How I saved £5,600 thanks to this smart app

Know those tasks you keep trying to tick off your to-do list, only to give up halfway through when they prove too taxing?

This is a familiar experience for many people trying to sort out their savings, with confusing jargon and red tape often holding us back. 

That’s why we want to tell you about an app that’s blasting through these barriers using the power of automation, helping users save more money and earn better returns.

Smart money app Plum makes saving easier by automating the process, with its powerful built-in tech scanning your bank account to work out how much you can afford to save, before setting it aside on your behalf. 

The app offers a range of savings accounts with competitive rates of interest, including a Cash ISA and Lifetime ISA, alongside a choice of investment funds (terms and conditions and ISA rules apply, capital at risk).

Will Mayo, 18, first learned about Plum on social media.

‘People were talking about the different savings accounts they provide and their various benefits,’ he says. 

Keep in mind, as with all investing, your capital is at risk, and the value of your investments can go down as well as up.

‘I thought I might as well have a look, so I downloaded it onto my phone and set up an account.’

Despite being relatively new to saving, Will – an apprentice machinist engineer from County Durham – found Plum made everything easy. 

The app lets you choose from a series of automated savings rules known as ‘Auto Savers’. These include the ‘Automatic’ function, which scans your incomings and outgoings before regularly transferring small amounts without leaving you short.

You then use the Splitter tool to divide up these transfers between your various accounts, known as pockets.

There are nine Auto Savers, although some require a paid subscription. Will has enabled two of them – Pay Day and the 1p Challenge. 

‘The Pay Day rule takes a set amount from my bank account every time I get paid – it’s as easy as that,’ he says.  

‘I don’t even have to think about it, and because I don’t even see the money, there’s no temptation to spend it.  

‘Then the 1p Challenge sets aside one penny on the first day before increasing it by 1p every day for the rest of the year.

You will need to review periodically whether automation is suitable for your circumstances.

‘The next thing you know, you’ve saved hundreds and haven’t even realised!’

As an apprentice, Will’s salary is relatively low. But he’s already started saving for a house using a Lifetime ISA (LISA).

This allows him to save up to £4,000 a year towards a first home worth up to £450,000, with the government boosting this amount by 25 per cent. Penalties apply if you withdraw the money after less than 12 months or use it for any other reason.

With Plum, Will currently earns a great interest rate on his LISA*. And because he doesn’t have to pay tax on this interest, he can keep all the money!

As of 13 August, Plum’s Lifetime ISA is currently earning 4.10% AER (variable) for the first 12 months, including a 1.14% AER (variable) bonus. However, keep in mind that tax treatment depends on your situation. The rate also assumes you meet all eligibility conditions for the full 12 months. If you do not meet these conditions, you may receive a lower effective return. Learn more here.

‘The 25 per cent government bonus was a big attraction, as was the really competitive interest rate Plum offers,’ Will says.

‘Buying my own home is my dream. My siblings were renting for 10 years, so I want to start saving now and get it done as soon as possible.

‘My plan is to reach the end of my apprenticeship and, when I turn 22, have between £15,000 and £20,000 that I can use for a deposit. I’m currently on track for that.’

To cover more immediate expenses, Will has a Plum Cash ISA that pays a similarly impressive interest rate of 4.86% AER (variable)*. To cover more immediate expenses, Will has a Plum Cash ISA that pays a similarly impressive interest rate of 4.41% AER (variable) as of 13/08/25.

‘I use the Cash ISA for things like car insurance, tax and MOTs, and if I want to pay for a holiday, I’ll have the money saved so I can cover the cost outright,’ he says. 

‘I use it for emergencies, but also bought a PS5 recently too, so it’s a bit of everything. 

Make sure a Lifetime ISA is right for you. Withdrawing for anything other than your first home, retirement, or a few specific circumstances may result in a 25 per cent government penalty, meaning you could get back less than you put in. Tax treatment depends on your specific situation and may be subject to change.

‘At the minute I’ve got about £4,600 in my Lifetime ISA and just over £1,000 in my Cash ISA.’

Will credits Plum for helping him build a savings habit that should bring big benefits in the future. 

Given this, it’s no surprise he’s recommending it to his friends and workmates. 

‘I’ve told all the other lads I work with on my apprenticeship that they should start using Plum,’ he says. ‘Before, I would put money into my savings but then dip back into them, so I didn’t end up saving a penny.’ 

‘But with Plum, you don’t even see the money. It’s so easy, you hardly need to do anything yourself.’ 

*The Plum Cash ISA rate includes a Plum bonus of 1.37% AER (variable) if kept for 12 consecutive months and is for new customers only. The interest rate for ISA transfers is 3.04% AER (variable). Interest on Cash ISA varies.

Plum is the trading name of Plum Fintech Limited and Saveable Limited. Plum Fintech Limited is registered and regulated by the Financial Conduct Authority (FRN 836158). Saveable Limited is authorised and regulated by the FCA (FRN: 739214).

Plum does not provide financial or any other form of advice.