How To Save Money With Plum

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by ratewise

Money, everything in our life seems to revolve around it in one way or another. Keeping your budget and money organized tends to solve most of our problems.

There is a saying that money does not bring happiness, I do not disagree with this quote, but if you save money it helps to reach happiness a lot easier.

In this article we are going to discuss how you can start saving money with Plum, to reach your ultimate goal in life which is to live fulfilled and happy.

What is Plum?

Plum is an AI (artificial intelligence) based app that automatically analyzes your spending habits and will save your money for you without you having to stress about it.

You do not need to calculate how much you are spending on every turn as Plum will be there for you taking notes, analyzing, and finding out even more options for you to save money.

Plum makes the idea of saving money less daunting. Most of us look at the idea of saving money and think we have to give up spending on the things we want but that is completely wrong. With Plum you will save money without you even realising.

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“Nearly 2/3 of UK adults (63%) say that stress over money has affected the mental health or wellbeing of someone they know. 11.5m people in the UK have less than £100 in savings.”

(MaPS, 2018)

The founders of Plum are Victor and Alex. They are from Cyprus and founded Plum when they were working in the UK. The two decided to throw a friendly challenge to each other and see who could save the most.

Alex in his competitive spirit decided to come up with an algorithm which helped him save money without him worrying about spending. The algorithm he created monitors spending and automatically separates the amount he can afford to save each month into an easy access savings pocket.

For example, if you earn 5 thousand pounds each month, the Plum algorithm will, once you’ve linked your bank account to Plum, see your past and present transaction records and decide how much you can save from those 5 thousand pounds each month.

Plum will automatically set aside a small tailored amount – every 4-5 days – and you will not even have to worry about how to save money as Plum already takes care of it for you.

You can get started with Plum for free in less than 2 minutes.

This means you can set money aside using automatic-deposits and earn interest, withdraw as often as you like, and switch your bills with Plum, all totally free!

If you’re looking for more ways to boss your budget and want to earn a little more interest on your savings, Plum Plus or Plum Pro might be for you.

Below is the simple pricing including an option for everyone:

Plum Basic – £0/month (upgrade anytime)

No-frills features and interest for your savings

  • Earn interest (0.35% AER, Easy Access Interest Pocket provided by Investec Bank, FSCS protected (Opt-in))
  • Automated savings (Our algorithm sets money aside little-but-often, and Round-Ups save as you spend)
  • Lost Money (Get alerts if you’re overpaying on bills, and switch to a cheaper supplier in seconds)
  • Unlimited withdrawals (Withdraw as often and as much you like, with no hidden charges)

Plum Plus – £1/month (free for 30 days)

Investing made simple and our best interest rate for your savings

  • Earn interest (0.55% AER, Easy Access Interest Pocket provided by Investec Bank, FSCS protected (Opt-in))
  • Automated savings (Our algorithm sets money aside little-but-often, and Round-Ups save as you spend)
  • Lost Money (Get alerts if you’re overpaying on bills, and switch to a cheaper supplier in seconds)
  • Unlimited withdrawals (Withdraw as often and as much you like, with no hidden charges)
  • 1 Pocket (Separate your holiday spending cash from your dream house deposit stash)
  • Invest from £1 (Automatically invest in your choice of our easy, accessible and jargon free funds) Other fees applyCapital at risk

Plum Pro – £2.99/month (free for 30 days)

Advanced saving rules, cashback, and investing made simple

  • Earn interest (0.55% AER, Easy Access Interest Pocket provided by Investec Bank, FSCS protected (Opt-in))
  • Automated savings (Our algorithm sets money aside little-but-often, and Round Ups save as you spend)
  • Lost Money (Get alerts if you’re overpaying on bills, and switch to a cheaper supplier in seconds)
  • Unlimited withdrawals (Withdraw as often and as much you like, with no hidden charges)
  • Multiple Pockets (Separate your holiday spending cash from your dream house deposit stash)
  • Invest from £1 (Automatically invest in your choice of our easy, accessible and jargon free funds) Other fees applyCapital at risk
  • Gamify your saving (Take on our 52-Week Challenge, or tuck money away on Rainy Days)
  • Goals (Assign savings targets for each of your Pockets to help you stay on track)
  • Cashback (Earn rewards from your favourite retailers when you shop with our app)
  • Diagnostic Reports (Analyse your spend, and anonymously benchmark against other Plumsters)
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How to sign up for Plum

For Plum to work you will need to link it to your bank account, Plum supports all major UK banks. After that Plum analyzes your spending to find the best amount which you can set aside.

