Your total interest for the Plum Lifetime ISA consists of your basic interest rate and, when eligible, your bonus interest rate.
Basic Interest Rate for Lifetime ISA
The basic interest rate for Lifetime ISA is currently 3.11% AER (variable). The interest rate is variable, which means that it can fluctuate over time according to market conditions. In the event of a change in the interest rate, you will be promptly notified to ensure transparency and awareness of the performance of your account.
The basic rate is calculated daily on your cleared balance and is paid into your Lifetime ISA account on the first day of the following month (for the full previous month).
The 3.11% figure represents the Annual Equivalent Rate (AER), which reflects what the interest rate would be if interest was compounded annually. For monthly interest calculations, the gross rate of 3.07% is applied.
Before 1 September 2025: Interest was paid on the last working day of the following month.
Plum Bonus for Lifetime ISA
Where applicable, on top of our basic interest rate, Plum offers you a bonus interest rate for the first 12 months following the activation of your Lifetime ISA.
The bonus interest rate you receive is determined by the date your Plum Lifetime ISA is activated (i.e. when you make your first deposit/ when a transfer in is completed), and can be found within the Plum app at all times.
When the bonus period ends, the interest rate will revert to the basic rate plus any new bonus rate we decide to offer at that time, and your new 12-month bonus period will begin. Once again, you can find your applicable rate in the Plum app.
If eligible, your accrued bonus is paid as a lump sum on the first day of the month following the end of your 12-month anniversary period.
The bonus rate applicable to funds transferred in from other providers depends on the date your Lifetime ISA was activated. If eligible, you'll see the applicable bonus rate in the app.
For more information on transfers in, please see this helpful article.
If you close your Lifetime ISA
Moving or closing your Lifetime ISA before the completion of your 12-month anniversary period may lead to forfeiting any unpaid basic and bonus interest.
For more information on closures, please see this helpful article.
If you transfer your Lifetime ISA out of Plum
Basic Interest: In case of a full Lifetime ISA transfer out of Plum, any interest rate earned for the current month that is not paid yet may be forfeited.
Bonus Interest: Your Lifetime ISA bonus interest is paid once each 12-month bonus period with Plum is completed (specifically on the first day of the 13th month). Transferring out before a full 12-month cycle ends - whether it's your 1st, 2nd, 3rd, or any later year - means you forfeit the bonus earned during that cycle.
For more information on transfers out, please see this helpful article.
For the bonus payment, we will check your Lifetime ISA account on the 365th day (12th month). If your balance is 0 due to an unauthorized withdrawal, the bonus will be cancelled. If your withdrawal is authorized, you are still eligible to receive the bonus.