Plum Limited

FL

Anyone had any experience of Plum Limited.  My son seems to be saving money to an account with them but it doesn’t seem to be covered by the FSCS regulations.  Can anyone suggest an alternative that is covered. 

SeniorSam

It would seem that your son has joined Plum Ltd via a web site App. By searching you can find that they are linked with other names from which I read the following - Plum Fintech Limited is registered by the Financial Conduct Authority ("FCA") whose address is 12 Endeavour Square, London, E20 1JN. Our FCA registration number is [836158]. This company is registered to carry on account information services, under the Payment Services Regulations 2017.

There are many platforms for saving and they vary in costs and services but if your son not happy with what he has done, it should not be difficult to change.

jimjames

FL said:

Anyone had any experience of Plum Limited.  My son seems to be saving money to an account with them but it doesn’t seem to be covered by the FSCS regulations.  Can anyone suggest an alternative that is covered. 

Any bank or building society that has FSCS cover?

DireEmblem

I would note that FSCS is not a regulation - https://www.fscs.org.uk

There is also a big difference between not being covered by FSCS, and not having your funds in a protected account.

https://blog.withplum.com/money-protected-with-plum/

As I read the underlying accounts where your assets are held with plum, are protected.

I think you need to speak to your son if you have concerns.  Find out what they are saving for, and that would help determine where best to place those savings.  I see Plum as a better offering than getChip.uk, but I do not use either due to what I see as high fees.

Just setup a direct debit/standing order to save / invest to a lower cost platform.

masonic

DireEmblem said:

As I read the underlying accounts where your assets are held with plum, are protected.

That seems to be the assertion, but who pays out if the protection is needed? What happens if they decide it's too costly to compensate savers and renege on their promise? Can the entity offering the protection enter administration, for example? It would certainly be reassuring if eMoney was protected to an equivalent level to deposit accounts, but the devil is in the detail and the detail is lacking.

Edit: perhaps you are just referring to the savings accounts money can be moved into, 'pockets' in their parlance. Those are FSCS protected. It is the non-interest bearing accounts (e-Wallets) where the money could be at risk. To mitigate, money should only be moved through those accounts and not stored in them.