Plum launches Plum Interest

The press release highlights that Plum Interest is designed to offer a location for people to hold their money rather than remain dormant in a low-interest account, as it combines higher rates with daily returns. The variable annual rate as of September 26, 2023, is: 

• 4.94% for customers in the UK  

• 3.60% for customers in the EU  

The product is intended to offer similar benefits to a savings account, without the withdrawal and deposit restrictions associated with some high-interest products.

Money held in Plum Interest can be accessed without incurring any transaction fees when moving them in and out of accounts. Additionally, there are no restrictions on the minimum or maximum deposit amounts and will not be charged any subscription fees. All deposited funds are held in compliance with regulatory safeguarding rules, ensuring they are securely kept in a separate and segregated account.

Plum has partnered with asset management firm, BlackRock, which is providing the money market fund that supports Plum Interest. The product is based on a type of highly liquid money market fund that is broadly considered the safest of its kind. That’s because it invests fully in short-term assets issued and guaranteed by the government. 

Plum is a smart money app, with the mission of making wealth-building automatic. The company automates parts of personal finance that people may find difficult or don’t have time for, helping them save, invest, budget, and manage their spending. Plum has over 1.7 million customers across the UK and EU. Headquartered in the UK, Plum also has offices in Greece and Cyprus.

In April 2023, Plum announced the launch of Watchlists and Price Alerts, two smart features aimed to support stock investors’ decision-making. The features look to improve customers’ understanding of their portfolios and to provide them with timely information for making decisions regarding their investments. When leveraging Watchlists, Plum customers are able to monitor financial instruments that are of interest to them ahead of deciding whether to purchase them. The solution would help them track stocks in a single place, allowing them to better their understanding of their portfolio and the wider investment space alike.

Furthermore, the introduction of Price Alerts was set to allow customers to set target prices on stocks, with the app sending automatic notifications whenever the share price rises or falls to the level they set. Customers could have as many of these smart notifications set up as they see fit and have the ability to manage them at any time on the app.