Investments is part of Plum Plus; the first of features which help you go beyond automatic savings, and grow your money. Unlike the rest of Plum, there are some fees associated investing, so make sure that you contribute regularly so that the returns are likely to outweigh the fees. You can read more about in our article on whether investing is right for you here.
You can find an overview of the fees below:
With investments there are a few parties involved, which charge fees in different ways. To be transparent, Plum has decided to charge it’s own fee of £1 a month for access to any investments, and charge provider fees through at cost.
When you invest in funds there are three elements to the fees.
- Plum Investments - Monthly Fee (£1 a month)
- Fund Management Fees (0.15% for funds)
- Fund Fees (0.22% - 0.9% for funds)
Plum Plus (Investments) - Monthly Fee
Plum charges £1 a month for access to investments (as part of our Plum Plus offering) - this includes as many funds as you would like to add. This enables us to build a sustainable business while keeping Plum a product that in its core everyone can use.
This is £1 is charged monthly only if you have a positive balance in Investments (the first month is free, from the second month onward you'll be charged on the first day of the month - so if your first deposit landed on the 10th of September, the first pound will be charged on the 10th of October). Some early users received a longer free period.
This fee will be taken from your bank account by direct debit.
Fund Management Fees
Fund Management Fees, or Provider Fees are charged by the administrator of the funds, Gaudi Regulated Services LTD - a well-established financial company. These are charged for maintaining the investment account, e.g. buying, selling, funds, preparing statements, managing the ISA, etc.
The management fees are 0.15% of the value of the fund, charged monthly, or pro-rata if a fund is closed.
Fund Provider Fees
Fund fees are charged by the fund providers for providing the service of creating a fund. These fees are not reflected in any statements, as the fund providers simply adjust the price every day to collect the fees (they take money out of the fund daily). The funds therefore just get a little bit less valuable each day (if nothing else happens).