John Lewis diversifies with savings products
By Richard Wright | 19th August 2021
John Lewis - which has a major store in Cheltenham - is launching its very first investment products as it seeks to diversify beyond retail - a move it has already said will include house building.
The Partnership has teamed up with Nutmeg - the UK's largest digital wealth manager to launch three new savings products.
They are aimed at 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.
They include a Junior ISA tax-free investment with a yearly allowance of £9,000, which enables parents, guardians and grandparents to make regular contributions for a loved one under the age of 16, which only the child can access when they turn 18.
There is also a Stocks and Shares ISA which allows customers to invest money in stocks and shares. Any growth they make on their yearly allowance of £20,000 is therefore tax-free.
And there's a General Investment where customers can invest in a general account if they have used up their £20,000 ISA allowance for the year.
Customers can check and update their investments at any time online - much like internet banking. They also have the option to speak to someone by calling a dedicated phone line or they can make contact via the website.
The launch forms part of the Partnership's plans for 40% of its profits to come from outside retail by 2030 and follows a recent announcement to build 10,000 rental homes in the next 10 years. 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."
Neil Alexander, chief executive officer of Nutmeg, said: "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."
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