John Lewis launches savings account for adults and children
John Lewis will offer new savings accounts to clients as part of a diversification away from retail.
The street institution’s individual savings accounts for adults and children will be launched on Thursday thanks to a collaboration with digital wealth manager Nutmeg.
It’s one of several steps John Lewis, who also owns Waitrose, has taken to move away from his reliance on retail.
By 2030, the company hopes that 40% of its profits will come from outside the retail sector, and it recently unveiled plans to build homes in its old stores.
Earlier this year, the company launched home insurance and personal credit products.
This decision will take advantage of a savings boom triggered by the Covid-19 pandemic.
While many lost their jobs or were put on leave with a 20% pay cut, those who were able to work from home without spending money in restaurants, pubs and non-essential stores raised significant amounts of money. savings over the past year and a half.
According to data from the Office for National Statistics, households saved nearly 26% of their disposable income between April and July of last year, the highest since records began in 1987.
For comparison, the savings rate was below 9% between January and March last year, before the lockdowns began.
“The pandemic has been difficult for many, but others have managed to save more each month,” said John Lewis chief financial officer Amir Goshtai.
“They also reassessed how they want to spend their money – more than ever, they want to secure their financial future and that of their family.
“Our products allow people to put money aside and take the first step in what is often seen as the complicated world of investing.
“This is where the trust and love that customers have for our brand, combined with Nutmeg’s expertise, can make the difference, while making John Lewis even more relevant to life’s great moments; whether it’s saving for a house or preparing for the arrival of a new baby.