Nutmeg adds cash to its stocks and shares ISA after passing £1.5bn under management
The UK’s first online wealth manager has grown its assets under management by 50% in the last 24 months.
In a curious first, Nutmeg today launched a cash portion of its stocks and shares ISA.
It’s not a cash ISA, per se, but instead is a cash element of Nutmeg’s stocks and shares ISA, where customers can hold cash separately and “drip-feed” it into their stocks and shares pot.
“Sticking to cash seems safe, but it’s a mistake to view it as risk-free. The impact of inflation means those who opt solely for cash risk putting themselves at a disadvantage, as the real value of their money will be eroded over time,” said Nutmeg’s head of financial advice, Lisa Caplan.
“Our new feature allows customers to start with a 100% cash option, and then slowly drip-feed money into an investment that meets their risk tolerance.”
The move comes as Nutmeg has recently reached £1.5bn in assets under management, up 50% in the last 24 months, from over 64,000 clients.
Nutmeg says that investments can also be “drip fed” back into cash pots, however they make it clear that the cash pot “is not a cash ISA and isn't intended to be used for long-term savings”.
There is still a 0.25% Nutmeg management fee on cash pots, which is taken off the 0.4% interest earned on cash, leaving a net interest of 0.15%.
Nutmeg also includes the caveat that the cash will count towards your stocks and shares ISA allowance for the current tax year.