In the last months of 2020, we undertook a strategic review of our referral programme. Despite being very successful since its launch in 2018, with over 10,000 of our investors having been referred by their friends, there was room for improvement. Following feedback from clients, we’re excited to announce our new and improved refer a friend programme.
We have replaced the cash reward with a reward voucher
If you refer a friend and that friend invests with Nutmeg, we will thank you with a reward voucher. You can choose between Amazon.co.uk, John Lewis and Partners, Currys PC World or a Prepaid Mastercard. The Prepaid Mastercard gives you a lot more flexibility on where to spend the money online. Having trialled the reward vouchers with some clients, they have been incredibly popular with over 3,000 issued since November.
The reward voucher redemption is fully automated and we expect this will improve the client experience. We are aiming to reduce the average reward redemption time from 30 days to three days after your friend’s funds have been traded during one of our bi-weekly trading cycles.
We are adding Lifetime ISAs and Junior ISAs to the mix
We are doing this in two different ways. First, from the side of the referrer: In the past if you were a Nutmeg client and only had a Lifetime ISA or Junior ISA with us you could not take part in our referral programme. These two wrappers provided challenges in paying you the reward, so we were unable to extend the referral programme to you. Not anymore. Going forward, all Nutmeg clients, no matter which investment product they have with us will be eligible to participate in the referral programme.
Second, from the side of the friend: The Lifetime ISA and Junior ISA tax-wrappers were not part of the programme. For example, if your friend decided to open a Junior ISA we were not able to give you a reward, nor reward your friend with six months of no Nutmeg management fees. Not anymore. We are introducing a £50 reward (same reward voucher choices apply) if your friend invests at least £500 in a Lifetime ISA or Junior ISA.
Our referral programme now looks like this for all Nutmeg clients:
Let’s address the elephant in the room. Why £50 and not £100? The answer is simple and honest. Because of the maximum annual contribution allowed in these tax wrappers (£4,000 for Lifetime ISA and £9,000 for the Junior ISA) we could not make the maths work. We do want our clients to participate and get rewarded during our quest to create nations of empowered investors, but at the same time we are a business that needs to remain financially viable in order to succeed. Our analysis shows that the £50 reward is competitive so we are positive that our clients will embrace it.
The full terms and conditions of our revamped referral programme can be found here.
We are looking forward to welcoming your friends to Nutmeg. Thank you very much for your continued support.
Risk warning: As with all investing, your capital is at risk. The value of your portfolio with Nutmeg can go down as well as up and you may get back less than you invest. Past performance is not a reliable indicator of future performance. A stocks and shares ISA may not be right for everyone and tax rules may change in the future. If you are unsure if an ISA is the right choice for you, please seek financial advice.
As with all investing, your capital is at risk. The value of your portfolio with Nutmeg can go down as well as up and you may get back less than you invest. A stocks and shares Lifetime ISA may not be right for everyone. You must be 18–39 years old to open one. If you need to withdraw the money before you’re 60, and it’s not for the purchase of a first home up to£450,000, or a terminal illness, you’ll pay a 25% government penalty. So you may get back less than you put in. Compared to a pension, the Lifetime ISA is treated differently for tax purposes. You may be better off contributing to a pension. If you choose to opt out of your workplace pension to pay into a Lifetime ISA, you may lose the benefits of the employer-Capital at risk. Tax treatment depends on your individual circumstances and may change in the future. Capital at risk. Tax rules subject to individual status and may change.37
matched contributions. If you are unsure if a Lifetime ISA is the right choice for you, please seek financial advice.
The value of your Junior ISA can go down as well as up and you may get back less than you invest. To open a Nutmeg JISA, your child must be under the age of 16 and funds cannot be withdrawn until your child turns 18. Tax treatment depends on your individual circumstances and may be subject to change in the future. If you are unsure if a Junior ISA is the right choice for you and your child, please seek financial advice.
A pension may not be right for everyone and tax rules may change in the future. If you are unsure if a pension is right for you, please seek financial advice.
A general investment account may not be right for everyone and tax rules may change in the future. If you are unsure if it is the right choice for you, please seek financial advice.