The Top Easy Access Savings Discussion Area

Band7

I-LOV-MONEY said:

Hi.  I am a guy for simple things in life!  The majority of my money is in Santander E-Saver account.  I know it is only paying 2.75%.   Everytime I think of moving it somewhere with a higher rate, as advised by posts here, then another one comes along and trumps it.  Then you get others where there are conditions to fulfill - turn around, jump in the area, count to ten etc.etc. !!!!   With Santander I can put money in from my Current Account (First Direct) and vice versa.  No problems, it all happens within minutes.   I don't have to count how many times I have withdrawn money this week / month /year.   I don't have to check what time of day it is to do a transaction.   I am all for a simple things ... much like myself !!

So bearing all that in mind, what is the recommendation for someone to look after my money?

Thanks.

The CHIP instant access saver works with your Santander current account in much the same way as the Santander e-saver - instant deposits, instant withdrawals, unlimited number of transactions. It just pays 0.65% more interest. It's app only, so if you don't like that. then CHIP is not for you.

allegro120

simoncorkswill1 said:

CHIP FSCS number 911255 

this comes up as in protected 

chip say their Instant savings and prize savings account are covered , yet their reference number using the FSCS website clearly indicates not protected .

anyone checked this by other means ?

It's important to understand that Chip is not a bank.  Chip's savings accounts are protected via Clearbank.

Band7

simoncorkswill1 said:

CHIP FSCS number 911255 

this comes up as in protected 

chip say their Instant savings and prize savings account are covered , yet their reference number using the FSCS website clearly indicates not protected .

anyone checked this by other means ?

Money in the CHIP instant access account is held by Clearbank, not by CHIP. So you need to check the FSCS Register for Clearbank.

jak22

Of course it makes sense to keep a certain amount in an account that can be instantly transferred to current - whether that's with the same bank or one with instant transfers like Chase - but there's no real justification to maintain significant savings in accounts so far behind the best like Santander at 2.75% - with no signs of change - or Marcus.

A year ago many might only have had a few active savings accounts but after a year of rate changes I'd have thought visitors to this site would by now have a good selection of accounts to shuffle between.

Ford generally keep up with rates, they arent instant to transfer, but they're not app only.

simoncorkswill1

Re Chip and protection , thanks all for replies .

I-LOV-MONEY

Thank you all for your replies.  I will look and digest it all tomorrow ... OMG it is already tomorrow !!!!   (Good night).

OceanSound

allegro120 said:

simoncorkswill1 said:

CHIP FSCS number 911255 

this comes up as in protected 

chip say their Instant savings and prize savings account are covered , yet their reference number using the FSCS website clearly indicates not protected .

anyone checked this by other means ?

It's important to understand that Chip is not a bank.  Chip's savings accounts are protected via Clearbank.

Band7 said:

simoncorkswill1 said:

CHIP FSCS number 911255 

this comes up as in protected 

chip say their Instant savings and prize savings account are covered , yet their reference number using the FSCS website clearly indicates not protected .

anyone checked this by other means ?

Money in the CHIP instant access account is held by Clearbank, not by CHIP. So you need to check the FSCS Register for Clearbank.

If the money you save through Chip is held at Clearbank (and Clearbank is covered by FSCS) i'm pretty sure the FSCS protection will only cover saver if Clearbank goes under. 

AFAR it will not cover the saver if Chip goes under.

I remember a while ago a Fintech was offering similar service to Chip and they would promote it by saying your savings are safe because it is ringfenced' (as it is held at Barclays - which has FSCS protection), but they were kind of hazy about what would happen if they themselves went under.

Band7

OceanSound said:

allegro120 said:

simoncorkswill1 said:

CHIP FSCS number 911255 

this comes up as in protected 

chip say their Instant savings and prize savings account are covered , yet their reference number using the FSCS website clearly indicates not protected .

anyone checked this by other means ?

It's important to understand that Chip is not a bank.  Chip's savings accounts are protected via Clearbank.

Band7 said:

simoncorkswill1 said:

CHIP FSCS number 911255 

this comes up as in protected 

chip say their Instant savings and prize savings account are covered , yet their reference number using the FSCS website clearly indicates not protected .

anyone checked this by other means ?

Money in the CHIP instant access account is held by Clearbank, not by CHIP. So you need to check the FSCS Register for Clearbank.

If the money you save through Chip is held at Clearbank (and Clearbank is covered by FSCS) i'm pretty sure the FSCS protection will only cover saver if Clearbank goes under. 

AFAR it will not cover the saver if Chip goes under.

