Plum launches ‘market-leading’ Cash ISA with ‘eye-catching return

The deal, which tops every other easy-access rate currently available, comes at a critical moment for tax-free savers.

From the next tax year, the £20,000 Cash ISA allowance will be restricted to those aged 75 and over, meaning this could be one of the last chances for younger savers to shelter a significant sum from the taxman.

To qualify, customers must open their account through Plum’s mobile app during the six-day window running from 25th to 30th September.

The headline rate of five per cent AER comprises an underlying rate of 2.54 per cent topped up by a bonus of 2.46 per cent that applies for the first 12 months.

Savers can get started with as little as £1, and deposits are protected by the Financial Services Compensation Scheme up to £120,000 per eligible depositor.

The account offers easy access, with withdrawals typically processed within one working day.

It is also flexible, allowing customers to take money out and replace it in the same tax year without eating into their £20,000 annual Cash ISA allowance.

Those transferring existing ISA funds into the account will receive a lower rate of 3.75 per cent AER (variable).

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Interest is paid monthly, though no interest is awarded for any month in which a closure or transfer out is requested.

Victor Trokoudes, chief executive and founder of Plum, said the offer was designed to encourage people to act before the window closes.

“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.

“Five per cent for 5 days is a clear, compelling offer and hopefully the incentive savers need,” he said.

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Mr Trokoudes stressed the importance of timing, noting: “The £20,000 allowance is set to only be available to people aged 75 years or older from the next tax year, so it’s essential that people take advantage now.”

He added that the five per cent rate sits comfortably above both the Bank of England’s base rate and inflation, meaning savers’ money grows in real terms while remaining shielded from tax.

Adam French, Head of Consumer Finance at Moneyfactscompare.co.uk, described the rate as “comfortably market-leading” but urged savers to move quickly.

“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,” Mr French said.

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He cautioned that because the rate is variable, the underlying return could shift over time. Interest is paid on a monthly basis, he noted, and accounts can be opened with just £1.

Beyond the competitive rate, Plum also provides automated saving rules to help customers build their ISA balance more easily.

Savers can additionally choose to split their Cash ISA savings across Plum’s range of products, including its stocks and shares ISA and Lifetime ISA.