‘How I was able to save £11,000 with this smart app’

Ever feel like you should be saving but never quite get around to it?

We get it. Even if you’re lucky enough to earn a decent salary, there’s always something else you could be spending money on.

And even if you’d love to buy your own home, sky-high property prices can make saving for one feel pointless.

Meet Plum, a wildly popular smart money app that makes it easy to build a regular savings habit, even for those who’ve found it hard in the past…

Plum (available on the App Store and Google Play) takes the effort out of saving by automating the process, regularly setting aside money on your behalf. 

You can then take your pick from a range of savings accounts offering competitive rates of interest, including a Cash ISA and Lifetime ISA (LISA), alongside a choice ofinvestment funds. (T&Cs and ISA rules apply, capital at risk when investing).

Five years ago, Matthew Mills struggled to save a penny. Then he found Plum – and hasn’t looked back. 

‘I was terrible at saving money – I’d always spend extravagantly – but Plum has changed things dramatically,’ says the sales account manager from Gloucestershire. 

Plum helps you stash away more money with a series of smart savings rules known as Auto Savers.

The default setting, Automatic, uses the app’s built-in algorithm to understand your income and spending, setting aside what you can afford each week.

Other options include Pay Days, which saves a set amount whenever you’re paid, and the Naughty Rule, which puts money aside whenever you shop at a retailer you consider a guilty pleasure. 

Some Smart Saving Rules are paid features, and therefore fees may apply.

Matthew loves Plum’s Auto Savers so much that he’s switched on nearly all of them.

‘Pay Days makes the biggest difference – I’ve got £500 set up for that every time I get paid,’ says the 31-year-old. 

‘Then I’ve got my Naughty Rule set to Amazon!’

You decide how Plum divides up your regular transfers using the app’s Splitter tool.

Matthew divvies his up between a Self-Invested Personal Pension (SIPP), a Lifetime ISA (LISA), and a variety of different cash accounts, known as Pockets, which are each reserved for a specific goal.

‘If I’ve got something in mind that would be nice, but I don’t need it urgently – like a car – I’ll just create a Pocket for it,’ says Matthew.

‘I decided to set up a SIPP because I don’t want to only rely on my company pension. I’ve gone for the Climate Change Focused fund because I wanted something ethical.(Capital is at risk when it comes to investing, meaning you could get back less than what you invested).

‘My other investments go into six different investment funds – the biggest one being the Global Tech fund and Global Dividends.’

Matthew opened a LISA to help fulfil his ambition of getting on the property ladder.

These allow you to save £4,000 towards a first home (worth up to £450,000) or retirement, with the government adding a 25 per cent bonus to whatever you put away, up to £1,000 a year.

The Plum LISA currently pays 4.40% AER (variable) for the first 12 months, including a 1.03% AER (variable) bonus (as of 9th September 2025).

This is not advice.  Please consider your personal circumstances or seek independent advice if unsure.

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

Withdrawing for anything other than your first home, retirement, or a few specific circumstances may result in a 25% government penalty, meaning you could get back less than you put in. 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.

Also bear in mind that tax treatment depends on your situation. Learn more here.

‘I wanted to start saving for a 20 per cent deposit and that extra bonus the government adds was perfect,’ Matthew says.

‘I only started last year and there’s now more than £5,300 in the account. That’s purely the £4,000 deposit, a £1,000 bonus and interest.’

With £11,000 of total savings across all his Plum accounts, Matthew feels in a far better place financially than five years ago. 

‘It’s been brilliant – without it I wouldn’t have saved and invested nearly as much money as I have,’ he says.

‘I like the way I can have everything – my savings accounts, my investments and my retirement fund – all in one place.

‘Now I have a decent small stock portfolio, a second pension, and finally some hope that I can actually buy a house. Like a lot of Millennials, I’d almost given up.’