We’re always looking for new ways to help you personalise your finances and make your money work harder for you 💪
Plum’s AI helps you set more money aside 🤖 And our range of investment funds offer a way to try and grow that money for the future (with the understanding that any capital you may choose to invest is at risk, because the value of these funds can go down as well as up).
But what if you want a way to earn a return on your savings that won’t be affected by fluctuations in the stock market?
Introducing Interest Pockets to Plum
In addition to your Primary Plum Pocket (your banking app might call them pots), you can now create a separate Pocket which pays interest, meaning you can fight inflation and earn a return on your Plum savings 📈
Subscribers to Plum Plus or Plum Pro can open an Easy Access Interest Pocket that currently pays 0.6% Annual Equivalent Rate (AER).
How do Plum Interest Pockets work?
When you create a new Pocket you’ll be given the option to choose between a regular Pocket and one that pays interest.
Unlike the money stored in your Primary Pocket, that can be accessed within 24hrs (usually within 20 mins), you must provide notice of 1 working day when you want to withdraw money from an Easy Access Interest Pocket ⏱
Interest is calculated daily and applied to your account monthly, on the first working day (UK) of each month.
Plum Interest Pockets can be personalised, just like the ones you’re already used to using, which means you still allocate goals so that you can work towards specific targets 🎯 This can make it easier to track your progress and help you set more aside (compared to someone who doesn't set a goal) 🤓
Using our ‘Splitter’ tool you can still control exactly what proportion of the money set aside is deposited to your Primary Pocket, saved to a new interest-bearing Pocket, or added to your investment funds 🖖
Who can open a Plum Interest Pocket?
Interest Pockets will be available to all Plum Plus or Plum Pro customers.
Plum Plus subscribers will be able to to open a single Interest Pocket, with those paying for Plum Pro allowed to create multiple Interest Pockets and also to personalise them and assign savings goals 🥅
In the near future we also aim to offer Interest Pockets to our free customers, albeit at a slightly lower rate of return.
When will I get Interest Pockets?
We’re currently rolling our new Interest Pockets to all customers, so whether you’re using iOS or Android you’ll soon have access to this new functionality.
Some of you will already be able to create Interest Pockets, but we anticipate they will be available to all our Plumsters in the next few weeks 📆
Is my money safe with Plum?
Any money you store with Plum is protected. For a detailed look at the different ways we look after your money you can refer to our earlier article.
Money saved with Plum in these Interest Pockets is held on Trust with a UK Bank 🏦 A Trust is a legal mechanism which means we can look after your money, but legally it never stops belonging to you.
This means that if anything were to happen to Plum then the bank can return your money to you directly. Should something happen to the bank itself, then you could benefit from the Financial Services Compensation Scheme (FSCS) and claim up to £85,000 of your money back, if the scheme applies to you.
How does Plum interest compare to my bank?
We’re on a mission to make everyone financially better off, and we’ve worked hard to try and offer you one of the most competitive interest rates going ✊
We think this is especially important given that most high street banks (like Barclays, First Direct, Halifax, HSBC, Lloyds, Nationwide, Natwest and Santander) have recently slashed interest rates on easy access savings accounts to just 0.01%.
Interest rates tend to fluctuate quite frequently, so it's always sensible to keep yourself well-informed of any future changes 🧐
Although the interest rate we offer may change in the future (we'll always let you know in advance), we're proud to bring you this bank-beating rate at a time when control of your finances is more important than ever!
If you'd like to learn more about Plum then you can check out our website.