This innovative platform uses artificial intelligence to make investing and saving more user-friendly and super-efficient.
What is Plum?
Plum launched in 2016 and combines smart, automated savings with simple investment options. Aimed at individuals who want to build their savings without feeling the pinch, Plum uses artificial intelligence to analyse your spending and automatically save what you can afford.
Who is Plum for?
We found a lot to like when examining the scope of services for this Plum review. Whether you’re looking to save for a rainy day, invest in budding tech giants, or even find a cheaper utility provider, Plum has got you covered. With its intuitive app interface, you don’t need to be a financial expert.
Plum is an excellent choice for busy people who want their finances to run on autopilot while remaining tailored to their spending habits. For hands-off investors who like ‘setting and forgetting,’ their themed investment funds offer an effortless entry point.
Getting Started with Plum
Setting up an account with Plum couldn’t be simpler. After downloading the app and linking your bank account, Plum’s AI dives into action. It analyses your spending and sets aside money automatically. And if you’re nervous about saving too much? Don’t be. Plum is designed to understand your spending patterns, ensuring you only save or invest what you can afford.
Plum’s investment options
Not only can you set aside spare change with micro-investments (dubbed ‘Pockets’ by Plum), but you can also dive into themed investments. From tech to ethical options, there’s likely a portfolio that aligns with your interests. For those who want their investments to reflect their values, Plum’s ‘Socially Conscious’ fund offers a way to invest in socially responsible initiatives. Tech enthusiast? Then the ‘Tech Giants’ theme will be right up your alley.
There are thirteen themes and an extra nine for Premium members. All funds are managed by well-known investment firms such as Royal London, Legal & General, abrdn, BlackRock, and Vanguard.
Utility switching with Plum
But Plum doesn’t stop at saving and investing. Want to reduce those hefty utility bills? Plums got your back. Its integrated utilities switch feature scours the market for better deals, potentially saving you a bundle.
What gives Plum its sweetness?
- AI-Powered Savings: Perhaps the most significant USP of Plum is its artificial intelligence capability. It studies your financial habits to determine how much you can save without impacting your lifestyle.
- Behavioural science: Plum Pro and its higher tiers introduce some captivating features rooted in behavioural science. From the Rainy-Day rule, which adjusts savings based on weather forecasts, to the 52-Week Challenge that gently increases savings week-by-week, Plum artfully leverages human habits and psychology to optimise your savings experience.
- Themed investment options: With a focus on making investing relatable, Plum offers themed portfolios so you can invest in areas you’re passionate about.
- Facebook messenger integration: Plum started as a bot within Facebook Messenger, and it still offers this integration, making it easier than ever to track your financial activity.
- Help with plumbing: While Plum primarily operates digitally, its robust FAQ section and customer service via chat provide a reassuring safety net.
Does Plum charge a fee
Plum operates on a tiered system, meaning you only pay for what you need:
- Plum Basic: A free option, Basic offers automated deposits, round-ups, payday savers, and an interest of 3.51% AER on savings. With Basic, users can engage with 1200 stocks and access the Plum Pension (SIPP).
- Plum Pro (£2.99/month): Encompassing all features of Basic, Pro further introduces funds and additional saving rules, all complemented by an improved interest rate of 3.72% AER.
- Plum Ultra (£4.99/month): Ultra retains all Pro offerings and introduces novel tools like the Money Maximiser and the Plum Card.
- Plum Premium (£9.99/month): The most extensive plan, Premium provides users with 3000 stocks, 21 mutual funds, and an elevated interest rate on savings of 4.21% AER. Premium users also benefit from priority customer support.
Plum charges an annual average fund management and product provider fee of 0.48% for investments into an ISA or investment account. This includes a fixed product provider fee of 0.45% and a fund management fee ranging from 0.06% (Best of British) to 0.90% (for the Socially Conscious option).
Sour plums
While Plum has many innovative features, it is not without limitations.
- Limited investment options: While the themed investments are straightforward, they might not offer the complexity seasoned investors seek.
- Mobile-only interface: Those who prefer desktop-based financial management may be put off by the lack of a web interface.
- Less suitable for seasoned investors: Plum’s simplicity, while a strength, could be a limitation for investors seeking more advanced tools.
- Bank account dependence: The app’s features hinge on linking a bank account, which may turn off privacy-conscious users.
In summary
Plum provides a fresh, modern approach to managing finances. It’s an all-in-one solution that caters to the needs of the smartphone generation, whether you’re looking to save, invest, or cut down on bills. Our Plum investment review has spotlighted how its captivating features, such as AI-driven savings, use of behavioural science, and themed investments, make it a standout option.
However, it may not work for, particularly experienced investors craving a broader range of options and features. Regardless, if you’re new to investing or looking for a truly hands-off approach, you may find Plum’s appeal hard to resist.
Photo by Vladimir Gladkov on Unsplash
