The highest Cash ISA rate we can offer is composed of a Main Rate and Bonus Rate.
Main Rate
The main (also known as underlying) interest rate for Cash ISA is currently 3.79%* VAR (Variable Annual Rate). The interest rate is variable which means that it can fluctuate over time according to the market conditions. In the event of a change in the interest rate, you will be notified at the earliest opportunity to ensure transparency and awareness of the performance of your account.
The main 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 the payment.
How Interest is Calculated on Your Cash ISA
While the main rate at the moment is 3.79% AER (variable), this represents the interest rate if interest were compounded monthly, for a whole year. For monthly interest calculations, the gross rate of 3.74% (variable) is applied.
The AER serves as a helpful projection of what you could earn annually, assuming 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.
Bonus Rate
Plum offers a bonus interest rate that is applicable after one year from the opening of your Cash ISA. Afterward, the interest rate reverts to just the main rate. Please keep in mind the following requirements:
You must have at least £100 deposited in your Cash ISA. If your balance is less than £100, you will receive a reduced interest rate until you top up your Cash ISA with additional funds.
If your Cash ISA meets the conditions outlined above, the bonus rate will be paid into your Cash ISA in the thirteenth month after the opening of your Cash ISA account.
The bonus rate is not applicable for transfers from other providers. It's applicable only for the money you deposit via our app.
Reduced Rate
While we aim to keep Cash ISAs as easy to open and manage as possible, we've decided to offer this high interest rate only on balances of £100 and above. If your balance falls below £100 due to depositing less money or withdrawing funds, the interest rate will decrease to the existing Reduced Rate. However, once you top up your Cash ISA with additional funds, your interest rate should go back to the Total Rate, inclusive of the Bonus Rate, if applicable.
Please note that if your deposit to the Cash ISA is still pending or just settled, the interest rate will be updated within one business day after the settlement of the deposit.
Furthermore, you are allowed to make up to 3 withdrawals every tax year. If you make more than 3 withdrawals, the bonus rate will decrease to the reduced rate for the current tax year. For more information about it, you can also check the withdrawal limitations page.
Additionally, please keep in mind that in case of a partial transfer out of your Cash ISA to another provider, the interest rate for the remaining amount in Plum will be set to the Reduced Rate.
The Cash ISA rates available to you will depend on when you first opened your Cash ISA account. Please see this page for more details.