It’s back, bigger: Get up to 150,000 Avios when you open an ISA, SIPP or General Investment Account with Nutmeg

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This is an advertisement for Nutmeg Saving and Investment Limited (“Nutmeg”). Nutmeg has agreed to pay the publisher an award for new customers acquired via the promotion of its services on this site. Head for Points is a journalistic website. Nothing here should be construed as financial advice, and it is your own responsibility to ensure that any product is right for your circumstances. Recommendations are based primarily on the ability to earn miles and points. Robert Burgess, trading as Head for Points, is regulated and authorised by the Financial Conduct Authority

With the end of the tax year approaching, Nutmeg has improved on its generous Avios offer for opening a pension, ISA or General Investment Account.

Invest between £500 and £19,999 and for every £1 invested you will receive one Avios

Invest between £20,000 and £100,000 and you will receive 1.5 Avios for every £1 invested

This means that with a £100,000 investment you will receive 150,000 Avios!

This Nutmeg offer runs until 7th April 2019. Full details are here.  This means that you can invest for either this tax year or the new one.

What is Nutmeg?

As I wrote back in October, when a similar offer last ran, Nutmeg is an innovative online wealth management service that offers intelligent investment portfolios to anybody with just £500 to invest, with additional monthly contributions of at least £100.

Your money will be invested in what the company calls a robust, diversified portfolio that spreads risk across asset classes, geographies and industries. YourMoney voted Nutmeg the best online Stocks and Shares ISA provider for 2015, 2016, 2017 and 2018.

The company now has over £1.5 billion of assets under management and over 60,000 investors.

Nutmeg Avios offer

How much do I need to invest?

You can open an account with the minimum contribution for an ISA or General Investment Account (GIA) 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 with no direct debit contributions required. For those opening a pension the minimum is £500 with no direct debit contribution required.

What is the maximum I can invest?

The maximum you are allowed to invest in an ISA this tax year, which runs to 5th April 2019, is £20,000. You can invest more but anything you commit beyond £20,000 will be placed in a General Investment Account.

Please note that Avios are not awarded for customers opening a Lifetime ISA, 100% cash ISAs or 100% cash GIAs.

Why should I invest with Nutmeg?

In their own words: “We take the best elements of a high-end investing service, strip out the complexity and cost, and provide it to you online.”

Nutmeg Avios offer

How many Avios will I receive?

You will receive one Avios per £1 invested in a pension, ISA or GIA up to an investment of £19,999.

Invest between £20,000 and £100,000 and you will receive 1.5 Avios per £1 invested.

For example if you invest £10,000 you will get 10,000 Avios.  If you invest £20,000 you will get 30,000 Avios An investment of £50,000 will earn 75,000 Avios.  £100,000 will earn you 150,000 Avios.  You can invest more but the Avios reward is capped at 150,000 points.

It is important to note that the offer is only open to new Nutmeg customers. A ‘new customer’ is defined as someone who has not previously invested with Nutmeg. This offer is valid for invested accounts opened and funded before 7th April 2019.

Any half Avios will be rounded up to the nearest full Avios!

When do I receive my Avios?

Your bonus will be credited to your British Airways Executive Club account. You will receive your Avios within 45 days of making your initial investment.

If you make a withdrawal or close your Nutmeg account within 24 months, Nutmeg reserves the right to withdraw the cash equivalent of the Avios points value awarded from the closing balance before returning funds.

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, as with all investing, that 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. ISA and pension rules apply.

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Comments

  1. Shame this is new customers only – was hoping for a chunky bonus to make a transfer into Nutmeg.

  2. Just buy TUI, VOD and IAG. Will be alot easier

  3. For the virgin 1 year account, if we assume you can get 2% on a 1 year savings product, if you have £25k in, then you are paying 1.25p per Virgin mile *.
    Not sure it makes sense for most people, makes more sense for additional rate taxpayers (0.69 per mile)

    * assumes higher rate tax payer and not utilising the £500 annual tax free interest allowance elsewhere.

    • Genghis says:

      Assuming your 1.25p is correct, isn’t it even more expensive than 1.25p for ARTPs given the grossing up by 100/55 vs 100/60?

      • I don’t think so *

        ATRP’s don’t get any tax free annual allowance for interest, so rather than earn a net £500 in interest from comparable product, they only earn a net £275.
        They give up less for the same miles.

        * I could be wrong though !

        • Genghis says:

          Actually, I thought the miles are earned after tax (i.e. the interest is earned and is then used to buy miles) so tax rate shouldn’t come into the price that the miles are purchased for? I may also be wrong!

  4. Jack The Lad says:

    What we do get:-
    “Any half Avios will be rounded up to the nearest full Avios!”

