Plum Automatic Saving

Money, investing, mutuals etc
planteria
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Plum Automatic Saving

Post by planteria » Fri Nov 17, 2017 9:35 pm

this looks interesting too.. 3% interest :mrgreen:

https://withplum.com/

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Re: Plum Automatic Saving

Post by AAAlphaThunder » Sat Nov 18, 2017 5:29 am

planteria wrote:this looks interesting too.. 3% interest :mrgreen:

https://withplum.com/
When I was looking at similar things it was the fees that were making it economically unviable. There seem to be no fees.
Yep, nada. Unlimited free deposits and withdrawals into your Plum savings.
Are there any other fees like for example yearly percentage fee?
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Re: Plum Automatic Saving

Post by parchedpeas » Sat Nov 18, 2017 8:13 am

It uses Ratesetter as it's backbone, so there is an element of risk involved and funds won't be protected.
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planteria
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Re: Plum Automatic Saving

Post by planteria » Sat Nov 18, 2017 5:44 pm

that's right.. no fees, but some risk.

anyone here on board?

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Re: Plum Automatic Saving

Post by hugginhill » Sun Nov 19, 2017 12:40 am

Huge risk. Huge fees (they're paid by the borrower, but are there nonetheless). If you want to do peer-to-peer lending go direct to where you can see what's going on. Selling this as small scale, short term savings is appalling. The major banks are losing money on consumer debt at 20%+ interest rates. To suggest that 3% is realistic is just playing to the gullible.
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Re: Plum Automatic Saving

Post by AAAlphaThunder » Sun Nov 19, 2017 5:24 am

hugginhill wrote:Huge risk. Huge fees (they're paid by the borrower, but are there nonetheless). If you want to do peer-to-peer lending go direct to where you can see what's going on. Selling this as small scale, short term savings is appalling. The major banks are losing money on consumer debt at 20%+ interest rates. To suggest that 3% is realistic is just playing to the gullible.
I thought it was a saving account. Peer-to-peer no thanks from me - too risky for me.

I'm out.
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Re: Plum Automatic Saving

Post by pabenny » Sun Nov 19, 2017 9:18 am

Website blurs the line between saving (ie cash deposits, capital not at risk and interest pre-set) and investments (capital at risk and interest dependent on performance) by talking about how your savings are invested.

Plum are only an intermediary - cash funds are held by MangoPay and deposited with Barclays. Investments are pooled investments via RateSetter.

This looks hugely complicated, especially for a piffling return. It will be a field day for accountants and lawyers if/when it goes wrong. The FAQ answer about "Are my my savings insured" is a master of misdirection and obscures the fact that there appears to be no protection whatsoever for any funds deposited via Plum.

I'm out.
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planteria
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Re: Plum Automatic Saving

Post by planteria » Sun Nov 19, 2017 11:12 am

interesting, yes. i've not allocated funds to P2P so far, but i'm open to the idea.

if small amounts can be 'invested' via Direct Debit then it could be a useful way to satisfy current account criteria, for example.
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Re: Plum Automatic Saving

Post by William Joseph1 » Sun Nov 19, 2017 11:15 am

Who would want to satisfy current account criteria at the risk of losing money?
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planteria
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Re: Plum Automatic Saving

Post by planteria » Sun Nov 19, 2017 11:48 am

me, potentially, along with many others. anyone who is investing is putting money at risk. anyone that is holding cash generating a rate of interest below inflation is losing money. and if the values are low enough then rewards/interest from current accounts could be greater than the amount being put at risk.

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