Plum launches ‘Plum Interest’ to flexibly boost returns on cash

By Gloria Methri

Plum, the smart money app, has launched a new ‘Plum Interest’ product, allowing customers to benefit more quickly and directly from higher central bank rates.

Plum customers in the UK and five EU markets – France, Spain, Italy, Netherlands, and Ireland – can now hold their money in government-backed assets that closely reflect the respective interest rates offered by central banks. Plum says it is the first company to offer this type of product both in the UK and multiple EU markets.

Plum Interest is designed to offer a compelling location for people to hold their money rather than remain dormant in a low-interest account, as it combines higher rates with daily returns.

The product offers similar benefits to a savings account, without the withdrawal and deposit restrictions associated with some high-interest products. Money held in Plum Interest will be easily accessible and there are no transaction costs for moving money into and out of accounts.

There is also no minimum or maximum deposit, and no subscription fees. All monies are also subject to regulatory safeguarding rules, which means they will be secured in a separate, segregated account.

Founder and CEO Victor Trokoudes said, “We are going to provide our customers with an account that generates returns close to central bank rates. And they won’t have to face the typical withdrawal or deposit restrictions that are often included with high-interest savings accounts. People have worked hard for their money so their money should work harder for them, and we are committed at Plum to supporting this with the best options out there”.

Plum has partnered with asset management firm BlackRock, which is providing the money market fund that supports Plum Interest. The product is based on a type of highly liquid money market fund that is broadly considered safe. That is because it invests fully in short-term assets issued and guaranteed by the Government.

Victor added, “With our Plum Interest product, you won’t have to worry about constantly switching banks to get a higher rate as the product tends to track changes in the central bank base rate. We are bringing this revolutionary cash management option to our customers so they can diversify where they hold their money”.