Plum Lifetime ISA Review: 4.44% AER (Sep 2026)

Protection

FSCS

Up to £120,000

Min balance

£1

Max balance

£4,000

Access

Age 60+ or first home

Interest paid

Monthly

Transfers in

Accepted

25% withdrawal penalty - Funds can only be withdrawn penalty-free to buy your first home (property must cost £450,000 or less) or from age 60. Withdrawing for any other reason incurs a 25% government charge, equivalent to losing 6.25% of your own money.

The Rate You'll Get

Learn more about Plum

First 12 months

Boosted

4.44%

AER

Includes a 1.33% boost for 12 months

Standard rate (after 12 months)

3.11%

AER

Who Is This For

Savers happy with a £4,000 cap

Additional Info

App-only account. The government adds a 25% bonus on contributions up to £4,000 per year - worth up to £1,000 annually. Deposits held with Lloyds Bank and Citibank - FSCS protection is shared across other accounts held with those institutions. For full eligibility rules and first-time buyer conditions see our ISA Guide.

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Estimated returns with Plum's Lifetime ISA

Want to know how much interest you will receive with Plum's Lifetime ISA?

Estimated interest

£1,000 saved

£44.40

At 4.44% AER

£2,000 saved

£88.80

At 4.44% AER

£3,000 saved

£133

At 4.44% AER

£4,000 saved

£178

At 4.44% AER

Estimated over one year, assuming the rate stays the same and interest stays in the account. Amounts outside this account's minimum or maximum balance are left out.

Our Expert Opinion on Plum Lifetime ISA

The Plum Lifetime ISA pays 4.44% AER right now, though it is worth knowing that figure is made up of a 3.11% base rate plus a 1.33% boost that only lasts 12 months, so the rate will drop after that period. This account suits first-time buyers saving towards a property up to £450,000, or anyone under 40 saving for retirement from age 60. The critical catch is the 25% government withdrawal penalty for any other purpose, which in practice means you lose more than just the bonus - roughly 6.25% of your own money. If you want a marginally higher rate now, Moneybox Cash Lifetime ISA is currently at 4.45% and worth a look.

Plum Lifetime ISA Review4.44% AER (Sep 2026)

The Rate You'll Get

Who Is This For

Additional Info

Estimated returns with Plum's Lifetime ISA

Our Expert Opinion on Plum Lifetime ISA

3 alternatives to Plum's Lifetime ISA

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