FinTech Plum rolls out new ‘Interest Pockets’ at 0.35% AER

By Megha Bhattacharya

Money management app Plum today announced the availability of free Interest Accounts or ‘Interest Pockets’ for its customers in a bid to offer an automated way for saving money in an interest-bearing account. The company is currently offering a rate of 0.35% Annual Equivalent Rate (AER) for anyone who opens an Easy Access Interest Pocket. This comes as an addition to the Easy Access Interest Pocket with 0.55% AER which is already available for Plum Plus (£1 p/m) and Plum Pro (£2.99 p/m) subscribers.

Victor Trokoudes, CEO and co-founder of Plum, commented, “When spending dropped during lockdown, we immediately saw deposits into Plum grow. People are taking a closer look at their finances and want to make sure they are covered in the future. While we can’t predict exactly what lies ahead as the global pandemic continues, we do know that financial resilience will be critical for everyone.”

“With Plum, you have the power to split your savings the way that works best for you, between our new Interest Pockets with its bank-beating interest rates, and our hand-picked investment funds. It’s all part of our strategy to make sure all our customers can effortlessly build wealth for the long-term.”

Plum stated that money saved in any Easy Access Interest Pocket is held on Trust in an account provided by Investec. Customers who save into an Interest Pocket with Plum may be protected by the Financial Services Compensation Scheme (FSCS) in the event that Investec was to become insolvent, with the option of claiming up to £85,000 of their money back where applicable.

Recently, Plum announced a $10 million funding round along with few product updates for bringing financial assistance to its customers. The round was led by Japan’s Global Brain and the European Bank for Research and Development.