February 13, 2022

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It’s no secret that the cost of living keeps going up, but it can be hard to know where to start when it comes to saving money. Luckily, there are a number of money-saving apps available that make putting money away effortless. Two of the most popular auto-saving apps are Chip and Plum. But when it comes to Chip Vs Plum which is better?

Chip and Plum both connect to your existing bank account using open banking technology. They both use sophisticated algorithms to figure out how much you can afford to save each month. However, there are some key differences between the two apps that might make one better for your needs than the other. This article will compare and contrast Plum vs Chip so that you can decide which is best for you.

Short on time? Here's the free account for both Chip and Plum basic overview

Chip Basic (free)

Plum Basic (free)

Spare Change Round Up

Spare Change Round Up

Best Interest rate currently available: 0.61% Provided by Allica Bank FSCS protected

Best Interest Rate Currently Available: 0.25% provided by Investec Bank FSCS protected.

Chip Savings Account FSCS protected? Yes powered by ClearBank

Plum savings account FSCS protected? No, money is emoney account which is ringfenced and safe but not covered under FSCS. 

Bill savings feature? No 

Bill savings feature? Yes

Want a in-depth look? Chip App Review

Want a in-depth look? Plum App Review

Download Plum for Free

Both accounts offer a lot more than above so keep reading to get the full information!

Related article: Best Money Saving Apps

Chip vs Plum: Account Options

Both Plum and Chip will connect to most banks, meaning you won't have to switch your current account to use either of the apps.

In my opinion Chip accounts, options are much more straightforward, with only 2 options to choose from it's easy to get your head around.

The first option, Chip, is for those looking for a basic savings account. With standard Chip you can opt for an interest account for free it is FSCS-eligible and powered by Allica bank. The interest rate for this account is 0.61%.

The second option, Chip X, includes everything from Chip plus full access to all of their investment funds (capital at risk, additional fees apply) and stocks and shares ISA and costs £3 a month. With Chip X you have the ability to invest in ethical and clean energy funds, actively managed funds. Chip says that their annual platform fee of 0.25% for investing is one of the lowest in the industry. Chip X allows you to either set up a general investment account or a Stocks and Share ISA (if you don't have one already).

chip ai saving scale showing how you can save money with chip a free budgeting app

Plum has 4 account options, each with its own unique benefits. The first option, plum basic, is free to use and gives the user access to earn interest on their opt-in savings pockets (0.25% interest rate), round up purchases, access to plum to try and lower their bills. If you don't opt for a savings pot with Plum the money is stored as digital cash by an external e-money provider, although this money is protected it isn't insured by the FSCS.

The second option, Plum Plus, costs £1 a month and comes with a higher interest rate of 0.40%, and allows the user to invest (capital at risk).

The third option is Plum Pro which costs £2.99 a month and gives the user access to set goals, take part in savings challenges and be eligible for cashback at selected retailers

The final option is Plum Ultra which costs £4.99 a month and allows the user a real-time view of spending

plum ultra features as seen in plum app

Who Wins?

Overall, Chip has the more straightforward account options. There is only one option that comes with no cost and two additional options that come at a price.

For the free option, Chip is the clear winner offering a much higher interest rate on its basic option of 0.61% vs Plums 0.25% meanings Chip savings do give you slightly better value for money.

Plum wins when it comes to the number of features they offer, their savings challenges that are included on their plus and pro accounts, make saving fun and interesting. The 52-week saving challenge for instance helps you automatically save £1378 over the course of a year. Their Bills and offers feature is also a nice feature to prompt those who want to save money to compare their bills.

Related Article: Best Automatic Saving Apps

Chip vs Plum: Features

Chip and Plum are both great apps for saving money, but they have different features. In this summary, we will compare the savings features only if you want to see the difference for investment options visit the investment comparison section of this article.

Chip Features

Chip has FSCS (financial services compensation scheme)-eligible savings accounts, which means that any money deposited in Chip is covered by the FSCS.

This government scheme protects your money if the bank goes bankrupt. Additionally, Chip always negotiates with banks to bring you even better rates on your savings account. You also get interest paid every single day.

Withdrawals are unlimited and penalty-free, and Chips auto-saving technology can put aside money for you. You can also keep track of your savings goals and stay motivated as you build your savings as standard.

We found the Chip app really easy to use, it has a built-in savings tolerance bar in which you can choose on a scale of 1-5 on how you want the app to auto save for you.

Tip: Make sure you switch notifications on and Chip will remind you via notification and email before it withdraws any money from your account to save.

Download Chip

Plum Features

Plum feels like more of an all-around money management app than a pure savings app. Unlike Chip, Plum connects all your bank(s) and credit cards to create one smart account that can help you control your spending and find the best deal on household bills.

To qualify for FSCS protection with Plum your savings must be kept in one of their 'interest savings pockets' which you must opt in to (for free).

You can keep track of your regular bills and payments, get helpful alerts if you can save money on your home utility bills. The app also saves money for you automatically; you set up smart rules, then let the app do the rest.

What we like about Plum is how they have integrated popular savings challenges like the 52-week saving challenge directly into the app, for those who like a challenge will prefer Plums approach to saving.

plum pay days saving feature

Although the interest rate is less with Plum savers who are motivated we different challenges have more ways to save. Included in their Plum basic offering you can round up spare change, save a set amount each week and even have the app advise you on an amount to save on pay day!

