Τhe basic (also known as underlying) interest rate for Plum Cash ISA customers is currently 3.54% AER* (Variable). The basic interest rate is variable, which means that it can fluctuate over time according to market conditions. If there’s a change in the interest rate, we’ll let you know as soon as possible to keep you up to date with the performance of your account.
The basic rate is paid into your Cash ISA account on the last business day of the following month, and we can't change the date or the destination of this payment.
How Interest is Calculated on Your Cash ISA
While the basic rate at the moment is 3.54% AER (variable), this represents the interest rate if interest were compounded monthly for a whole year. For monthly interest calculations, the gross rate of 3.49% (variable) is applied.
The AER serves as a helpful projection of what you could earn annually, assuming there are no withdrawals or changes to your balance. Your actual interest earned each month, however, is calculated using the gross rate.
Please note that interest rates are variable and subject to change.