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.

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.

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.

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.

(As at 20th of November, 2023)

HSBC

Flexible Saver, 2.00% AER

Lloyds

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

Natwest

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

RBS

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

Barclays

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

TSB

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

Halifax

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

Santander

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

Nationwide

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.