All the things you must know in regards to the Chip Immediate Entry account
Chip’s app and Immediate Entry account supply a wide range of options that will help you make extra out of your financial savings.
Right here, we do a deep dive into the app, the way it works and the professionals and cons to contemplate.
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What’s Chip?
Chip is an automatic financial savings and funding app based in 2016 that’s managed utilizing your smartphone.
It lets you join your checking account to the app by means of Open Banking to make transferring cash into and out of your financial savings account simpler inside the app.
When it began, Chip was all about utilizing sensible expertise that will help you save. However now there’s a cost to make use of these, it’s moved to grow to be a extra conventional financial savings supplier – although normally with some very first rate charges.
You may as well make investments with Chip, although most of those options require you to pay a month-to-month price.
Key options
Chip provides a wide range of options that will help you save and make investments together with:
- As much as £50 bonus: you’ll be able to earn a bonus of as much as £50 when opening Chip Immediate Entry account (Extra on the way it works right here.)
- Curiosity paying accounts: Chip provides comparatively aggressive curiosity with its Immediate Entry account at the moment paying 4.84%.
- Prize Financial savings Account: savers can win prizes starting from £10 to £10,000 in a Premium Bonds-style month-to-month prize draw
- Automated financial savings: Chip makes use of AI to analyse your spending habits to calculate how a lot you’ll be able to afford to avoid wasting, although it fees for this. You may learn extra about this characteristic in our separate information (LINK)
- Recurring saves: you’ll be able to arrange your personal automated common funds into your financial savings and funding funding accounts.
- Financial savings objectives: Chip lets you set targets to avoid wasting in the direction of e.g. for a vacation or home deposit.
- Investing: you’ll be able to make investments your cash through Chip, and likewise open a Shares and Shares ISA with the paid ChipX subscription.
- FSCS safety: Although Chip itself doesn’t have FSCS safety, its associate banks do, so as much as £85,000 of your cash held in a financial savings or funding account is protected with Chip (There are some instances the place your cash will likely be protected by means of a course of known as “safeguarding” as a substitute which we clarify extra about right here.)
Chip particular provides
Chip frequently runs offers for brand new, and even generally for current prospects.
In addition to the welcome supply listed under, Chip will sometimes additionally supply particular person prospects a bonus charge relying on a wide range of components together with:
- Your worth plan
- In case you refer a good friend
- In case you use a promotional code
- In case you maintain funds within the Chip Immediate Entry account for a sure period of time
As much as £50 welcome bonus
Chip is providing new prospects a bonus of as much as £50 once they open an Immediate Entry Saver. You’ll must obtain the Chip app and register for an account to get the bonus.
Subsequent, you’ll want to pick the “Profile” tab within the app and click on “Promos & Referrals.”
Right here you’ll be capable of enter considered one of our codes to use for a bonus of between £10 and £50. The bonus you get depends upon how a lot you deposit into your account and also you’ll want so as to add a minimum of £5,000 to qualify.
Be sure you choose the fitting bonus code on your deposit or received’t qualify for something.
For instance, if you choose the bonus fee for a £20,000 deposit however solely add £5,000 to your account, then you definitely received’t get the bonus for both quantity. This deal is legitimate till 31 October 2023, although is frequently prolonged.
And, you’ll must switch the entire quantity deposit specified for the bonus you choose in your account by that date.
When will the bonus be paid?
In case you qualify for the Chip bonus it will likely be paid into your Immediate Entry account on 1 March 2024.
Chip Immediate Entry account
The massive motive to get Chip proper now’s the Chip Immediate Entry account. It’s powered by ClearBank and provides the next options:
Chip Immediate Entry Account 4.85% (powered by ClearBank)
| Rate of interest | 4.84% AER variable (plus a bonus of as much as £50) |
| Min deposit | £1 |
| Max deposit | £250,000 |
| Withdrawals | Quick access (you may make limitless withdrawals, though cash have to be moved to a UK-based present account.) |
| A number of accounts | No |
| Joint accounts | No |
| Necessities | You have to be a minimum of 18 years previous and a UK resident |
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Get a £17 Quidco bonus (new members solely). Extra particulars
Get the very best of Andy’s cash saving content material each Thursday, straight to your inbox
+ Get a £17 Quidco bonus (new members solely). Extra particulars
How a lot curiosity does Chip pay?
