Apprentice Boosts Savings with Smart Money App

Simplifying Savings with Automation

For many people, saving money can feel like a daunting task. It's common to start with good intentions but eventually give up when the process becomes too complicated or overwhelming. This is especially true when it comes to managing savings, where confusing financial terms and bureaucratic processes often stand in the way of progress.

Enter Plum, a smart money app that’s changing the game by making saving more accessible and straightforward. Using automation, Plum helps users save more effectively and earn better returns on their money. The app leverages advanced technology to analyze your bank account and determine how much you can afford to save, then automatically sets aside the funds for you.

Plum offers a variety of savings accounts, including Cash ISAs and Lifetime ISAs, as well as investment funds. These options come with competitive interest rates, though it's important to note that all investments carry some level of risk, and the value of your investments can fluctuate.

Will Mayo, an 18-year-old apprentice machinist engineer from County Durham, first discovered Plum through social media. He was intrigued by the app’s features and decided to give it a try. Despite being new to saving, Will found that Plum made the process simple and stress-free.

One of the standout features of Plum is its “Auto Savers,” which are automated savings rules designed to help users build consistent savings habits. These include the “Automatic” function, which regularly transfers small amounts from your account based on your income and expenses. There's also a “Splitter” tool that allows you to divide these transfers across different accounts, known as “pockets.”

Will has set up two Auto Savers: Pay Day and the 1p Challenge. The Pay Day rule automatically takes a set amount from his account every time he gets paid, while the 1p Challenge starts with one penny on the first day and increases by one penny each day throughout the year. These tools make it easy to save without even thinking about it.

As an apprentice, Will’s income is modest, but he’s already using Plum to save for a house through a Lifetime ISA (LISA). This type of account allows him to save up to £4,000 per year towards a first home worth up to £450,000, with the government adding a 25% bonus. However, there are penalties if the money is withdrawn before 12 months or used for other purposes.

With Plum, Will is earning a high interest rate on his LISA, and because the interest is tax-free, he keeps all the money. As of August 13, the Lifetime ISA was offering a 4.10% AER (variable) rate, including a 1.14% bonus for the first 12 months. For immediate expenses, Will also uses a Plum Cash ISA, which currently pays a 4.86% AER (variable).

Will credits Plum for helping him develop a strong savings habit that will pay off in the long run. He recommends the app to his friends and coworkers, noting that before using Plum, he would often dip into his savings and end up with nothing to show for it. With Plum, he says, the money is saved without even seeing it, making it easier to stick to his goals.

About Plum

Plum is free to download, and the basic version includes many useful features at no cost. Users can upgrade to a subscription plan for additional benefits. Over 2.2 million people have joined Plum, helping them save and invest for the future.

Users can withdraw their money at any time, whether they’ve reached their goal or need access to their funds. Plum ensures security through encryption, biometric authentication, and certifications such as Cyber Essentials, CIS, and ISO 27001. The app is regulated by the Financial Conduct Authority (FCA), and funds held in certain accounts are protected by the Financial Services Compensation Scheme (FSCS) up to £85,000 per customer.

It’s important to remember that Plum does not provide financial advice, and all investments involve risks. Before using a Lifetime ISA, consider whether it’s suitable for your needs, as early withdrawals may result in penalties. Interest rates and bonuses may vary based on eligibility and conditions.

Plum is the trading name of Plum Fintech Limited and Saveable Limited. Both companies are registered and regulated by the FCA. If you're interested in learning more about local events and opportunities, consider signing up for HAWXTECH's The Slice newsletter.