I remember a while ago a Fintech was offering similar service to Chip and they would promote it by saying your savings are safe because it is ringfenced' (as it is held at Barclays - which has FSCS protection), but they were kind of hazy about what would happen if they themselves went under.

As your money isn’t held by CHIP, it wouldn’t matter if they went under. Perhaps some admin effort to move account access to elsewhere, such as Raisin or HL Active Savings, but nothing else, and certainly no loss of funds.

Out of interest, who was the Fintech you mention?

Bridlington1

Just had an email. Gatehouse easy access account rising to 3.15% today.

OceanSound

Band7 said:

OceanSound said:

allegro120 said:

simoncorkswill1 said:

CHIP FSCS number 911255 

this comes up as in protected 

chip say their Instant savings and prize savings account are covered , yet their reference number using the FSCS website clearly indicates not protected .

anyone checked this by other means ?

It's important to understand that Chip is not a bank.  Chip's savings accounts are protected via Clearbank.

Band7 said:

simoncorkswill1 said:

CHIP FSCS number 911255 

this comes up as in protected 

chip say their Instant savings and prize savings account are covered , yet their reference number using the FSCS website clearly indicates not protected .

anyone checked this by other means ?

Money in the CHIP instant access account is held by Clearbank, not by CHIP. So you need to check the FSCS Register for Clearbank.

If the money you save through Chip is held at Clearbank (and Clearbank is covered by FSCS) i'm pretty sure the FSCS protection will only cover saver if Clearbank goes under. 

AFAR it will not cover the saver if Chip goes under.

I remember a while ago a Fintech was offering similar service to Chip and they would promote it by saying your savings are safe because it is ringfenced' (as it is held at Barclays - which has FSCS protection), but they were kind of hazy about what would happen if they themselves went under.

As your money isn’t held by CHIP, it wouldn’t matter if they went under. Perhaps some admin effort to move account access to elsewhere, such as Raisin or HL Active Savings, but nothing else, and certainly no loss of funds.

Out of interest, who was the Fintech you mention?

I honestly didn't remeber who it was. It was some years ago. After some digging I found this: 

https://jasoren.com/plum-chip-trim-cleo-how-do-these-money-saving-chatbots-work-behind-the-scenes/

They mention plum saves (saved?) in a Barclays account. I used to use Plum so it may well be them. (Edit: article also mentions Chip, and I used to use Chip so it could be them too!)

As your money isn’t held by CHIP, it wouldn’t matter if they went under. Perhaps some admin effort to move account access to elsewhere, such as Raisin or HL Active Savings, but nothing else, and certainly no loss of funds.

Do you have a reliable source to confirm?

The info on Chip website (https://www.getchip.uk/the-blog/how-we-protect-your-money) says this: 

How FSCS cover works for money held in trust accounts

For all savings accounts other than the Chip Prize Savings Account and Chip Instant Access Account, both powered by ClearBank, your money is held in a ‘segregated client trust account’ with other Chip savers’ money. By pooling all Chip savers’ money our partner (Flagstone) can negotiate better interest rates for you from the banks.
A trust account is held in the name of one of our partners, ClearBank or Flagstone, depending on the product and its terms. Once you deposit into your savings account, you are an individual beneficiary of this trust for the amount of money you have deposited (plus your interest) - you are absolutely entitled to this money.

What is a Segregated Client Trust Account?

This refers to an account of individuals’ (clients) money that has been combined together, and is held in trust by a business and managed on behalf of those individuals.

Note that when it talks about ClearBank it says 'trust account'. On the FSCS website (https://www.fscs.org.uk/industry-resources/deposit-protection-banks/) I found this:

What deposit protection is there for wealth management companies or other online platforms that allow customers to spread funds across different banks?

If the wealth management company is authorised and regulated (which it is likely to be) its own funds wouldn't be covered for deposit protection.
However, if the customer holds deposits in a bank via the wealth management company or online platform, their eligibility for deposit protection would be dependent on how the funds are held with the bank.
FSCS wouldn’t be able to confirm eligibility of specific deposits until the point of the firm failing.  However, if the funds held via the wealth management company or online platform have been set up under a ’bare trust’ arrangement, we may be able to look through the named account holder to regard each eligible underlying beneficiary as having a separate claim for up to £85,000. 
If the customer’s funds are held via the wealth management company or online platform under a non-bare trust arrangement, a maximum of £85,000 only applies irrespective of the number of eligible beneficiaries or separate accounts held.  

The question is is Chip an online platform? if not, what is it?

If it is an online platform, then looking at the Chip website, there is no mention of a 'bare trust', so how will the FSCS protection work in that case?