Automated saving Plum or Chip?

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hotnuts21
hotnuts21 Posts: 57 Forumite
edited 9 January 2018 at 1:55PM in Savings & investments
MoneySavingExpert.com Insert:

Hi, if you're looking into app-based banking we have a fully researched guide that may help.

App-based banking

Back to the original thread...


Just wondering if anyone had any thoughts on the two automated saving apps that have appeared recently.

Plum https://withplum.com/
Chip https://getchip.uk/

Plums FAQs seem to give a bit more info on security etc, but im always dubious giving access to my accounts for SASS products.

Thoughts/Experiences?
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Comments

  • datlex
    datlex Posts: 2,239 Forumite
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    I personally prefer to do my own transfers between accounts. Those two apps were mentioned in an article on the BBC website.
    Paid off the last of my unsecured debts in 2016. Then saved up and bought a property. Current aim is to pay off my mortgage as early as possible. Currently over paying every month. Mortgage due to be paid off in 2036 hoping to get it paid off much earlier. Set up my own bespoke spreadsheet to manage my money.
  • hotnuts21
    hotnuts21 Posts: 57 Forumite
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    What made you go for chip over Plum?
  • ffacoffipawb
    ffacoffipawb Posts: 3,593 Forumite
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    hotnuts21 wrote: »
    What made you go for chip over Plum?
    I can see that Chip has an app, but Plum does not appear to have one. Perhaps that is the reason?
  • amaranthus
    amaranthus Posts: 50 Forumite
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    Two fold. Chip has an app and is ready to go straight away. Plum you have to email and request an invite, and it has no app.
  • amaranthus
    amaranthus Posts: 50 Forumite
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    Their automated algorithm doesn't appear to have kicked in yet! I'm gonna get in touch with them.
  • Joe_Bloggs
    Joe_Bloggs Posts: 4,535 Forumite
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    A few thoughts:-

    I have five current accounts, four of them pay interest. I manually sweep funds into them before they are required.

    If an automated savings agent pulls money from my current account then it had better pay more interest than the current account or I will be losing money.

    If you have to rely on this technology rather than analyze your own spending then you will never learn to stop buying things you don't need or can't afford. A dependency culture will build up.

    It is unexpected change of circumstances that get people into bank charges. These events can't be predicted by the best computer algorithms.


    To appear to save when you have existing debts at a higher interest than the savings rate is a poor choice. Pay off high interest debts first has been the MSE advice.

    Some contingency funds are better than none. If this is the only way to build up a fund then it is a sad statement of affairs but it is better than paying bank charges.


    J_B.
  • Pincher
    Pincher Posts: 6,552 Forumite
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    Cart before the horse.

    It must be developed by some retired COBOL programmer who still thinks savings accounts pay 5%, and current accounts pay 0%.

    We need to monitor the Nationwide FlexDirect, so that if I spend £100, so the balance drops to £2,400, it moves £100 INTO the FlexDirect account.
  • Joe_Bloggs
    Joe_Bloggs Posts: 4,535 Forumite
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    Well said Pincher.
    Sweeping funds to where they can best be used is a banking feature that has been omitted because it benefits the consumer at the expense of the bank. There should be no profit reason that bars the mutual Nationwide from implementing this.

    I still have Intelligent finance accounts that sweep from savings to current should the current account drop below a threshold amount.
    J_B.
  • Reaper
    Reaper Posts: 7,285 Forumite
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    I am constantly amazed how careless people are with their personal data.

    I would not allow 3rd party access to all my financial transactions, even if it is read only (and I'm not sure how that can be done). They will know which gas and electricity supplier you use, where you shop for food, whether you are rich or poor, belong to a gym, who your internet provider is, whether you subscribe to Sky or Netflix, how often you holiday abroad and so on.

    In time expect to be bombarded with highly targeted junk mail for all the above.
  • jimjames
    jimjames Posts: 17,669 Forumite
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    WithPlum wrote: »
    Hi Savers, Plum here! :hello:
    If you really are the owner of Plum then you'll want to get MSE approval to post on their behalf or you're likely to get deleted
    Remember the saying: if it looks too good to be true it almost certainly is.
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