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There are now plenty of apps and other online tools to help us to look after our money, but how many of them really make our lives easier and truly save us money? Back in 2017, UK Finance revealed that over half of Brits used an app to pay bills and more than 60% do so to send money. 

With mobile banking expected to overtake branch visits by 2021, it is clear that there is a market for slick, comprehensive money apps that people will really want to use.

Does Money Management app Plum provide this? Let´s take a look at what it offers in this Plum review.

Who Are Plum?

Plum is based in London, with a multi-national team drawn from all over the planet. Founded in 2016, Plum are backed by an impressive array of investors from different areas of business.

The company is regulated by the Financial Conduct Authority and they act as an electronic money agent of PayrNet. What may give Plum the edge in the crowded financial market right now is their use of AI. So, how does this help people to look after their money better?

What Do Plum Offer?

The Plum app has several different elements to it that we need to look at.

• Automate your deposits. You can set up the app to put away exactly as much as you can afford to. Their Premium subscription even allows fun rules such as setting more aside on weeks where rain is forecast or putting away an increasing amount every week for a full year.
• Understand your spending. The idea is that you hook up this platform to your bank accounts, giving you an overall view of your financial situation. You can then use the tools provided to analyse your finances and work out your ideal budget. 
• Stop wasting money. The tool also looks at your household bills to try and identify possible savings. So, you will be alerted to visit the ‘Lost Money’ section of the app if there is a chance to pay less by switching to a different energy supplier, for example.
• Earn interest. At the time of writing this Plum review, 0.55% interest can be earned on the money you hold in Easy Access Interest Pockets, available with a Plum Plus or Pro subscription only. Access to the money is fast, but may take up to 24 hours in some cases.
• Separate money “pockets” are used, to allow you to split out your money effectively for different purposes.
• Cashback of up to 11% is available when you shop through the app with one of their partner brands and are a Plum Pro subscriber.
• Each month, Plum Pro users get a diagnostics report that shows you the amount of money you spent in different categories like shopping and eating out.
• Plum customers are also now able to save into an Easy Access Interest Pocket for free. Interest Pockets are covered by the FSCS and provide interest at 0.35% AER.

What Does Plum Cost?

The basic Plum app is free to use, but there are a couple of paid options if you want to get more from it. Plum Plus is free for the first month and then costs £1 per month after that. This gives you all of the basic features plus allows you to invest in a range of funds on it. Capital at risk when you choose to invest your money.

If you are happy paying £2.99 per month then you can upgrade to Plum Pro, which has extra features such as improved spending analytics and more ways of earning interest on your money.

Earning Interest with Plum Plus / Pro

With Plum Pro’s Easy Access Interest Pockets, you can earn interest at 0.55% EAR, which is calculated daily and applied to your account monthly.

Here’s the nitty gritty about Easy Access Interest Pockets: interest accounts are provided by Investec Bank, who have the right to change the rate at any time. The minimum amount to open an interest bearing pocket is £0. Please bear in mind that your money is protected under the FSCS up to £85,000.

If you were to deposit £1,000 into your savings account, without adding or withdrawing any money throughout the year, you’d have a predicted £1,006 in your account at the end of the year (at 0.55% interest).

What Do Others Say About Plum?

The early signs are good for this relatively new financial service.  The majority of online reviews and scores posted so far rate it highly. 

Most people mention the ease of use and flexibility plus the fact that it is free to use the basic version as being the main positives. In terms of negative comments, the fact that your money isn’t always available for instant withdrawal has been noted, although to be fair this is a feature of the app rather than a problem.

Plum appears to be safe to use, and I could see no evidence of people running into any major problems with it. I couldn´t see a lot mentioned about their customer service either, which I assume means that most people haven´t really needed to contact them. The site has a fairly detailed FAQ section that should answer most questions anyway. 

How To Get Started With Plum

Getting started is easy, as there are links on their home page to Google Play Store and App Store. Once you download the app, the next step is to register and link it to your bank account, which is a simple process. Plum support all major British banks and if in doubt you will find a full list of banks on their website. Link all of your accounts to make the most of this service.

You are then ready to start automatically setting money aside and analysing your finances. It probably makes sense to do this a bit at a time, rather than trying to solve all of your financial issues in one fell swoop. You can change the rules as you go and look to unlock more value from each of the different features.

At the time of writing this Plum review, they offer a £15 referral fee for every three successful invites you send to friends, up to a maximum of 15. After this total, you get a fiver for each new invite that is accepted.

Conclusion

The truth is that most of us could probably do with putting a bit more effort into looking after our money and maximising our savings. This clever app takes the time and effort out of the task and even manages to make looking after money seem quite fun at times.

The fact that you can try Plum for free means that it is well worth downloading and using. Even if you only set aside a few extra pounds a month, it will have been well worth it. The premium features might appeal to some users in the longer term, but there is enough value in the free version to keep you happily putting away money for a while.   

Capital at risk. Investments can go up and down in value, and you may not get back what you put in. This blog does not constitute financial advice. If you’re unsure, seek independent financial advice.