Plum, the leading smart money app, has rolled out a groundbreaking product named ‘Plum Interest’ that promises to revolutionise how users in the UK and select EU markets manage and grow their cash.
The introduction of ‘Plum Interest’ is rooted in Plum’s dedication to allow its users to capitalise swiftly and directly on superior central bank rates, bridging the gap often seen with conventional banking institutions.
Renowned for its innovative financial solutions, Plum prides itself on facilitating intelligent money management through its advanced app. The company’s extensive customer base in the UK and five EU countries – namely France, Spain, Italy, Netherlands, and Ireland – can now amplify their cash returns by holding their money in government-backed assets mirroring the respective central bank interest rates.
The ‘Plum Interest’ product serves as an enticing repository for cash, especially when compared to stagnant low-interest accounts. It promises daily returns with elevated rates: 4.94% for UK users and 3.60% for EU patrons. Resembling the advantages of a conventional savings account, Plum Interest stands out by ensuring easy accessibility to funds without the typical deposit and withdrawal constraints. Furthermore, users enjoy zero transaction charges, no boundaries on deposits, and comprehensive regulatory protection for their funds.
In a strategic collaboration, Plum has partnered with global asset management titan, BlackRock. The latter is offering the money market fund underpinning Plum Interest. This product leverages a highly liquid money market fund known for its reliability, investing primarily in short-term assets both issued and guaranteed by governments.
Historically, money market funds have been the preferred choice for pension schemes, colossal corporations, and affluent individuals. These funds serve as protective shields against inflation and offer enhanced liquidity, making funds quickly available to holders.
Plum Founder and CEO Victor Trokoudes said, “Many high street banks have been failing their customers on interest rates, leaving hard-earned money sitting idle and eroded by inflation. At Plum, we’re committed to offering our users an account that provides returns close to central bank rates without the common withdrawal or deposit restrictions.”
Victor further elaborated, “Money market funds should be accessible to everyone. Our ‘Plum Interest’ product ensures our users don’t need to keep switching banks to chase higher rates. We’re introducing this revolutionary cash management option to diversify where they can hold their money.”
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