Savers will benefit from Plum’s 4.94% money market account

Savers will benefit from Plum's 4.94% product that relies on money market funds that closely track the Bank of England’s base rate. We explain why this could be good news for savers.

Savers get a better rate
(Image credit: Getty Images)

As the war for savers’ cash heats up, we’re seeing some interesting products come to the savings market. The Bank of England (BoE) has pushed interest rates up to 5.25% this year as it tries to bring inflation under control, and initially, lenders were slow to pass these hikes onto savers. That’s changing rapidly. You can now earn over 6% on one-year fixed savings accounts (or 6.2% from the government-backed savings provider NS&I), and if you want to put a little away every month, Nationwide’s regular saver comes with an 8% interest rate

However, while there’s been a lot of progress in the fixed savings market, rates on easy access accounts are, for the most part, lagging. 

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Rupert Hargreaves
Contributor and former deputy digital editor of MoneyWeek

Rupert is the former deputy digital editor of MoneyWeek. He's an active investor and has always been fascinated by the world of business and investing. His style has been heavily influenced by US investors Warren Buffett and Philip Carret. He is always looking for high-quality growth opportunities trading at a reasonable price, preferring cash generative businesses with strong balance sheets over blue-sky growth stocks.

Rupert has written for many UK and international publications including the Motley Fool, Gurufocus and ValueWalk, aimed at a range of readers; from the first timers to experienced high-net-worth individuals. Rupert has also founded and managed several businesses, including the New York-based hedge fund newsletter, Hidden Value Stocks. He has written over 20 ebooks and appeared as an expert commentator on the BBC World Service.