By: Rosemary McEwen | Updated: 4th January 2021.
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The smart money management app by Plum includes one or more Easy Access Interest Pockets. Plum’s AI assistant analyses your spending, and gathers up small amounts little and often. This is a painless way of saving money, which happens while you are not even thinking about it. Interest accounts are provided by Investec Bank.
With monthly fees, using Plum’s Easy Access Account might seem less savvy than opening a traditional savings account, and opting for a free budgeting tool as well. However, ease of use has to be a deciding factor in Plum’s favour, and the free Basic plan coaches you to put money aside, an essential first step, and a good place to start building this habit.
Plum automatically untangles the jumble of present and future bills – freeing up more money for savings. Regardless of interest rates, you could save more with Plum without any effort or mental arithmetic. Choosing an Easy Access Interest Pocket with Plum ensures that there is less disconnect between spending and saving.
The difference between opening and managing a conventional savings account, and using Plum, is the addition of Behavioural Science. Those of us who have tried and failed to modify our spending behaviour will appreciate Plum’s virtual coaching. Plum encourages a sense of community among its users – savers are referred to as Plumsters.
It’s wise to compare Plum with other apps providing easy access savings. Thanks to open banking there is a wide array of AI assistants waiting to get their virtual hands on your bank account, organise it for you, and deposit the excess as savings. It is possible to find apps offering higher interest rates, lower fees, or a range of different features.
Plumsters recommend the app mainly because it transforms them from a spender into a saver, and builds savings using small unnoticeable amounts. Plum has an informative presence on Facebook, where it began.
Simply download the app. Set up the link your bank account, and choose Basic, Plus, or Pro.
Plum appeals to the generation who prefer to access all financial information on their mobile. Anyone who defiantly uses cash for everything, or budgets on the back of an envelope, might find it hard to adapt.
The app is for people who struggle to establish savings. The moneywise may not need the regular prompting. and prefer to shop around for higher interest rates – good for them.
Money management can be very stressful. The Plum app is for anyone who needs a hand to hold and help to boss their budget.
If you are saving for something specific, Plum will give you the psychological support and financial wizardry to reach your goal.