Plum Interest – Don’t let your money go idle (2024)

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Earn up to 4.94%* VAR on your money, delivered daily.

*Variable annual rates are correct as at 22/07/2024. Capital at risk. Forecasts are not a reliable indicator of future performance. Returns aren’t guaranteed and may be subject to change. Premium plan rate. 4.32% rate for Basic customers. 4.79% rate for Pro and Ultra customers. Plum Interest is not a Plum Interest Pocket but a money market fund. Learn more about how your money is protected here.

Is your money sitting in a current account, or being eaten away by inflation in a low interest account? It might be time to switch to Plum Interest. Plum Interest is a money market fund that invests your money in a government-guaranteed assets, giving you returns that are delivered every day.

How it works

Open Plum Interest

Your money is held in an interest-earning fund holding government-backed assets, making it low risk with stable returns.

Get returns daily

With daily returns, your progress is updated regularly instead of just once a month or even once a year.

Flexible access

You can continue using your money as normal with 1-business day withdrawals, giving you control over your money.

Add money automatically

You can balance all your financial goals by automatically splitting the money you add to your Plum account between Plum Interest and your other investments or easy access savings.

The Splitter could save you time and keep your strategy on track when you’re busy. However, you should periodically review whether your decisions are still suitable, given your current circumstances. Capital at risk.

Plum Interest – Don’t let your money go idle (4)

Rising interest rates are great for savers, but that’s only if banks choose to pass it on to your account. Instead of waiting around, you could be earning a rate much closer to that of the Bank of England with Plum Interest. Keep in mind that past performance is not a reliable indicator of future results.

Fund tracks the Bank of England rate

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Plum Interest is held in the BlackRock ICS Sterling Government Liquidity Fund. This graph is showing the past performance of the last 5 years, excluding Plum fees. Keep in mind that past performance is not a reliable indicator of future results. Plum is not a bank. Plum Interest is an investment product, and therefore, your capital is at risk. You can always visit the Fund's page for more information.

The Bank of England (BoE) base rate is supposed to influence the amount paid to customers on their savings. The current rate is 5%, but some of the largest high-street banks are only passing on a fraction of this. Investing in a money market fund could be a good alternative to earn returns closer to the base rate.

Plum Interest – Don’t let your money go idle (6)

Plum is not a bank, and Plum Interest is not a savings account but a money market fund. Base rate correct as of August 2024. For more information on the base rate, click here. See how Plum Interest fares versus Hight Street Banks' Easy Access rates here. Plum Interest is an investment product, which is currently available only in the UK. Capital at risk. The value of investments can go down as well as up. . Learn more about how your money is protected here.

Plum Interest – Don’t let your money go idle (7)

Is it safe?

Your money in Plum Interest is held in a fund containing short-term UK government-backed loans and bonds, considered low risk and providing stable returns in comparison with other investment products.

Plum is FSCS protected and if anything happens to your Plum account, you may be able to claim FSCS protection up to £85k.

The 4.94%* annual variable return we provide is a net rate. That means the rate we show you already includes the fund management fee of 0.10%, based on the daily balance that you hold in your Plum Interest pocket, and you know exactly what you're getting. Learn more here.

Common Questions

Plum Interest allows you to invest in bonds issued by the government. It also makes short-term loans to robust companies, who can show a strong track record, in exchange for government bonds.

That means those assets are backed by the government, and you can earn a share of any interest earned, with less risk than other types of investments.

If you add money to your Plum Interest Pocket, you’ll be charged a yearly fee depending on your Plum subscription and based on the daily balance that you hold in the fund.

Keep in mind that rates shown in the Plum app are already net of fees.

We waive this annual fee for Plum Premium subscribers, which means they don’t have to pay it.

Plum Pro and Ultra subscribers are charged an annual service charge fee of 0.15% by Plum, based on the daily balance held in the fund.

Plum Basic customers, who do not have a subscription plan, are charged an annual service charge fee of 0.62% by Plum, based on the daily balance held in the fund.

All customers must pay a 0.10% fund management fee for BlackRock. The fund value is automatically updated to reflect BlackRock’s fee, so you won’t see it as a separate charge.

Plum’s service charge fee, if any, will be collected from your Primary Pocket on the first day of each calendar month.

Learn more about fees for investing with Plum.

The fund manager for Plum Interest is BlackRock, an investment company with global presence.

Plum is regulated by the Financial Conduct Authority (FCA) and any money invested with Plum Interest may be protected by the Financial Services Compensation Scheme (FSCS).

Your money is safeguarded by a regulated custodian. So if anything should happen to Plum (or our fund provider), your assets will be passed back to you and can’t be touched by anyone else.

If the custodian fails or in the unlikely event that Plum defaults, the value of your assets held with Plum is also protected by the FSCS up to a max of £85,000, if the scheme applies to you.

This is a projection of the rate at which your money could grow over the next year. To keep things simple, we quote the net yield (after fees are applied).

The projection is based on the 1-day yield, which means it takes the previous day’s return and scales this to reflect what the fund could earn over a full calendar year. The actual rate offered in each market is similar to the base rate set by the central bank (the Bank of England in the UK), which can fluctuate over time.

On the scale of investment risk, this fund can be considered amongst the lowest available. That’s because it invests in high quality assets, like government bonds, and only loans money on a short-term basis to reputable companies and governments.