Plum will not ask your permission to move that money rather it will go ahead and start saving for you, after you’ve set up a direct debit.

This prevents any procrastination about saving, so the best possible outcome can be met for your finances. One of the main purposes and advantages you can gain from Plum is to make the process of saving as automated as possible.

The requirements needed for you to start using Plum is you will need to be a UK resident and have a UK bank account.

Below is the list of UK banks Plum works with:

Barclays
Danske Bank
First Direct
Halifax
HSBC
Lloyds
M&S
Monzo
Nationwide
Natwest
Revolut
RBS
Santander
Bank of Scotland
Starling
Tesco
TSB
Ulster Bank

You can also link credit cards and other accounts to Plum (iOS only):

Amex
Barclaycard
Capital One
MBNA
TransferWise
Virgin

Business and joint accounts aren’t supported by Plum at the moment. They also can’t support Channel Island bank.

Open Banking technology means banks are now obligated to let you share you account data with organizations that you choose. The process is designed for the modern ‘mobile world’ and it means you can control and visualise your finance using smart apps, like Plum!

Automate Your Deposits

Plum’s AI tucks money away little-but-often. After you connect your bank with Plum, it can adapt to your spending and calculate how much you can afford to set aside, without you needing to think about it.

Putting money away like this is definitely more effective compared to traditional methods, and many Plumsters including us are surprised to see our balance after using Plum for a few months.

When it comes to withdraws, Plum makes it easy for its users. You can access the cash with no limits or charges any time from the Plum account.

The withdrawals are executed in real-time, and your money will be sent to your bank from them to process within 5 minutes.

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Analyse Your Spending

Plum’s AI makes managing your money easier. A total overview of your finances lets you track your regular daily payments and expenses to boss your budget!

Besides this, the additional diagnostics tools contextualise your spending to help you keep track of your money daily, even allowing you to anonymously benchmark your finances against other Plumsters with a similar profile.

Find Lost Money

Plum’s AI identifies if you’re overpaying on your bills and offers you to switch to a better supplier in seconds.

By referencing your outgoings against e.g. utility tariffs in your area, Plum’s AI can always ensure that you’re not overpaying for things like gas or electricity.

Earning interest with Plum savings

The accounts that earn interest on Plum are the Easy Access Interest Pockets also known as the Easy Access Account. Interest is calculated daily but is applied to your account monthly. Interest accounts are provided by Investec Bank, who have the right to change the rate at any time.

If you deposit £1,000 into your savings account, without adding or withdrawing any money throughout the year, you would have a predicted £1055.50 in your account at the end of the year (at 0.55% interest).

The minimum amount needed to open an interest bearing pocket is £0. Please bear in mind that your money is covered by the FSCS up to £85,000. That’s if the scheme applies to you.

As of the 1st December 2020, free Plum users can earn 0.35% AER and Plus/Pro Plum users can earn 0.55% AER if you create and move your money to an Easy Access Interest Pocket on Plum!

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Additional benefits of Plum:

Automated saving

With the help of AI and a very finely crafted algorithm Plum is able to analyze and save money for you without you even realising, little but often.

FCA regulated

Plum is regulated by the FCA. So, you can have confidence in this application and trust it will keep your money and information safe.

Options to invest your savings

You can use an easy access savings pocket to save your money. Or there is an option for you to invest your savings in Plum Investment Funds. This is also a great choice. Please remember that when you choose to invest, capital will be at risk.

FSCS protected

FSCS stands for financial services compensation scheme making sure your investment and savings with Plum are protected. Your funds will be protected up to £85k if the FSCS scheme applied to you.

Investment starting from £1

You can start investing with Plum from just a single pound. This makes Plum perhaps the most accessible investment option out there.

Splitter & Pockets / Goals

To help you organise your money, you can set up separate savings pockets within your Plum account and assign specific goals to each pocket that you can work towards to help score them quicker (Plum Pro only).

When used with Plum’s ‘Splitter’, you can also automatically apportion deposits between pockets.

Cashback

‘Cashback’ rewards you with up to 11% back when you shop with the brands you love through the Plum app.

