Hi, I'm Jen! I'm a personal finance expert and money coach aiming to help you take control of your money. I went from being broke to a six-figure net worth and am now on track to be financially independent at age 40. Discover Jen's story
Discover all about Plum in this Plum app review. Is it worth using or a time waster? Picking a good savings app can make or break your finances.
In my journey to financial independence, I’ve tried many savings apps. Some were great, others not so much. Read this Plum review to learn which camp Plum belongs to.
- Plum
- Plum App Overview
- What Is Plum App?
- Is Plum App Legit?
- Is Plum Safe?
- How Much Does Plum Cost?
- Plum Savings Account Review
- Plum Investment Account Review
- How Does Plum Work?
- What Other Features Does Plum Have?
- Is Plum Good for Beginners?
- What Are the Pros and Cons of Plum?
- Frequently Asked Questions
- Are There Alternatives to Plum?
- Plum Review Summary
Plum App Overview
| Plum | |
|---|---|
| Platform | Android, iOS |
| FCA regulation | Yes |
| FSCS protection | Yes |
| User ratings | 4.2/5.0 |
| Minimum deposit | £2 |
| Savings account interest | 2.99%-3.82% |
| Investment style | DIY |
| Available accounts | GIA, ISA, SIPP |
| Available markets | Stocks, funds |
| Fees | £0-£9.99 per month 0.48% fund management fee |
What Is Plum App?
Plum (withPlum) connects to your bank account to analyse your spending. Plum’s AI calculates how much you can afford to save. The app then transfers this money into a savings account. With the Pro plan, you can also invest your savings. Although Plum also offers a card, it’s not a bank. It is an e-money provider.
Plum Fintech was founded by Victor Trokoudes in the UK in 2017. Initially, Plum was a chatbot that monitored finances. Now, it aims to take the hassle out of saving. Across Europe, Plum has over 1.8 million users.
Is Plum App Legit?
Plum is legit. Plum is a registered UK company with the number 09952199. Furthermore, Plum is regulated by the Financial Conduct Authority (FCA).
Plum is also popular on Trustpilot. It has an average score of 4.2 out of 5.0. Of all Plum reviews, 85% rate Plum as great or excellent. There are only a few negative reviews. Most seem to be about difficulties with withdrawals and long waiting times.
What Is Trustpilot?
Overall, there are over 150 million reviews on Trustpilot. You can generally get a good understanding of the legitimacy and customer-friendliness of a company.
Is Plum Safe?
Plum App is safe. If your money is in an easy-access account or invested, you have Financial Services Compensation Scheme (FSCS) protection. If Plum cannot pay, you get back up to £85,000 of your money. FSCS protection does not cover investment losses.
Plum uses an Electronic Money Provider to administer an eWallet for no-interest accounts. This means Plum stores your money in a UK bank account. Money in interest-paying accounts is held in UK trusts. Trusts manage money for customers without claiming ownership.
How Much Does Plum Cost?
Plum offers four plans:
- Free
- Pro
- Ultra
- Premium
New customers start on the Free plan. As the name implies, it is free and contains Plum’s basic features:
- Commission-free trades
- Self-invested Personal Pension (SIPP) available
- Automated deposits
- Alerts if you overpay bills or if there are cheaper offers
- Unlimited withdrawals
For extra features, upgrade to Plum’s paid plans.
| Free | Pro | Ultra | Premium | |
|---|---|---|---|---|
| Price per month | Free | £2.99 | £4.99 | £9.99 |
| Interest | 2.99% AER | 3.2% AER | 3.2% AER | 3.82% AER |
| Number of stocks available | 500 | 500 | 500 | 1,500 |
| Number of pockets (saving pots) | 1 | 15 | 15 | 15 |
| Number of funds available | None | 12 | 12 | 21 |
| Gamify depositing (rules and challenges) | No | Yes | Yes | Yes |
| Earn cashback | No | Yes | Yes +33% extra | Yes +33% extra |
| Money Maximiser (set weekly allowances) | No | No | Yes | Yes |
| Plum Card | No | No | Yes | Yes |
| Repeat investments (invest automatically) | No | No | No | Yes |
The difference in interest rates is too small to make a meaningful impact. However, upgrading to the Pro or Ultra plans may pay for itself if you use the cashback feature. Calculate your potential cashback earnings by looking at the brands offering cashback and their rates. Upgrading is a no-brainer if this is more than you would pay for the plan.
See how these features compare to Moneybox in my Plum vs Moneybox comparison.
Plum Savings Account Review
When Plum takes money, you can set it to deposit it into your Plum Savings account. On the Free plan, you can choose between:
- Plum primary pocket (instant access, no interest)
- Easy-access savings account with 2.99% interest
Upgrading your plan lets you access more pockets and higher interest rates.
If you want an app to save money, you may also be interested in Emma. Read my Plum vs Emma App comparison to determine which app is better.
Plum Investment Account Review
You can choose to invest your money. Investing is optional, and you don’t have to use this feature. Remember, when you invest, your capital is at risk. If you start saving, the savings accounts will likely be better for you.
