Get up to 50,000 Avios when you open an ISA or SIPP via Nutmeg

With the end of the tax year approaching, wealth management group Nutmeg has brought back its generous Avios offer for opening a SIPP or ISA.

The deal is a little different this time around.  Instead of giving you a flat amount of Avios, you will receive one Avios point, up to a maximum of 50,000 Avios, for every £1 you invest when you open an account with Nutmeg by 9th April 2017.

Full details can be found on the Nutmeg website here.

What is Nutmeg?

Nutmeg is an innovative online wealth management service which offers intelligent investment portfolios to anybody with just £500 to invest with additional monthly contributions of at least £100.  If you are using St James’s Place, Hargreaves Lansdown etc. then the simple Nutmeg fee structure should be of interest.

Your money will be invested in what the company describes as a robust, diversified portfolio that spreads risk across asset classes, geographies and industries. Your Money has voted Nutmeg the best online Stocks and Shares ISA provider for both 2015 and 2016.

nutmeg avios offer

How much do I need to invest?

You can open an account with the minimum contribution for an ISA of just £500, as long as you make additional monthly contributions by direct debit of at least £100.   You can also make an initial lump sum contribution of £5,000 or more.

What is the maximum I can invest?

The maximum you are allowed to invest in an ISA in the 2016/17 tax year, which ends on 5th April, is £15,240.  You can invest more – Nutmeg will give you one Avios point per £1 on initial investments of up to £50,000, which would earn you 50,000 Avios – but anything you commit in this tax year beyond £15,240 will be placed in a general investment account.

The ISA limit for 2017/18 will be £20,000.  If you have already opened an ISA with someone else for 2016/17, you can still take advantage of this offer by jumping in quickly on 6th April when the new tax year starts.

This offer is valid for invested accounts opened by 9th April 2017.

How many Avios will I receive?

You will receive one Avios point per £1 invested.

However, it is important to note the following:

you receive Avios based on your INITIAL deposit only – if you deposit £15,240 today and another £20,000 on 6th April for the new 2017/18 year, you will only receive 15,240 Avios

the offer is only open to new Nutmeg customers – if you already have a Nutmeg ISA or SIPP and open a new account on 6th April for the new 2017/18 tax year, you will not receive any Avios

When do I receive my Avios?

Your bonus can be credited to either an avios.com or British Airways Executive Club account and you will receive your Avios points within 45 days of making your initial investment.

If you close your Nutmeg account within 12 months, Nutmeg reserves the right to impose an exit penalty to cover the cost of the Avios points awarded.

How do I apply?

You need to sign up and invest via this special landing page to earn Avios.  Applications via the standard Nutmeg home page will not earn any points.

Remember that your capital is at risk. The value of your investment, and the income you get from it, can go down as well as up.  As with any investment, there is a chance you will get back less than you originally invested.  ISA and Pension rules apply.

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Comments

  1. Does nutmeg have normal trading account?
    I can possibly bring in 50k for trading.

    • Depends what you mean by normal.
      Where you pick your own direct investments / funds. No.

      If you just mean outside an ISA – but still into their managed buckets based upon risk parameters then yes.

  2. Genghis says:

    With only a 1% return on initial investment in avios and a 12 month holding period, it’s only worth doing if you were going to open a Nutmeg account regardless. You’re better off with an ETF with the main trackers having TERs of peanuts. Check out Vanguard.

    • Sorry excuse the ignorance. Whats ETF and TERs of peanuts

      • Genghis says:

        Exchange traded fund. Total Expense Ratio (basically what it costs a particular fund to operate and are v low for ETFs).

      • After flicking through yesterday’s Sunday Times ISA supplement, I’ve decided to swap some of my cash ISAs into stocks and shares.
        Two questions
        1) do nutmeg transfers in qualify for this offer. I could easily transfer in enough for the full bonus.
        2) I’m comfortable with their highest risk levels, does anyone have a view of their selected funds vs what’s available elsewhere? (I appreciate this is a very subjective question)

        • In answer to your second question, as it sounds like this is your first foray into investing, I’d suggest some background reading, and as I posted above, would recommend this blog: http://monevator.com/ (I have no connection to it, but it’s a great resource.)

          • Thanks scott…. not come across monevator but it looks pretty good. Appears to be the exact kind of resource I need

        • kevino says:

          At the moment Nutmeg are offering 1% uplift for any ISA transfers in, at least to existing customers, so you might want to ask them about that as part of your calculations.