    What we don’t get is a ANY mention of the range of valuation that Nutmeg applies to the Avios when they claw them back if you don’t stay for the entire 24 months. Apparently, it was known to be >1p as this was remarked in the comments, yet not mentioned in the “advertorial”.

  5. It’s interesting isn’t it that services like Nutmeg really have found that gap in the market for a certain type of investor. Try as I might, for example, I really wouldn’t have the foggiest idea of how to go about selecting individual funds or companies to invest in.

    Is there an equivalent website like HFP in the way it can take most readers from novice to fairly adept on all things Avios, but for the world of stocks, shares funds and finance?

    One obviously picks up from the comments section on this website that a lot of readers work in this field, but I really do think that there is a big bunch of people who feel shut out from that world, they try to work it out for themselves and quickly start to panic, drowning in an Information Overload not knowing what conclusions to draw from the thousands of resources that are out there. And as such they take a punt on services like Nutmeg even with little knowledge of which of their 3 investment types to choose.

    How do people learn about this stuff? Are there any ‘idiot’s guide – novice to non-novice’ type sites out there?

    • Jim, have a google search for monevator – it’s more a FIRA site (Financial Independence, Retire Early) but a useful starting place non the less

    • Hi Jim. I recommend “Which” for a good intro on investing basics. Their guides on what investing is, different types of investment products etc are free, with some additional comparisons of fund supermarkets and so on behind their paywall. Plus, they are a consumer-focused charity, so should be pretty impartial!

    • Mr Dee says:

      Well I think it takes a lot of knowledge about the businesses your investing in before you can make long term decisions as whether their business is viable and likely to be attractive to investor and increasing the stock prices.

      For this reason I would not specifically choose an offer just for the points signup bonus but would look at all options, I don’t know about Nutmeg portfolios performance but there are many other companies that offer good returns if they don’t.

      • Mr Dee says:

        Having found their performance page I think -7.1% last year for one of them sums up this deal.

        • Shoestring says:

          Last year was a negative year for many excellent funds, -7.1% might place this one in the top decile for similar based funds

        • Mr Dee says:

          Yes I guess that’s the problem being stuck in this type of fund, self trade is more suited for me

    • ankomonkey says:

      There’s Head For Pensioners, run by Nigel…

    • The Savage Squirrel says:

      Jim there are literally dozens of websites on this subject and many hundreds of books.

      A bit of time with google might be your friend.

      Investors Chronicle “how to get started in investing” is as good a place to start as any. For the purposes of today the page about the huge effect of variations in management charges on your final investment pot may put the relative importance of a few Avios into context.

      • Shoestring says:

        None of them give you the best lesson an investor can learn: if you’re relatively cautious (ie don’t want to risk everything on single/ limited number stock gambles), spread your investment money over about 10 different funds, exposed to different parts of the market.

        You won’t ever be some kind of investment genius but otoh you’ll win over time.

        • Doug M says:

          I like this approach. I’m all about charges. I like ETFs with low costs, track the 100, the 250, Euro Stox, Dividend, and some USA and or Asian. Overtime you do fine in my experience. Individual shares can be tricky.

        • The Savage Squirrel says:

          Actually Shoestring, that’s EXACTLY the advice a lot of them give!

        • This is exactly what I was doing for 5 years or so, running a review every three months but the result was very modest, not worth the effort tbh, it’s better give it to professionals and pay a small fee for their services

    • If you want a really simple starting point for savings/ pensions planning I would highly recommend monevator and the book Reset by David Sawyer. The book gives you an easy entry in to investing which then gives you time to build up your knowledge.

  6. My wife and I took advantage of this offer last year.

    It took over a year and dozens of emails and phonecalls to get the points credited to her BA Exec Club account.

    We did get them in the end but it shouldn’t have needed so much hassle.

    Be warned!

  7. That’s convinced me!

    To much hassle this one.

  8. Rob – can you have a word with them about running an exclusive HfP promotion for EXISTING customers. I quite like their products (have had a &S ISA with them for 3 years – on HfP advice! – and LISA for 2 years) and would like to be rewarded for loyalty. I got some Avios for signing up but would like to get some more for let’s say moving an existing ISA to them or for a topping up with a significant lump sum (like 1-3-5K) or something. Do you think it’s possible?

    • Shoestring says:

      Loyalty is for mugs these days.

      The ‘free’ Avios are an incentive to get you to join them for 24 months minimum.

      After 24 months, most people are too lazy to look around so stay with the original provider. There’s no point in offering an incentive to stay, as 90% of consumers will stay anyway through laziness.

      Ie you’d be giving away Avios to 100% of consumers, just to retain the 10%. Expensive.

