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Chip 3% App

edited 11 July 2018 at 11:55AM in Savings & Investments
50 replies 7.3K views
245

Replies

  • DennisTenusDennisTenus Forumite
    458 posts
    Second Anniversary
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    Oh right so the max is £600 a month? I misunderstood, thinking it was max £600 manually a month + sweeps?

    So if you put it in max £600 a month how much interest will you earn over the year? Would it be £116.47?
  • ZandermanZanderman Forumite
    2.8K posts
    Tenth Anniversary 1,000 Posts Name Dropper Photogenic
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    Aj23 wrote: »
    I said that if it works like a regular, you'd get 3% on about 3600, the average balance. I did use the calculator. I didn't say there was a problem?

    Ok, apologies. It was just the way you worded it, saying "it would be about 3600 you'd get 3%" which made me think you were wrongly working the interest. I see what you mean now though it is (in my view!) an odd way of looking at it.
  • ZandermanZanderman Forumite
    2.8K posts
    Tenth Anniversary 1,000 Posts Name Dropper Photogenic
    ✭✭✭✭
    Oh right so the max is £600 a month? I misunderstood, thinking it was max £600 manually a month + sweeps?

    So if you put it in max £600 a month how much interest will you earn over the year? Would it be £116.47?

    I didn't say whether it was £600 max, I was just speculating that it might be!

    Re interest, yes, as already discussed higher up the thread.
  • DennisTenusDennisTenus Forumite
    458 posts
    Second Anniversary
    ✭✭
    Zanderman wrote: »
    I didn't say whether it was £600 max, I was just speculating that it might be!

    Re interest, yes, as already discussed higher up the thread.

    Yes thats where I got the interest amount from but was just confirming as its quite confusing

    There is no withdraw restrictions with this is there?
  • ZandermanZanderman Forumite
    2.8K posts
    Tenth Anniversary 1,000 Posts Name Dropper Photogenic
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    Yes thats where I got the interest amount from but was just confirming as its quite confusing

    There is no withdraw restrictions with this is there?

    Don't think so. But I only use mine as a manual DD to satisfy DD requirements on other accounts, so I only pay in a small amount at a time and have never actually withdrawn any yet!
  • edited 11 July 2018 at 4:53PM
    aj23_2aj23_2 Forumite
    1.2K posts
    edited 11 July 2018 at 4:53PM
    Zanderman wrote: »
    Ok, apologies. It was just the way you worded it, saying "it would be about 3600 you'd get 3%" which made me think you were wrongly working the interest. I see what you mean now though it is (in my view!) an odd way of looking at it.

    Well that's just how regular savers work. It says it on the RS page on here too. Whatever the rate is, you get that on the average balance. Easiest way to work it out.

    Say it's 5% on 300 a month, you'd get 5% on 1800, not 3600.

    The Chip 3% sounds appealing but 600 a month just on that is a lot I guess. It's not very clear how you operate it. Like, how do you only do manual saves?
  • youngretiredyoungretired Forumite
    387 posts
    100 Posts
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    You can do 6 x £100 manual saves a month and also auto-saves. MSE says maximum of £10000 can be saved a year so I would guess that when you come close to this amount then it will stop the auto-saves and prevent you from doing the manual saves.

    If you only want to do manual saves then you pause the auto saves and this can be up to 90 days and then you need to reset it again. I've done this every time so far and haven't had any auto saves. You know when you need to reset it as you will get an email saying you are about to save x-amount (a auto-save) so cancel this and then reset otherwise you can put it on a calendar.
  • Aj23 wrote: »
    How does this actually work? So you can put up to 10k in it, but can only save manually up to £100 a day, six times a month, so £600 a month. That's 7200k over 12 months, after which is goes back to 0% ?

    It says interest is paid quarterly, so I'm assuming you get a payout of 3% on what you have saved into each three month period?

    £1800: £54
    £3654: £109.62
    £5583.62: £167.50
    £7551.12: £226.53

    Giving you a balance of £7777.65 at the end of 12 months

    Sounds too good to be true? Or does it work like a regular saver in which you get 3% on the average balance?

    Regular savers don't pay interest on the average balance. They pay whatever the rate is on all the money in the account, calculated daily. This is not the average balance, and it is the way all simple interest works, whether it is a regular saver, easy access account, notice account, fixed rate savings bond, or current account.
  • aj23_2aj23_2 Forumite
    1.2K posts
    You can do 6 x £100 manual saves a month and also auto-saves. MSE says maximum of £10000 can be saved a year so I would guess that when you come close to this amount then it will stop the auto-saves and prevent you from doing the manual saves.

    If you only want to do manual saves then you pause the auto saves and this can be up to 90 days and then you need to reset it again. I've done this every time so far and haven't had any auto saves. You know when you need to reset it as you will get an email saying you are about to save x-amount (a auto-save) so cancel this and then reset otherwise you can put it on a calendar.

    I don't know why the max. is 10k when the most you could save in it at 600p/m is 7200.
  • aj23_2aj23_2 Forumite
    1.2K posts
    ValiantSon wrote: »
    Regular savers don't pay interest on the average balance. They pay whatever the rate is on all the money in the account, calculated daily. This is not the average balance, and it is the way all simple interest works, whether it is a regular saver, easy access account, notice account, fixed rate savings bond, or current account.

    Nope, not for a Regular Saver.

    "Mr Matt Mattics and his £3,000 savings

    Matt has saved a total of £3,000 in a regular savings account paying 10% interest over a year.

    What Matt expects to earn? His simple sum works out that he's put £3,000 in at 10% therefore he should earn £300 in interest.

    Why is this wrong? Matt only had £3,000 in there for the last month; it took a year to build up to that amount. You only earn interest on money in the account. So after the first month he was earning the 10% on just £250, half way through the year he was earning it on £1,500.

    How Matt should work it out? Over the year, his average balance was roughly half the £3,000, in other words £1,500... so Matt should expect to earn around 10% of £1,500 over the year, which is £150."
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