John Lewis has announced that it is set to launch savings accounts for customers through a new partnership with digital wealth manager Nutmeg.
The three new ISA products reportedly aim to “help those who otherwise would not consider investing”, and mark the latest products to be introduced to the group’s financial services, after the relaunch of its home insurance and retail credit offers.
Customers will be able to begin investing from £100 and “choose a timeframe and risk level that suits them”.
The group said the “easy-to-use” service will help customers “reach their financial targets, no matter how big or small”, adding that it selected three products its customers said were most relevant to them.
All products invest in funds with high Environmental, Social, and Governance (ESG) standards, meaning 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 three products are:
- Junior ISA – A tax-free investment with a yearly allowance of £9,000, which enables parents, guardians and grandparents to make regular contributions to a Junior ISA for a loved one under the age of 16, which only the child can access when they turn 18
- Stocks and shares ISA – Invest money in stocks and shares ISA and customers won’t pay any tax on their returns. Any growth they make on their yearly allowance (£20,000) is tax-free
- General Investment – Customers can invest in a general investment account if they have used up their £20,000 ISA allowance for the year
John Lewis said that customers will be able to check and update their investments at any time online, and will also have the option to speak to the group directly by calling a dedicated phone line or contacting via its website.
The launch reportedly forms part of its plans for 40% of our profits to come from outside retail by 2030, as well as its £100m commitment 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.”