Popular investment and share trading platform Interactive Investors has launched a friends and family initiative to offer free investment accounts
What is Interactive Investor friends and family?
In keeping with the festive spirit, Interactive Investor has come up with a way to allow its customers to give the gift of investing.
Read our full Interactive Investor review
Existing Interactive Investor clients are now able to gift free monthly subscriptions to up to five friends or family members. Those subscriptions would normally cost £9.99 per month each but under the new friends and family plan the gifter pays just £5.00 extra per month, and the recipient pays nothing.
Friends and Family plan members will get access to the full range of II investment services and exclusive educational resources.
Speaking about the new offer, Interactive Investors CEO Richard Wilson said that :
“Friends and Family is a game-changer for ii and for our customers, who can now offer their friends and family a safe and free initiation into a life of investing,”
Why has Interactive Investor launched the free investment account gift offer?
Competition for retail savers and investors is intensifying and the latest offer from II is aimed at growing their customer base, getting those new customers into the habit of regular savings and investment, and then retaining that new business over the longer term.
As the news customers, savings and investments grow and mature, so will the Interactive Investor offer.
Once friends and family plan members have £30,000 or more invested they will be transferred to a standard II plan at a monthly subscription of £9.99.
The gift of investing won’t be a surprise present, however, because existing members will need to get their friends and family to apply for and open an II account, and then link those accounts to their own.
Will gifting a free investment account to friends and family work?
Interactive Investor has launched the new initiative following a successful year-long pilot scheme which found that 25% of all the people referred to the service were between the ages of 18-24 and another 19% were aged between 25 and 34.
Younger investors are seen as being more valuable to investment platforms and wealth managers. II also notes that across all age groups in the pilot scheme, 67% of the referrals were women, suggesting that 50% of the population could be underserved in this area.
Moira O’Neill, head of personal finance at II said of the pilot scheme and the launch of the friends and family offer:
“We are pleased that this pilot has so far strongly resonated with female and younger audiences, and we look forward to delving more into this – we certainly hope it is a theme that continues.”
No doubt prospective new owners ABDN will be watching the new offer with interest.
The former Aberdeen Standard Life has approached JC Flowers, the US private equity company that backs II, about a £1.50 billion pound acquisition of the business that had intended to IPO at some stage in 2022.