Winner: Overall Winner - Plum for paid account and Chip for free. Plum takes the crown for overall features, but Chip is the winner when it comes to interest rates and features available on its free account.

Automatic Saving Capability

Both accounts have great auto-save capabilities, they both do this without a monthly fee attached. In summary, they are both excellent savings apps.


Chip offers a weekly round-up saving feature which is great for those who don't have a lot of time to save. In addition to round-ups, Chip will tell you how much it thinks you can afford to save, You can also customise how aggressive you want Chip to be with its savings recommendations within the app.

1 for not so aggressive for 5 to save as much as possible. You can also set your own savings goals as standard within the app i.e. a goal of £600 for a holiday. All of this is included as standard with Chip basic.

chip ai saving scale showing how you can save money with chip a free budgeting app

Plum app

For Plum, their automated savings technology is a little different depending on which plan you are on. In all plans, Plum has the ability to round up spare change, and set aside money based on how much it thinks you can save. Like Chip, Plum will also ask you how aggressive you want them to be with your savings in their ai algorithm, we liked the quirky personality of these names - making finance a little less boring!

plum app review imagine showing saving moods feature

What sets it apart is its quirky savings challenges such as the rainy day challenge which saves money every time it rains!

Although, if you want to attach goals, have multiple savings pockets, and take part in their unique savings challenge you will have to pay Plum plus which is £2.99 a month.

Winner: Chip wins simply because of the value for money you can get for no extra cost. However, if you are specifically looking for a way to take part in savings challenges and like quirky ways to save Plum is a clear winner.

Related Article: Best Budgeting Apps

Chip vs Plum: Withdrawals

When it comes to withdrawals, Plum is the clear winner.

Withdrawals from a Chip account can take up to 2 days, while withdrawals from a Plum account are the same day if completed before 15:00, and the next working day if after 1500pm.

Some users have commented that Chip withdrawals can be a little slow.

Chip vs Plum: Investments

Both Chip and Plum allow you to invest money in their apps. Although it's worth noting you should do some research before diving into this feature.

Disclaimer: Before we go through the investment account options, it is important to note we are not endorsing investing. Investing should be based on your personal circumstances and only you can decide if it's right for you, if in doubt get advice from a certified financial advisor.  Investing in stock markets is a risk: while you could earn small or earn big, you could lose small or lose big – and end up empty-handed. You should be aware of this before you invest in any app.

Chip Investing

Chip Cost: £3/28 days

Chip investing offers a range of investments to choose from, offer the potential for good returns (capital at risk).

You can invest in ethical and clean energy funds, emerging markets funds, and actively managed funds. There is also a range of innovative new funds available, such as our new Crypto Companies fund.

Related Article: Best Crypto Apps UK

They also offer the option of getting a stock and share isa which is a tax-efficient way of investing. Additionally, there is a low investment platform fee of just 0.25% annual platform fee.

Chip investing seems suited for an investor with some knowledge of investments, how they work and what to look for.

Plum Investing

Cost: Available to Plum Plus and above £1 a month.

plum investing platform review

Subject to additional fund management fees which are stated depending on which fund you invest in.

Plum is a low-cost investment option that allows you to invest in a variety of funds with as little as £1. Funds are automatically split between chosen investments and you can deposit or withdraw money at any time. You have control over your investments and can choose how much you want to invest

Plum offers a good variety too with 12 investing funds to choose from, all with different risks and returns.

The average annual management fee for normal funds is 0.48%, which is a little higher than Chip.

Winner: In terms of investing Chip and Plum both offer great easy use platforms that open up investing to those who don't want to invest a lot of cash. Chip is well suited if you have some knowledge of investments, how they work, and what to look for, it is also a great option if you are looking for ISA options and to invest in Crypto.

While Plum is ideal if you're looking to start investing but don't want to invest a lot of money. Plum is also expanding their service and soon will offer the option to invest in individual stocks.

Customer reviews

Both apps do receive excellent reviews on App store ratings and on popular review websites like Trustpilot. Undoubtedly Plum has the edge when it comes to customer reviews as it has the highest amount and scores slightly higher on both app store and Trustpilot.

Winner: It seems both apps have exceptional reviews and have worked hard to create easy to use apps that the majority of users have an excellent experience in. But Plum wins this round for scoring the highest.

Plum vs Chip: Bottom Line

Both Plum and Chip are excellent money management apps and will suit different people based on what your goals are, both get excellent reviews from their customers and I have found both really easy to use.

If your goal of saving money is to make more interest, Chip will be the better option without monthly costs.

This may not matter much if you're simply looking for an automated way of saving some cash without thinking too hard about it.

With Plum, there are different features that allow savers to take control over their spending habits and save even more money by using smart rules or taking part in savings challenges.

Thanks for reading our article about Chip vs Plum! We hope this article has helped you decide which automatic savings app is better suited to your needs. Please let us know what you decided in the comments below!

About the author 

Mary Elizabeth

Mary Elizabeth is a passionate advocate for financial freedom. She is the founder of MeMoreMoney, and a featured Personal Finance expert in GO Banking Rates and Yahoo! Finance. Mary loves to make money simple and understandable for everyone. Her goal is to help people make simple changes so that they have more money to live the way they want.

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