    • Doug M says:

      Exactly. With £50K you should be far more concerned with charges and where/how the money is invested than some Avios.
      Mike – look at someone like iweb or Halifax share dealing, and consider iShares, don’t be swayed by Avios. Many people like the Vanguard Life Strategy range, they do a mix of shares/bond with different risk factors. Comments like this are fine for hints and ideas, but always do your own research.

      • Thanks Doug
        My problem in the past has always been I’ve done a bit of research, bought some shares or funds then gone back to things in my life that interest me, I’ve long forgotten to check the performance of those investments.
        I’ve therefore decided that buying individual shares probably isn’t for me.

        So this leaves ETFs (passive or managed) on a lower cost platform

        Or something like Nutmeg, Moneyfarm etc. For me this has the advantage that they may switch funds out of badly performing ETFs since I go through months and years of disinterest.

        I fully appreciate that a sizable proportion of the readership of this site are “sophisticated investors” for whom a significant interest is financial markets etc but this is not me and I think when I try and manage my own investments I’m likely to be the one who loses and allows the winners to win!

        For this reason I feel that a service like nutmeg might compare favourably to self selecting ETFs at least for part of my portfolio.

        My retirement savings aren’t at risk.

      • Mr Dee says:

        Nutmeg are not giving anything away for free, they are looking to make profit from the customer long term through fees and charges, some of which maybe collected in the short term. This type of offer is fine for someone who wants a quick return of Avios but investing 50k in a company just for Avios is not a good investment especially if you would save money in fees elsewhere which would mean the Avios is actually costing you money. It is up to each person to decide what is best for them, I don’t like the offer for me but it good to know it is there.

    • Agreed, the Avios earning could rapidly be swallowed up by higher costs.

  3. Charlie says:

    Can £35k be invested now (to get 35,000 Avios), with £15k going into this year’s ISA and the £20k going into a general trading account, with the plan to move the £20k into an ISA after 6th April, thereby maximising ISA allowance for 2 years, but getting the full Avios bonus? (effectively circumnavigating the scenario you describe towards the end of the article).

    Or, are there any other better offers out there – looking to shelter £70k in ISAs (this year and next for me and partner) over the next few weeks!

  4. Last time Nutmeg was doing its promotions I convinced my friend to finally set up an ISA with them and it’s certainly a slick product. But it should be mentioned that the fees can get a little bit pricey – up to 0.75% in platform fees plus an average 0.19% in fund fees. Compare that to Charles Stanley direct with comes with a platform fee of 0.25% plus fund fees. The fees can add up to a serious amount over a number of decades which is the sort of time scale we are looking at. The 1 percent sign up bonus needs to be compared to the ~1% fees that you will be paying year after year. Nutmeg is certainly very slick but the other platforms might be more suitable for the spreadsheet aficionados that hang around here :)

    • Reddot says:

      If you choose the robo-advisor (fixed allocation) portfolios, it is 0.45%. If you are lazy like my husband, it is a great way to get him started because the alternative would be all these cash sitting in a low-interest-bearing current account. There is also (my) time-cost of managing (my + his) portfolio. At some point, I will move out of Nutmeg into IWeb.

  5. BruceN says:

    I’m as game to jump through hoops for an avios offer as the next person but I think basing your SIPP/ISA investment decisions on earning a few avios is crackers.
    I agree with the comment above that this should be of interest only to people who were already going to open this account.

  6. Can you transfer in from another sip provider? I have some cash sitting in another SIPP account

    • I asked them this and they told me that it can be done but they don’t encourage it, due to the admin involved. I didn’t get an answer to my question of whether you’d get Avios on such a transfer.

      • BruceN says:

        Wow. If they don’t encourage people to transfer *in* because of the admin involved, imagine what they’ll be like when you want to transfer out!

      • Go back to them and tell them there’s a possibility of 50k incoming from me in an ISA if they can be bothered to do the admin and are willing to pay the avios.

      • Mr(s) Entitled says:

        Avios aside, most people will have more in a SIPP than in Isa’s and they are a lot less liquid than ISA’s with a long duration. I’d be very keen if I was them to overcome the Admin hurdle.

        Most firms will pay Cash for you to transfer and Nutmeg for all their pro’s and hardly low cost.

      • Not an encouraging response! Fidelity made this process pretty easy by comparison (transferred lots in and also then transferred some holdings into an ISA).

      • I transferred in from Hargreaves Lansdowne during the last Avios promo – it was actually pretty easy and in finding it to be a slick service so far. There was no hassle at all with the transfer.

        Only down side is that this is a new customer only offer – i kept plenty back for transfer in when they offer a top-up bonus, but didn’t look like this is it.

