PLUM REVIEW

Plum Review

Welcome to this detailed Plum review, helping you to consider if Plum is the saving and investment app to manage your finances. 

Plum is a renowned UK savings and investment app which is designed to streamline personal finance. 

This article will provide you with insight into their different account types (from basic to premium), the financial services compensation scheme, and how Plum can help in money saving through its interactions with bank accounts. 

We’ll also help to consolidate customer reviews of the plum website. This knowledge will allow you to make informed decisions about your financial management.

Table of Contents

Background to Plum Review

Since its beginning, Plum’s mission has been to simplify financial management for everyday users. This can be done through its automated savings feature, analysing users’ spending habits and putting aside money automatically. 

It offers various options of accounts to choose from including the basic account for those saving money, as well as paid accounts like Plum Ultra and Plum Premium.

As of November 2022, Plum has over 2 million registered users in the UK. It’s covered by the Financial Services Compensation Scheme (FSCS), providing security for your investments up to £85,000.

Plum Review

Plum’s appeal lies in its automated savings mechanism, which is intricately linked to the user’s primary bank accounts

By scrutinising income and expenditure patterns, Plum computes a judicious monthly savings amount, channelling it seamlessly to the designated Plum main bank account. 

Beyond a free basic tier, Plum offers paid accounts, including the Plum Ultra account and Plum Premium account. While the free tier embodies automated savings and basic investment options, premium accounts provide perks like cashback rewards and priority customer support.

Investment services are also a pivotal aspect of Plum, empowering users to traverse portfolios ranging from conservative to aggressive. 

The platform extends its reach with a stocks and shares ISA, bestowing tax-free benefits, and a general investment account. Customer support is a key aspect of the company’s mission, which is accessible through both the Plum website and app.

You can also watch this video on Youtube here.

Types of Plum accounts in the UK

This section unveils the three Plum account types, including Basic, Ultra, and Premium. The Basic account is free yet robust, encapsulating automated savings, roundups, and limited investment options. 

Alternatively, the Ultra account comes with a modest monthly fee and encompasses all Basic features, as well as adding cashback rewards and advanced savings and investment options. 

On top of this, the Premium account comes at a higher cost and includes exclusive rewards, priority customer support, and a superior interest rate on savings. This diversity empowers Plum users to sculpt their financial landscape with an account harmonised to their needs and aspirations.

Plum fees

Here is an overview of the typical fees charged by Plum for their investment management services in the UK:

Management Fee

Plum charges an annual management fee based on the amount you have invested with them. This ranges from 0.4% for investments under £100,000 to 0.2% for investments over £500,000.

Account Fee

There is no separate account fee beyond the management fee.

Fund Fees

The ETFs and funds used within your Plum portfolio will have their own underlying fees, typically averaging around 0.15% – 0.25% per year.

Setup Fees

Plum does not charge any setup fees to open an account.

Background to Plum Review

Deposit Fees

There are no fees for depositing money into your Plum account. However, there is a 1.99% fee for instant deposits via card payment. Bank transfers are free.

Withdrawal Fees

Whilst withdrawing money from your Plum portfolio incurs no fees, only one withdrawal is permitted per month.

Inactivity Fees

Accounts with no activity for 18 months or more will be charged an inactivity fee of £25 per year.

Closure Fees

There are no fees for closing your Plum account.

This means that altogether, the investing fees charged by Plum are around 0.55% – 0.65% per year. This includes the management fee and underlying fund fees. It is also important to note that there are no account, setup, withdrawal or closure fees.

"Since its beginning, Plum’s mission has been to simplify financial management for everyday users. This can be done through its automated savings feature, analysing users' spending habits and putting aside money automatically."

Cook and Bake with Plum

To fully emphasise Plum’s financial prowess, the platform uses the culinary metaphor of ‘cook and bake.’ This culinary journey spans automated savings, diverse investment options, bill comparison, and budgeting tools. 

Users can choreograph weekly allowances, receive timely overspending alerts, articulate financial goals, and remove redundant subscriptions. 

Plum’s investment portfolios, coupled with the tax-free allure of a stocks and shares ISA, amplifies the financial possibilities of up to £20,000 annually.

Exploring Plum Accounts

Plum’s array of accounts, from the elemental to the advanced Ultra, are very useful for their users.

The app analyses spending patterns to calculate automatic savings, therefore fostering effective money management. A Savings account is designed to provide efficiency, offering options for both saving and investing in diverse stock portfolios. 

The user-friendly Plum app facilitates self-management of stock investments, ensuring that users always stay informed about their performance.

Plum fees

Investment Opportunities with Plum

In addition, Plum offers multiple opportunities to invest which facilitates growth. They provide access to various investment platforms and fund investing options. The app also allows you to manage your own investments and control your personal finances.

When investing, it is important to consider investment fees. As Plum offers competitive fund management fees, this ensures cost-effectiveness. 

Additionally, the financial conduct authority regulates plum stocks and all the investments facilitated through the app. This provides many users with peace of mind.

In addition, the platform offers a stocks and shares ISA for tax-free investing up to the annual limit. Plum also offers globally diversified, low-cost ETF portfolios which are managed by Vanguard and iShares. This passive investing approach helps to reduce fees.

