AI is rapidly becoming part of our everyday lives thanks to its extraordinary range of uses, from voice-activated virtual assistants to online chatbots.
But did you know it could also revolutionise the way you manage your money – potentially boosting the amount you’re able to save while also cutting your spending?
Plum – which you can download on App Store or Google Play – is a smart money app that uses the power of AI to automate saving and budgeting.
Rather than having to work out how much you can afford to save every month and doing the transfers yourself, the app calculates this for you by analysing all your income, expenses and spending patterns.
It then moves small sums automatically into your savings¹ every so often without leaving you short.
Saving little and often can be an effective way to boost the amount you’re able to set aside, allowing faster progress towards your financial goals – from holidays to home extensions.
Lots of people struggle to save as much as they want because they get into a habit of spending money left in their account. Automating deposits removes this temptation, resulting in fewer impulse purchases and more saving!
With AI doing the legwork for you, the whole process is effortless – and many Plum savers are astounded by how much they’ve been able to squirrel away while barely noticing the money was leaving their account.
You can earn up to 3.51% AER¹ on automatic deposits paid into an Interest Pocket – making your money work harder on your behalf rather than leaving it in a low-interest rate account to be rapidly eroded by inflation.
Plumsters also have the option to deposit sums starting from just £1 in company stocks and a range of simple, diversified investment funds, which you can see here.
You’ll have the choice of a Stocks & Shares ISA or a General Investment Account, while with a Plum Self-Invested Personal Pension (SIPP)² you can consolidate existing pension policies and invest in risk-managed, diversified global funds. Remember your capital is at risk when you invest.
But that’s not all Plum has to offer. Using something called algorithms, the app helps you set aside more by applying a whole series of clever savings¹ ‘Rules’ beyond the regular ‘Automatic’ option.
This includes ‘Round Ups’, which will round up your transactions to the nearest pound; and ‘Rainy Days’, which saves a set sum automatically every day it rains in your local area.
Having to stay inside on a wet day can be a downer, but at least you’ll be banking money for future fun while doing so!
You can also increase or decrease the amount you’re putting away based on your ‘Mood’, from ‘Beast Mood’ – which will up it by 75 per cent – to ‘Shy’, which cuts it by half.
For super savers who subscribe to Plum’s Ultra subscription (£4.99 per month), there’s also Money Maximiser.
Thanks to the potential of AI, it seamlessly transfers money into your Interest Pocket¹, to earn interest before feeding a weekly flow of cash back to your everyday account to cover spending.
While the app is constantly working behind the scenes to put your money to work you always remain in control, with the ability to make withdrawals as often as you like, with no fees.
And there are lots more useful features that go beyond just saving and investing.
This includes a monthly payments overview, which breaks down everything leaving your account in bills and subscriptions over the coming month, depending on which bank accounts you’ve connected to your Plum account.
Plum can also keep track of your regular household bills to automatically check if you’re being overcharged and could save money by switching to a new provider³.
The process takes minutes and can save surprisingly large sums, including £172.80 per year on your superfast broadband³.
Of course, you’ll want to be sure all that money you’ve put away is safe.
More than 1.6 million customers already trust Plum to keep their money secure, and the app uses encryption and face and fingerprint ID for added protection. It was also recently named the ‘Best Personal Finance App’ in the British Bank Awards 2023.
Plum is regulated by the Financial Conduct Authority and money held in an Interest Pocket¹ is covered by the Financial Services Compensation Scheme (FSCS) up to a total of £85,000 per customer.
There are also safeguards for a non-interest earning pocket, such as a Primary Pocket, which is protected by the E-Money Safeguarding Rules.
And if you ever need help, friendly customer support teams are available 7 days a week.
Other ways Plum can supercharge your savings
Here are some of the other smart Rules you can turn on to deposit more.
Pay Days: The best time to stash money is when you first get paid. Tell Plum the amount and it will set aside a lump sum automatically.
Naughty Rule: The app will set money aside for you every time you shop at your chosen list of ‘naughty’ retailers. That way naughty can equal nice!
1p Challenge: Plum will set aside 1p extra each day for 365 days. By the end you’ll have reached a total of £667.95! Not bad for a small daily sacrifice…
52 Week Challenge: Starting with £1, each week we’ll increase your deposits by £1 until you reach £52 in the final week of the Challenge. That’s £1,378 in a year!
Some of these rules require a Plum monthly subscription – to find out more, CLICK HERE.
¹ Easy Access Interest Pockets are provided by Investec Bank Plc. The rate Plum offers may change in the future. 3.51% is the rate currently available to Plum Premium subscribers (£9.99 per month).
² Plum’s SIPP does not currently offer drawdown products. This means that if you wish to draw benefits or to purchase a lifetime annuity, you will need to transfer your Plum SIPP fund to another pension plan.
³ Annual Savings calculated on average monthly bill of £33.35 versus our cheapest superfast broadband (>55mbs, £18.95/month). August 2022. Plum receives a payment or other benefits if you enter into an agreement with any of the partners.
Capital at risk if you invest. You shouldn’t invest in or deal in any financial product unless you fully understand it and the inherent risks. If you automate and invest you should be satisfied your choices are suitable in light of your financial position and circumstances.
Plum does not provide investment advice and individual investors should make their own decisions or seek independent advice. The value of investments can go up as well as down and you may get back less than your original investment.