Smart technology has revolutionised whole areas of our lives, from entertainment to education. But have you heard of smart money?
A popular app is making money smart by using the power of algorithms and automation to change the way we save and invest our money, which could speed up how long it takes to achieve our financial goals.
Plum, which you can download today on the App Store or Google Play, sets aside just enough money each week so you won’t notice, before you then decide whether to save or invest it.
Keep in mind, as with all investments, your capital is at risk and the value of your investments can go down as well as up. You will also need to review periodically that automation is suitable for your circumstances. T&Cs apply.
Here’s the lowdown –
Smart saving & investing
Ever gone through your bank statements to work out how much you can afford to set aside each month? Boring, isn’t it? And tricky too, given our spending often fluctuates over time.
Plum does the hard work for you by analysing your income, expenses and spending patterns, before moving small sums automatically into your savings – without leaving you short.
This doesn’t just save you time: saving little and often can be an effective way to increase the amount you put away. Plus, automating the process removes the temptation to spend spare cash on impulse purchases… like yet another Christmas jumper!
You can then make your money work hard on your behalf by putting it in a Plum Cash ISA, earning 5.18% AER* or investing it in the stock market (capital at risk). Alternatively, an Easy Access Saver lets you continue using your money as usual with one business day withdrawals.
Importantly, you remain in control. That means you can change how much you save, and where it goes, whenever you like. And to help you stay motivated, you can create separate pots for different goals, like a holiday or a deposit for a house.
*Rate correct as of 26/11/24. 5.18% AER (variable) includes a bonus rate for the first 12 consecutive months. A lower rate of 3.79% AER (variable) excluding bonus applies if account conditions aren’t met.
Smart budgeting
Plum’s smart technology isn’t just about helping you set aside more – it can help manage your spending too.
It can do this by connecting all your cards and accounts in one place to give you a complete view of your outgoings.
This allows it to generate lots of handy budgeting features including a monthly payments overview called the Spend Tracker, which breaks down everything leaving your account in bills and subscriptions over the coming month.
If you’re worried about sticking to your budget, there’s even an option to set spending allowances via the Plum debit card.
Think of it as a bit like having your own personal money assistant…
Smart investing
If you thought investing was only for City types with bags of money, think again.
Plum lets you invest as little as £1 in company stocks and a range of diversified, easy-to-understand investment funds grouped under different themes.
Alongside the standard General Investment account, you also have the choice of opening a Stocks & Shares ISA, which lets you save up to £20,000 a year if you have not used your annual ISA allowance elsewhere, without paying tax on any growth in your investments or dividend income.
Meanwhile, with a Plum self-invested personal pension (SIPP)**, you can combine and manage all your pensions in one app.
Remember that with all forms of investing returns are not guaranteed and you may get back less than you put in.
**With a Plum SIPP, you can normally only access the money from age 55 (57 from 2028). Tax treatment will depend on your personal circumstances, and these rules could change. Before transferring a pension, please double check that you won’t lose valuable guarantees or incur transfer penalties. Costs and charges apply when investing in funds as well as for stocks.
A note on security (hint… it’s smart too!)
More than 2 million customers have onboarded with Plum and the app supports encryption and face and fingerprint ID for added security.
Money held in an Easy Access Interest Pocket or Cash ISA is covered by the Financial Services Compensation Scheme (FSCS) up to a total of £85,000 per customer. More information here.
There are also protections for a non-interest earning pocket, like a Primary Pocket, which is covered by the E-Money Safeguarding Rules.
And if you ever need assistance, the app’s friendly customer support teams are available 7 days a week.
Plum’s smart rules
After downloading Plum via the App Store or Google Play, you can sign up for free in just a few taps.
Depending on your subscription, you can then enable its eight automated rules – ‘Auto Savers’ – which are specifically designed to maximise the amount you put away.***
These include –
Rainy Days: Saves extra cash automatically every day it rains where you live.
Round Ups: Rounds your transactions to the nearest £1 and saves the difference.
52-Week Challenge: Sets aside an extra £1 every week for a year, eventually leading to £1,378 saved.
1p Challenge: Saves an extra penny every day for a year – helping you hit an incredible £667 by the end of it!
Naughty Rule: Automatically saves a sum of money when you shop at a retailer you deem a guilty pleasure.
Weekly Depositor: Sets aside a certain amount every week.
Pay Days: Saves a predetermined amount each time you receive your salary.
Splitter: Divides your money between various accounts and investments.
Make your money smart by downloading Plum today (available on both App Store and Google Play).
***Some Auto Savers are only available with a paid subscription.
RISK WARNING
T&Cs & fees apply. You will need to review periodically that automation is suitable for your circumstances.
Capital at risk if you invest. You shouldn’t invest in or deal in any financial product unless you fully understand it and the inherent risks. If you invest you should be satisfied your choices are suitable in light of your financial position, circumstances and position.
Plum does not provide investment, or any other form of financial advice and individual investors should make their own decisions or seek independent advice. The value of investments can go down as well as up and you may get back less than your original investment. Past performance of an investment is not a guide to future performance.
Your account and related payment services are provided by Modulr FS Limited. Plum Fintech Limited is a distributor of Modulr FS Limited, a company registered in England and Wales with company number 09897919, which is authorised and regulated by the Financial Conduct Authority as an Electronic Money Institution (Firm Reference Number: 900573) for the issuance of electronic money and payment services. Whilst Electronic Money products are not covered by the Financial Services Compensation Scheme (FSCS) your funds will be held in one or more segregated accounts and safeguarded in line with the Electronic Money Regulations 2011 – for more information please see this.
Plum is also registered with the Financial Conduct Authority as an e-money agent of PayrNet Limited, which is an e-money institution also authorised by the Financial Conduct Authority (Firm Reference Number: 900594). The Plum Visa Debit is issued by PayrNet Ltd pursuant to licence from Visa. PayrNet Ltd is authorised by the Financial Conduct Authority to conduct electronic money service activities under the Electronic Money Regulations 2011.
Plum Fintech Limited is a registered account information service provider with the Financial Conduct Authority (Firm Reference Number: 836158). Plum is a trading name of Plum Fintech Limited.
Saveable Limited is authorised and regulated by the Financial Conduct Authority (Firm Reference Number: 739214) to carry out investment and credit broking services. Plum and Plum Money is the trading name of Saveable Limited.
Plum is registered with the Information Commissioner’s Office, with registration number: ZA217685.
Plum offers various products of which some are covered by the Financial Services Compensation Scheme (“FSCS”) whilst others are not. The FSCS does not cover electronic money products. No other compensation scheme exists to cover losses from your electronic money account. Your funds will be held in one or more segregated bank accounts with a regulated third party credit institution, in accordance with the provisions of the Electronic Money Regulations 2011. For more detail on how your money is protected please see here.