Chip savings app

Ed-1

DennisTenus wrote: »

Mine hasn't dropped, why would it though?

Each 1% is valid for 12 months from the date your friend signed up and the interest rate increase was applied.

DennisTenus

oohh didn't know that !

Malthusian

Better get recruiting more suckers.*

*Chip is not actually a pyramid scheme, just a bit silly. As far as anyone can tell, the up to 5% interest comes from money invested by mugs on CrowdCube, not your friends' deposits, and it's not your problem if people on CrowdCube lose money.

Although Chip actively encourages its depositors to become investors, which muddies the waters.

Aliciamilford

Is it fully secured?

Malthusian

Aliciamilford wrote: »

Is it fully secured?

No. There is no FSCS cover. This makes Chip unsuitable for anyone who would consider using it.

Yes, your money is supposedly ring-fenced in a Barclays account, but you have no protection if for some reason that isn't done properly.

DennisTenus

Malthusian wrote: »

No. There is no FSCS cover. This makes Chip unsuitable for anyone who would consider using it.

Yes, your money is supposedly ring-fenced in a Barclays account, but you have no protection if for some reason that isn't done properly.

That's concerning. Should we be worried?

Retired_Minky

Yes. You should be worried. If they go under there is a good chance you can kiss goodbye to your savings.

surreysaver

DennisTenus wrote: »

That's concerning. Should we be worried?

No more worried than if you put your money somewhere else where it isn't protected. Do you remember those Christmas Savings firms that went bust about five or so years ago?
I don't have a lot of faith in the app - on Friday I requested it send me £100, but it didn't acknowledge my request, so requested again and got an acknowledgement. It sent me two lots of £100.

Edit - It was actually about 12 years ago!
https://www.thisismoney.co.uk/money/markets/article-1603407/Xmas-hamper-club-goes-bust.html

Robster88

Retired_Minky wrote: »

Yes. You should be worried. If they go under there is a good chance you can kiss goodbye to your savings.

https://www.lovemoney.com/news/73991/chip-mobile-app-review-automatic-savings-account

"The money you deposit with Chip is fully protected by the FSCS as it is hosted by Barclays, so you would not be affected if Chip went out of business."

Retired_Minky

https://getchip.uk/blog/safer-saving/

Your not covered by FSCS.

They seem to think your ok unless Barclays goes under.

I’m not sure if this is correct. If I run a business and it fails I’m not sure what would prompt Barclays will pay my customers back.