The Chip Immediate Entry account provides 4.84%. Though that’s a aggressive rate of interest, it may be overwhelmed by just a few others available on the market in the mean time.
You may as well get a bonus of as much as £50 however you’ll must be a brand new buyer and deposit a minimum of £5,000 into your account by 31 October 2023 to qualify.
When is curiosity paid?
Chip calculates curiosity in your stability day by day and pays it out month-to-month. Curiosity is added to your account on the fourth working day of the month. As an example, if the primary day of the month is Monday your curiosity will likely be added on the Thursday of that week.
How a lot curiosity can I earn?
The quantity of curiosity you’ll be able to earn with the Chip Immediate Entry account varies relying in your account stability and whether or not the rate of interest modifications.
The desk under exhibits some estimates of how a lot curiosity you could possibly earn on totally different balances inside 12 months. Keep in mind that these are only a information although and assume that you just don’t make any withdrawals (or add extra money) into your account.
| Steadiness | Curiosity (4.84%) |
| £100 | £4.84 |
| £1,000 | £48.40 |
| £10,000 | £484 |
| £100,000 | £4,840 |
| £250,000 | £12,100 |
How a lot can I deposit?
The smallest deposit you may make into your Chip Immediate Entry account is £1. There isn’t a most deposit however the account can maintain as much as £250,000. It’s additionally price noting that solely £85,000 of your financial savings are protected by the FSCS.
Can I apply for a joint financial savings account with Chip?
Chip doesn’t at the moment supply a joint financial savings account. So you’ll be able to solely open a financial savings account for your self.
Can Chip change my financial savings charge?
As with all financial savings account suppliers, Chip has the ability to alter the curiosity supplied in your account. If the curiosity in your account will increase, Chip goals to cross it on to you a similar day. If the speed in your account decreases, you’ll get a minimal of 14 days’ discover.
Although it’s no assure it’ll proceed to do that, Chip has been fairly constant at boosting the rate of interest after any Financial institution of England base charge rises, so even when it’s not prime of the desk, it’s within the combine.
Chip Prize Financial savings draw
Chip’s Prize Financial savings Account (which can be powered by ClearBank) provides savers the prospect to win a share of £57,500 price of prizes every month as a substitute of paying curiosity.
These prizes are damaged down right into a “Grand Prize” of £10,000 and varied smaller worth prizes as nicely. (It’s similar to the best way that NS&I Premium Bonds work.)
You may open the account within the Chip app and will need to have a minimal common stability of £100 every calendar month to qualify for the draw.
Each £10 (on common) that you just save on this account will get you one entry on the prize draw. So in principle having a median of £100 offers you 10 entries.
Essentially the most you’ll be able to deposit into the account is £85,000 (be careful if you have already got cash elsewhere with ClearBank, corresponding to within the Immediate Entry account).
You may win a number of prizes in every draw – although you may additionally win nothing. Take a look at our Chip Prize Financial savings account evaluate, for extra about the way it works.
Are financial savings prize attracts price it?
Though the prospect of profitable money prizes is interesting, they’re certainly not a substitute for precise curiosity.
Choosing a prize draw financial savings account implies that you miss out on a return as profitable is slim to none.
So, if you wish to earn curiosity you’d be higher off discovering a greatest purchase financial savings account to make sure you earn one thing out of your lump sum.
Different Chip financial savings accounts
Chip says that there are plans to introduce an ISA and glued charge financial savings accounts and we’ll replace this evaluate when they’re out there.
However for now, there are different choices, which we’ve outlined under however they aren’t that nice when it comes to curiosity. Yow will discover greater paying alternate options available on the market in our financial savings greatest purchase tables.
| Account | Charge | Supplier | FSCS safety |
| Chip Simple Entry financial savings account | 1.1% | powered by Allica Financial institution | Sure |
| Chip 90-day discover account | 4.10% | powered by Oak North Financial institution | Sure |
Chip auto financial savings
Chip provides an auto-saving characteristic that makes use of AI to analyse your funds to counsel a sum of cash you can afford to avoid wasting frequently.
This cash is then robotically moved into your financial savings account or funding fund with out you having to do something.
To arrange your autosave you’ll want to pick the “Profile” tab and click on “Financial savings Plans.” From right here you’ll be capable of activate the auto save characteristic on or off.
Up till October 2022, this characteristic was free however now you’ll need to pay a 45p price every time this cash is robotically saved.
Though this may not sound like rather a lot, it provides up over time and will make a dent in your financial savings efforts over the long run.
