The Top Easy Access Savings Discussion Area

PixelPound

oz0707 said:

lcooper said:

oz0707 said:

For me this whole chip conversation is a bit 'protest too' much people trying to assure you something is safe. I'd rather take a decimal place or two less interest and not deal with the open banking and understanding the whole intricacies of the FSCS protection

If I have posted something that is incorrect, I apologise and would ask if you could please point out what I got wrong, so people aren't misled.

masonic said:

oz0707 said:

For me this whole chip conversation is a bit 'protest too' much people trying to assure you something is safe. I'd rather take a decimal place or two less interest and not deal with the open banking and understanding the whole intricacies of the FSCS protection

If you don't want to understand the risks, but want to avoid them, how will you do so? It's not as simple as singling out Chip and assuming every other savings account is 100% risk free.

If the FSCS intricacies aren't the issue and you are just expressing a preference for accounts that don't use Open Banking, or aren't App only, or which meet some other criteria, then fair enough.

I'm not saying anything that has posted has been wrong. Just my basic understanding is no direct fscs protection, atleast not as clear cut as other institutions. Im sure the risk is tiny but i cba to delve into the specifics or research so ill just use other providers. I did open an account but also wasnt comfortable with open banking. 

It doesn't help when there's "what if" type posts that seem to muddy the water. I guess some don't like chip but as they offer different products it's easy to say you aren't protected and it be right, in some sense.

The bottom of every email they send out has
Note that Chip is not a bank. Only the money held in our Interest Accounts, Prize Savings Account, Chip+1 and Chip Instant Access account is covered by the Financial Services Compensation Scheme (FSCS) for deposits. To find out more and to check your eligibility please visit: www.fscs.org.uk.

So as in this thread we are really talking about Chip Instant Access, surely there isn't a worry so long as the normal provisos are in place - i.e. your total investment is less than £85K across any accounts covered by clearbank.

I use OB to deposit, which is instant, and withdrawals are by Faster Payment so usually within minutes maybe an hour. It is instant banking in a time when many of the competitive rates providers are still "by the end of the next working day". I used to keep above £2K in by current account earning nothing (or a pittance) and only put into savings what I was unlikely to need.

I get the debit card deposit risks (IIRC you are told about it on application), and surely the same would apply to YBS or Skipton that allow deposits by debit card. I've opened a TSB account, so doing some low value transfers across and finding they are quite quick (usually showing as cleared after a day, whilst TSB still showing as pending).

I used to be reticent of Open Banking - don't want any robot app managing my money, but so long as you leave the optional parts (like transaction history) turned off, which they are by default, they really are only getting that you have enough balance to allow the transfer.

It really is DYOR rather than rely on a forum post. 

masonic

nic_c said:
I get the debit card deposit risks (IIRC you are told about it on application), and surely the same would apply to YBS or Skipton that allow deposits by debit card. I've opened a TSB account, so doing some low value transfers across and finding they are quite quick (usually showing as cleared after a day, whilst TSB still showing as pending).

The debit card risk applies to any provider that outsources its payment processing to a firm that doesn't have a banking licence. Some savings providers will be using their own infrastructure or the infrastructure of a clearing bank. They wouldn't be impacted, whereas a provider using a firm without a banking licence would be in the same position as Chip. I don't know who processes the debit card payments of most providers who accept them, and I doubt I am in the minority.

KevinG

jaypers said:

I have avoided Chip as I simply don’t like the concept of Open Banking…….just a personal view here but I find it a faff, especially having to renew the handshake every 3 months too. Other niggly little things keep cropping up in conversations on here too so although their rates seem very good, for me it’s a no. 

It's not a faff at all, it's very straightforward, as is the renewal.

MoneySaver16

Any Investec users able to comment on transfer speed? All previous transfers I’ve made have been near enough instant but ones from this evening are not processed yet a few hours later - might be because these were far later on in the day?

kjs31

lcooper said:

Chip savings, except those deposited by card, are in principle no different to savings via Raisin, Monzo or HL Active Savings. Any money deposited into Chip by OB or Faster Payment goes into Clearbank in seconds and is then FSCS protected, up to £85k total deposits across all your Clearbank accounts.

If you deposit by card, directly or via ApplePay or Google Wallet, your money goes into pending status and takes 3 working days to clear. Whilst it is pending, you have no FSCS protection on it, and you also don’t get interest on it.

Bottom line is therefore that your Chip deposits by OB or FP are as safe as your deposits into other savings accounts with FSCS protection. We simply have to watch we don’t exceed the FSCS limit - again, that’s the same for all savings accounts.

