// John Lewis will launch its first investment products to customers in partnership with a digital wealth manager
// The products include a junior individual savings account (ISA) — a tax-free investment with a yearly allowance of £9000
// All ISAs will invest in funds with high environmental, social, and governance (ESG) standards
John Lewis has announced it is launching its first investment products to customers as it aims to diversify its revenue sources beyond retail.
The latest move by the John Lewis Partnership will see three new products help those who otherwise would not consider investing and are the latest to be introduced to John Lewis financial services.
The products include a junior individual savings account (ISA) — a tax-free investment with a yearly allowance of £9000, which enables parents and guardians to make regular contributions for someone under the age of 16, which only the child can access when they turn 18.
There is also a stocks and shares ISA, plus a general investment account for those who have used up their £20,000 ISA allowance for the year.
All ISAs will invest in funds with high environmental, social, and governance (ESG) standards.
Customers can invest as little as £100 for a Junior ISA, and £500 for a general investment account or stocks and shares ISA.
The launch comes as John Lewis revealed the impact the pandemic has had on the way customers think about their money, with 52 per cent of people saying that it has made them reassess how they spend and save.
Those continuing to save £1000 or more has increased by almost 20 per cent – and over two thirds of people now want to spend that money on new and bigger goals like starting their own business or renovating their home.
One in five want to move to a bigger house or relocate to the country, more than a quarter are now planning a future dream holiday and over a third want to do some of “life’s big moments” more quickly, including buying a home, getting married or starting a family.
The survey also showed that 72 per cent of people said they would consider investing in stocks and shares rather than just putting their money into a current account yet 59 per cent of people said they were put off as they had no idea where to start or it was like a ‘different language’ to them.
“The pandemic has been tough for many, but others have managed to save more every month,” John Lewis financial services director, Amir Goshtai said.
“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.”