Are you looking for ways to grow your money, but not sure where to start?
If so, you’re far from alone. Despite the wealth-building potential of interest saving and investing, many people are put off by fears they need lots of expert knowledge (or simply struggle to decipher the jargon!)
Given this backdrop,it’s understandable that we’re excited about a wildly popular app that’s taking the complexity out of money management.
More than 2.2 million people have onboarded with smart money app Plum, helping them save and invest for the future using the power of algorithms.
It breaks down the barriers to saving success by automating the process, with clever in-built tech that analyses your bank account to work out how much you can afford to save, before setting it aside at regular intervals.
Plum then puts this money to work in a way that’s right for you, from tucking it into one of their Easy Access Interest Pockets* or Cash ISAs to investing it in one of several professionally managed funds. (Terms and Conditions and ISA rules apply. Capital at risk.)
This clear approach to money management is what first impressed Gabrielle Dalligan, 36, when she began using it around five years ago.
After struggling to build a savings habit, the senior account manager has now put away more than £24,000 – which she splits between cash savings and investments in funds and individual stocks.
‘At the time, I was saving to buy my own house and using another savings tool, but I didn’t find it very intuitive,’ the mum-of-one from Purley in Surrey explains.
‘After I started using Plum, I couldn’t believe how quickly the money added up without me even realising I was saving. It didn’t feel like it was mine at first!’
Each time Plum transfers money from your linked bank account, its Splitter tool automatically divides this up between your various cash or investment pockets – based on your chosen allocations.
The app also offers a series of helpful auto savings rules depending on your subscription** that are designed to help you set aside money on a consistent basis – taking advantage of funds that may otherwise be ‘left over’ at the end of the month.
Gabrielle loves these so much she’s enabled almost all of them, including Pay Days, which automatically deposits a set amount every day she gets paid, and Rainy Days, which does the same each day it rains in her local area.
Plum is the trading name of Plum Fintech Limited, which is registered with the FCA (FRN 836158) to carry out payment services activities as a Registered Account Information Service Provider, to carry out payment services activities. Plum is a distributor of Modulr FS Ltd and an agent of PayrNet Ltd for the purposes of the Plum Card. Modulr (FRN 900573) and PayrNet (FRN 900594) are regulated and authorised as Electronic Money Institutions by the FCA. Plum Money is the trading name of Saveable Ltd, which is authorised and regulated by the FCA (FRN 739214) to carry out investment and credit broking services. T&Cs apply. Visit www.withplum.com
‘I’ve also set up the Naughty Rule, which means that any time I spend money on Amazon it saves £5 – that’s my most successful one!’ Gabrielle adds.
‘Plus, I do the 1p Challenge, which saves an extra penny every day for a year, leading to £667 saved by the end of the year. You don’t even notice the money leaving your account!’
Gabrielle had never invested her money before using Plum due to fears it would be difficult and ‘really costly’.
But she’s found the app’s simple-to-use design makes the whole process straightforward although, as with all investing, please remember that your capital is at risk.
‘I put 20% of my deposits in an Interest Pocket paying 4.59% AER* – which is substantially more than my bank was offering – while the rest is spread across different investments,’ Gabrielle says.
‘I invest in a range of share funds including Global Tech, Emerging Markets and Global Dividend. I like that you can look at the details about the funds and they are diversified across lots of different companies. I also own some shares in individual companies.’
Plum allows you to create specific pockets for each of your savings targets, while using its auto savings features to help you reach your goals faster. You always remain in control, with the ability to withdraw your money or change how much you save at any time.
Gabrielle is putting a proportion of her savings into a fund for her daughter, although she admits to allowing herself the occasional treat!
‘I pay some money each month into a pot for my little girl’s future, which could go towards things like school fees or a car,’ she says.
‘But sometimes, I’ll be honest, I treat myself and buy something that I’ve wanted for a long time, like a laptop.’
Asked what she’d say to someone thinking about using Plum, Gabrielle replies: ‘100 per cent go for it. It’s been genuinely life changing for me as a person who thought I’d never be financially stable enough to start saving.
‘So many people in my family began using Plum because of me raving about it and everyone I’ve recommended it to has asked why I didn’t mention it sooner.’
Plum: The essential guide
Is Plum free?
You can download the basic version of Plum from the App Store or Google Play for free. Subscription options are available if you want to unlock more features that could help speed your way towards your financial goals.
What else can it do besides saving and investing?
Plum is a powerful budgeting tool that lets you keep track of regular payments and expenses.
The app offers a complete overview of your finances, letting you filter your transactions by account, and find specific retailers with a few taps. You also have the option to set weekly allowances to control your spending.
Is my money safe?
More than 2.2million customers already trust Plum to keep their money safe, and the app uses encryption and face and fingerprint ID for added security.
Money held in a Plum Interest Pocket, 95-day Notice Account or Cash ISA is covered by the Financial Services Compensation Scheme (FSCS) up to a total of £85,000 per customer. There are also safeguards for a non-interest earning pocket, such as a Primary Pocket, which is protected by the E-Money Safeguarding Rules.
If you ever need help, friendly customer support teams are available 7 days a week.
Download Plum NOW (available on App Store and Google Play).
*Easy Access Interest Pockets are provided by Investec Bank Plc. The rate Plum offers may change in the future.
**Some Auto Savers are only available with a paid subscription.
RISK WARNING
T&Cs & fees apply. You will need to review periodically that automation is suitable for your circumstances.
Capital at risk if you invest. You shouldn’t invest in or deal in any financial product unless you fully understand it and the inherent risks. If you invest you should be satisfied your choices are suitable in light of your financial position, circumstances and position.
Plum does not provide investment, or any other form of financial advice and individual investors should make their own decisions or seek independent advice. The value of investments can go down as well as up and you may get back less than your original investment. Past performance of an investment is not a guide to future performance.
Your account and related payment services are provided by Modulr FS Limited. Plum Fintech Limited is a distributor of Modulr FS Limited, a company registered in England and Wales with company number 09897919, which is authorised and regulated by the Financial Conduct Authority as an Electronic Money Institution (Firm Reference Number: 900573) for the issuance of electronic money and payment services. Whilst Electronic Money products are not covered by the Financial Services Compensation Scheme (FSCS) your funds will be held in one or more segregated accounts and safeguarded in line with the Electronic Money Regulations 2011 – for more information please see this.
Plum is also registered with the Financial Conduct Authority as an e-money agent of PayrNet Limited, which is an e-money institution also authorised by the Financial Conduct Authority (Firm Reference Number: 900594). The Plum Visa Debit is issued by PayrNet Ltd pursuant to licence from Visa. PayrNet Ltd is authorised by the Financial Conduct Authority to conduct electronic money service activities under the Electronic Money Regulations 2011.
Plum Fintech Limited is a registered account information service provider with the Financial Conduct Authority (Firm Reference Number: 836158). Plum is a trading name of Plum Fintech Limited.
Saveable Limited is authorised and regulated by the Financial Conduct Authority (Firm Reference Number: 739214) to carry out investment and credit broking services. Plum and Plum Money is the trading name of Saveable Limited.
Plum is registered with the Information Commissioner’s Office, with registration number: ZA217685.
Plum offers various products of which some are covered by the Financial Services Compensation Scheme (“FSCS”) whilst others are not. The FSCS does not cover electronic money products. No other compensation scheme exists to cover losses from your electronic money account. Your funds will be held in one or more segregated bank accounts with a regulated third party credit institution, in accordance with the provisions of the Electronic Money Regulations 2011. For more detail on how your money is protected please see here.
