Latest news with #VictorTrokoudes
FF News
07-05-2025
- Business
- FF News
Plum Launches Lifetime ISA to Help People Save for Their First Home
Smart money app Plum is launching a Cash Lifetime ISA today, designed to help customers put money aside for their first home or retirement. The Plum Lifetime ISA, which is FSCS protected, offers an interest rate of 4.61% AER (variable), including a 1-year bonus of 1% AER (variable), as well as the Government bonus of 25%. This allows savers to build up their funds more quickly to give them the best chance of reaching their goals. Buying a house is a key milestone for many people, but the cost of buying in the UK has skyrocketed. First time buyers now need, on average, a deposit of £60,000 for their first home and with the cost of living having increased substantially over the last few years, savers need extra support as they plan for this major goal. To help with this, Lifetime ISAs were launched by the UK Government in 2017 to give savers a boost when putting money aside for a first home or retirement, within the ISA tax wrapper. Now Plum is bringing this product to its UK customer base, with the intention of offering Plum customers a range of holistic options for growing their money over the long-term. Plum CEO and founder Victor Trokoudes comments: 'With the continued popularity of our Cash ISA since launch, it has become clear that many of our customers are keen to keep their money within a tax-wrapper and benefit from high interest rates. We'll be bringing the benefits of ISAs to a new audience with the launch of our Lifetime ISA, which is designed to reward savers for having a goal and keeping up the habit consistently over time.' 'By offering a Lifetime ISA along with our other money management products, we're giving our customers a brilliant opportunity to boost their stash and grow their money for life. High interest, paired with tax benefits and the Government bonus, ensures that the returns from money set aside into the Lifetime ISA can give customers the opportunity to grow their cash over time. This should help them along the way to reach their key life goals, such as buying their first home, or saving for retirement'. Plum's Lifetime ISA will sit alongside the app's other popular money management products, including a Cash ISA, Stocks & Shares ISA, and General Investment Account with stocks. The app now has more than 2m customers across Europe and holds over £2bn in assets under administration. People In This Post Victor Trokoudes Plum
Daily Mail
06-05-2025
- Business
- Daily Mail
Money app Plum launches Lifetime Isa: What's the rate and is it a good deal?
Plum has launched a Lifetime Isa, offering a cash boost to those looking to get on the housing ladder or save for retirement. The popular money app's new cash Lifetime Isa will offer a variable rate of 4.61 per cent. This includes a 1 per cent bonus for 12 months. After that, the rate will be 3.61 per cent. Lifetime Isas offer savers a Government bonus of up to £1,000 per year on their cash, but there are several eligibility criteria and restrictions - see below. Plum's cash Isa comes with FSCS protection up to £85,000 and can be opened with a deposit starting from £1, through Plum's app. The funds are deposited with Citibank and Lloyds. Plum CEO Victor Trokoudes said: 'By offering a Lifetime Isa along with our other money management products, we're giving our customers a brilliant opportunity to boost their stash and grow their money for life.' Transfers in from other Lifetime Isas are permitted and will be eligible for the 1 per cent Plum bonus rate. > Best cash and Lifetime Isa rates: Compare accounts using our best-buy tables How do Lifetime Isas work? Lifetime Isas allow under-40s to save for a home or for retirement, and the Government offers a generous 25 per cent top-up on their contributions. Savers can put up to £4,000 in the account each tax year and the Government will add a 25 per cent bonus on their funds, up to a maximum of £1,000 each year. You must be aged between 18 and 39 to open the account, but you can keep contributing until you reach the age of 50. However, savers are only allowed to withdraw the money in one of three scenarios, or they will get charged a 25 per cent withdrawal fee. First, purchasing their first home, which must cost less than £450,000; second, if they are over the age of 60; or third, because they are terminally ill with less than one year to live. Any withdrawals within 12 months of your first payment will also incur a 25 per cent Government withdrawal charge. The £450,000 property purchase limit has drawn criticism as this hasn't risen along with property prices. Some also have concerns that the accounts could prevent young people from saving into pensions, which could be more lucrative in the long term. However, for those under 40, saving for a deposit for a first home, who have never owned a property anywhere in the world before and meet the other qualifying criteria, the 25 per cent uplift on up to £4,000 per year paid in is a big boost. How does Plum's Lifetime Isa compare to the rest? Plum's Lifetime Isa does not take the top spot for the best rate offered by a Lifetime Isas, but the rate is still competitive. Moneybox has a Lifetime Isa which pays 4.7 per cent. This includes a 1.51 per cent bonus which lasts for 12 months. After that the rate returns to the underlying rate of 3.55 per cent. The next best rate for a cash Lifetime Isa comes from Paragon Bank which offers 3.51 per cent. This rate does not include a bonus rate.
