Plum Interest – Don’t let your money go idle (2024)

Plum Interest allows you to invest in bonds issued by the government. It also makes short-term loans to robust companies, who can show a strong track record, in exchange for government bonds.

That means those assets are backed by the government, and you can earn a share of any interest earned, with less risk than other types of investments.

If you add money to your Plum Interest Pocket, you’ll be charged a yearly fee depending on your Plum subscription and based on the daily balance that you hold in the fund.

Keep in mind that rates shown in the Plum app are already net of fees.

We waive this annual fee for Plum Premium subscribers, which means they don’t have to pay it.

Plum Pro and Ultra subscribers are charged an annual service charge fee of 0.15% by Plum, based on the daily balance held in the fund.

Plum Basic customers, who do not have a subscription plan, are charged an annual service charge fee of 0.62% by Plum, based on the daily balance held in the fund.

All customers must pay a 0.10% fund management fee for BlackRock. The fund value is automatically updated to reflect BlackRock’s fee, so you won’t see it as a separate charge.

Plum’s service charge fee, if any, will be collected from your Primary Pocket on the first day of each calendar month.

Learn more about fees for investing with Plum.

The fund manager for Plum Interest is BlackRock, an investment company with global presence.

Plum is regulated by the Financial Conduct Authority (FCA) and any money invested with Plum Interest may be protected by the Financial Services Compensation Scheme (FSCS).

Your money is safeguarded by a regulated custodian. So if anything should happen to Plum (or our fund provider), your assets will be passed back to you and can’t be touched by anyone else.

If the custodian fails or in the unlikely event that Plum defaults, the value of your assets held with Plum is also protected by the FSCS up to a max of £85,000, if the scheme applies to you.

This is a projection of the rate at which your money could grow over the next year. To keep things simple, we quote the net yield (after fees are applied).

The projection is based on the 1-day yield, which means it takes the previous day’s return and scales this to reflect what the fund could earn over a full calendar year. The actual rate offered in each market is similar to the base rate set by the central bank (the Bank of England in the UK), which can fluctuate over time.

On the scale of investment risk, this fund can be considered amongst the lowest available. That’s because it invests in high quality assets, like government bonds, and only loans money on a short-term basis to reputable companies and governments.

There is a risk that the forecast of projected yield might not be fulfilled over a longer period e.g. if the central bank lowers its base rate over time. But this fund is designed to transact at a constant price, so you shouldn’t get back less than the initial principal you invested, in the short term.

You can withdraw money from Plum Interest (i.e. the 'MMF Investment Account') at any time. To do this, tap the ‘Save’ menu button, then the ‘Plum Interest’ tab and finally ‘Withdraw’.

We’ll show an estimated settlement date in the app when you request a withdrawal, but please note this is just an estimate. Withdrawals are typically processed within 1 working day, with sell orders settled Mon–Fri at around 09:30 a.m. (UK time).

Once your withdrawal has been processed the money will be credited to your Primary Pocket balance. There are no limits or additional fees to withdraw from Plum Interest. And we plan to introduce instant withdrawals soon!