There is a risk that the forecast of projected yield might not be fulfilled over a longer period e.g. if the central bank lowers its base rate over time. But this fund is designed to transact at a constant price, so you shouldn’t get back less than the initial principal you invested, in the short term.

You can withdraw money from Plum Interest (i.e. the 'MMF Investment Account') at any time. To do this, tap the ‘Save’ menu button, then the ‘Plum Interest’ tab and finally ‘Withdraw’.

We’ll show an estimated settlement date in the app when you request a withdrawal, but please note this is just an estimate. Withdrawals are typically processed within 1 working day, with sell orders settled Mon–Fri at around 09:30 a.m. (UK time).

Once your withdrawal has been processed the money will be credited to your Primary Pocket balance. There are no limits or additional fees to withdraw from Plum Interest. And we plan to introduce instant withdrawals soon!

If you have any other questions you can visit the full FAQ.

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Plum Interest – Don’t let your money go idle (2024)

FAQs

Why won't Plum let me withdraw money? ›

If a transaction is still in progress, that amount won't be available for withdrawal yet. The app displays the expected completion date for any ongoing transactions.

Is plum interest risky? ›

Your money in Plum Interest is held in a fund containing short-term government-backed loans and bonds. It's considered low risk, and provides stable returns in comparison with other investment products.

Is your money safe with Plum? ›

Funds held in Plum's Cash ISA are protected under the FCA's CASS rules, also known as “Safe Custody” when it comes to assets. These rules mean the money you put into Plum's Cash ISA is also placed into a separate, segregated account.

How do I stop Plum from taking money? ›

If you wish to stop Plum from taking money on your behalf, please follow these steps:
  1. Open the Brain menu which is located on the home screen of the app.
  2. Check for any active rules.
  3. Deactivate all the active rules to stop any future automated deposits.

Why is Plum not taking my money today? ›

This can occur for various reasons, with the most common scenarios being: Insufficient balance: Automated rules may not run if there's an insufficient balance in your bank account. It's important to note that these rules require you to have a sufficient amount of money available in your account for proper execution.

Why is my bank not letting me withdraw money? ›

Account Balance: Verify that you have sufficient funds in your account to cover the withdrawal amount you're trying to make. Overdrawing your account can lead to transaction failures. Daily Limits: Most banks impose daily withdrawal limits on ATM transactions. Check if you've exceeded your daily withdrawal limit.

What happens if Plum goes bust? ›

The protection is provided by an independent organisation, which means if any of the FSCS-protected firms that provide investment services to Plum were to fail, this independent body is legally obligated to repay all money to eligible customers (typically up to a maximum of £85,000, for consumers).

Does plum affect credit score? ›

Does opening a Plum account affect credit score? No, opening a Plum savings account shouldn't affect your credit score. The company may do what is known as a 'soft' credit check when you apply.

Should I trust Plum? ›

Plum reviews

76% of users rate it as 'Excellent', with most commenting on how great it is at helping them to save money and great customer service. 12% of users rated it as 'Bad' with some users complaining about how long it takes for their money to transfer back into their account.

Can I get my money back from Plum? ›

To withdraw money from your Plum account to your bank account, please open the Pockets section in the app and then the Primary Pocket. You should be able to see the Withdrawal button there. Open the app and go to the Pockets section. Tap on the pocket you would like to withdraw money from.

Is it safe to link my bank account to Plum? ›

Safety: Your personal data is safeguarded through state-of-the-art security measures. Importantly, Plum never stores or has access to your bank login credentials. You only enter your login credentials after being securely redirected to your banking app, ensuring an additional layer of safety.

Does Plum charge you to withdraw? ›

There is no limit of withdrawals nor fees for withdrawing money.

Why is Plum charging me? ›

The provider fee is charged by Saveable Limited, a Plum Group Company that is responsible for managing your investment account. This includes services like buying and selling funds, preparing statements, and ISA/GIA management. It's fixed at 0.45% of your total buy order.

How does plum interest work? ›

The Interest is calculated daily on the cleared balance in the account using the interest rate applicable on that day and is paid into the Interest Pocket monthly. Can Plum change the interest rate? The interest rate is variable and we also have the right to change these rates, so it can go up or down.

How do I quit plum? ›

Follow these instructions:
  1. Open the app and go to your profile page.
  2. Press "Manage Plum (your plan)".
  3. Scroll down until you find the "Cancel" button.
  4. Press the "Cancel" button to deactivate your subscription.
  5. Press on the “Yes, cancel Plum (your plan)” button.

How do I withdraw money from my plum investments? ›

To withdraw money from a Mutual Fund, you need to follow the steps below:
  1. Tap the Investments tile on your home screen.
  2. Select the Mutual Fund that you want to withdraw.
  3. Tap on the Sell button.
  4. Type the amount of money that you want to invest.
  5. Press Confirm Sell.

How long does it take for money to clear in Plum? ›

It takes around 1-2 working days for the bank transaction to be settled into your Plum account.

Is it safe to link your bank account to Plum? ›

Safety: Your personal data is safeguarded through state-of-the-art security measures. Importantly, Plum never stores or has access to your bank login credentials. You only enter your login credentials after being securely redirected to your banking app, ensuring an additional layer of safety.

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