The Top Easy Access Savings Discussion Area

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.

OceanSound

TiVo_Lad said:

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.

So the delay to do with returning deposits applies to all financial institutions covered by FSCS. From the post I was replying to it seemed there would be an extended delay if chip goes under because in the case of Chip the FSCS isn't applied directly. I.e. it kicks in through ClearBank.

Thank you for clarifying 

worriednoob

OceanSound said:

TiVo_Lad said:

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.

So the delay to do with returning deposits applies to all financial institutions covered by FSCS. From the post I was replying to it seemed there would be an extended delay if chip goes under because in the case of Chip the FSCS isn't applied directly. I.e. it kicks in through ClearBank.

Thank you for clarifying 

So just for my understanding, let's say god-forbid that Chip/Clearbank went bust today - When you say there is a short period of delay for FSCS to refund, how long are we talking about? Days? Weeks? Months?  Also where is this information mentioned?

Thanks