Plum Interest launches in Ireland offering 3.45% rate for savers 

The smart app has partnered with global asset management firm, BlackRock, who are providing the money market fund that supports Plum Interest

The product is based on a type of highly liquid money market fund that, according to Plum, is "broadly considered the safest of its kind,"

Smart money app, Plum has launched a new 'Plum Interest' product, allowing Irish customers variable annual rates of 3.45%. 

It comes amid sustained criticism of Irish lenders to increase customer deposit rates following continued hikes from the European Central Bank. 

Currently, the ECB's deposit facility stands at 4%, however, according to Plum, the average interest rate on easy-access, restriction-free deposits at Ireland’s main three banks is just 0.95%.

"Plum Interest is designed to be an alternative for people’s savings so it doesn’t remain dormant in a low-interest account, combining higher rates with daily returns," the company said. 

The product is similar to a savings account, however, the smart app said it does not have the withdrawal and deposit restrictions associated with many higher interest products in Ireland. 

There are no transaction costs for moving into and out of accounts, according to the lender, adding that there is "no minimum or maximum deposit, and no subscription fees."

“Many traditional banks have been failing their customers on interest rates, leaving hard-earned money sitting idle and eroded by inflation," said Victor Trokoudes, Founder and CEO of Plum.

"Meanwhile, the larger banks are happy to ramp up the cost of lending when everyone’s finances are under immense pressure. People don’t have to accept the same old from banks that don’t have their best interests at heart." 

Plum has partnered with global asset management firm, BlackRock, who are providing the money market fund that supports Plum Interest.

The product is based on a type of highly liquid money market fund that, according to Plum, is "broadly considered the safest of its kind," explaining that invests fully in short-term assets issued and guaranteed by the Government.

Money market funds have been traditionally used by pension funds, large corporations and wealthy individuals to park their money and protect it against inflation, while also being able to access their money more quickly thanks to these funds’ higher liquidity.

“Money market funds shouldn’t be just the preserve of the few who can afford to access them," Mr Trokoudes continued. 

"They’re already a mainstream option for people to park their money and avoid low savings rates in the US. We’re bringing this revolutionary cash management option to our customers so they can diversify where they hold their money.” 

As well as Ireland, Plum Interest will be available to Plum customers in the UK, along with France, Spain, Italy and the Netherlands.