You are here: Home - Saving & Banking - News -

Savings app Plum to start paying interest

0
Written by: Emma Lunn
02/09/2020
Plum is launching “Interest Pockets” so customers can earn interest on the money set aside via the app.

The accounts will pay interest of 0.6% AER, which beats many high street banks’ easy access accounts as some pay just 0.01%.

Plum Pro (£2.99 a month) and Plum Plus (£1 a month) subscribers can now earn the 0.6% rate when they save into Plum’s Easy Access Interest Pocket.

In the future, free Plum users will also have access to an Easy Access Interest Pocket with the interest rate yet to be confirmed.

Plum works by linking to your bank account and using artificial intelligence (AI) to analyse your spending and transactions to work out the best amount to put away every few days. You determine how much you want Plum to save and can ask it to stop saving at any time.

Plum customers can split a percentage of the money they put aside automatically between their original instant access Plum account, the new Interest Pockets, and their investments.

Interest Pockets will be available to all UK residents over the age of 18, with no minimum balance and a maximum balance of £85,000. Customers must provide notice of one working day to withdraw money from an Easy Access Interest Pocket.

Money saved in an Interest Pocket is held on trust with an account provided by Investec, with the money protected by the Financial Services Compensation Scheme (FSCS).

Victor Trokoudes, Plum CEO and co-founder, said: “Plum has always been the smartest way to put money aside. Now we’re offering a great low-risk option for your savings with our market-leading Interest Pockets. At a time when people are saving more than ever, high-street banks have chosen to punish savers by cutting their interest rates to record-breaking lows. But we’ve got their back by providing the most competitive rates on the market at the most critical time.

“Together with our investment platform and our pensions product, which is coming soon, our new interest Pockets cement Plum as an all-round money management solution to help you effortlessly build your wealth in one intelligent app.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Flight cancelled or delayed? Your rights explained

With no sign of the problems in UK aviation easing over the peak summer period, many will worry whether holida...

Rail strikes: Your travel and refund rights

Thousands of railway workers will strike across three days this week, grinding much of the transport system to...

How your monthly bills could rise as the base rate reaches 1.25%

The Bank of England has raised the base rate to 1.25% as predicted – the fifth consecutive rise in just six ...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week