      • @mkcol says:

        I’ve recently transferred in my Virgin SIPP to Nutmeg.. Took around 3 months from me opening with Nutmeg to finally have the funds cleared.
        There were things which could have been done better on both sides for sure. I’d say the main pain for Nutmeg was that Virgin do not offer electronic transfers, they need everything in paperwork (sometimes it seemed in triplicate).

        • RussellH says:

          Paperwork transfers can be a complete nightmare.

          As executor for my parents, holdings kept in nominee a/cs just turned up where they were supposed to go in a couple of days after I requested them.

          Paper share certificates were a completely different kettle of fish. If it were not for the fact that all company registrars are honorable people, I might have come to suspect that they might have been trying something on. Amazingly, something like 40% of the share certificates sent by ordinary post never arrived and indemnity forms and fees had to be paid. It took months.

          If I am allowed to make a recommendation, Royal Mail Special Delivery, where you get proof of delivery, is (comparatively) cheap insurance.

  7. Of all the ways we collect Avios I’m most uncomfortable with Nutmeg offering Avios to people for whom ISA and SIPP investments are either a) inappropriate or b) not knowledgeable enough to be able to make this major financial decision without being swayed by the amount of Avios on offer.

    A SIPP in particular is a major lifetime decision, so I consider it unethical to offer incentives to people who are not sure of the consequences of buying such a product without proper research.

    In my opinion there will be a case for mis-selling here, at sometime in the future.

    • a little bit harsh I think. saving for your future can hardly be called unethical.
      Caveat Emptor as with any financial decision

      • BruceN says:

        You’re wilfully misinterpreting what Ian said – he didn’t say that saving for the future is unethical. That’s called a straw man argument.
        Anybody who would choose a SIPP based on an Avios offer should probably google ‘the marshmallow test’.

    • Nick M says:

      Whilst I agree that it’s likely to encourage people to take out a product that may not be best for them, and always suggest that people seek independent financial advice before making any significant decisions (I am biased though)…. I don’t see how it can be seen as mis-selling? You would be actively going to Nutmeg so you are “buying” rather than being “sold to”… and whilst Rob is authorised by the FCA he doesn’t have investment permissions, and he isn’t advising you to invest with Nutmeg – he is just providing the information…

  8. RedAlan says:

    FYI I took advantage of one of their offers in Sept last year, 10,000 Avios. I only got the points last week after almost 6 months of chasing them and countless broken promises.

    Avios were blaming Nutmeg, Nutmeg were blaming Avios. In the end it was Nutmeg at fault and they said they were clearing a large backlog of Avios transfers which was taking longer than normal….6 months longer!

    So just be aware of this if your needing the points in 45 days times.

  9. The last offer (one that expired 19th Feb) came out when I was thinking about changing some investments around and had an unused ISA allowance, so I went for that and duly got my 10,000 Avios. I like the look of Nutmeg and may well take an ISA for the next tax year too and potentially put further investments with them…but I’m a bit narked that having gone for the recent offer I can’t now qualify for the one offering more Avios!

  10. Stuart says:

    Surprised no one has mentioned this – the last offer was 10k avios for £5k investment. That same £5k will only get 5k avios this time around.

  11. the real harry1 says:

    The latest Virgin ISA offer – with 6000 Virgin miles – ends on 30th April http://uk.virginmoney.com/virgin/va/popups/terms.jsp

    so with any luck they’ll do a 12K jobby after that same as last year

    note that the minimum investment increased LY to 6x £100 or one-off £2500

    • Genghis says:

      That’s my plan for next year. If it’s £600 over 6 months for a 12k virgin miles gain, that’s a much better risk reward than what Nutmeg are offering here.

      Back of a fag packet calcs:
      – No growth on Nutmeg (as cash all up front) = breakeven (1% avios – 1% fee) over 12 months
      – with Virgin you can suffer an almost 40% loss and still break even (valuing V miles at 1p and taking into account that drip feeding £100 a month means much less market risk.

      • the real harry1 says:

        yep I’m not out to poop on the post but I’d rather get even just 6K through Virgin next ISA year – the absence of a pound cost averaging option with N does actually matter – history shows that faith in any particular investment mgr/mgt is usually ultimately misplaced, so you’re better off concentrating on where you’re investing, not with whom (ie Nutmeg/ Virgin Money/ HL etc? – it doesn’t matter that much provided they’re reputable but their fees do, plus where you’re asking them to invest your money). N are probably not that bad if they’ve won the Your Money awards but I’m just looking at it from a miles collector’s point of view.

