Have I made a mistake with Plum

Andme1

I opened a Plum account to take advantage of their ISA interest rate and have maxed it out for the year and I'm happy with that. However I was seduced by the interest rate of the Plum Interest account and moved some other money over to it. I'm now thinking that was a mistake as it's not a simple easy access saving account and I should move it all over to somewhere else. 

For context the money in there is around £1500, set aside for general monthly expenses, is topped up regularly and then used to pay off the credit card bill. 

What's the general opinion on Plum Interest? 

Thanks 

eskbanker

Andme1 said:

I was seduced by the interest rate of the Plum Interest account and moved some other money over to it. I'm now thinking that was a mistake as it's not a simple easy access saving account 

It's marketed as being easy access, what makes you say that it isn't?

Andme1

It is easy access but its not a simple savings account as I was expecting. Does that matter for the purpose that I'll be using it? Originally the money was in a regular account earning next to nothing in interest

eskbanker

Andme1 said:

It is easy access but its not a simple savings account as I was expecting.

OK then, in what way isn't it a simple savings account that you were expecting?

Andme1 said:

Does that matter for the purpose that I'll be using it?

You tell us!

Andme1

OK then, in what way isn't it a simple savings account that you were expecting?

During the withdrawal process it tells me that my withdrawal amount could be higher or lower than I'm expecting which isn't something that I've read before on my other accounts. 

I don't know whether that matters which is why I'm asking for other opinions. 

masonic

Aren't there accounts paying a higher interest rate? I have a Plum account, but I've never put anything into their savings products as I prefer to go with the best interest rate available.

eskbanker

Andme1 said:

OK then, in what way isn't it a simple savings account that you were expecting?

During the withdrawal process it tells me that my withdrawal amount could be higher or lower than I'm expecting which isn't something that I've read before on my other accounts. 

I don't know whether that matters which is why I'm asking for other opinions. 

I must admit that I hadn't spent much time looking at it, beyond the reference to easy access, but reading the product info on their site in more detail, I see that it's an investment product structured as low risk via the use of money market funds, so yes, it's not a simple savings account!  The blurb refers to variable interest, but doesn't seem to mention the variable withdrawal amount issue you refer to - are you able to copy/paste the exact wording of the relevant message?  Have withdrawals thus far matched what you asked for?

Andme1

masonic said:

Aren't there accounts paying a higher interest rate? I have a Plum account, but I've never put anything into their savings products as I prefer to go with the best interest rate available.

It's 4.97% VAR which is the highest I've seen for the amount I have. Yes there is higher but they require a much larger minimum deposit 

masonic

eskbanker said:

Andme1 said:

OK then, in what way isn't it a simple savings account that you were expecting?

During the withdrawal process it tells me that my withdrawal amount could be higher or lower than I'm expecting which isn't something that I've read before on my other accounts. 

I don't know whether that matters which is why I'm asking for other opinions. 

I must admit that I hadn't spent much time looking at it, beyond the reference to easy access, but reading the product info on their site in more detail, I see that it's an investment product structured as low risk via the use of money market funds, so yes, it's not a simple savings account!  The blurb refers to variable interest, but doesn't seem to mention the variable withdrawal amount issue you refer to - are you able to copy/paste the exact wording of the relevant message?  Have withdrawals thus far matched what you asked for?

It invests in the BlackRock ICS Sterling Government Liquidity Fund, so presumably the precise amount you receive will depend on the price at the next valuation point of the fund, just like any other fund sale order.

masonic

Andme1 said:

masonic said:

Aren't there accounts paying a higher interest rate? I have a Plum account, but I've never put anything into their savings products as I prefer to go with the best interest rate available.

It's 4.97% VAR which is the highest I've seen for the amount I have. Yes there is higher but they require a much larger minimum deposit 

There is the Cahoot Sunny Day Saver paying 5.20% for amounts less than £3000.

eskbanker

masonic said:

eskbanker said:

Andme1 said:

OK then, in what way isn't it a simple savings account that you were expecting?

During the withdrawal process it tells me that my withdrawal amount could be higher or lower than I'm expecting which isn't something that I've read before on my other accounts. 

I don't know whether that matters which is why I'm asking for other opinions. 

I must admit that I hadn't spent much time looking at it, beyond the reference to easy access, but reading the product info on their site in more detail, I see that it's an investment product structured as low risk via the use of money market funds, so yes, it's not a simple savings account!  The blurb refers to variable interest, but doesn't seem to mention the variable withdrawal amount issue you refer to - are you able to copy/paste the exact wording of the relevant message?  Have withdrawals thus far matched what you asked for?

It invests in the BlackRock ICS Sterling Government Liquidity Fund, so presumably the precise amount you receive will depend on the price at the next valuation point of the fund, just like any other fund sale order.

Makes sense I suppose, if the account holder is literally buying units directly, but I'd agree with OP that they should make that clearer!