Chip’s Instant Access Savings Account – A review (AD)

#AD The latest account offering from Chip is promising better and FASTER returns on your cash than promised by the banks. In a world of rising inflation, their 3.15% AER interest is certainly tempting. Find out more about their bonus here.

Who are Chip?

They are a finance app. Founded in late 2017, Chip are breaking down the barriers to investing and savings that have previously only been available to the ultra-wealthy.

Through their app, they are offering the opportunity to save or invest in a variety of ways, but with simplicity at the heart of what they do.

Despite still being relatively new in the finance scenes, Chip has won awards such as “Best Finance App 2022” and currently serves 500,000 customers across the UK.

How Chip can help you build your wealth

Through their app Chip offer a variety of savings and investment offerings. Their tagline is “Leave it to Chip – one app, one account, no fuss.”

Within your account, you can choose from a selection of different places to grow your deposits.

If you are looking to invest your money, then they have either a stocks and shares ISA (with ChipX)or a General Investment Account (GIA). You can then choose to put your money into investment funds from some of the biggest names in the world of finance, such as BlackRock, Invesco, & Vanguard.

Alternatively, you can build your own diverse portfolio by selecting from big British companies, US tech stocks, crypto companies, clean energy or even physical gold.

Remember when investing your capital is at risk. This means that the value of your investments can go down as well as up.

If savings are more what you are looking for then Chip have you covered there too. You can choose from the Chip Prize Savings Account which is a premium bonds style system with £30,000 of prizes distributed to eligible savers each month.

The Instant Access Savings Account is their latest offering that is an easy-access account awarding a 3% return on deposits up to £250,000.

What does the Chip Instant Access Savings Account offer?

Well, the main selling point is the 3.15% AER interest available on your deposits. With many other accounts still offering a rather depressing 1%, or if you are particularly unlucky 0.01%, this percentage rate is certainly enticing.

The rate aims to follow the Bank of England base rate too, so Chip customers don’t need to regularly change providers to get the best returns on their money.

Furthermore, they are promising monthly rather than annual payouts. Whereas many savings accounts insist that you leave your money locked away for a year or more before seeing any returns, Chip is going to pay you your bonus once a month.

On top of that you have all the usual aspects that you’d want from a savings account, such as FSCS protection on your deposits, no fees or charges for the account, and, as the name suggests, instant access to the funds when needed.

Eligibility Criteria

Before I go too much further, it is probably wise to cover the eligibility criteria. You don’t want to read a few hundred words and then realise you can’t even get one of these accounts.

The good news is that the requirements are minimal. You’ll need to be over 18, a UK resident, and pay tax to the UK only. Nothing too complicated there then.

How do you open a Chip Instant Access Savings Account?

If you are already a Chip customer, then you can load up your app and you’ll likely spot the account on your home page.

However, if you are new to Chip, then you’ll need to sign up first. It’s a very simple process so don’t worry.

1. Download Chip. You’ll be able to find Chip in the App Store or the Google Play Store. Alternatively, follow this link here.
2. Check your identity. Chip and Clearbank will need to confirm you are who you say you are. For this, you’ll need to enter in a few personal details, such as your name, date of birth and address.
3. Confirm eligibility. Given that there are eligibility criteria (see above), you’ll have to tick a couple of boxes to confirm that you meet the necessary rules.
4. Acceptance. Completing the verification and letting you into the app can be really quick. Personally, I was let into the app in a few seconds.
5. Open the account. Chip has a few options for growing your wealth, so make sure that you look for the account labelled “Chip Instant Access (3.00% returns).

Understanding The Bonus

From the 21st February 2023, this account will be changing to an interest-earning account with an AER of 3.15%. But currently, the 3.00% return is awarded as a bonus which is a little different.

Firstly, it is not added as cash to your account, it exists separately. It is still shown as part of your balance, but you will not be able to access it until you have withdrawn the rest of your money from your account. That means it is the last money to come out.

The good news is that this bonus is calculated daily. The bonus is added to your account on the first Tuesday of every month. This makes it quicker than money other products on the market.

If the bonus you earn in one month comes in at less than £1, then Chip will simply carry this over into the following month.

Another pro is that the bonus is set to move with the Bank of England interest rates, so if they go up then the bonus percentage will go up too. Even if that means a change mid-month.

As the bonus is calculated daily, any changes in the return rate would be reflected in the calculations and added to your “bonus pot” ready for payout in the following month.

It’s worth noting that whilst your deposits are eligible for FSCS protection up to £85,000 per institution, the bonus return is not FSCS protected.

How to add money to your account

One of the many benefits of the Chip app is that they make it super easy to add money to your account. You can add money to your account in several ways.

The obvious option is by using your debit card. You enter the amount you want to transfer and your card details and move the money over to the account.

Alternatively, you could add money via Apple Pay or Google Pay, but you should note that it may take longer this way (up to 3 days.)

Finally, if you have a ChipX subscription you can use the autosave feature for free, otherwise, there is a fee to pay. By connecting your bank account to Chip, which is perfectly safe thanks to Open Banking, you can arrange to automatically move money to your Instant Access Savings Account.

How to get started

By now you are probably itching to open your account, and I won’t hold you back any longer. If you are ready to go, then you can click this link here.

Plus, if you use the following codes, then you get a cheeky bonus when you deposit:

• LAYP5K for deposits of £5,000 for a £10 bonus
• LAYP10K for deposits of £10,000 for a £30 bonus
• LAYP15K for deposits of £15,000 for a £40 bonus
• LAYP20K for deposits of £20,000 for a £50 bonus