The Top Easy Access Savings Discussion Area

OceanSound

soulsaver said:

Chip:

When you make a deposit to Chip it isn't in Clearbank - it is 'instantaneously' transferred to Clearbank.
 
Chip say money held in Clearbank is FSCS protected; but you pay money to Chip which is then ported to Clearbank.

So, the funds are being 'ported' from Chip - not covered by FSCS - and 'Held' in Clearbank which is FSCS covered.

So first issue: In the event of 'failure' funds could be caught in the unprotected condition?

Chip doesn't say that the funds held in Clearbank are ringfenced by personal depositor, so one could theorise it's only Chip's funds in Clearbank that is FSCS protected up to £85k total.

Now it's not the first time this has been discussed, and I'm sure Chip is aware of the doubters..

So if your savings (upto £85k) are protected 100% of the time, why doesn't Chip just clearly state that?


 

Is your post in response to a specific post? Or have you just come up with this out of the blue?

It seems you are replying to my post earlier. Please use the quote feature when replying to a particular post or posts.

Band7 said:

soulsaver said:

Chip:

When you make a deposit to Chip it isn't in Clearbank - it is 'instantaneously' transferred to Clearbank.
 
Chip say money held in Clearbank is FSCS protected; but you pay money to Chip which is then ported to Clearbank.

So, the funds are being 'ported' from Chip - not covered by FSCS - and 'Held' in Clearbank which is FSCS covered.

So first issue: In the event of 'failure' funds could be caught in the unprotected condition?

Chip doesn't say that the funds held in Clearbank are ringfenced by personal depositor, so one could theorise it's only Chip's funds in Clearbank that is FSCS protected up to £85k total.

Now it's not the first time this has been discussed, and I'm sure Chip is aware of the doubters..

So if your savings (upto £85k) are protected 100% of the time, why doesn't Chip just clearly state that?


 

It's been discussed before - only deposits made by debit card / ApplePay / GooglePay are 'held' by CHIP before they get transferred to Clearbank. So these are 'safeguarded'. OB deposits are instantly covered by FSCS.

AFAIC, it's all totally clear from the CHIP website.

Can I suggest please that further discussions about CHIP FSCS are taken to a different thread  - this one would offer itself.

Do you mind specifying the web page on the Chip website and highlighting the part that makes it totally clear.

edit: Chip website talks about rules specific to savings account and investment accounts and various scenarios.  

Interesting to note the following on Chip website (https://www.getchip.uk/the-blog/how-we-protect-your-money):

What would happen if the safeguarding bank fails?

In the unlikely event that ClearBank Ltd were to fail, and your funds were in the safeguarding account, then your funds would not be FSCS eligible. You would have a contractual debt claim against the bank for your outstanding funds, but there is no guarantee that they will be returned to you.
UK banking rules require banks to hold sufficient capital to meet their costs and ensure against creditor calls in the event of liquidation, but your funds would not be protected by FSCS.

Have a look at what the FSCS web site (https://www.fca.org.uk/consumers/using-payment-service-providers) says about 'safeguarding': 

Financial Services Compensation Scheme (FSCS) protection

Consumers who use UK-authorised banks, building societies and credit unions are protected by the FSCS. If one of these firms goes out of business, the FSCS will protect your money up to £85,000 per depositor. 
If you have money in several accounts with banks that are part of the same banking group (and share a banking licence) they are treated as one bank. This means that the £85,000 compensation limit only applies to the total you hold across all these accounts, not to each separate account.
The FSCS does not cover money held with APIs, EMIs and SPIs. If FSCS protection is important to you, find out more about opening a bank account.
Safeguarding
APIs and EMIs are required to protect the money you gave them through a process known as safeguarding. Once an API or EMI is authorised, we expect them to safeguard correctly. If the EMI or API is not safeguarding properly, you could lose all the money you gave them.

To safeguard properly, APIs and EMIs must either put the money you sent them in a separate safeguarding account with a bank, or protect it with an insurance policy or similar guarantee.

This means that, if they go out of business, you should get most of your money back, although some costs will be taken by the administrator or liquidator of the firm. It could also take longer for you to be refunded than it would with a bank.

To check whether an API or EMI is authorised, use the FS Register.
SPIs don't have to safeguard the money they receive from you. If you are using a payment service provider, it’s worth checking whether it’s an SPI. You should ask the firm what protections it has in place. You can check if a firm is an SPI on the FS Register. You can also check whether an SPI is authorised on the FS Register. 

You're welcome.

alternate

The FSCS would not allow them to advertise their account as protected on a technicality.  The fact that they are still saying it is protected and have not had the regulators stomp them says it all.

S_uk

Paragon Triple Access Savings Account - Issue 12 @ 3.25%

hqp29

S_uk said:

Paragon Triple Access Savings Account - Issue 12 @ 3.25%

I recently signed up to Issue 11, which is still at 3.1%, as far as I can tell.  Am I stuck with this, or is there a way to "upgrade" to the new Issue?  Will they just leave the old Issue at 3.1% forever now, and it's up to me to move the money to a bank with a better rate?

dreamypuma

Maybe old news now, but Kroo are lifting their current account rate to 3.3% on 1st April.

They've apparently resolved their application backlog and automated some application processes to avoid excessive waits. I applied this morning, straight forward 5min process, just waiting on approval.

refluxer

hqp29 said:

S_uk said:

Paragon Triple Access Savings Account - Issue 12 @ 3.25%

I recently signed up to Issue 11, which is still at 3.1%, as far as I can tell.  Am I stuck with this, or is there a way to "upgrade" to the new Issue?  Will they just leave the old Issue at 3.1% forever now, and it's up to me to move the money to a bank with a better rate?

Are you sure Issue 11 is still at 3.1% ? Paragon actually have a history of rewarding existing account holders before releasing a new issue with a higher rate, so it's unusual to see this not happening this time if so.

If yours is still on 3.1% then it probably won't take much time to open the new issue and transfer funds across if you don't want to wait on the off-chance it'll be increased - you may even find you can do this wholly online.

UncleK

Yup - just opened a new one and closed the old one in one online transaction. That's always been what you need to do with them - maybe they will change but they haven't said so............

2010

I thought I read in some earlier posts (weeks ago) that Paragon don`t automatically increase the issue you have and you do have to open the latest issue and transfer it over.

The upside is, if you have used any of your three withdrawals, with the new issue you`ll start all over again.

2010

Seems to be a lot of providers increasing rates at the moment just before the next rate meeting on Thursday.

Expotter

My apologies if this has already been mentioned, but I've just seen that the Limited Access Easy Saver Issue 8 from Coventry BS is due to increase from 3.1% currently to 3.25% from March 21st