Savings app Plum to start paying interest
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.”