        • the real harry1 says:

          put it this way: I think we came out £30 down in investment proceeds after fees on the Virgin deal LY – but I was extremely happy with that as I factored in confidence in the outcome plus cost per point. So I went for their lowest risk option. As it was Brexit year I in reality could have chosen virtually any other investment choice (with Virgin Money) and done better – but I didn’t – as I wanted to have an assured good outcome, as risk-free as possible. My Virgin miles therefore cost about under 0.3p, which was fine.

          • the real harry1 says:

            it’s like betting on the gee-gees – when you have the option of making a small amount of profit no matter who wins, or losing it all, or winning a huge amount if your nag comes in

            I’d take the guaranteed profit every time :)

          • Genghis says:

            I agree Harry. You didn’t poop my post! We made a small loss on the last V ISA but I was happy getting the points for effectively the minuscule amount paid for them.

  12. Or if anyone wants a 12% annual return on their money let me know – more than happy to pay this each year on any amounts over £30K. No limits. :)

  13. I wondered if they’ll be offering a LISA? So far Hargreaves Lansdown is the only one I’ve heard about considering it – seems a good idea given the ever-falling AA/LTA limits!

    • Anonymous says:

      Hi everyone,

      Y’all seem to know all this sophisticated financial stuff so I just thought I’ll give my experience of Hargreaves lansdown instead of talking about where/how to invest.

      I have been using Hargreaves for a few yrs now moved there from selftrade as I like to manage my own portfolios due to having economics degree I didn’t wanna waste.

      My experience has been great with them. They don’t charge too much as you can choose if you are willing to pay a lot and also they do extensive research into stocks n funds. If a person is lazy you can choose to have portfolio managed or look at their wealth funds which have rating to show value and past performance etc.

      So I think it is wrong the way this article is written to give the impression that other companies may be bad for investors.

      This article is not balanced in its information as this is about an investment product.

  14. Project55 says:

    I’m still new to collecting Avios so not sure if this would be a good deal for me. I could transfer 50k out of my existing III ISA but that would then generate incremental fee’s of £225 (0.45% x £50k). I’d still be paying £20/quarter for my remaining III ISA. The plan would be to transfer the Nutmeg ISA back to III a year later.

    Is £225 good value for 50k Avios?

    • Genghis says:

      Avios are generally valued at around 1p so here you’d be paying 0.45p, which isn’t bad I guess, provided Nutmeg and your current provider would allow in-specie transfers.

  15. JamesWag says:

    OFF TOPIC.

    BA781 ARN-LHR seems to be on a 767-300 (763) (at least for dates I have looked at) which has club world seating. The new Polaris seating at that.

    Is this actually the case ? If booked into Club (even using Avios), I presume you’d get a Club seat ?! 15K Avios + £25 RFS fee seems a good price for trying the new CW Polaris seat ?

    https://www.seatguru.com/airlines/United_Airlines/United_Airlines_Boeing_767_300_ER.php
    https://www.seatguru.com/airlines/United_Airlines/United_Airlines_Boeing_767-300_B.php

  16. OT – 25% bonus for TCB transfer to Avios/BAEC seems to be back. It shows up when I go to the payout page. Haven’t seen any mention of it anywhere though.

  17. Very OT- Accor Happy Monday not working for London Novotels; I can find the page with all the Novotels in London @£60, however, none of them has the rate when you click book with this rate, while Sofitel and ibis work fine.

    • …and by sofitel I mean Pullman

    • Louise says:

      I found this last week and contacted their customer service. They said the rate had sold out.

      I did however snap up Novotel Canary Wharf for this Saturday at 1am this morning

    • pointsarb says:

      Tony, try calling the Hotel directly. I did, and as a Plat (via Amex) they transferred me to a call centre somewhere who provided the Happy Mondays rate for Novotel Blackfriars even though it was not bookable online. Got upgraded to an Executive room upon arrival so for £60/night in London that was a bargain in my book :-)

      • Louise says:

        that’s the one I tried to book last Monday but couldn’t. Even sent screenshots to them but they said rate had gone even though main search still showed it.

  18. I was thinking the same …. I need to check back. It only popped into my head last night.

  19. John, the referral link you get commission for takes me to an Amex error page when I click on your name.

  20. nicholas danks says:

    😛

  21. SORRY, it looks like something went wrong.
    This could be:
    A missing character
    Incorrect character case
    To correct please check the American Express Referral Link before trying again.

  22. Genghis says:

    Nutmeg is now £200 CB on Quidco for 24 hours.

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