It would help if Chip did make this clearer on their website.

I tried endless times to deposit into Chip via OB but my bank just wouldn’t allow it. I spent more time with my account locked out or on the phone to the fraud team than was worth the effort that week. So I ended up using my debit card to deposit the money not realising that there was any risk involved. That said the money arrived ok but I would probably think twice about doing it again. 

tg99

MoneySaver16 said:

Any Investec users able to comment on transfer speed? All previous transfers I’ve made have been near enough instant but ones from this evening are not processed yet a few hours later - might be because these were far later on in the day?

Yep I had exact same thing on a Saturday evening a few weeks ago…..usually instant but this one didn’t arrive till Sunday morning (was in my account when I woke up).

boingy

kjs31 said:

lcooper said:

Chip savings, except those deposited by card, are in principle no different to savings via Raisin, Monzo or HL Active Savings. Any money deposited into Chip by OB or Faster Payment goes into Clearbank in seconds and is then FSCS protected, up to £85k total deposits across all your Clearbank accounts.

If you deposit by card, directly or via ApplePay or Google Wallet, your money goes into pending status and takes 3 working days to clear. Whilst it is pending, you have no FSCS protection on it, and you also don’t get interest on it.

Bottom line is therefore that your Chip deposits by OB or FP are as safe as your deposits into other savings accounts with FSCS protection. We simply have to watch we don’t exceed the FSCS limit - again, that’s the same for all savings accounts.

It would help if Chip did make this clearer on their website.

I tried endless times to deposit into Chip via OB but my bank just wouldn’t allow it. I spent more time with my account locked out or on the phone to the fraud team than was worth the effort that week. So I ended up using my debit card to deposit the money not realising that there was any risk involved. That said the money arrived ok but I would probably think twice about doing it again. 

You can now deposit with faster payments, a fairly recent addition to the options. From the sending end just add the Chip account as a payee with account number and sort code and send the money direct, no Open Banking involved. I think you can only do this from the linked account but I might be wrong.

Bigwheels1111

kjs31 said:

lcooper said:

Chip savings, except those deposited by card, are in principle no different to savings via Raisin, Monzo or HL Active Savings. Any money deposited into Chip by OB or Faster Payment goes into Clearbank in seconds and is then FSCS protected, up to £85k total deposits across all your Clearbank accounts.

If you deposit by card, directly or via ApplePay or Google Wallet, your money goes into pending status and takes 3 working days to clear. Whilst it is pending, you have no FSCS protection on it, and you also don’t get interest on it.

Bottom line is therefore that your Chip deposits by OB or FP are as safe as your deposits into other savings accounts with FSCS protection. We simply have to watch we don’t exceed the FSCS limit - again, that’s the same for all savings accounts.

It would help if Chip did make this clearer on their website.

I tried endless times to deposit into Chip via OB but my bank just wouldn’t allow it. I spent more time with my account locked out or on the phone to the fraud team than was worth the effort that week. So I ended up using my debit card to deposit the money not realising that there was any risk involved. That said the money arrived ok but I would probably think twice about doing it again. 

So not Chips fault but your bank.
Ive used open banking 3 times now, Chip, Tandem and can’t remember the third.
All worked seamlessly.

MoneySaver16

tg99 said:

MoneySaver16 said:

Any Investec users able to comment on transfer speed? All previous transfers I’ve made have been near enough instant but ones from this evening are not processed yet a few hours later - might be because these were far later on in the day?

Yep I had exact same thing on a Saturday evening a few weeks ago…..usually instant but this one didn’t arrive till Sunday morning (was in my account when I woke up).

Thanks - looks to be the same here as it arrives first thing this morning!

kjs31

boingy said:

You can now deposit with faster payments, a fairly recent addition to the options. From the sending end just add the Chip account as a payee with account number and sort code and send the money direct, no Open Banking involved. I think you can only do this from the linked account but I might be wrong.

Thanks! Have to admit I haven’t looked at Chip for a while and you couldn’t do that when I opened the account last year. Since then I’ve just left the Chip money well alone and messaged them when they were only at 4.26% to say that I would be withdrawing if they didn’t make the rate more competitive. They replied back ‘thanks for the feedback’ and then not long after the rate went up. Now obviously it wasn’t my message that caused the increase but they do seem quite keen to keep at the top of the table currently (or in the top 3 at least). I’ve got a few accounts and drop the bottom couple when they get too far behind. Chip hasn’t been there as yet.