At present, autosaves value 45p per save and occur each 4 days until you flip them off or pause them. This works out to about 7 instances a month or 91 instances a yr.
This implies you’ll pay £3.15 every month or £40.95 for this characteristic, which is dear and can eat into your financial savings.
And if automating your financial savings is a vital a part of your budgeting technique, then there are free alternate options on the market. Plum, for instance, does precisely the identical factor without cost.
Learn our information about the very best auto financial savings apps (and hacks) for extra.
How a lot does Chip value?
There are two membership choices that apply to new and current prospects:
Chip (free)
That is the free tier and the default one whenever you enroll. I believe that is the choice most of you have to. Nonetheless, as detailed there could possibly be further fees, relying on how you employ it. With this you get:
- Entry to financial savings accounts
- Auto financial savings (further charges are charged)
- Fundamental investing choices (further charges are charged)
ChipX (paid)
There’s a £5.99 price for this, charged each 28 days (so that you pay 13 heaps in a yr, not 12). It’s lowered to £4.99 in case you pay yearly. This provides you entry to superior investing capabilities.
Different fees
As detailed elsewhere on this evaluate, some options incur further fees, corresponding to autosaves, so be careful for them.
How does the Chip app work?
Listed below are a few of the key issues to find out about how the Chip app works:
How do I handle my account?
Chip is totally digital which implies that you’ll must obtain the app onto your smartphone or pill to handle your account.
How do I log into Chip?
When you’re registered with Chip you’ll want to enter your settings to arrange your safe login. There isn’t a immediate to do that, so it’s a straightforward factor to overlook! In case you don’t do that your account will likely be out there each time you open the app. Which implies that anybody may entry your account if they’ve your telephone or pill.
To arrange your safe login, choose “Profile” after which go to “Safe login.” Right here, you’ll be capable of create a safe four-digit passcode. You even have the choice to arrange a FaceID login as nicely.
How do I hyperlink a checking account to my Chip account?
You’ll must hyperlink a UK checking account to Chip to be able to withdraw cash (and make deposits too must you want to take action through Open Banking.) To do that you’ll want to pick the “Profile” tab and go to “Financial institution verification.” Subsequent, faucet “Join your financial institution” and choose your supplier from the listing.
Which banks does Chip connect with?
Chip at the moment lets you join accounts from the next banks:
- Financial institution of Scotland
- Barclays
- Danske
- First Direct
- HSBC
- Halifax
- Lloyds Financial institution
- Monzo
- Nationwide
- Natwest
- RBS
- Revolut
- Santander
- Starling
- TSB
- Ulster Financial institution
How do I add cash to Chip?
You may add cash to your Chip account by deciding on the “Financial savings” tab and tapping “Add cash.” You’ll then get the next choices for how one can make the deposit:
- Financial institution switch out of your linked account
- Apple Pay or Google Pay (the max deposit is £500)
- Paying through debit card
When you’ve chosen a approach so as to add cash to your account, you’ll get so as to add within the sum you need to switch.
How lengthy do deposits take?
Financial institution transfers through Open Banking ought to arrive in your financial savings account the following working day. It takes 3 working days for funds to land in your account in case you make a deposit by means of Apple/Google Pay or through debit card.
How do I withdraw cash from Chip?
To withdraw cash out of your Chip financial savings account, choose the “Financial savings” tab and click on into your account. Subsequent, click on the “Withdraw” button under your stability and enter how a lot you need to switch out of the account. Withdrawals can take as much as two hours to land in your linked account.
Investing with Chip
Chip provides a common funding account (GIA) with the free-to-use account. This allows you to put money into funds such because the FTSE 100 index fund and the S&P 500 tech fund. You’ll must pay an annual platform price of 0.5% (which is collected month-to-month).
It’s additionally price stating that you just’ll need to pay tax on a GIA if the curiosity you get goes above your private earnings tax allowance.
Chip additionally provides a shares and shares ISA which helps you to save as much as £20,000 a yr tax-free. Nonetheless, that is solely out there for ChipX customers, which comes with a month-to-month cost.
How do prospects charge financial savings accounts with Chip?
Monetary evaluate web site, Sensible Cash Individuals charge Chip 4.92 out of 5 stars on the time of writing (August 2023). And that’s primarily based on 10,592 buyer opinions.
Optimistic opinions of Chip highlighted the benefit of use, app options and financial savings curiosity.
