John Lewis Junior ISA: How shoppers can get 1.25% back on their spending
The department store is writing to select customers inviting them to take part in its trial to earn 1.25% back on qualifying spends which can be deposited into the John Lewis Junior ISA.
This is a stocks and shares ISA for children run by its investment partner Nutmeg. As part of its ‘Nest Egg’ promotions, those who sign up and deposit a minimum £50 will receive a £50 contribution from John Lewis.
The trial comes as part of the next stage of its ‘Partnership Plan’ where John Lewis aims to generate 40% of its profit from non-retail sources by 2030.
If successful, the Nest Egg promotion could be rolled out further. But for now, here’s everything we know about the John Lewis Nest Egg Junior ISA trial scheme.
Who can take part in the trial?
From today, John Lewis has sent email invitations to select “valued customers” where they can register to take part in the trial. It explained these are new investment customers who don’t already hold a Junior ISA, ISA or general investment account with it.
It has also targeted those shoppers who have recently bought goods from the John Lewis baby and kids department. As Junior ISAs can only be opened by parents or guardians of children under the age of 16, if they have received an invitation with the link, they can open the JISA.
If a grandparent, family member or friend receives the invite, they can forward it on to the parent/guardian so they can open. The parent/guardian would then need to spend at John Lewis to earn the 1.25% back.
Further, this isn’t targeted to just its John Lewis Partnership Credit Card customers but you will need a John Lewis online shopping account linked to the same email address where the invitation was sent.
The trial lasts for three months until 23 August – or once 1,000 people have signed up – to open the John Lewis Nest Egg JISA.
What spends qualify for the 1.25% back into the JISA?
In-store and cash purchases are excluded, so only online and app transactions count. You won’t earn 1.25% back on delivery fees, or on gift card purchases.
John Lewis confirmed it will track spending based on it recognising online shopping transactions linked to the same email address for both its shopping account and the Nest Egg JISA.
Ordinarily with Junior ISAs, anyone can contribute to them on behalf of a child and John Lewis said money can be actively added to the Nest Egg JISA so contributions aren’t just dependent on spends.
What do I need to know about the John Lewis Nest Egg Junior ISA?
It’s a stocks and shares ISA run by Nutmeg – John Lewis’ investment partner – and there’s no cash alternative.
Depending on your risk appetite (there are 10 levels to choose from, with one being a low-risk bond-heavy portfolio, and 10 is a high-risk equity-heavy portfolio), Nutmeg will construct a portfolio using a mix of Exchange Traded Funds (ETFs). This allows investors to gain exposure to a pool of investments without having to buy each one individually.
As well as the fully-managed portfolio, it also offers socially responsible funds too. You can see the Nutmeg ETF list here to give you an idea.
Based on an input investment of £5,000, annual fees are 1.12%/£56 for socially invested funds, and 1.03%/£51.50 for fully-managed funds.
There’s no minimum timeframe you need to hold the JISA, and you’re free to transfer out to another provider at any time.
However, if you’ve deposited the minimum £50 as part of the opening bonus – the £50 from John Lewis – your funds need to be invested in the account for the duration of the 30-day cooling-off period. You’ll then receive the £50 bonus payment within 60 days of opening the JISA.
Have you been invited to take part in the trial? Let us know how you get on by posting in Disqus below.