Save money on your payday

If you let Plum know the specific amount you would like to save each time you get paid, Plum will automatically set that amount aside when your salary first hits your bank… but before life has a chance to get in the way of your best intentions!

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Rainy Day Saving Rule

The ‘Rainy Day Rule’ will save based on how many days it was forecast to rain in the area where you live over the course of the week previously.

Precipitation means pennies in your Plum pocket.

52 week saving challenge

Take part in the 52 week challenge where you will save money every week. Then you’ll increase the amount you save by one pound each week. This feature is only available for Plum pro users. Save money with Plum with ease. You can download this app for free.

Then if you like it you can upgrade to access even more features with the pro version. This costs £2.99 a month and you get your first month free. You can get started and download the Plum app here.

Diagnostics (iOS only)

Plum ‘Diagnostics’ delivers a monthly report that contextualises spending by allocating into groups like Groceries, Shopping, Eating Out, Entertainment and Transport. This means you can easily see where your money’s going at a glance and identify trends.

You can also benchmark your spending against other Plumsters with a similar financial profile (based on factors such as salary, location and age). This allows you to see best practice, and take action to improve over time.

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True Balance (iOS only)

Plum ‘True Balance’ helps you manage your money better, by calculating how much of your available balance is safe to spend… once any regular payments due before your next payday have also been accounted for.

Secure & helpful

When it comes to money, there’s no room for compromise. Plum built the platform from the ground up with your security and privacy in mind.

  • Tech that keeps you safe (We support face & fingerprint ID, and use 256-bit TLS encryption.
  • Human on hand (Our customer support team is ready to help you, 7 days a week.)
  • Strong privacy (We never share your data with any other parties without your consent.

Plum Account (excluding Interest Pockets)

Your Primary Pocket is where your money is first set aside with Plum. Whichever tier of Plum you use, they ensure that from the moment money enters your account, safeguards are in place to keep it safe for you.

Plum uses an Electronic Money Provider to set up and administer an E-Wallet for you ( this contains any money stored in non-interest bearing pockets or investments).

Plum’s provider maintains a specific UK customer bank account for all Plum customers, which is protected by the E-Money Safeguarding Rules.

Interest Pockets

Money saved with Plum in these Interest Pockets is held on Trust with Investec Bank. A Trust is a legal mechanism which means we can look after your money, but legally it never stops belonging to you.

If anything were to happen to Plum then the bank can return your money to you directly. And should something happen to the bank itself, then (because you are still the legal owner of the money) you could benefit from the FSCS and claim up to £85,000 of your money back from the bank, if the scheme applies to you.

Investments

With investments, and unlike the money in your Plum Account (which is ultimately money in a bank), your share of the fund is safeguarded by a regulated custodian, whose job it is to keep your shares safe.

Just like your Plum Account though, should anything happen to Plum or our provider, your share will be passed back to you, and can’t be touched by anyone that Plum or the provider may owe money to. Also, if the custodian fails, you could benefit from the FSCS.

Save Money automatically here!

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Plum Reviews

Plum is rated as ‘Excellent’ on Trustpilot scoring 4.4 out of 5.0 stars from over 1,000 reviews.

75% of users rate it as ‘Excellent’, with most commenting on how awesome the app is at helping them to save money and great customer service.

13% of users rated it as ‘Bad’ with some of the users complaining about the wait time for their money to transfer back into their bank account.

Below are some of the Trustpilot reviews.

  • Highly recommended, absolutely brilliant app would highly recommend it as it saves you money without you even noticing. As they say look after the pennies the pounds look after themselves. (Keiran)
  • App is brilliant you can save so much and you forget it’s there so you don’t spend it when you’re meant to be saving. If you do need the money you can withdraw straightway. You can also invest. It does everything for you and you don’t realize your saving friends with plum. (Kate)
  • My daughter has plum and has just bought a new bed with the money she has skimmed off her bank account. It’s so easy to set up and you just don’t notice the pence that makes any transaction into to the next pound. Give it a go it’s great! (Christine)
  • Really good app… I’ve mannaged to save over £100.00 in just one month and earned £1.50 in investments without doing anything…. (Joey)
  • My sister told me to download this app as we are trying to save to hopefully go away together, I must admit I was totally sceptical at first but now I couldn’t live without it it’s amazing I highly recommend it if your looking to save money. You don’t even notice the money leave you bank and it add up in no time. (Hollie)
  • Never been one for saving. Money comes in, money gets spent. NOT ANYMORE! Thanks to Plum I’ve saved over £300 in little over 7 weeks. Have hardly noticed the money leaving my account. Moneys placed into an account out of sight out of mind. Handy that the app sends you a weekly notification telling you exactly what you are saving and when the money will leave your account – allowing you to make contingencies should you need to – but I have never had to – the AI works really well – looking at your available funds and upcoming regular payments and working out exactly the right amount of money to set aside for you. Fab app, would highly recommend to anyone who struggles to save the old fashion way! Thanks Plum! (Jack)
  • High inflation mixed with low interest makes savings accounts an awful choice – you’re just losing money. Plum is a great service for a first time investor (like me!) in that it gives you an array of portfolios to choose from and their recent 12 month performance. I can’t recommend them enough, my friends are bored of my constant investing chatter. (Charlie)

