Digital Banking

12357

Comments

  • Anthorn
    Anthorn Posts: 4,362
    First Post First Anniversary Combo Breaker
    Forumite
    edited 15 December 2017 at 1:37PM
    jimroy wrote: »
    It states on this site and theirs that Chip are FCA regulated, yet I can't find them on the register: https://register.fca.org.uk/ShPo_Homepage

    Maybe I'm not searching correctly. I filtered by 'e-money' and it brought up zero results under "Chip."

    Maybe someone else could shed more light on this?

    It's not Chip itself which is regulated by the Financial Conduct Authority but Prepaid Financial Services of which Chip is an agent.
    Chip is regulated by the Financial Conduct Authority (FCA) through its agency status with Prepaid Financial Services (PFS). You can look PFS up in the Financial Services Register (FSR) and you’ll find us on the PFS website too. Sorry about all the TLAs, btw.
    https://getchip.uk/faq
    https://prepaidfinancialservices.com/en/

    I have two objections to Chip: The first is rather obvious in that PFS is registered as an e-money issuer and not part of FCA. So if it goes bust savings could go off into the wide blue yonder. The second is that Chip is misleading in that its website omits the information that appears on the PFS website:
    Prepaid Financial Services Limited is regulated and authorised by the Financial Conduct Authority, as an Electronic Money Institution, registration number 900036.

    In short, it is not a bank and does not have any guarantees that you get from a bank! It has about the same guarantees which a prepaid card has which is not a lot.
  • colsten
    colsten Posts: 17,597
    First Anniversary Photogenic Name Dropper First Post
    Forumite
    bub19 wrote: »
    For a comparison, when I had a problem with Santander where money just disappeared from my account with no trace (they admitted fault) it took 3 months to get the issue rectified and I was still out of pocket.
    If you are out of pocket due to no fault of your own, you have not used the complaints process properly. Banks will always give you at least a tenner extra as an apology, and they will reimburse any loss if you are not at fault.
  • Oreo71 wrote: »
    NEWBIES, or not, we were asked if we could share our experience of using the chip app. This is the Thread that the link took us to.

    We LOVE newbies. Welcome to the Forum Oreo71 :beer::beer:
    Could you do with a Money Makeover?


    Follow MSE on other Social Media:
    MSE Facebook, MSE Twitter, MSE Deals Twitter, Instagram
    Join the MSE Forum
    Get the Free MoneySavingExpert Money Tips E-mail
    Report inappropriate posts: click the report button
    Point out a rate/product change
    Flag a news story: news@moneysavingexpert.com
  • Hi,

    Question for app users.
    Is the interest on the app tax free, or do they apply tax as the banks do, depending on your income?

    Thanks
    Sandie
  • Cbq wrote: »
    So I read through everything I could find and the majority of the information seems to be positive. I'm having trouble logging in as it keeps throwing up internal errors with different codes and now am a bit nervous as to whether it's trying to tell me something! Would be great to see a few more MSE forum users comment if they've had a good experience. I can't really afford to lose out on money owed to me, no matter how small.

    I've read all the posts on here, and did a bit of digging around elsewhere on the interwebby thing, and I've decided to give it a go.
    The sign up went through smoothly and everything seems to be working.
    I see they're also raising funds on Crowdcube to help them on to the next stage of becoming a proper bank - I might give that a go.
    I don't think there's much likelihood of savers losing their money - for that to happen Barclays would have to go bust.
    Gus.
  • Anthorn
    Anthorn Posts: 4,362
    First Post First Anniversary Combo Breaker
    Forumite
    I've read all the posts on here, and did a bit of digging around elsewhere on the interwebby thing, and I've decided to give it a go.
    The sign up went through smoothly and everything seems to be working.
    I see they're also raising funds on Crowdcube to help them on to the next stage of becoming a proper bank - I might give that a go.
    I don't think there's much likelihood of savers losing their money - for that to happen Barclays would have to go bust.

    So therefore you as a Chip account holder have a Barclays Bank savings account and when you want to withdraw your savings you could go into a Barclays Bank branch armed with your sort code and account number and ID. Yes or No?

    If no then it's likely to be Chip which controls the savings account in which case if Chip goes bust your savings could go off into the wide blue yonder! The fact that Chip has to raise funds in crowd funding doesn't make me want to get a Chip account.
  • Vortigern
    Vortigern Posts: 3,242
    First Anniversary Photogenic Name Dropper First Post
    Forumite
    sandierich wrote: »
    Is the interest on the app tax free, or do they apply tax as the banks do, depending on your income?
    The interest will be taxable, like all non-ISA interest, but Chip will not deduct any tax. No banks deduct tax from your interest these days.

    As a basic rate taxpayer, you have a tax-free savings allowance of £1000, so there may be no tax to pay.
  • Cbq wrote: »
    So I read through everything I could find and the majority of the information seems to be positive. I'm having trouble logging in as it keeps throwing up internal errors with different codes and now am a bit nervous as to whether it's trying to tell me something! Would be great to see a few more MSE forum users comment if they've had a good experience. I can't really afford to lose out on money owed to me, no matter how small.

    If you don't trust it, don't do it. I had exactly the same problem trying to set up the app, so decided to not bother with it, especially after visiting this Forum. There are plenty other traditional sources to achieve a decent interest rate, and if you have enough to save, this can be spread out through a few different accounts. Check out the best bank account guide on this website and see what suits your needs. There are current accounts that offer good % rates, as well as regular savings accounts with amounts of up to £250 per month allowed to be deposited. These are all banks that are fully FSCS protected if, in the unlikely event, something were to happen to the bank. Also, you will definitely receive your interest.
  • TeamChip
    TeamChip Posts: 1 Organisation Representative
    Hey neloalmeida,

    Really sorry you had this issue and you're unhappy with Chip.

    The issue was a technical bug that affected under 20 accounts - we are enormously sorry for that and we worked as fast as we could to fix it. As our customer service team explained the interest was always on it's way to you - it's just the technical bug delayed the payment - this has now been resolved and will not happen again.

    Security & account safety is at the center of everything we do as a business. Sometimes that is to a detriment of getting bugs fixed quickly. We could have just moved money across into your account in a couple of days, however this would have been against regulation and not a secure way of operating. I hope you appreciate that, but I understand how frustrating the delay must have been.

    With regards to our customer service - we have sat down as a team and looked at how the case was dealt with. We are a small team but that is no excuse for not delivering regular updates to you and for that I apologise.

    Hopefully we'll see you back saving with us soon - until then - please accept my apologies and have a good Christmas.

    Alex,
    one of Team Chip
    Verified Company
    I am a verified representative of Chip. MSE has given permission for me to post in response to queries about the company so that I can help solve issues. You can see my name on the verified companies list. I am not allowed to tout for business at all. If you believe I am please report it to forumteam@moneysavingexpert.com This does NOT imply any form of approval of my company or its products by MSE.
  • The fact that Alex can't spell would put me off immediately. If a company rep. can't do that it speaks volumes about the calibre of their staff.
Meet your Ambassadors

Categories

  • All Categories
  • 342.5K Banking & Borrowing
  • 249.9K Reduce Debt & Boost Income
  • 449.4K Spending & Discounts
  • 234.6K Work, Benefits & Business
  • 607.1K Mortgages, Homes & Bills
  • 172.8K Life & Family
  • 247.4K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.8K Discuss & Feedback
  • 15.1K Coronavirus Support Boards