Plum App Review: Is It Legit or A Scam?

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  • Post published:February 16, 2024
  • Post category:Reviews

Plum is a popular finance app that aims to help users effortlessly save and invest their money. The app analyzes users’ income and spending patterns and automatically sets aside small amounts of money periodically that they are unlikely to miss. This money is invested with the goal of steadily growing users’ savings.

But is Plum legit and safe to use or is it a scam? In this comprehensive review, we’ll take an in-depth look at how Plum works, its features, security, and legitimacy to help you decide if it’s right for you.

Overview of Plum

Plum is a London-based fintech company founded in 2016 that offers an AI-powered app to automate savings and investments. The app links to users’ bank accounts and analyzes their income, bills, and spending habits to determine how much they can afford to save periodically without impacting their lifestyle. This money is deposited into a Plum savings account and then intelligently invested in stocks and funds to grow the savings over time.

Some key things to know about Plum:

  • Free to use: Plum does not charge any fees to use the basic savings features. It makes money by taking a small cut of the returns from investments.
  • AI-powered: Uses machine learning algorithms to analyze finances and make smart saving and investing decisions automatically.
  • Plum savings account: Money saved is held in an account with an associated debit card that allows easy access to the funds. The account is provided by Plum rather than a traditional bank.
  • Investing features: Users can choose to have Plum invest a portion or all of their savings to potentially grow their money over the long-term.
  • Mobile app: Plum is available as a mobile app on iOS and Android devices. There is no web version.

How Plum’s Auto-Saving Works

Plum’s key feature is its ability to automatically save small amounts of money for you effortlessly. Here is an overview of how it works:

  • Link bank accounts: You connect your bank accounts to Plum so it can analyze your income streams and spending.
  • Learn spending patterns: Plum uses AI and algorithms to study your income, bills, and spending history over a period of time.
  • Determine safe amount to save:Based on the analysis, Plum determines a “safe” amount of money that you are unlikely to miss or need for bills if it’s set aside each week or month.
  • Automatically save: Plum then periodically and automatically transfers the safe amount from your connected bank account into your Plum savings account.
  • Access savings: You can view your Plum savings and track its growth over time. The money is easily accessible via the Plum debit card or bank transfer.
  • Adjust over time: Plum continually analyzes your finances and adjusts the automatic savings amount as your circumstances change over time.

The idea is that by saving small, painless amounts frequently, your savings can steadily build up in the background without you having to think about it or make manual transfers.

Plum App Features

Beyond the core auto-saving functionality, the Plum app offers several other useful features:

Savings Account

The Plum savings account acts as the destination for your automated savings. It works similarly to a standard bank account and comes with a debit card for easy access to your money. The account is provided by Plum rather than an external bank. Your money is insured and kept separate from Plum’s finances for security reasons.

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Investing & Pension Accounts

For more hands-on investors, Plum offers the option to invest your savings so they can potentially grow faster over time. You can choose conservative investment funds or pick individual stocks. There are also self-invested personal pension (SIPP) accounts to save for retirement.

Budgeting Tools

Plum can break down your spending by categories over time so you can see where your money goes. A bill tracker is also available to ensure you pay recurring bills on time.

Round Up Spare Change

To boost savings faster, Plum can round up purchases on your bank card to the nearest pound and deposit the spare change into your Plum account.

Financial Insights

Plum provides personalized insights and tips based on your finances to help you better manage your money.

Zapier Integration

You can connect your Plum account to other apps and services via Zapier. This allows you to trigger actions like automatically investing your Plum savings.

Web App (Coming Soon)

Plum has announced plans to launch a web version alongside its mobile app to give users more options to manage their account.

Is Plum Safe? Security & Protection Analysis

Since Plum links to your bank accounts and handles your money, safety and security are major considerations when deciding whether to use this app. Here we’ll analyze the various ways Plum keeps your data and money protected:

  • Bank-level encryption: Your data is encrypted in transit and at rest using 256-bit AES, the same encryption used by major banks. This prevents hacking of sensitive information.
  • ReadOnly access: Plum’s access to your bank account is ReadOnly. This means it can analyze transaction data but cannot withdraw or transfer funds on its own.
  • Financial Conduct Authority authorized: Plum is authorized and regulated by the FCA, the official financial watchdog in the UK. This requires meeting strict standards.
  • Account segregation: Your Plum savings are held separately from Plum’s money, ensuring that in the extremely unlikely event Plum fails as a business, your money is protected. This meets FCA requirements.
  • 2-factor authentication: Logging into your Plum account requires two-factor authentication for enhanced security beyond just a password.
  • PIN for payments: To use your Plum debit card for purchases requires inputting a PIN for verification.
  • Activity alerts: You receive instant notifications any time money moves in or out of your Plum account so you can catch unauthorized activity.
  • Customer support: Plum has knowledgeable customer support available to assist with any security issues.
  • No overdrafts: The Plum account cannot become overdrawn, eliminating that risk.