Conclusion

Pros of Plum

  • Automate your deposits
  • Analyse your spending
  • Find lost money
  • Earning interest with Plum savings
  • FCA regulated
  • FSCS protected
  • Investment starting from £1
  • Splitter & Pockets
  • Cashback
  • Save money on your payday
  • Rainy Day Saving Rule
  • 52 week saving challenge
  • Diagnostics (iOS only)
  • True balance (iOS only)

Cons of Plum

  • Investing charges are a little expensive if only investing a small amounts
  • Some of the features are required to paid compared to other apps are offering them with free of charge.

Wrapping it up

Plum is a great way to start saving more than you thought you could. It really gets you into the habit of separating part of your income before it goes to your expenses. With multiple account options, theres something for everyone. You can get started and download the Plum app here.

How does Plum work?

Plum helps you save money automatically. Our smart algorithm analyses your spending and helps you save without even thinking about it. You can also earn up to 0.55% interest (AER).

What types of Plum pockets are there?

1. Instant Access with E-money funds safe-guarded and the ability to withdraw in 5 mins.
2. Easy Access with 0.55% AER. This pocket type is available with plus and pro versions of Plum and is covered by FSCS. You can withdraw in 1 working day. This pocket option is provided by Investec Bank.

How can I access my money in Plum?

You can withdraw anytime. When you’ve reached your goals, or just need some extra money, you can withdraw at any time, as often as you like.

Is Plum safe to use?

Plum is very safe to use and supports face & fingerprint ID, and use 256-bit TLS encryption. Plum never shares your data with any other parties without your consent.

Are there interest fees on a Plum account?

There are no fees for these accounts, but bear in mind, the Easy Access (0.55% AER) is part of the Plum Plus & Pro subscription bundle starting for as little as £1/month.
Plum gets the interest rate from our Interest Account provider (Investec Bank Plc.).

How do I open and manage my account?

The account is available to UK residents aged 18 or over. You may only open and manage the account via the Plum app. No minimum deposit or upper limit.

With Plum Free & Plus, you can open one Easy Access Interest Pocket, while under Plum Pro, you can open up to 10 different Easy Access Interest Pockets.

Money in interest pockets are cumulatively protected along with any other accounts you may hold at Investec Bank Plc, by FSCS up to £85,000.

If I deposit £1,000, how much would I earn?

If you deposit £1,000, the estimated balance after 12 months would be £1,005.50 with Plum Plus/Pro, Easy Access (0.55% AER).

Assuming that:
– The account is opened with £1,000
– No further deposits or withdrawals are made
– The interest stays the same for the full 12 months

There are no fees for these accounts, but bear in mind, the Easy Access (0.55% AER) is part of the Plum Plus & Pro subscription bundle starting for as little as £1/month.
Plum gets the interest rate from our Interest Account provider (Investec Bank Plc.).

What is the interest rate?

The Easy Access Interest Pocket provides an interest rate of 0.55% AER variable for Plum Plus and Plum Pro subscribers.

The Interest is calculated daily on the cleared balance in the account using the interest rate applicable on that day and is paid into the Interest Pocket monthly.

Can I withdraw money?

You can withdraw money from your Plum Interest Pockets at any time by tapping the ‘Home’ menu button and then clicking ‘Withdraw’ from the Interest Pockets with no limits or fees. Withdrawals are paid within 1 working day.

Read More

here.

Categories: Personal Finance
Tags: Save Money