There’s an elephant in the room that we need to talk about…
Lots of us know we could be making more of our money by moving it into higher-interest accounts or investing.
But with dozens of other things on our to-do list, that’s easier said than done, not least when certain providers make the process unnecessarily confusing and complicated.
Fortunately, a popular smart app is helping an increasing number of Brits translate intention into action – and finally put their money to work.
Plum, which has more than 2.2 million people onboarded so far, uses automation to make saving and investing easier and more intuitive (to give the app a go, download it for free on App Store or Google Play).
Once you’ve linked Plum to your bank account, its clever algorithms scan your incomings and outgoings to work out how much you can afford to save, before setting it aside every so often.
Plum then stashes this money away in a place of your choosing, from an Easy Access Savings Pocket or Cash ISA to one of their managed investment funds (terms and conditions and ISA rules apply – capital at risk if you invest).
The way Plum takes the effort out of saving is what piqued the interest of Jordan Leith, a 27-year-old Londoner who was told about the app in 2022.
‘I heard about Plum from one of my friends – because we’re at that age now when we talk about adult things like savings and mortgages!’ he says.
‘He told me that it saved money for you, with the app doing all the hard work of working out how much you can save and how often on your behalf. The ease of it sounded great.’
Jordan, who works in public affairs, admits the thought of trusting an app to manage your money can seem unusual at first. But he’s been delighted by the results.
‘It’s been better than I could have ever expected,’ he says.
‘The amount it saves really adds up, and I know that if I spend a bit more one week, it will take out less the next, so I won’t be left in my overdraft.’
Plum offers a variety of savings ‘moods’ that you can use to tell its brain how confident you’re feeling. Jordan has chosen ‘ambitious’, which hikes regular deposits by around 50 per cent.
Alongside the automatic savings feature, Plum offers seven other auto-saver rules to help you stash more money away, although some are only available on a premium subscription.
One of these is ‘Round Ups’, which rounds up your spending to the nearest pound and saves the difference.
‘When you spend £4.50, you’re not going to mind about an extra 50p,’ Jordan says.
‘You’d be surprised how it mounts up. I could be saving £10 to £15 in a heavy spending week…’
Users tell Plum where to put their money with its ‘Splitter’ tool, which automatically divides deposits between your various cash or investment pockets, based on your chosen allocations.
Jordan is currently saving around £600 a month, which he divides between an Interest Pocket* earning 3.53% AER (variable) and a Cash ISA** at 4.51% AER (variable), with the rest (at the time of our interview, rates may change), amounting to around £150, going into his investments.
This is not financial advice but simply an example of what Jordan does, which may be different in your circumstances. Tax treatment also depends on your individual circumstances and may change in the future.
Jordan had never invested in the stock market before, but credits Plum for helping him take the plunge.
‘I knew nothing about proper investing – when that crypto hype came along, I put £50 in and lost it all within an hour. But now I know investing is a long-term thing.
‘Plum breaks things down and tells you about the risk. I’ve invested in the S&P 500. It rises and falls in the short term, but I’m planning to ride out the waves.’
In general, be aware that the value of your investments can go up as well as down. This is not financial advice.
Jordan has £5,000 in a Plum Interest Pocket, £10,500 in a Cash ISA and £3,500 in his investments – which he plans to use in future years to supplement his pension.
He’s used some of his Interest Pocket savings for short-term needs, like holidays, but is trying to leave the rest of his Plum savings untouched.
‘In the world we live in now, you never know what’s going to happen when we get to retirement age,’ he says.
‘Personally, I’d rather be safe than sorry. If it’s a bit of hardship now and I can live the rest of my days carefree and go on a cruise, I’m happy!’
Given Jordan was introduced to Plum by a friend, it’s no surprise he’s urging his other mates to get started.
‘I’m recommending it to every friend I have,’ he says.
‘I just tell them to let the app do the work for them, but that they also remain in control if they want to change anything. It’s a breeze.’
Try Plum TODAY by downloading it for free from App Store or Google Play.
Plum: Under the bonnet
Is it free?
You can start off with Plum for free, as the basic version of the app offers numerous features without any charge. If you want to explore additional features or optimise your saving and investing process, you can upgrade to a subscription plan.
Do you need to link my bank account?
Yes, if you want to take advantage of the app’s features. Direct Debits are the primary method to deposit money into Plum. By setting up a Direct Debit you are allowing Plum to take money out of your account when you request it, either via their deposit rules or a manual deposit that you initiate within the app.
The company now also has a ‘Quick Transfers’ option to make deposits for saving rules faster. No money will be taken out of your account without your consent.
What are Plum’s safety features?
Plum uses encryption and face and fingerprint ID for added security. It holds the Cyber Essentials certification and adheres to the security frameworks of CIS and ISO 27001, demonstrating its commitment to comprehensive security measures.
How’s it regulated?
Plum is regulated by the Financial Conduct Authority, and money held in an Easy Access Savings Pocket or a Plum Cash ISA is covered by the Financial Services Compensation Scheme (FSCS).
The FSCS protects up to £85,000 that you have saved, per bank, building society or credit union (or up to £170,000 for joint accounts), subject to eligibility. FSCS protection applies differently.
There are also safeguards for a non-interest-earning pocket, like a Primary Pocket, which is protected by the E-Money Safeguarding Rules.
Learn more about how your money is protected on Plum here.
What else can Plum do aside from saving and investing?
Plum is packed with lots of clever features, from spending overviews to the ability to set weekly allowances.
Its Spend Tab helps customers to manage their finances by allowing them to track their total spending across all their linked accounts.
By categorising expenses and providing more detailed insights into your spending habits, you’ll be empowered to make more informed decisions and to budget effectively.
What if I have a question for Plum?
If you ever need help, friendly customer support teams are available seven days a week.
*Variate annual rate correct as at 24/01/2025 and applicable to Premium users. Plum Interest is an investment product, so you could get back less than you put in.
**Rate includes a Plum bonus of 1.69% AER (variable) if kept for 12 consecutive months and is for new customers only. The interest rate for ISA transfers is 3.29% AER (variable). Interest on our Cash ISA varies. This is the rate from 3/07/25.
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.
