Get a £1,000 pension welcome bonus with Nutmeg Investments
It is, of course, a tiered offer, you have transferred in at least £5,000 and that £5,000 will only earn you a bonus of £25. If you want to get the full £100,000 bonus you need to transfer a pension in of at least £100,00.
|Total Transferred Value To Nutmeg||Boost Awarded From Nutmeg|
|£5,000 or more||£25|
|£10,000 or more||£50|
|£25,000 or more||£150|
|£30,000 or more||£200|
|£50,000 or more||£400|
|£100,000 or more||£1000|
Who is this Nutmeg offer aimed at?
A £100,000 pension is pretty lumpy for Millenials, but not necessarily for those that have been saving for years. So, it’s an offer clearly aimed at enticing in big customers.
I’d say, this is a turning point for Nutmeg as they may have realised that big tech is great for massive scale, but investment accounts still need really big accounts. A lot of investment providers thrive on their big clients, and just about survive on the larger customer base.
Should you transfer your pension to Nutmeg and claim the boost?
This is a tricky question really because SIPPs are not for everyone. There is a huge argument for passive investment through ETFs as the fees are significantly lower than actively managed pension pots. Actively invested pensions mean that a manager is making decisions about what to invest in on an ongoing basis. Whereas passive pensions usually contain ETFs that track an index. The costs are lower, as there is no chopping and changing.
What are the criteria for getting the Nutmeg investment boots?
- You need to transfer in at least £5,000
- Your account needs to be accepted by the 9th May 2020
- You don’t get the bonus for at least 6 months
- You must keep your switched account with Nutmeg for at least 24 months.
Why would Nutmeg offering you £1,000 to switch your account?
There is more competition and the influx of fintech investment providers has driven commission and costs to an all-time low. Some brokers are even offering zero-commission stock trading as a lead-in for new customers. But as commissions have been reduced, it means that investment providers must do more business to generate revenue to keep providing their services.
So in order to stay in business investment providers need new customers. One of the best types of new customers is a mature investor who already has a large pension or investment portfolio. It’s a quicker way to generate larger commission and account charges than wait for new, small millennial investors to grow their account sizes.
Richard founded the Good Money Guide (previously Good Broker Guide) in 2015 and has been a broker for 20 years most recently at Investors Intelligence and previously a multi-asset derivatives broker at MF Global (Man Financial). Richard started his career working as a private client stockbroker at Walker Crips and Phillip Securities (now King and Shaxson) after interning on the NYMEX oil trading floor in New York and London IPE in 2001 & 2000.