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Plum Interest vs. High Street Bank Interest Rates
Plum Interest vs. High Street Bank Interest Rates
Yoan Jedrowiak avatar
Written by Yoan Jedrowiak
Updated this week

This page compares the yield from our Plum Interest investment product against representative current accounts from UK high-street banks. Although we’ve compared the differing returns offered, it’s important to note that a bank account and an investment fund are separate financial products with different risk levels.

High-street bank current accounts

If you put your savings into a current account from a high-street bank the money is covered by the Financial Services Compensation Scheme (FSCS), up to a maximum of £85,000 per eligible person, per bank.

Plum Interest (a money market fund)

If you invest, your capital is at risk. Any losses sustained due to a decrease in the value of those underlying investments will not be covered by the FSCS.

However, if you add money to Plum Interest, your share of the fund will be safeguarded by a regulated custodian. It’s the custodian's job to keep your shares safe, but if the appointed custodian were to fail, you could benefit from the FSCS.

We are not attempting to compare these different financial products as equivalent. We’re simply illustrating the potential disparity between what might be considered the default solution, versus the potential yield that could be earned with Plum Interest.

The findings from our comparison show that the average return offered by high-street bank current accounts is 1.72% Annual Equivalent Rate (AER).

When we compare the projected yield of 5.00%* VAR for Plum Interest (up to 5.15%* VAR for Premium subscribers), this equates to a potential return that’s +191% higher (+200% for Premium subscribers) than you might expect to receive in a traditional current account from a high-street bank (albeit with differing risk levels).

You can find more details about Plum Interest here.

*Variable annual rate correct as at 20/11/23 and shown after fees (net). A projection isn’t a reliable indicator of future performance. Returns aren’t guaranteed. Plum isn’t a bank. A Plum Premium subscription costs £9.99 per month, for UK customers.

High-street bank current account interest rates — 1.72% AER on average

The high-street bank current accounts below were selected for our comparison because they offer a similar level of flexibility to Plum Interest (i.e. they allow same-day withdrawals without penalty). The interest rate offered by each bank is detailed below.

High Street Bank Interest Rates

(As at 20th of November, 2023)


Flexible Saver, 2.00% AER


Easy Saver, 1.40% AER (on balances from £1 – £24,999)


Instant Saver, 1.75% AER (on balances from £1 – £24,999)


Instant Saver, 1.75% AER (on balances from £1 – £24,999)


Everyday Saver, 1.66% AER (1.16% AER on the balance over £10,000)


Easy Saver, 1.50% AER (on balances from £1 – £24,999)


Everyday Saver, 1.45% AER (on balances from £1 – £9,999)


Easy Access Saver, 1.70% AER (on balances from £1 – £2 million)


Instant Access Saver, 2.25% AER (on balances from £1 – £9,999)

Plum Interest currently offers a projected yield of 5.00% Variable Annual Rate for customers using the Basic (free) version of the app, with up to 5.15% VAR available for Premium subscribers. Capital at risk if you invest.

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