The Top Easy Access Savings Discussion Area

dgpur

OceanSound said:

dgpur said:

OceanSound said:

dgpur said:

OceanSound said:

jimexbox said:

OceanSound said:

jimexbox said:

I don't use chip myself, but I'm at a loss as to why it's so hard for some to understand their business model. They are fully regulated by the FCA, they don't claim to be a bank or have FSCS protection. That is not their business model.

Their website says this:

FSCS Eligible

Eligible deposits in our savings accounts are protected under the Financial Services Compensation Scheme.

If that doesn't scream 'have FSCS protection ' then what will? 

The bank chip uses for deposits has fscs protection. So it's factually correct. 

How about If Chip goes under?

Factually correct, but economical with the truth?

They clearly tell you that the money is held with ClearBank. Who are the ones that actually hold your money. No-one is lying to you.

Economical with truth  dosen't ALWAYS equate to lying.

Economical with the truth, sure. Like the way they plaster that they are powered by ClearBank all over their website and in the actual app. So desperate to hide the truth that they are.

'Plaster all over their website'. Good one. Let's try 'plastering' it on the main web page. 

One tap - on the banner recommending their most popular savings app - and you get:


”Covered by FSCS

All money you deposit in the Chip Instant Access Account is held by the UK authorised bank ClearBank, and is eligible for the Financial Services Compensation Scheme (FSCS) up to £85,000* subject to the scheme’s conditions.”

Pretty much no-one puts all their info for all their accounts on the front page, but instead provides links to various accounts, where you then see the necessary info. Nothing is hidden by Chip.

dgpur

OceanSound said:

dgpur said:

OceanSound said:

dgpur said:

OceanSound said:

dgpur said:

OceanSound said:

jimexbox said:

OceanSound said:

jimexbox said:

I don't use chip myself, but I'm at a loss as to why it's so hard for some to understand their business model. They are fully regulated by the FCA, they don't claim to be a bank or have FSCS protection. That is not their business model.

Their website says this:

FSCS Eligible

Eligible deposits in our savings accounts are protected under the Financial Services Compensation Scheme.

If that doesn't scream 'have FSCS protection ' then what will? 

The bank chip uses for deposits has fscs protection. So it's factually correct. 

How about If Chip goes under?

Factually correct, but economical with the truth?

They clearly tell you that the money is held with ClearBank. Who are the ones that actually hold your money. No-one is lying to you.

Economical with truth  dosen't ALWAYS equate to lying.

Economical with the truth, sure. Like the way they plaster that they are powered by ClearBank all over their website and in the actual app. So desperate to hide the truth that they are.

'Plaster all over their website'. Good one. Let's try 'plastering' it on the main web page. 

I think I’m just going to leave you to your paranoia and unwarranted sense of superiority.

You could attempt to discuss the point(s) and not make it personal.

I’d already thought better of it and deleted it. My frustration led me to be unkind - I apologise.

worriednoob

Thanks for the explanation everyone and apologies @Band7 for posting the same question on multiple threads.  I'm going to hold my hands up and say that I didn't read or realise that Chip are actually under the 'Clearbank' umbrella as I was looking for the 'Chip' name.  But thanks for clearing that up.  

dgpur

worriednoob said:

Thanks for the explanation everyone and apologies @Band7 for posting the same question on multiple threads.  I'm going to hold my hands up and say that I didn't read or realise that Chip are actually under the 'Clearbank' umbrella as I was looking for the 'Chip' name.  But thanks for clearing that up.  

That’s still not quite right. Chip are a company whose app acts as a portal/front end to accounts being held in other banks (they do investment stuff as well, but that’s not relevant here). Two of those accounts are held in ClearBank, another is held in Alicia Bank etc. So Chip aren’t actually ‘under’ ClearBank. Completely separate entities. But it’s the banks that have have (and need) the FSCS protection, not Chip.

jaypers

Is it worth taking the CHIP thing to a different thread? Seems to be taking over!

Steve_xx

dgpur said:

worriednoob said:

Thanks for the explanation everyone and apologies @Band7 for posting the same question on multiple threads.  I'm going to hold my hands up and say that I didn't read or realise that Chip are actually under the 'Clearbank' umbrella as I was looking for the 'Chip' name.  But thanks for clearing that up.  

