interactive investor launches Friends and Family

Customers can gift free investing to five people for just £5 per month extra.

• Friends and Familygets people started investing with a trusted platform, with exclusive educational content and ii’s full range of investment options
• Passing on of financial education skills trumps passing on of wealth for people in the UK (53% versus 18%) according to new research by Opinium for ii
• Pilot of Friends and Family found that two thirds of those referred were female (67%), with strong focus on young adults

The rise of the beginner investor has been a key pandemic theme, sparking optimism as more people take control of their finances. But also concern around excessive risk taking, with little awareness around investor protections. The Financial Conduct Authority has talked about this.

interactive investor, the UK’s second-largest DIY investment platform and number one flat fee provider, has found a way to get more people started on their investment journey with a trusted and familiar platform, with the same full range of investment options that is available to all ii customers.

Launched today after a year-long pilot, Friends and Family is a game changer, allowing more people to benefit from ii’s innovative flat fee subscription model.

For just £5 extra a month, ii customers can each gift up to five people a free subscription to ii. That means that five friends and family can each join ii without paying a monthly subscription fee (otherwise £9.99 per month for ii’s core Investor plan). The offer comes with free regular investing, the full range of investments and exclusive, engaging educational guidance and support.

A younger, predominantly female audience in pilot phase

The launch comes after a year-long pilot, which found that 28% of people who opened an account as a result of being referred were between the ages of 18-24; 19% were between 25-34 years old, and 16% were each in the 35-44 and 45-54 categories. Some 12% were 55-64, and 9% were over 65. The majority of customers referred have been female (67%).

Richard Wilson, CEO, interactive investor, says: “Friends and Family is a game changer for ii and for our customers, who can now offer their friends and family a safe and free initiation into a life of investing. 

“Our flat subscription fees were revolutionary when we first introduced them. And it’s not hard to guess why: they give people clear sight of what they’ll be paying over the longer term – something the percentage providers don’t want to shout about. 

“But flat fees don’t lend themselves so well to smaller amounts invested, where a percentage fee can be more competitive – at least in the early days. Our Friends and Family launch solves this problem and opens up our great value tools and services to a much wider audience. 

“We believe that investing and money matters start with those we care for. Friends and Family brings together amazing value investing with our family content. So, whether it’s investing in a Junior ISA for a loved one, supporting grown up children to get on the investment ladder, or helping parents or friends to invest responsibly, Friends and Family offers a solution.”

Key features of Friends and Family

• Just £5 allows customers to cover the monthly fee of up to 5 people, who can each join ii with no monthly fee.

• Any introduced customers are not charged a monthly ii platform fee.
• Regular investing is free (funds, investment trusts, ETFs and popular UK shares); other trades are charged at ii’s standard rates - trading credits are not available
• They can invest up to £30,000 each. Above this amount they will move onto the standard Investor Plan (£9.99 per month).
• They can each open an ISA, GIA and as many JISAs as they have children.
• Simple linking process
• Friend and family accounts are separate and private.
• Engaging content to help Friends and Family get started.
• They get access to ii’s full range of investments from the whole of market, or can choose from select lists of independently rated funds from ii’s Super 60, ACE 40, model portfolios and the Quick Start range for beginner investors.

Knowledge is power

Moira O’Neill, Head of Personal Finance, interactive investor, says: “There has been a lot of talk about beginner investors taking on too much investment risk. So, it is fascinating that more people’s thoughts are turning to financial education rather than financial hand-outs - although both are always welcome.

“More than half (53%) of our 2,000 respondents prioritised the passing on of financial education skills to younger generations over passing on wealth. Just under a fifth (18%) thought wealth was the most important commodity to pass down.

“It’s a view that increases with age – 59% of the over 55s prioritised passing on financial education skills over wealth.

“Friends and Family allows customers to pass on their economies of scale to friends and family. But it is essentially about passing on knowledge – choosing a great value platform, with a trusted provider with good quality educational tools to help people get started. It also means that customers can get guidance and support for the people they care about -  without it all being on them.

“The results of our Friends and Family year-long pilot are encouraging, not least the very high percentage of female referrals. We are pleased that this pilot has so far strongly resonated with female and younger audiences, and we look forward to delving more into this – we certainly hope it is a theme that continues.”

Opinium research for interactive investor

Which do you think is most important to pass on to younger generations?

Notes to editors

Opinium research was conducted between 2-5 November 2021 between 2,000 nationally representative UK adults.