We always advise investing for the medium to long term. If you want to achieve your financial goals, at a bare minimum, you should be expecting to invest for three years. Here’s why.
Your money has a better chance of growing if you’re able to benefit from compounding. This is when the returns you earn are reinvested and more returns are earned from that extra investment. If you’re going to get ‘returns on your returns’ like this, you’ll need to leave your money in the markets for a good deal of time. Withdrawing after a short time is a bit like taking something out of the oven before it’s cooked – not advisable!
Then there’s the inevitable truth of investing: the value of your investments can go down as well as up. This is called ‘volatility’ and it is part and parcel of investing. Leaving your money in the markets for a long time means you’re better able to ride out these ups-and-downs and give yourself a better chance of a good return. Withdrawing when the value of your investments drop will mean you lose out when the markets go up again. Watch this video to find out why, as an investor, volatility can actually be your friend.
If you were to withdraw when markets fall, even if you were to invest again at a later date, it’s almost impossible to make sure you only experience ups without the downs. So, think very carefully before you decide to withdraw. A long-term mindset is the only thing that will keep you on track to meeting your financial goals.
That said, of course you’re free to withdraw your money if you need it. We don’t charge for standard withdrawals. Here’s how to withdraw if you need to.
How to withdraw
There are two ways to withdraw your money from a Nutmeg pot.
From within your Nutmeg account on desktop or tablet, select withdraw from the Payments & Transfers menu then follow the simple steps.
To withdraw from a specific pot, click on Options and then Withdraw.
Some things to bear in mind:
- Because the value of your investments may change from one day to the next, we can’t guarantee that you will receive the exact amount you request.
- If you're withdrawing from an ISA, remember that any allowance used in this tax year will remain used, and you won’t get it back if you later pay back in to your Nutmeg ISA.
- If you have money in both ISA and general investing accounts with us, we will first withdraw money from the general investing portion so as not to affect your ISA allowance.
- We will send the money to the bank account you specified when you signed up. If it is not correct or has changed please contact us before making the withdrawal.
What happens next?
Once submitted, the value specified will be earmarked and you’ll see it reflected as a pending withdrawal on your desktop and tablet homepage. This will disappear once the money has been sent to your bank account.
How long does it take?
Withdrawals typically take 3-7 business days, but can in some circumstances take longer. All withdrawals must go through the following steps:
- We will sell your investments at our next twice-weekly investment cycle, typically on a Monday or Thursday.
- Once sold, the trades take two business days to settle before we receive the cash to send back to you.
- Once the trades settle, we send the money to your nominated bank account by electronic transfer, which will arrive the following business day.
Please note: under our terms and conditions, where you pay money into your account by debit card, and you request a withdrawal within 60 calendar days, we will return the withdrawal payment to the same debit card. This process takes 3-10 working days to clear into your account from the day we receive the cash – in our experience it usually takes closer to three days than ten.
Due to the time it can take to receive the proceeds of a withdrawal, we recommend that customers enter their withdrawal requests in plenty of time ahead of any major purchases and also hold sufficient emergency cash outside of Nutmeg. Three months’ pay is considered to be good practice.
Please remember that the value of your investments may fluctuate during the period that you request a withdrawal and the trade is executed to sell your investments.
In specie transfers
If you request an in specie transfer out, where we transfer the investments you own rather than sell the investments and send you the money as cash, you will need to pay £20 per stock. Please contact us to request an in specie transfer.
As with all investing, your capital is at risk. The value of your portfolio with Nutmeg can go down as well as up and you may get back less than you invest.