While no system is completely immune to hacking, Plum appears to take the necessary precautions and safeguards to protect user data and money to standards comparable to traditional banks. Many customers report feeling safer using Plum compared to other fintech apps.

Plum App User Reviews

Plum has generally positive user reviews and ratings across app stores and online review sites. Here is an overview of the feedback:

  • Simple and easy to use: Most users praise how Plum is intuitive and easy to set up compared to other money management apps. Even those new to fintech can start saving with little learning curve.
  • Money saved effortlessly: Many love how they can save without thinking about it or changing habits. Plum runs quietly in the background accrual savings.
  • Good for “forgetful” savers:Those who have trouble remembering or finding the motivation to manually save appreciate Plum automating the process for them consistently.
  • ** Peace of mind from automation**: Users feel more secure and less stressed knowing Plum is saving them money like a digital personal finance expert.
  • Smart investment features:Experienced investors like having the option to invest through Plum and appreciate the algorithmic insights.
  • Some minor gripes: Some people don’t like the lack of a web version currently or want more investment customization options. Plum’s customer service also receives mixed reviews.
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On the whole, most users seem very satisfied with Plum and love the experience of effortless, automated saving. Many report they were able to save far more than trying to do so manually.

Plum App Review: Is It Legit or A Scam?

Based on the available information and user experiences, Plum appears to be a legitimate app and not a scam. Here are the key reasons why it can be considered trustworthy:

  • Official authorization and regulation by the Financial Conduct Authority, which has strict standards.
  • Proper security precautions taken including bank-level encryption of data.
  • No major concerns found from user reviews regarding missing funds or other suspicious activity.
  • Savings held separately from company finances for account protection.
  • Generally positive feedback from the majority of users over several years.
  • Publicly known and established team behind Plum that is reachable.
  • Reasonable savings model that aligns incentives by taking a small cut of investment returns rather than charging subscription fees.

Of course, users should still exercise reasonable caution as with any fintech app that links to your bank account. Be sure to enable two-factor authentication and payment PINs for added security. Carefully read Plum’s terms and conditions before signing up. Start slowly by connecting a secondary bank account first.

But based on all the available data, there are no glaring red flags or reasons to believe Plum is a scam. The app takes appropriate steps to secure and protect user money while delivering a generally high-quality and easy-to-use savings experience customers appreciate.

Pros and Cons of Using Plum


  • Automates and simplifies saving
  • Helps you save more with “painless” small deposits
  • AI-powered algorithm provides personalized insights
  • Useful budgeting and bill tracking features
  • Investing and pension account options to grow savings
  • Easy to withdraw or access savings as needed
  • Generally positive user reviews and feedback
  • Authorized and regulated for safety


  • Currently lacks a web version (coming soon)
  • Some users report minor customer service issues
  • Less control and customization for hands-on investors
  • Doesn’t integrate with all banks and accounts
  • Requires sharing financial data and linking accounts

Who is Plum Best Suited For?

Plum’s automated set-and-forget savings approach appeals most to:

  • Passive savers: Those who struggle to save manually or want a hands-off approach appreciate Plum automating everything in the background.
  • Busy people: If you have an unpredictable schedule or simply don’t want to spend time thinking about finances, Plum takes over the legwork.
  • Younger users: Younger millennials and Gen Z starting their financial journey can benefit from Plum’s AI insights.
  • Visual learners: Plum’s graphs and spending breakdowns appeal to those who learn visually.
  • Forgetful savers: If you want to save but often forget to make transfers, Plum does the remembering for you.
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Plum likely offers fewer benefits to more hands-on personal finance managers who want to control the details and customize investments. But overall it can appeal to a wide range of users.

Getting Started With Plum

Ready to give Plum a try to start automating your savings? Here is a quick step-by-step guide to getting started:

  1. Download the Plum app for iOS or Android devices.
  2. Create an account and connect the bank accounts you want Plum to analyze.
  3. Review the suggested automatic savings amount and adjust if desired.
  4. Enable auto-investing if you want Plum to invest your savings (optional).
  5. Sit back and let Plum work in the background automagically saving you money each week/month!
  6. Check the app periodically to monitor your savings progress and make any adjustments.

It just takes a few minutes to get started. Plum makes it quick and painless to begin automating your personal finances.


Plum is a fintech app that aims to simplify saving money using AI insights and automation. Based on this comprehensive review of its features, security, user feedback and legitimacy, Plum appears to be a solid choice for effortlessly building your savings over time.

The app has a reasonable approach to make saving a “set and forget” process by safely automating transfers of small amounts you are unlikely to miss. Users praise the intelligent and easy-to-use experience. Importantly, Plum takes proper security precautions and is authorized by regulators to provide peace of mind.

While hands-on investors may want more control, Plum provides an innovative option for the many people who struggle to save consistently on their own. Overall there are no major red flags based on the available information and Plum can be recommended as a legitimate app worth trying.

Just be sure to start slowly and carefully evaluate if it aligns with your unique financial situation. Used wisely, Plum can be a helpful tool on your journey to financial independence.

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