Plum, a money management app, has increased its Cash ISA interest rate to 5% AER (variable) as a special offer for new customers. The rate, described as "market-leading," is available only for a limited period.
Customers who open a Cash ISA with Plum between 25th and 30th September 2026 will be eligible for the 5% AER (variable) rate, which includes a 2.46% AER bonus for the first 12 months.
CEO urges savers to act fast
Victor Trokoudes, CEO and founder of Plum, said: "September is a time of year where people look carefully at their savings and focus on the goals ahead. Summer spending is over, and the festive season and new year are looming on the horizon. When every penny counts, people need to make sure that the money they save is working as hard as possible."
"With that in mind, we're giving people an incentive to open a Cash ISA now by offering them the best interest rate on the market for a short time only," he added. "5% for 5 days is a clear, compelling offer and hopefully the incentive savers need."
Rate far higher than base rate
Mr Trokoudes said Plum's 5% AER rate is "far higher than both the Bank of England's base rate and the inflation rate, ensuring that customer money is growing in real terms while also being protected from tax."
The Plum Cash ISA is flexible, allowing customers to withdraw funds and replace them within the same tax year without affecting their annual £20,000 Cash ISA allowance. It is accessible with a minimum balance of just £1 and comes with automated saving rules to help people build their Cash ISA more easily.
Moneyfacts comment
Adam French, head of consumer finance at Moneyfactscompare.co.uk, said: "Plum has boosted its Cash ISA interest rate to a comfortably market-leading 5% AER which includes"
"However, tax-savvy savers will need to act fast as this eye-catching return is only available to new customers who open a Cash ISA with Plum via its mobile app between 25th and 30th September 2026," he added.
Mr French noted that savers should be aware that the rate is variable, "so the underlying rate is subject to change." He added: "Interest is paid monthly and you can open an account with as little as £1 to save."
Plum itself isn't a bank, but says it uses "bank-grade protection for your personal information and your money is held with authorised banks."
Key product details include a rate of 5.00% AER (Variable) inc 2.46% AER bonus rate for 12 months / 4.96% gross (Variable) inc. 2.44% gross bonus rate for 12 months. There is no notice or term, the minimum opening amount is £1, and the maximum investment amount is the ISA allowance. Access is for new customers who haven't opened a cash ISA with Plum before. Transfers in are permitted but receive the lower rate of 3.75% AER (variable) which includes a bonus rate of 1.21% AER (variable). Transfers out are permitted, but no interest is paid for the month if closure or transfer out is requested. The account is opened and managed via the mobile app. Savers can choose to split their Cash ISA savings across multiple ISAs within Plum's range of Cash ISA, stocks and shares ISA and Lifetime ISA.