Adverse opinions of Chip expressed problem withdrawing cash and contacting customer support for assist.
Is Chip secure?
Chip is authorised to supply fee providers within the UK by the FCA. Nonetheless, it’s vital to notice that it isn’t a fully-fledged financial institution.
Which means that you’ll solely get FSCS safety on your financial savings when it’s within the accounts of the regulated banks that Chip companions with.
When your cash is within the technique of being transferred into or out of those financial savings and funding accounts, it isn’t lined by the FSCS.
As an alternative, it’s protected by a course of known as “safeguarding.” Which means that Chip should preserve the cash in a separate account with an accepted financial institution that may’t be accessed by collectors.
So if something occurs to Chip, your cash ought to nonetheless be protected.
What’s the FSCS scheme?
FSCS protects as much as £85,000 of your cash held in banks which might be regulated by the FCA. An vital factor to recollect is that the safety applies to a banking licence reasonably than every financial institution individually. A couple of financial institution will be held beneath the identical licence. So let’s say you might have three financial savings accounts with suppliers beneath the identical banking licence, your £85,000 protection can be cut up throughout all three, reasonably than making use of to every one. Right here’s extra.
Execs and Cons of Chip
In case you’re enthusiastic about opening a Chip account, listed below are some execs and cons to contemplate:
Execs
- Tends to pay aggressive rates of interest on the Immediate Entry account
- Simple to arrange
- Financial savings objectives might help you observe your progress
- No credit score checks
- FCSC safety through linked financial savings accounts
Cons
- Recurring and autosaves include a price (on the free-to-use account)
- You’ll want to bear in mind to arrange a safe login your self
- You may solely make deposits and withdrawals from a linked account
- You may’t join all banks (e.g. Chase)
- Deposits take days to seem in your account
- App solely so no on-line banking, bodily branches or head to head assist
Is Chip any good?
The spotlight of the app when it first got here to market was the autosave characteristic. It’s a actually nice technique to enhance financial savings. However because it’s now paid for (when you have the usual free Chip account), it’s greatest prevented. Particularly since you need to use Plum without cost as a substitute.
Nonetheless, in case you have a look at Chip simply as a financial savings account, then it’s nicely price contemplating. It’s fairly easy to arrange and use, and frequently provides aggressive rates of interest for straightforward entry financial savings.
That being mentioned, the curiosity on the Immediate Entry account is overwhelmed by a number of greatest purchase easy-access financial savings accounts available on the market proper now.
One factor to concentrate on is that you just’ll want to recollect to safe your Chip account as soon as it’s open. In any other case, anybody can entry your account once they go into the app leaving your cash and particulars susceptible.
Methods to open a Chip account
To open a Chip account you’ll must obtain the app and register your particulars together with your identify, date of delivery and UK handle.)
You’ll additionally need to confirm your id by taking a selfie and snapping a photograph of your proof of ID. In case your utility is profitable your account could possibly be out there inside the identical day.
Typically Chip requests further info to confirm who you might be. If so you’ll get a notification within the app to contact customer support. They’ll additionally ship you an e mail requesting the extra particulars they want.
It’s possible you’ll want to supply one other type of ID in addition to a proof of handle dated inside the final three months. The additional verification checks can take one other 48 hours to course of.
I bumped into this subject when organising my account and it was fairly straightforward to ship off the extra particulars. It took an additional day for all the pieces to get verified and to open my account.
Alternate options to saving with Chip
There are a number of alternate options to Chip in case you’re trying to enhance your financial savings. Plum provides the identical AI autosave characteristic without cost. Each Monzo and Starling Financial institution allow you to create objectives within the “Pots” or “Areas” options without cost too.
To seek out the highest-paying financial savings charges it all the time helps to buy round. Take a look at our spherical up of the very best financial savings accounts that will help you discover the fitting one on your nest egg.
Chip FAQs
How do I contact Chip?
You may contact Chip by means of the app by deciding on the “Profile” tab after which “Contact us.” It will open up a chat characteristic which lets you message the assist crew straight. The assist crew is accessible from 8am to 8pm on weekdays. You may as well contact them through e mail at [email protected].
Can a couple of checking account be added to my Chip account?
You may solely hyperlink one checking account to Chip. If you must change it you’ll must get in contact with Chip’s assist crew utilizing the app. You may as well make a request by deciding on your present linked checking account within the “Profile” tab and clicking “Replace financial institution particulars.”
