Your money is held in a money market fund that mostly invests in the safest asset types available, like short-term government loans. The fund then earns interest on these debts, which is closely linked to the Bank of England base rate, and passes a share of that interest on to you.

The total fees you’ll pay for Plum Interest equate to just 0.25% of your investment, which equates to £2.50 for every £1,000 you hold in the fund. Also, for complete transparency, the rate we quote is shown after fees.