Navigating the Plum App

The Plum app, which you can find on the Google Play Store, stands out for being user friendly, providing a comprehensive view of savings, investments, and spending. 

Automatic savings features, spending insights, savings goals, and direct debit management contribute to a seamless user experience. Consequently, this allows for investment growth. 

It also provides analytics to help users to understand their spending habits better, leading to more efficient saving and investing. They also recently launched a new Credit feature, allowing users to apply for lines of credit through the app.

Furthermore, responsive customer service and direct communication through the app enhance its overall usability. Notably, the Plum debit card facilitates direct spending from the Plum account. 

This simplifies financial management. The app also allows easy communication with the Plum team through features like Plum calls, consequently ensuring that users can get help when they need it.

Plum’s core goal is helping users to save money through various features. With its easy-to-use interface and helpful features, it’s no wonder that many users find Plum to be a suitable fit for their financial needs.

Exploring Plum Accounts

Case Study

This case study will bring the plum review to life through a real-world example, resonating with those looking for a convenient and efficient way to manage their personal finances.

John is a 35-year-old professional working for one of the major UK banks. Whilst John wanted to save money and earn interest on his wealth, he struggled to analyse his spending habits and make efficient savings. Thankfully, he discovered the Plum app.

To begin, John signed up for a general investment account with Plum basic account. He linked his bank account to the app, using it to analyse his income and spending. 

The app then calculated the advised amount for him to save monthly, consequently transferring this automatically to his Plum account.

John also opted for a Plum card, facilitating direct spending from his savings. This offers easy, convenient access to his funds, whilst also assisting in keeping track of spending in real time. He found all of these features to be very convenient. 

In addition, John particularly appreciated Plum for its tax relief. He utilised the stocks and shares ISA offered by Plum, which allowed him automatic investments of up to £20,000 per year without having to pay any tax on the returns. 

In comparison to other platforms, this feature really stood out.

Through continual use of the app, John felt his financial management skills start to improve. He was also reassured by the protection of up to £85,000 provided by the Financial Services Compensation Scheme (FSCS).

Therefore, John’s case serves as a testament to the benefits of using Plum for personal finance management.

Key Takeaways

Here is a summary of the main aspects of our Plum app review, encapsulating the significant benefits which the app offers.

  • Plum is a savings and investment app, providing different account types which range from basic and ultra and premium users. These work to address various user needs.
  • The app analyses users’ spending habits and automatically withdraws funds into savings, making it easier for users to manage their finances and save effectively.
  • Plum provides a variety of investment opportunities, including general investment accounts and the option to manage your own investments.
  • Users praise the tax-free benefits with Plum’s stocks and shares ISA, as well as the self-invested personal pension. This proves appealing to those who are looking to maximise any investment returns.
  • Plum is covered by the Financial Services Compensation Scheme (FSCS), working to make sure that your investments are safe.
  • The app offers different additional features, including a Plum card for easy access to your funds and detailed analytics of your daily spending habits.
  • Using Plum can lead to better saving and investing habits, consequently helping users to grow their wealth and achieve their financial goals.

These points emphasise the value and benefits of using Plum for managing your personal finances. Whether you’re a new saver or experienced investor, Plum offers a comprehensive and user-friendly platform to help you manage and grow your finances.

Investment Opportunities with Plum

FAQ

1. What are the tax-free benefits of using Plum?

Plum offers tax relief in its stocks and shares Individual Savings Account (ISA). This involves users investing their money up to £20,000 each year without having to pay tax on the returns. 

This means that any profits earned from putting money in investments in a financial year are exempt from tax, which can be very attractive for users in maximising their investment profits. 

In addition, users can sometimes see a higher return on their investments compared to other accounts and platforms. 

However, it is important to remember that the value of investments can go down as well as up, meaning it is essential to consider this when deciding where to invest your money.

2. Is Plum covered by the Financial Services Compensation Scheme (FSCS)?

Yes, Plum is covered by the Financial Services Compensation Scheme (FSCS), providing an additional layer of security to your investments. 

The FSCS is a UK scheme that offers compensation to customers if a financial services firm cannot pay claims against it. For investment claims, the FSCS covers up to £85,000 of your investments. Therefore, users know that their money is protected.

It is important to note that this cover applies to firms authorised by the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA). 

3. How does Plum analyse users’ spending habits?

Plum uses smart technology to analyse users’ spending habits. This means that it reviews your income and regular spending from your linked bank account. 

It uses this information to calculate a safe amount to save each month, which is then automatically transferred to your Plum account to invest money or leave in savings.

This feature helps users to save effortlessly and effectively, as well as developing better money management habits over time. This could help to grow significant savings, consequently helping you to reach your financial goals faster.

4. Can Plum help me develop better spending habits?

Yes, Plum is not only designed to help you save and invest, it also works to improve your overall spending habits. The app analyses all your income and outgoings, including energy and household bills. This can bring some clarity surrounding where your money’s going. 

In addition, this insight can help you to identify areas where you could cut back or make changes to save more effectively over time.

Furthermore, the investment platform offers features such as saving challenges and budgeting tools, which can also aid in developing better spending habits. This means that the app sends regular updates on your spending, savings and investments. 

Consequently, this keeps you informed and encourages you to make smarter financial decisions. You can also contact Plum to receive advice from their customer support team. Over the long-term, this can help you to build great investments and savings.

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