000 - 0.75%

Over £100,000 - 0.35%

£1 monthly subscription (waived for first 3 months)

0.45% platform fee

(No monthly subscription for SIPP, 0.45% platform fee up to £100,000, 0.15% over £100,000)

Products ISA, GIA, JISA, LISA and SIPP Simple saver and notice accounts

Cash Lifetime ISA

ISA, LISA, GIA and SIPP

Number of portfolios 10 3
Ethical portfolios 10 3
Money to the Masses offer No management fees for 12 months (terms and conditions apply) n/a

 

Nutmeg vs Moneybox - minimum investment

Moneybox works slightly differently from Nutmeg in that it charges a monthly £1 subscription fee, although this is waived for the first 3 months. There is no minimum investment required and, indeed, there is no monthly subscription for its SIPP. Meanwhile, Nutmeg has a minimum investment of £500, which reduces to £100 for its JISA and LISA.

Nutmeg vs Moneybox - fees

In addition to its £1 monthly subscription, Moneybox charges an annual platform fee of 0.45% (this falls to 0.15% for SIPPs over £100,000). Nutmeg's fees stand at 0.75% for investments up to £100,000 and 0.35% for amounts over that, which makes it a cheaper option than Moneybox for those with larger investment pots.

It is worth noting that, although the £1 monthly charge may not seem like much, for those taking advantage of the fact there is no minimum investment requirement and putting in, say, less than £100 per month, it can easily erode any growth and could be demoralising for new investors. An investment of around £100-£150 per month is required to get the fees down to a more reasonable 1% of the amount investment, although this is still an expensive monthly charge which you have to pay in order to invest. Nutmeg, on the other hand, does not charge any up-front or monthly subscription fee to invest.

Nutmeg vs Moneybox - products

Moneybox has a range of savings products alongside its investment proposition, which opens it up to a broad range of individuals. Within the investment sphere, it has an ISA, GIA, LISA and SIPP. This compares with Nutmeg, which offers all of those wrappers, but also has a JISA. If you're specifically interested in investing for your child's future, check out our round-up of the best Junior stocks and shares ISAs.

Nutmeg vs Moneybox - portfolios

In terms of the portfolios it has on offer, Nutmeg far outstrips Moneybox. In total it has 10 risk-rated portfolios in its Fully Managed range, while it also has additional Fixed Allocation and Smart Alpha portfolios to target the needs of different types of investors. In contrast, Moneybox has 3 portfolios, which are Cautious, Balanced and Adventurous. However, Moneybox has the option to build your own portfolio from a selection of funds, which could appeal to those with have some prior experience of investing and have the confidence to create a balanced portfolio that meets their requirements.

Nutmeg vs Moneybox - ethical portfolios

As demand for ethical investments grows, most platforms now offer ethical portfolios within their ranges. Nutmeg and Moneybox are no exception, with their versions mimicking the risk profiles of their main ranges, but populated by passive funds that tie in with their ethical frameworks. As such, Nutmeg has 10 ethical portfolios and Moneybox has 3.

Nutmeg vs Moneybox - performance

According to their latest figures for returns in 2021, Moneybox outperformed Nutmeg. Although it is difficult to draw a direct comparison because of the different number of portfolios on offer, the table below shows the returns delivered by Moneybox compared with equivalent portfolios from Nutmeg.

Nutmeg Fully Managed Moneybox
Nutmeg Portfolio 3 vs Moneybox Cautious +3.2% +5%
Nutmeg Portfolio 6 vs Moneybox Balanced +9.9% +18.3%
Nutmeg Portfolio 9 vs Moneybox Adventurous +18.1% +22.7%

Although the outperformance by Moneybox was quite striking last year, it didn't beat its rival by as significant a margin in 2020 and, indeed, Nutmeg's Portfolio 3 did better than Moneybox's Cautious portfolio for that year. Generally, past performance isn't always a reliable indicator of future performance so these figures need to be viewed within the wider context of what each platform offers as a whole.

Summary: Nutmeg vs Moneybox

Overall, Moneybox is a very different beast from Nutmeg, as it is app-only, incorporates a round-up feature to help bolster your savings or investments and works on a subscription model. If you decide to save with Moneybox ( i.e. put your round-ups into a savings account either than an investment portfolio) there is no £1 monthly subscription fee. This is when Moneybox particularly appeals, that is when using it as a savings app.  As such, it may appeal more to a younger audience and, indeed, its stripped-back choice of portfolios - 3 compared with Nutmeg's 10 - could make it less daunting for beginners. That said, Nutmeg has a greater degree of choice, both in terms of the products it offers, as well as the underlying portfolios.

For more information, read our dedicated reviews for Nutmeg and Moneybox.