Plum launches savings product for UK and EU customers: “It’s time to shake up the industry”
“It’s time to shake up the industry and offer an alternative for cash holdings. People don’t have to accept the same old from traditional banks that don’t have their best interests at heart.”
Plum, the innovative smart money app, has announced the launch of its groundbreaking ‘Plum Interest’ product, designed to empower customers in the UK and five EU markets to make the most of higher central bank rates.
‘Plum Interest’ represents a new frontier in savings solutions, allowing individuals to put their hard-earned money to work in government-backed assets that closely mirror the interest rates set by central banks.
Plum is the pioneering force behind this unique product, making it the first of its kind not only in the UK but also across multiple EU markets.
Combining higher interest rates with daily returns
The primary aim of ‘Plum Interest’ is to provide a compelling alternative to traditional low-interest savings accounts. It achieves this by combining higher interest rates with daily returns. Currently, customers can enjoy variable annual rates of:
4.94% for UK customers
3.60% for EU customers
The benefits of ‘Plum Interest’ extend beyond attractive interest rates. Unlike some high-interest products, there are no withdrawal or deposit restrictions, making the money held in Plum Interest easily accessible.
Moreover, customers can move money in and out of their accounts without incurring any transaction costs. There are no minimum or maximum deposit requirements, and subscription fees are nonexistent. Furthermore, all funds are safeguarded according to regulatory rules, ensuring they are held securely in a separate, segregated account.
“People don’t have to accept the same old from traditional banks”
Victor Trokoudes, Founder and CEO of Plum, said: “Many high street banks have been failing their customers on interest rates, leaving hard-earned money sitting idle and eroded by inflation. For example, just 8% of the rises in the ECB rate had been passed onto customers in Spain, which is unacceptable. Meanwhile, larger banks are happy to ramp up the cost of lending when everyone’s finances are under immense pressure.
“It’s time to shake up the industry and offer an alternative for cash holdings. People don’t have to accept the same old from traditional banks that don’t have their best interests at heart. At Plum, we’re going to provide our customers with an account that generates returns close to central bank rates. And they won’t have to face the typical withdrawal or deposit restrictions that are often included with high-interest savings accounts. People have worked hard for their money so their money should work harder for them, and we’re committed at Plum to supporting this with the best options out there”.
BlackRock provides the money market fund supporting ‘Plum Interest’
To bring this revolutionary savings product to life, Plum has partnered with BlackRock, one of the world’s premier asset management firms. BlackRock provides the money market fund supporting ‘Plum Interest.’
This fund is based on a highly liquid money market model renowned for its safety, as it invests solely in short-term assets issued and guaranteed by governments.
Traditionally, money market funds were primarily accessible to pension funds, large corporations, and wealthy individuals. ‘Plum Interest’ democratizes access to these funds, allowing more people to benefit from their safety and higher liquidity. It offers a hassle-free way for individuals to protect their money against inflation and access their funds quickly.
Victor Trokoudes emphasized that ‘Plum Interest’ eliminates the need for individuals to constantly switch banks to secure higher rates. The product tracks changes in the central bank base rate, ensuring customers benefit from competitive interest rates without the hassle of moving their money.
‘Plum Interest’ is set to diversify where individuals hold their money and empower them to make smarter financial choices.