How Plum can help you get out of your overdraft once and for all

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Plum is a finance savvy chatbot that uses AI to help you manage your money and be better off. In ‘Making Plum’, you can see Plum evolve and how features are developed.


This month we have been working on how to help our users say goodbye to their overdraft for good by gradually saving their way out of it with Plum's help.

Right now 12% of Plum users are stuck in their overdraft throughout the whole month. We want to get this as close to 0% as we can.

We know some people rely on their overdraft, but we believe living in your overdraft doesn't mean you shouldn't be able to save. After chatting to some Plumsters and running a few tests, we have upgraded our overdrafts feature to help solve this problem and get our users back in the black.

How does it work

Plum can help you get out of your overdraft in the same way it helps you save; by putting small chunks of money aside that you can use towards paying it off. These small amounts quickly add up, letting you lower your debt and reduce those dreaded interest charges. Gradually, this means you can save your way out of your overdraft.

Before, you had to manually ask Plum to do this, and calculate things like how much of your overdraft you should use for saving yourself. Now, we have automated the whole process and done all the math for you.

When you sign up, Plum will check if you have a pre-arranged overdraft. If you do, Plum will ask you if you want to set up overdraft savings. This setting is not automatically switched on, so you have to opt in.

How does Plum know when how much of my overdraft to use?

Plum will only use your overdraft to calculate savings when your balance drops below zero, and will continue save small, affordable chunks for you. If you have a pre-arranged overdraft but avoid using it Plum will not use it for savings. Don’t worry, there are safeguards in place to never take you into an unauthorised overdraft. We’re pretty confident in our safeguards so will refund any fees incurred if we do.

Plum knows the size of your pre-arranged overdraft as well as how often, and how much of it you use. Using this data and some AI magic, Plum works out the perfect amount of your overdraft to use for savings. This amount will adapt to your financial situation just like your auto-savings do. So you can just set it up and let Plum get you out of your overdraft 💪

Can I change how much of my overdraft Plum uses to save?

Of course! Just type 'overdraft' into Plum and select “Edit Limit”. Then you can set your own amount.

You can stop Plum from saving when you are in your overdraft facility at any time, by typing “overdraft” into the bot.

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I’m already a Plum user, will I get this message?

Plum will also work through existing users who would benefit from overdraft savings but do not already have them set up and will send them a message. If you already have overdraft savings set up, you will not get a message. If you want to change to the new overdraft programme and get Plum to calculate the perfect amount for you, type ‘chat to a human’ and our amazing support team can help you get set up.

But pre-arranged overdrafts are free money right, why would I want to pay it off?

Even pre-arranged overdrafts are a debt, and debts cost. In fact The Competition and Markets Authority have found that if you use your pre-arranged overdraft for just a week or two every month, then you could probably save on average £180 per year by switching to a different bank. To find out how much your overdraft is costing you take a look at our Fee Fighter.

I frequently use my unarranged overdrafts, will this work for me too?

To help you avoid the significant fees associated with unarranged overdrafts, Plum will not save for you when you are close to this.

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