Plum savings account review: fees and features

Looking for a new savings account? There are a huge number available in the UK, with almost every bank offering multiple account types. While it’s great to have so much choice, it can be tricky to find the right savings solution for your needs.

In this guide, we’ll aim to make it a little easier, with a focus on the savings account from savings and investment app Plum. We’ll look at interest rates, features, fees, withdrawal limits and much more, so that you can figure out if it’s the right place for your money.

So, let’s get started on our Plum savings review.

Is Plum a good savings account provider?

It’s not for us to say whether Plum is a good savings account provider or not, but we can point you in the direction of some useful resources.

Firstly, you can find out what customers think of it over on review site TrustPilot. Plum currently has a ‘Great’ rating of 4.1 on TrustPilot, based on 6,300 reviews.¹ However, bear in mind that some of those reviews may be from customers of Plum’s investment services.

You can also look at awards. Plum was voted Best UK Personal Finance App in the British Bank Awards 2023.²

Are Plum savings accounts regulated by the FCA?

Yes, Plum is regulated by the Financial Conduct Authority (FCA).

However, not all of its products offer Financial Services Compensation Scheme (FSCS) protection. Plum also uses a process called safeguarding to protect your money.³

How does Plum work?

The Plum savings account, known as Plum Interest, works a little differently to other easy access savings accounts.

It’s essentially an investment product, where any money you deposit is kept in an interest-earning fund holding government-backed assets. According to Plum, this makes it “low risk with stable returns.”³ But remember that with any type of investment, there’s always risk involved.

You’ll earn returns daily, and can access your money when you need to.

Plum also uses an autosave feature, where you set smart rules and the app automatically transfers funds from your bank account to your Plum Interest pockets.

Plum savings account features

The Plum Interest account offers a few useful features, including daily returns, an autosave feature and easy access to your money. It’s all managed through the Plum mobile app.

Let’s take a look at a few of the pros and cons of the account:

Plum interest rate and fees

The Plum Interest account offers a variable interest rate of up to 5.12%, although this is only for Premium accounts. For Basic, Pro and Ultra plan customers, the rate is 4.97% variable.²

You can open a Plum Interest Account for no monthly fees on a Basic Plan, but other plans come with a monthly fee ranging from £2.99 to £9.99 a month.²

Other fees also apply:²

• Plum service charge fee - 0.15% a year (waived for Premium subscribers)
• Fund manager fee - 0.10%.

Is there a withdrawal limit?

There are no withdrawal limits with Plum, so you can withdraw as much as you want. Just bear in mind that withdrawals can take up to 1 working day to process.³

Does Plum work with all UK bank accounts?

Plum works with current accounts from all major UK banks.

Plum savings accounts: Quick comparison

Plum also has another savings account available, the Plum Cash ISA. It could be useful to compare both options before taking the plunge. Here’s a quick comparison of the two:

Where are Plum savings kept?

Savings are held in what Plum calls “pockets” and there are several of these pockets available.⁵

Money in Plum Interest accounts is held in the BlackRock ICS Sterling Government Liquidity Fund. This fund tracks the Bank of England rate. You can find out more information on the Plum website, or on the fund’s website.

After reading this guide, you should have all the info you need to compare Plum to other savings and investment providers - and see if it’s the right choice for your money.

Plum savings account FAQs

Does the Plum app work with all UK bank accounts?

Yes, Plum works with current accounts from all major UK banks.

How does Plum analyse your spending?

Plum uses algorithms to analyse your income and spending habits to calculate what you can afford to save each month.

Is Plum FCSC protected?

According to Plum, money held with Plum may have Financial Services Compensation Scheme (FSCS) protection of up to £85,000 per person - but not all of its products are covered. Plum also uses a process called safeguarding to protect your money.³

Why does Plum need to access my bank account?

The Plum app may need to access your bank account in order to run its algorithm and analyse your monthly spending habits. This is required in order to use Plum’s auto saver tools.

Does Plum have a sort code and account number?

Plum accounts are virtual, so don’t have sort codes or account numbers.

Does opening a Plum account affect credit score?

No, opening a Plum savings account shouldn’t affect your credit score. The company may do what is known as a ‘soft’ credit check when you apply. This will appear on your credit report but shouldn’t affect your credit score.

Is Plum the same as Moneybox?

No, Plum and Moneybox are two different companies, although their apps and accounts offer some similar services and features.

Why can’t I withdraw all my money from my Plum Account?

If you’re having trouble withdrawing money from your Plum account, you may need to wait until all pending transactions have completed. If you’re still having trouble, contact the Plum support team.

How do I close a Plum savings account?

To close your account, you must first deactivate all auto saving rules. You can then select ‘Manage Plum’ and ‘Cancel’ in the app.

Sources used:

Sources last checked on date: 14-06-2024