Smart money app Plum launches Cash ISA with 5.15% AER

By Gloria Methri

Smart money app Plum is launching its Cash ISA with a rate of 5.15% AER (variable), designed to reward savers and protect their savings from tax.

The Plum Cash ISA holds cash savings tax-free up to the ISA limit of £20,000. It is available to all customers in the UK, who can also benefit from Plum’s smart automation to manage their money.

Plum says its Cash ISA offers the top variable rate on the market, more than double the rate offered by the four main high street banks and higher than the average industry rate of 3.5%. Customers can start saving money in their accounts with just £100 to access the 5.15% rate with Plum.

The product sits alongside a portfolio of wealth-building tax wrappers already available in the Plum app. It includes its popular stocks and shares ISA and SIPP products so people can manage their money all in one place. The Cash ISA will also be open to transfer-ins.

Plum’s CEO and founder Victor Trokoudes said, “Our goal since day one has been to give customers the best tools to maximise their money. It’s brilliant that people can now get decent returns on cash savings. But high interest, coupled with many people moving into a higher tax bracket, means tax on savings is becoming more of an issue. This isn’t right – everyday savers shouldn’t have to lose out on the tax front just because they want their money to be accessible in cash.”

“We believe in rewarding savers, and that is why we are excited to be launching our market-leading Cash ISA. Cash ISAs aren’t a new concept, but we’ve reinvented it by doing it the smart way, so savers can also benefit from Plum’s automation. You can open an account in just a few taps and manage it easily in the app alongside your other savings and investment tax wrappers. Customers can have peace of mind from knowing their money is secure while also benefiting from the £20,000 ISA allowance.”