Nutmeg waives management charges for Lifetime Isa savers

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Nutmeg is waiving portfolio management charges for new customers in a bid to encourage them to invest through a Lifetime Isa.

Customers can make an initial deposit of £500 into “LISA 333 funds”, plus 11 deposits of £333. This takes investors to just over the maximum Lifetime Isa allowance of £4,000, with customers paying no portfolio management charges on funds invested.

The LISA 333 funds will then be converted into a Lifetime Isa once the products formally launch in April 2017.

Nutmeg chief executive Martin Stead says: “By beginning to build that £4,000 pot now, customers will benefit from compounding returns immediately.

“The Lifetime Isa is a powerful way to save – the Government is offering up to £1,000 free to savers each year. It’s a great way to encourage people to start saving young.

“We know saving for a deposit is important to under-40s and we expect this to engage young people in a way that saving for a pension never has.”