Plum Launches Lifetime ISA to Help People Save for Their First Home

Smart money app Plum is launching a Cash Lifetime ISA today, designed to help customers put money aside for their first home or retirement.

The Plum Lifetime ISA, which is FSCS protected, offers an interest rate of 4.61% AER (variable), including a 1-year bonus of 1% AER (variable), as well as the Government bonus of 25%. This allows savers to build up their funds more quickly to give them the best chance of reaching their goals. 

Buying a house is a key milestone for many people, but the cost of buying in the UK has skyrocketed. First time buyers now need, on average, a deposit of £60,000 for their first home and with the cost of living having increased substantially over the last few years, savers need extra support as they plan for this major goal. 

To help with this, Lifetime ISAs were launched by the UK Government in 2017 to give savers a boost when putting money aside for a first home or retirement, within the ISA tax wrapper. 

Now Plum is bringing this product to its UK customer base, with the intention of offering Plum customers a range of holistic options for growing their money over the long-term. 

Plum CEO and founder Victor Trokoudes comments: “With the continued popularity of our Cash ISA since launch, it has become clear that many of our customers are keen to keep their money within a tax-wrapper and benefit from high interest rates. We’ll be bringing the benefits of ISAs to a new audience with the launch of our Lifetime ISA, which is designed to reward savers for having a goal and keeping up the habit consistently over time.”

“By offering a Lifetime ISA along with our other money management products, we’re giving our customers a brilliant opportunity to boost their stash and grow their money for life. High interest, paired with tax benefits and the Government bonus, ensures that the returns from money set aside into the Lifetime ISA can give customers the opportunity to grow their cash over time. This should help them along the way to reach their key life goals, such as buying their first home, or saving for retirement”.

Plum’s Lifetime ISA will sit alongside the app’s other popular money management products, including a Cash ISA, Stocks & Shares ISA, and General Investment Account with stocks. The app now has more than 2m customers across Europe and holds over £2bn in assets under administration.