ISAs  

John Lewis launches investment service with Nutmeg

John Lewis launches investment service with Nutmeg

Retail giant John Lewis Partnership has teamed up with digital wealth manager Nutmeg to launch three retail investment products.

The retailer's customers are now able to save into a junior Isa, stocks and shares Isa, and a general investment account.

All three products invest in funds with high environmental, social, and governance (ESG) standards and individuals can start investing from £100 and choose a timeframe and risk level which suits their circumstances.

The junior Isa is a tax-free investment with a yearly allowance of £9,000, which enables parents, guardians and grandparents to make regular contributions for someone under the age of 16, with the recipient only able to access it when they turn 18.

With the stocks and shares Isa, any growth a saver makes on their yearly allowance of £20,000 is tax-free and the general investment account can be used if the person has used up their £20,000 Isa allowance for the year.

According to John Lewis, customers can check and update their investments at any time online.

Neil Alexander, chief executive officer of Nutmeg, said: “Since the start of 2020, we’ve seen a significant increase in people looking to invest in order to build a more dependable financial future for themselves and their families. Nutmeg’s mission has always been to empower nations of investors and there’s never been a more important time to harness this new appetite. 

“Through our partnership with John Lewis, we're providing an easy-to-use service and investments that meet the growing demand for social responsibility to help John Lewis customers build a financial future for themselves and their families.”

The product launch comes after a survey of 2,000 people by John Lewis found half of people reassessed how they spend and save following the Covid pandemic.

The number of people continuing to save £1,000 or more has increased by almost 20 per cent, with two-thirds of people wanting to spend their savings on bigger goals like starting a business or renovating their homes.  

It also found 72 per cent of respondents would consider investing in stocks and shares rather than just putting their money into a current account, yet 59 per cent had been put off doing so as they had no idea where to start.

Fewer than 10 per cent of respondents said they were already invested via a financial product.

Amir Goshtai, John Lewis financial services director, said: “The pandemic has been tough for many, but others have managed to save more every month. They’ve also reassessed how they want to spend their money - more than ever, they want to secure their financial future and that of their families. 

“Our products allow people to put money aside and to take that first step into what is often perceived as the complicated world of investments. 

“This is where the trust and love that customers have for our brand combined with Nutmeg’s expertise can make a difference, while making John Lewis even more relevant for life’s big moments; whether that’s saving for a home or preparing for the arrival of a new baby.”