John Lewis partners with Nutmeg to offer investment products
John Lewis said the three new products aim to help those who otherwise would not consider investing and are the latest to be introduced to John Lewis financial services, following the relaunch of its home insurance and retail credit offers earlier this year.
The new John Lewis investment products
John Lewis will offer a stocks and shares ISA, a junior ISA and a general investment account.
Anyone over 18 in the UK can save up to £20,000 in an ISA each year and won’t have to pay tax on the returns. Once they have used their ISA allowance, they can invest via a general investment account.
Junior ISAs have an annual allowance of £9,000, enabling parents, guardians and grandparents to make regular contributions for a loved one under the age of 16. The child can access the money when they turn 18.
Customers can start investing from as little as £100 in any of the accounts and choose a timeframe and risk level that suits them.
John Lewis said all three investment products invest in funds with high environmental, social, and governance (ESG) standards. This means that customers’ money focuses on businesses which score highly in the areas of carbon emissions, climate change, renewable energy, social impact and ethical practices.
The launch comes as a survey conducted with 2,000 adults on behalf of John Lewis by OnePoll looked at the impact that the pandemic has had on the way we think about our money. More than half (52%) of respondents said that it has made them reassess how they spend and save.
More than two thirds of people now want to spend savings on new and bigger goals like starting their own business or renovating their home. One in five want to move to a bigger house or relocate to the country, more than a quarter are now planning a future dream holiday, and more than a third want to speeding up buying a home, getting married or starting a family.
The launch forms part of John Lewis’ plans for 40% of its profits to come from outside retail by 2030. It has committed £100m over the next five years to quadruple its financial services business.
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.”
Neil Alexander, chief executive officer at 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.”