MSE offer Nutmeg investment of £2000 gets £200 MSE bonus - BUT now can't be withdrawn for 12 months!

martin998877

Hi, on 27 feb last year, the MSE email mentioned a robo investment, with Nutmeg, whereby you invested £800 immediately, then £100 a month for a year, making £2000 invested. Nutmeg would then give a £200 bonus.  I did this, the account built up £50 extra which is 4% and so not bad.  I contacted them today and the £200 MSE bonus will be paid at the end of March.
HOWEVER - I was also informed that the £2000 can not be withdrawn for 12 months from now - Ie the £2k is trapped there.  I assume it was in terms and conditions, though I did look at these, the link doesn't work now so I can't see them any more, and I didn't notice this 12 months hold on the main money before I invested. 
I guess other people invested too, as it was recommended by MSE, though the retention for a year wasn't mentioned at that time and I would not have taken part if it had been - is anyone else surprised to find they can't withdraw the money? 
Martin 

Alexland

I don't have the terms for your specific offer but noticed that a year or two ago Nutmeg extended the minimum period for their offers to 24 months. It gives them longer to recover a higher proportion of the cash back via their higher charges and maybe they hope the customer retention at the end will be better. Always worth saving a copy of the terms when you take out an offer. If they are saying it was within the offer you accepted its probably legitimate but you could ask them to provide a copy of the terms you entered into.

george4064

Whilst I don't have access to the specific terms & conditions applicable to you, I'm sure your £2,000 isn't literally 'trapped' there but instead that if you withdraw the £2,000 you will not be able to keep the bonus that has been paid to you.

tg99

Do not have the t and c to hand but in my list of reminders I have the 12 x £100 direct debit till Feb 20 but that cannot withdraw funds for another 12m to Feb 21 (i.e. 24m after date of first investment) so I believe must have been stated in the t and c.

hgst

I also took advantage of this offer. As I understand in order to keep £200 cashback bonus, £2000 has to be invested for 24 months, or 36 months since account opening.

dunstonh

I guess other people invested too, as it was recommended by MSE, though the retention for a year wasn't mentioned at that time and I would not have taken part if it had been - is anyone else surprised to find they can't withdraw the money? 
It should be noted that MSE does not recommend investments.   It may provide offers but these are for you to decide to invest in or not.

No sensible person should be investing for just 2 or 3 years.  Especially when its for a very small bonus where the loss potential could easily exceed the bonus figure.

colsten

dunstonh said:

No sensible person should be investing for just 2 or 3 years.  Especially when its for a very small bonus where the loss potential could easily exceed the bonus figure.

Unfortunately, some people trust MSE articles blindly. I didn't see the MSE Nutmeg promo at the time but I am no less shocked seeing it now. I hope people who took up the offer haven't lost any significant amounts.

Zanderman

colsten said:

dunstonh said:

No sensible person should be investing for just 2 or 3 years.  Especially when its for a very small bonus where the loss potential could easily exceed the bonus figure.

Unfortunately, some people trust MSE articles blindly. I didn't see the MSE Nutmeg promo at the time but I am no less shocked seeing it now. I hope people who took up the offer haven't lost any significant amounts.

To be fair to MSE the article did prominently flag up a warning about not being suitable for all - in very large letters!  And suggested people read up about investing.  And highlighted the 2 year minimum (which is the only issue the OP is worrying about).

I can't see MSE could do more than that if they want to write about the offer.  I, for one, am grateful to ME for highlighting these offers (as I am for those who do similar on this forum).  Sometimes I follow them up, sometimes I don't (I didn't with this one!).

Whether people actually read and properly comprehend what MSE articles say is another matter.  But if some people don't read the terms (as the OP on this thread clearly didn't - despite the offer clearly stating, in large letters on MSE, it's a two-year investment - and that's before even looking at the Nutmeg page) then what should be done?  Not mention the offers at all? 

Alexland

Yup and Nutmeg flash plenty of warnings before going into a high risk asset allocation and don't email you after 2 years reminding you it's time to cash out and crystallise some losses.

When taking these short term promo offers I figure that if the money wasn't invested here it would be invested in one of my main accounts anyway. I tend to go balanced risk as it would be annoying to withdraw less than the contribution and cashback but it doesn't matter as the withdrawn money goes back into the markets anyway for the rebound.

colsten

Zanderman said:

To be fair to MSE the article did prominently flag up a warning about not being suitable for all - in very large letters!  And suggested people read up about investing.  And highlighted the 2 year minimum (which is the only issue the OP is worrying about).

I can't see MSE could do more than that if they want to write about the offer.  I, for one, am grateful to ME for highlighting these offers (as I am for those who do similar on this forum).  Sometimes I follow them up, sometimes I don't (I didn't with this one!).

Whether people actually read and properly comprehend what MSE articles say is another matter.  But if some people don't read the terms (as the OP on this thread clearly didn't - despite the offer clearly stating, in large letters on MSE, it's a two-year investment - and that's before even looking at the Nutmeg page) then what should be done?  Not mention the offers at all? 

Some fair points well made. In answer to your Q: all that MSE should have only one article, preferably written by an IFA, not by a journalist, explaining the differences between savings and investments, and where people could go for help with investments (e.g. books, websites, IFAs). MSE should stay clear of any and all recommendations for any investments. After all, it's MSE, not MIE.