We live in a time when saving money seems to be something hard for most of us to do, this could be either due to high cost of living, our spending habits or even our lack of knowledge on how to handle money. Plum is an app specially created to help you save money and invest in things that matters as well as help you spend less on bills.
How does it do that you ask? Well first, the the app connects to your bank account, this helps it to identify regular income, monthly bill payment and analyse your spending habits. Using its smart algorithm it can then finally help you to set aside a small amount of money without even you realising it (which is a great thing as if you knew you had that money, you would have spent it anyway…).
Here in this post, we share all you need to know about the app, what its about, how it can help you. But most importantly… the million dollar question!! Does it work and is it safe? So read on to find out more about it.
What is Plum
Plum is the first AI-powered Facebook Chatbot which allows you to take control of your finances and start saving and investing effortlessly, without changing your lifestyle, budgeting or even noticing. Plum also makes sure you aren’t overpaying for any financial products, such as energy bills or overdrafts, and will let you know and help you switch if you are.
This sounds interesting…how do I get started?
1. Download the app
2. Link Up to your Bank Account
3. And let Plum help you save money
What happenes to the money that is saved and can I withdraw from it?
You can access your savings at anytime. Plum will inform you how much savings you have and will save or withdraw for you whenever you want. Additionally, it will accumulate money it thinks you can safely put aside in the background. Its easy to withdraw your money from Plum via just a simple text message such as “Plum withdraw (followed by the amount)”. The money will be in your account within 24 hours on a business day and there is no limit for withdrawals or fees incurred. Your Plum savings account is created and administered by their partner MangoPay, an EU-licensed financial institution, and your savings are held at Barclays. Your savings account is ‘virtual’ and has no account number and sort code. The only way to put money in or take money out is via Plum.
How does it work?
Plum connects to UK current accounts, monitors spending patterns, setting aside an amount of money that can be safely saved every few days. Plum is bank grade secure and able to connect to and analyse any UK current account. The smart algorithm understands spending patterns, identifies income and bills and creates a unique profile for each one of its users. Then, every few days, it will calculate a small and safe amount of money to save, which is transferred to an individual’s Plum savings account. Users can talk with the Plum on Facebook Messenger, ask it to save more money or withdraw money from their savings back to their current account. This means that it can boost the savings of even the most savvy spenders by catching all the bits that fall through the gaps, working in tandem with traditional saving techniques such as direct debits. Once you have accumulated some savings, Plum starts to look for how you can make those savings work harder by giving you the option to invest and gain a huge 3% interest! Plum also makes sure you aren’t overpaying for any financial products, such as energy bills or overdrafts, and helps you switch if you are.
I am skeptical with getting an app to connect to my bank account, is Plum Secure?
Plum is bank grade secure and able to connect to and analyse any UK current account. It never tells Facebook (or anyone) any of your details or transactions. It never stores (or has access to) your bank login details. Your personal data is 100% encrypted and protected. Your Plum savings are never at risk. It doesn’t lend out money like banks do, so doesn’t make any interest on it at all. However, should you choose to invest your savings through its partnership with Ratesetter, there is a risk in the same way as with all investments.
What’s great about Plum?
- Its free to register, withdraw money and deposit money
- It gives you tips on how to save money especially if you are overpaying bills
- If you are struggling to save money and don’t know where to start. This is a great money savings app as only removes small amount of money (based on your spending habits) without you realising it.
- If you would like to invest the money you have saved, it will suggest ways on how you can do it
- Your Plum savings account is created and administered by their partner MangoPay, an EU-licensed financial institution, and your savings are held at Barclays. So its very safe.
- Quick and easy access to check how much you have spent, how much income you have made and how much you have saved at a touch of a button
What’s not so great about Plum?
- It only works with UK Banks at the moment
- If you wanted to withdraw the money which has been saved, it can only be done on a weekday and takes 24 hours for the money to be in your bank. Which seem fairly right in some ways as the last thing you want is to be on a night out and then try to sneak some money out of your savings for a pint.
Here’s a short video on how Plum, the Money Saving App works
Plum was born out of a personal challenge between its co-founders, Victor Trokoudes and Alex Michael, to see who could save faster and smarter. At the end of every month Victor put aside the money that was left over in his current account. Alex, on the other hand, wrote a programme which started to regularly calculate how much he needed until the end of the month and downloaded his transactions. Whatever he didn’t need was automatically transferred into his savings. After a few months, they compared balances and changes in lifestyle. Alex had saved almost double than Victor! What’s more, Alex hadn’t had to change his spending habits or even remember to put the money aside. With less hassle, he’d saved far more. And that’s how Plum started. And if you’re wondering why its called Plum? Well, back in Cyprus, Alex earned his pocket money picking and selling Plums from his grandfather’s garden. He even build a little stand at the end of a drive himself to host is Plum pocket money business.
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** Note: This is a collaborative post, a small fee was paid in exchange for the review of this post and images have been provided to us. All views and findings are our own.