Plum Cash ISA.

Our best rate for a new Plum Cash ISA is 5.17% AER, including our Plum Bonus of 0.88% in the first year. The Annual Equivalent Rate shows the account yield after accounting for compounding (i.e. returns are calculated not just on the principal amount saved, but also on any previous interest paid).

For Cash ISA transfers, customers can earn our basic rate of 4.29% AER (i.e. excluding the Plum Bonus).

To qualify for the bonus rate on new contributions, customers must meet the following conditions:

1. Maintain a minimum balance of £100
2. Make no more than 3 withdrawals in a year

If the balance for new contributions falls below £100 or more than 3 withdrawals are made, the rate will fall to 3.00% AER.

Note that interest earnings (including any applicable Plum Bonus) are calculated daily. Basic earnings (at the 4.29% rate i.e. excluding the Bonus) will be paid at the start of each month throughout the year, with any earnings from the Plum Bonus rate paid at the end of the promotional 12-month period (on the anniversary of when the customer first opened their ISA).

The interest you earn in your Cash ISA will be tax-free so long as your account is managed in line with the Government’s rules. The tax treatment of ISAs and the applicable Government rules are subject to change. The benefits of your account for tax purposes will depend on your personal financial circumstances.

The rate we quote for our Cash ISA (5.17%, including the Plum Bonus) is an AER (Annual Equivalent Rate), rather than a gross rate, which means it accounts for compounding.

Compounding is the concept of earning a return, not only on the principal amount saved, but also on any previous earnings.

For example, if a customer were to save £1,000 in their new Plum Cash ISA (and assuming they don’t withdraw, so qualify for the Bonus rate of 5.17% AER), after one year they would have earned £51.70 (to give a total of £1,051.70).

In year two they would no longer receive the Plum Bonus, so would be entitled to our basic rate of 4.29% AER. This would deliver extra earnings of £45.12 and give a total of £1,096.82 by the end of the second year.

Yes. Our Cash ISA has a variable rate, which means the rate can go up or down according to market conditions (largely driven by any changes in the Bank of England base rate).

If we have to make a change to the rate we offer in the future, we’ll let customers know as soon as possible.

Note that the rate for our Cash ISA can also drop to a lower rate if the balance for a customer’s new contributions falls below £100 or they make more than 3 withdrawals in a year.

Our Cash ISA is available for all UK customers aged 18 and over, with no subscription required.

You can open and manage your ISA through the Plum app and get started with just £1. Please note that you need to maintain an account balance of at least £100 to qualify for the Plum Bonus rate of 5.17% AER.

Transfer in an existing ISA to earn 4.29% AER or contribute up to £20,000 in each tax year to get our special Bonus rate.

It’s quick and easy to withdraw from your Plum Cash ISA, with withdrawals paid in 1 working day.

Just head to your Cash ISA Pocket in the Plum app to request the amount you want to withdraw from your ISA. Please note that, unlike a flexible ISA, withdrawing money from The Plum Cash ISA (rather than transferring it) will affect its tax-free status, in line with ISA rules.

To qualify for the Plum Bonus rate you’ll need to ensure you don’t make any more than 3 withdrawals in a single year. If you withdraw more than 3 times in a year, the interest rate on your Cash ISA will drop to 3.00% AER.

If you wish to cancel your Cash ISA or withdraw mid-month, you will forego any interest accrued for that particular month.