That’s still not quite right. Chip are a company whose app acts as a portal/front end to accounts being held in other banks (they do investment stuff as well, but that’s not relevant here). Two of those accounts are held in ClearBank, another is held in Alicia Bank etc. So Chip aren’t actually ‘under’ ClearBank. Completely separate entities. But it’s the banks that have have (and need) the FSCS protection, not Chip.

I think you may mean Allica Bank?

dgpur

Steve_xx said:

dgpur said:

worriednoob said:

Thanks for the explanation everyone and apologies @Band7 for posting the same question on multiple threads.  I'm going to hold my hands up and say that I didn't read or realise that Chip are actually under the 'Clearbank' umbrella as I was looking for the 'Chip' name.  But thanks for clearing that up.  

That’s still not quite right. Chip are a company whose app acts as a portal/front end to accounts being held in other banks (they do investment stuff as well, but that’s not relevant here). Two of those accounts are held in ClearBank, another is held in Alicia Bank etc. So Chip aren’t actually ‘under’ ClearBank. Completely separate entities. But it’s the banks that have have (and need) the FSCS protection, not Chip.

I think you may mean Allica Bank?

Do you know, I’ve been reading it as Alicia all along. The weird names banks have these day, it’s not as if it was all that unlikely!

OceanSound

wmb194 said:

worriednoob said:

Let's leave the pronoun business to a different topic/different day  .  

As a saver, I'm extremely worried with what @wmb194 has recently posted on THIS THREAD about Chip's finances on Companies House.  The company is making colossal losses according to their full accounts (upto Dec 2022) released at end of April 2023.

Isn't this a cause for concern for other savers?  I thought as a bank, they would have been financially stress-tested to ensure that they wouldn't go bust and leave customers out of pocket? 

Chip isn't a bank, it's an intermediary. IIRC deposits are held with ClearBank. If Chip goes '!!!!!!' it shouldn't be a problem, the biggest danger is probably that you might lose access for a week or two whilst the returning of deposits is being sorted out.

Can you expand on the highlighted please?

I keep hearing this 'x is not a bank'. Is what you say in the highlighted bit what makes it different from a bank?
Plus of course, not having 'direct' FSCS protection, but through ClearBank.

Is the additional time frame to return deposits the ONLY factor that is different to a bank (or building society) offering 'direct' FSCS protection on an account. e.g. HSBC, Natwest, Lloyds, Santander, Nationwide?

Minty33

Investec Online Flexi Saver 3.51%. min £5000

TiVo_Lad

OceanSound said:

wmb194 said:

worriednoob said:

Let's leave the pronoun business to a different topic/different day  .  

As a saver, I'm extremely worried with what @wmb194 has recently posted on THIS THREAD about Chip's finances on Companies House.  The company is making colossal losses according to their full accounts (upto Dec 2022) released at end of April 2023.

Isn't this a cause for concern for other savers?  I thought as a bank, they would have been financially stress-tested to ensure that they wouldn't go bust and leave customers out of pocket? 

Chip isn't a bank, it's an intermediary. IIRC deposits are held with ClearBank. If Chip goes '!!!!!!' it shouldn't be a problem, the biggest danger is probably that you might lose access for a week or two whilst the returning of deposits is being sorted out.

Can you expand on the highlighted please?

I keep hearing this 'x is not a bank'. Is what you say in the highlighted bit what makes it different from a bank?
Plus of course, not having 'direct' FSCS protection, but through ClearBank.

Is the additional time frame to return deposits the ONLY factor that is different to a bank (or building society) offering 'direct' FSCS protection on an account. e.g. HSBC, Natwest, Lloyds, Santander, Nationwide?

ClearBank are a Bank. They are no different in terms of FSCS cover than the others that you mention. The delay is the time it takes for the FSCS protection to kick in. If any financial institution that's covered by the FSCS scheme fails, you may not have access to your money for a short period while the scheme refunds your deposits.

Money that you deposit via CHIP is held by ClearBank who are directly FSCS protected.