Nutmeg Stocks and Shares ISA £180 Quidco cashback

pmk741

Has anyone taken advantage of this offer? Would be intested to hear of your experiences if so ..

colsten

Have you thought about who would be actually paying the £180? How can Nutmeg afford to pay you that money?

Have you investigated the cost of other ISA platforms?

pmk741

From all the customers who take out the product without going via quidco? If you mean the fee's charged on the account will make this account bad value, no I haven't checked them as it is not my intention to use this as a long term investment.

To earn the cash back you have to invest an initial £500 lump sum and then invest £100 per month for 3months. I am assuming they are hoping to recruit long term investors not someone like me who is going to cut and pocket the cashback ?

It appears to good to be true and hence why I am curious to see how others have got on. All the feedback is positive on quidco itself but there isn't much detail.

fabsaver

The fact that it is an ISA means it's not so easy to pocket the cashback and run.

You can't have contributed to another S&S ISA already this tax year (or that would have to be transferred too as I understand it). Monthly contributions for 3 months would take you into the next tax year, so you couldn't contribute elsewhere without transferring. I suppose if you're not already using ISA allowances it might work.

jimjames

pmk741 wrote: »

To earn the cash back you have to invest an initial £500 lump sum and then invest £100 per month for 3months. I am assuming they are hoping to recruit long term investors not someone like me who is going to cut and pocket the cashback ?

What happens if the stock market drops and your investment of £800 is now worth £600 or less? Entirely possible as only a 25% drop but totally blows any profit out of the water with cashback.

pmk741

fabsaver wrote: »

The fact that it is an ISA means it's not so easy to pocket the cashback and run.

You can't have contributed to another S&S ISA already this tax year (or that would have to be transferred too as I understand it). Monthly contributions for 3 months would take you into the next tax year, so you couldn't contribute elsewhere without transferring. I suppose if you're not already using ISA allowances it might work.

Ahhh I see not so easy then, I will probably just leave it ....

pmk741

jimjames wrote: »

What happens if the stock market drops and your investment of £800 is now worth £600 or less? Entirely possible as only a 25% drop but totally blows any profit out of the water with cashback.

thanks. That was something I had taken account for. A gamble with a buffer to mitigate the risk...

electronicdreams

I'm disappointed this is being dismissed by everyone.

By that I mean, I'm disappoint that it is seemingly such a bad idea... I was looking into Nutmeg just yesterday and decided against using them and ISAs in general over my own savings account. However I don't see why it would be such a bad idea with the Quidco cashback, which I've generally found to not be a scam. I wouldn't like the idea of losing too much with Nutmeg - they'd hardly do it deliberately to keep you on board until it goes up again..?

Plus

I wonder if it will apply to the Lifetime ISA in April?

Currently there are two LISA providers who have announced: HL and Nutmeg. HL are known for having sneaky exit charges, while Nutmeg aren't. A big chunk of cash for taking out a LISA could be very handy.

If you select the 'cautious' fund, then the investment is 82% bonds - unlikely to dip 25%. And the total fee is about 0.65% - not much of an issue if you're only holding for a year or less (though probably not worth it beyond bagging the cashback).

ben9090

Yes I started with Nutmeg Via Quicdo last year, and save about £250/month. Gains are around 12% in that period. Obvioulsy in a rising market gains were always going to be healthy. However because its managed when it dipped during brexit a large gain was made by them transferring investments to gold which went up. You can change your risk appitite on a sliding scale at any time to alter you investment.
Management fees are very reasonable too so Im a very happy customer. Even transferred an old workplace pension there so I can keep an better eye on it.

tom717

I've looked into this before (when the cashback on offer was even higher) and if I remember correctly there is a £50 fee for withdrawing within 5 years.