      • Freddy says:

        Usually some cashback on offer for new S&S ISA’s elsewhere so may be best transferring away for the right deal

      • This is exactly the point! That’s why I am talking about an _exclusive offer for HfP readers_. Many of them are ‘savvy’ enough to move funds away quickly, so both Nutmeg and loyal customers will benefit from this incentive, and it will not be costly for Nutmeg as only a handful of HfP-referred customers do stay with them. And Rob will benefit because he will receive guaranteed commission from that!

        • Freddy says:

          I’d be interested to know the % of hfp people still with them after the 24 months. I’d suspect a healthy majority would still be invested with them. Though I may be underestimating the readership here!

        • Alex W says:

          As someone else said, when I realised that Nutmeg were making more money out of my investment than I was, it was time to pull the plug.

  9. Jonathan Gillespie says:

    The terms and conditions of this offer state –

    This offer cannot be used:
    in conjunction with any other Nutmeg offer, or promotion; or
    to invest in a Nutmeg Lifetime ISA;
    multiple times for an individual new customer;
    to invest into a 100%-cash pot.

    Key term above is the “cannot be used multiple times for an individual new customer” so it isn’t possible to use this offer twice, i.e. to taking out an ISA before the end of this financial year and then again at the start of the next financial year.

    • Yes, that has always been in the rules for this offer. I find it a bit odd given they always run this offer at the end of the tax year. What I assume you would do is put £40k into an ISA, knowing they will have to put £20k into a General Investment Account – which on 6th April you can move into a new ISA. I am not guaranteeing that works though, do ask them.

  10. Victor says:

    My self-picked stocks and funds in an HL ISA are down 21% over the last 2.5 years.

    2.5 years is when I took out a Nutmeg ISA at risk level 7, it is up 9.1% in that same time.

    Not all self trades outperform the robo traders.

    • Exactly! Thank you very much fro this Victor. Can’t understand why some on this forum are advocating self-sufficiency with a rigour which even North Koreans might envy!

      • But self sufficiency doesn’t need to be as complicated as individual stock picking. It can be as simple as using a vanguard lifestrategy portfolio linked to your risk preference ie 80/20 equity/ bonds etc. The main ideas these days (backed up by many investment gurus, including warren buffet) is to track the markets with ETFs etc and keep fees as low as possible.

        • This is what I was doing – picking five funds with different exposure and from different providers, checked the best performers etc etc but it was time consuming and did not get me much in return. I would prefer to have a similar %% from a managed portfolio with a nice and user-friendly web interface, and save time for something else!

  11. The Vanguard SIPP is coming out in a few months, I’d rather wait for that.

  12. Rob what about talking to someone like Fidelity in the UK for points as they do this in the US. Sign up Bonus or transfer in Bonus etc.

  13. AndrewH says:

    Re Actually receiving the Avios from Nutmeg – in the comments , there are a few horror stories about waiting for avios when it should be within 45 days. Any other experiences ? Making an investment is one thing but tussling to get the avios is another. I found citibank a pain & inefficient so trying to avoid another tussle.

  14. SammyJ says:

    I’ve got a pension (not final salary) from a company I worked for about 15 years ago with a fairly small amount in it – I think £20k-ish. Is it possible to transfer this to Nutmeg to take advantage of the Avios deal? Obviously I’d need to look into it further re costs, risks etc, but it’s doing nothing where it is! Clearly I know nothing about pensions and investments!

    • Doug M says:

      You’d need to ask the provider of the existing pension what the terms are for transferring out. But try to think of the pension as something to fund later life, not the source of a few Avios now. The Avios are not free, Nutmeg have to buy them, so their charges will have to reflect that cost. You can’t give financial advice in the comments of a page like this, but what is far more important than any Avios is making the best use of that pension between now and retirement.
      If you have credit card spend you can pick up thousands of Avios really easily from Amex, and churning a few cards. The methods are repeated over and over in these comments.

      • SammyJ says:

        Thanks, I was meaning more in terms of whether the transfer would count for the bonus, rather than jumping in with a cash investment. Whatever I do with it, there’s no guarantee that it would be better in one scheme or another, so if there’s a guaranteed short term gain then I’d happily take that – the pension is pretty much worthless as it is, I have a proper separate works pension as well as a final salary scheme from previous employment which I wouldn’t mess with, but I just wondered if it’s an option worth looking into or whether it’s a complete non-starter, not looking for any financial advice beyond terms of the bonus requirements.

        • Genghis says:

          I’ve spent the weekend reading Reset by David Sawyer, recommended by one of the comments further up. I practice quite a bit of the stuff in there anyway but for me it provided a good framework on how to structure your life and your investments. Take a look. I’ve got some things I need to action from it.

        • Shoestring says:

          Yes, you could move money from your existing pension to Nutmeg’s SIPP. But not overnight. And yes, it would appear it would qualify for Avios on this offer.

          £20K would be a lot easier than over £30K, depending on pension type. But you can forget 2018-19. You’d need to get information on transferring criteria from the pension administrators.

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