Plum offers over 3000 stocks. The minimum investment amount is £1. You can also choose from Plum’s funds:
| Name | Fund |
|---|---|
| Balanced Bundle | Vanguard FTSE Developed Europe ex-UK |
| Tech Giants | Legal & General Global Technology Index Trust |
| Growth Stack | Vanguard LifeStrategy 80% |
| Slow & Steady | Vanguard LifeStrategy 20% |
| Clean & Green | ASI UK Ethical Equity |
| Rising Stars | Vanguard Global Emerging Markets |
| UK Dividends | Franklin UK Rising Dividends |
| Global Dividends | M&G Global Dividend |
| Inflation Protected | M&G. UK Inflation-Linked Corporate Bond |
| Best of British | Vanguard FTSE UK All Share Index Unit Trust |
| Natural Resources | JPM Natural Resources |
| Global Gold | Ninety-one Global Gold |
| Biotech and Genomics | AXA Framlington Biotech Fund |
| Japan Prime | iShares Japan Equity Index |
| Real Estate | Legal & General Global Real Estate Dividend Index |
| European Essentials | Ninety-One Global Gold |
| Balanced Ethical | MyMap 5 Select ESG |
| American Dream | Vanguard US Equity Index |
| Growth Ethical | ESG Developed World All Cap Equity Index |
| China Supreme | Baillie Gifford Greater China |
| The Medic | Legal & General Global Health & Pharmaceuticals Index Trust |
Plum doesn’t help you decide on a fund. If you want help investing, a robo-advisor platform may be better for you. Read my Plum vs Nutmeg app comparison for more details.
What Investment Fees Does Plum Charge?
Plum charges a fixed fee. If you invest with Plum, you also pay an annual fund management and provider fee of 0.48%. For SIPPs, the fee is 0.45% for custody and service charges. There is also a fund management fee of 0.24% to 0.30%.
How Does Plum Work?
Plum is solely app-based, and there is no desktop version. To use Plum, download the app from the App Store or Google Play. The app is called “Plum: Smart Investing & Saving”.
1. Signing up
Signing up to Plum is free. Upon opening the app, you need to enter your:
- Email address
- Full name
- Nationality
- Date of birth
- Postal address
Then, link your bank account. Select your bank from the list and follow the steps to authorise the linking. Plum uses open banking and Truelayer, a secure way to share banking data.
2. Depositing and Withdrawing
Plum automatically deposits money. You can stop these deposits or adjust the amount. By default, Plum takes the amount it thinks you can afford to save. You can tell Plum where to put the money:
- Into pockets only
- Into specific pockets
- Into Investments only
- Split evenly
- Split in custom proportions
Withdrawing money from Plum is free, too. Click “Account” and select “Withdraw”. The money should arrive in your linked account within 2 to 24 hours.
What Other Features Does Plum Have?
1. Plum Card
Plum offers a prepaid debit card to users on the Ultra and Premium plans. You can load money onto it and spend it where Visa is accepted. The card can help you stay within your spending limits. Ultra or Premium plan users can order cards on the Plum app. The card should arrive within a week.
There is no FSCS protection for the money on your card. Plum is an e-money institution and not a bank.
2. Offers
On the paid plans, Plum has offers and cashback for 32 brands. Some offer a percentage cashback; others offer discounts for new customers. Major brands offering cashback are:
- ASOS (0.72%-2.88%)
- eBay (0.96%)
- Nike (2.40%)
- Waterstones (1.80%)
3. Rules and Challenges
Plum has created special rules and challenges to gamify the saving process. Some are only available on the paid plans, but others are free:
- Automatic: the standard way to save money (Free)
- Weekly depositor: save a set amount every week (Free)
- Round-ups: automatically round up your deposited money to the next pound value (Free)
- Paydays: set money aside after your payday (Free)
- Rainy days: set money aside whenever it rains (All paid plans)
- 52-week challenge: save £1,378 in a year (All paid plans)
- The 1p challenge: save £667 in a year (Ultra and Premium)
Is Plum Good for Beginners?
Plum is good for beginners. Both the saving and investment features are tailored to beginners. The minimum saving/investment amount is low, and the app is easy to use.
Advanced savers/investors likely already have methods that work for them. They would not need to use an app like Plum. Remember that when you invest, your money is at risk, even with a beginner-friendly app like Plum.
What Are the Pros and Cons of Plum?
Plum Review Pros
- Automates the saving process
- Free to use on the Free plan
- Easy-to-understand fee structure
- Fast withdrawals
Plum Review Cons
- Limited fund options
- Investing small amounts can be expensive
Frequently Asked Questions
Can you make money from Plum?
Yes, you can make money from Plum. If your money is in an interest-paying account, Plum pays interest. You can also make money from the cashback feature. For this, you need to be on the paid plan.
How much money does Plum take?
The amount of money Plum takes depends on your settings. By default, the app calculates how much you can save. It then takes this amount, but you can adjust it in the app.
Is it safe to link Plum to your bank account?
It is safe to link your bank account to Plum. Plum connects through open banking, the same technology banks use. You can also cancel Plum anytime if you don’t like it.
Are There Alternatives to Plum?
If you don’t want to use Plum, try the following alternatives:
- Chip App. Chip is an automated savings app with similar functions as Plum. Read more in my Chip app review.
- Moneybox. Moneybox is another easy-to-use savings app. Read more in my Moneybox review.
If you want to see how Plum compares to Chip, read my Chip vs Plum comparison.
Plum Review Summary
Plum is one of the best automatic saving apps. It is based on AI and puts aside money for you. You can invest this money or put it in savings accounts.
Overall, Plum is a solid tool for people who struggle with saving money. It is FCA-regulated and offers FSCS protection. Plum is also one of the best budgeting apps in the UK.
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