What are the current Plum Cash ISA rates?

What are the current Plum ISA rates?

Plum currently only offers one Cash ISA, which is an easy access account meaning you can withdraw your money when you need it without paying a penalty fee. However, if you make more than four withdrawals, or your balance drops below £100, your interest rate will drop to 3.00% AER (variable). As long as you stick to under four withdrawals and have over £100 in the account, for the first 12 months you’ll get an interest rate of 4.92% AER (variable), which will drop to 4.04% AER (variable) after that. If you transfer in an existing ISA from another provider, your interest rate will be 4.04% AER (variable) from when you open the account. To be eligible, you have to have a minimum £1 deposit to open the account, be a UK resident and be aged over 18.

Source: https://withplum.com/cash-isa/. Current Plum rates are accurate as of November 2024.

What is Plum’s best ISA rate?

Plum’s current best Cash ISA rate is 4.92% AER (variable), but this includes a 0.88% Plum Bonus which is only available for the first year. After the first 12 months, your interest rate will drop to 4.04% AER (variable). Although Plum’s Cash ISA is an easy access ISA, if your balance drops below £100 or you make four or more withdrawals, your interest rate will fall to 3.00% AER (variable). 

If you transfer in an existing ISA, your interest rate will be 4.04% AER (variable). So if you have a Cash ISA already or you’re looking for the very best rate on the market, don’t forget to compare Cash ISAs across other providers before making a decision. We’ve created a Best Cash ISA guide to help you get started.

Is Plum a good ISA provider?

The 4.92% AER (variable) interest rate (including the Plum Bonus 0.88% AER (variable) rate) is one of the most competitive Cash ISA rates on the market, but it’s only for the first year and not all customers are eligible. Once the Plum Bonus has been removed after 12 months, the rate drops to 4.04%, and if your balance goes below £100 your rate will drop to 3.00% AER (variable). This may make this account unsuitable for those looking to save for emergencies and short-term expenses. If you’re looking for a competitive rate, flexibility and choice, compare a few different Cash ISA providers before opening your account. 

Can I have two ISAs with Plum?

You can open and pay into two or more Cash ISAs in the same tax year, thanks to new ISA rules introduced in April 2024. However, you can normally only open and pay into one Cash ISA with each provider per tax year. If you already have a Plum Cash ISA and you’re looking for a better rate or more flexibility, you could open a Cash ISA with a different provider instead. It’s up to you whether you keep them both or transfer your Plum Cash ISA to your new provider. Just make sure that your deposits across all your ISA accounts do not exceed the £20,000 limit for the tax year.

Is a Cash ISA a good place for a house deposit?

A Cash ISA can be a good place for a house deposit, but if you’re aged 18 to 39 and you’re saving for your first home, a Lifetime ISA could be even better! That’s because not only will you earn interest on your savings, you’ll get a £1 bonus from the government for every £4 you save. Save up to £4,000 of your annual ISA allowance in a Lifetime ISA each tax year and the government will boost your savings by 25%, up to £1,000 per year! If you’re able to save more than £4,000 a year towards your deposit, you could place any additional savings in a standard Cash ISA. 

Learn more: Cash ISA or Lifetime ISA. Which one should I pick?

Will Plum increase ISA rates?

Plum might increase its ISA rates, but it may lower them instead. Back in March 2024, Plum’s best Cash ISA rate was 5.17% AER (including the 0.88% Plum Bonus), but like many ISA providers, Plum has lowered its rates since then. Many ISA providers change their interest rates based on changes to the Bank of England’s base rate. If the base rate rises, ISA rates often rise too. If the base rate falls, ISA rates often follow a similar pattern.

A fixed-rate Cash ISA can offer protection from interest rate fluctuations, but you’ll usually need to lock your money away for a set period of time. This often makes fixed-rate Cash ISAs unsuitable for short-term savings or emergency funds. 

How to find the best Cash ISA Rates

To find the most competitive rates, you’ll need to do a bit of research. There are so many providers to choose from, including traditional high-street banks, building societies, and modern app-based providers. Getting a competitive interest rate can make a big difference to your savings, but don’t forget to compare customer service quality too. You also need to know how easy it is to access your money and whether your provider offers any bonuses or rewards. 

At Tembo, for example, our customers can manage their savings on our award-winning savings app. You can also expect dozens of saving tips and tricks, excellent customer service and to be automatically entered into our monthly £1,000 cash giveaway!

Find out more with our guide on the best Cash ISA rates.

How to transfer my Plum ISA to another provider

Transferring your Plum ISA to another provider couldn’t be any easier. All you need to do is open a new ISA with your chosen provider and ask them to move the money for you. Thinking of moving your ISA savings to your new account yourself? Transferring the money manually can impact your savings’ tax-free status and this year’s ISA allowance. 

For example, if you’ve saved £30,000 in a Cash ISA over a number of years and you’d like to transfer your savings to a new provider, doing the transfer yourself could use up your full £20,000 ISA allowance for this year. You’d then need to wait until the following tax year to move the remaining £10,000 into your new Cash ISA. Until then, you’d need to keep the money in a traditional savings account, where your interest would be taxed, and you may get a lower interest rate.

By trusting your provider to complete the switch for you, you can protect your savings’ tax-free status and preserve any remaining ISA allowance for this year.

You might like: 17 ways to set and reach your saving goals 

Please note, tax treatment depends on individual circumstances.