The Top Easy Access Savings Discussion Area

RosieRooBear

@jaypers, hopefully mine will arrive tomorrow as it will be nine working days for me then 🤞

MeteredOut

jaypers said:

Few posts in here about delayed Cahoot login details arriving. Both of my letters arrived today after 9 days. So much for them arriving separately! 

That could be your local post rather than Cahoot. We often go a few days without any mail, and then we get quite a lot packaged together with a rubber band.

Although the Royal Mail have denied their posties do this in order to prioritise, eg, parcels.

Zopa_Trooper

Chip have announced their instant access account will from the 14th February be directly linked to the bank of England rate, less 0.51%.

AmityNeon

Zopa_Trooper said:

Chip have announced their instant access account will from the 14th February be directly linked to the bank of England rate, less 0.51%.

Gross rate as well, so currently 4.84% AER / 4.74% Gross, unlike e.g. Kroo whose -0.9% tracker is currently 4.35% AER / 4.27% Gross.

CuparLad

Zopa_Trooper said:

Chip have announced their instant access account will from the 14th February be directly linked to the bank of England rate, less 0.51%.

It seems from "Harry"'s eMail that they've taken the last few months to revamp their market offering. I can imagine their business was decimated once Tandem forced EA rates over 5% and perhaps their existing deal with Clearbank didn't give them any further wiggle room so they've renegotiated a new arrangement that allows them to effectively offer a base rate-linked fix. Worth keeping an eye on once base rates start to shift downwards.

intalex

AmityNeon said:

Zopa_Trooper said:

Chip have announced their instant access account will from the 14th February be directly linked to the bank of England rate, less 0.51%.

Gross rate as well, so currently 4.84% AER / 4.74% Gross, unlike e.g. Kroo whose -0.9% tracker is currently 4.35% AER / 4.27% Gross.

Is it explicitly stated that it's the Gross rate that will track at 0.51% base rate, or has this just been implied from the "could be left intentionally vague" example on the email?

Edit: For clarity, Gross rate tracking at BoE -0.51% is more favourable for savers than AER tracking at BoE -0.51%

allegro120

jaypers said:

Few posts in here about delayed Cahoot login details arriving. Both of my letters arrived today after 9 days. So much for them arriving separately! 

It's 13th day for me and no letters yet. I'll wait for few more days and if still don't get any I'll ask them to resend.  There's no rush for me to view or fund these Cahoot accounts, I only need them for a backup.

wiseonesomeofthetime

intalex said:

AmityNeon said:

Zopa_Trooper said:

Chip have announced their instant access account will from the 14th February be directly linked to the bank of England rate, less 0.51%.

Gross rate as well, so currently 4.84% AER / 4.74% Gross, unlike e.g. Kroo whose -0.9% tracker is currently 4.35% AER / 4.27% Gross.

Is it explicitly stated that it's the Gross rate that will track at 0.51% base rate, or has this just been implied from the "could be left intentionally vague" example on the email?

Edit: For clarity, Gross rate tracking at BoE -0.51% is more favourable for savers than AER tracking at BoE -0.51%

Email states:

Ever since we launched the Chip Instant Access Account we have moved the rate closely in line with the Bank of England base rate. But now, we’re formalising this relationship and making the rate directly linked.  This change will come into effect on 14th February 2024, and you can find all the details in the account summary box here, but to quickly summarise:

The Chip Instant Access Account gross rate will formally track the Bank of England base rate less 0.51% which reflects its current interest rate.  This change does not impact the Chip Instant Access rate today, which remains at 4.84% AER (4.74% gross variable).  For example: at the time of writing, the Bank of England base rate is 5.25%, so the Chip Instant Access account pays you 4.84% AER* (4.74% gross variable). You can learn more about the Bank of England base rate and tracker rates on our website.   *We show all rates using industry standard AER, meaning the rate you will see on the account will always be slightly higher than the gross rate, as AER reflects the effects of compounding.

pecunianonolet

CuparLad said:

Zopa_Trooper said:

Chip have announced their instant access account will from the 14th February be directly linked to the bank of England rate, less 0.51%.

It seems from "Harry"'s eMail that they've taken the last few months to revamp their market offering. I can imagine their business was decimated once Tandem forced EA rates over 5% and perhaps their existing deal with Clearbank didn't give them any further wiggle room so they've renegotiated a new arrangement that allows them to effectively offer a base rate-linked fix. Worth keeping an eye on once base rates start to shift downwards.

And they introduce ISA's as well to hold on for longer to funds as it is more work moving it around, although the new rules state you can just open a new account anywhere you like but will be interesting to see if they launch with any promotions to attract funds. Once there easy access becomes attractive again, my balance with them is 0 and I have enough other and tracker accounts that I don't foresee any cash going there anytime soon. ISA's may well change this

allegro120

pecunianonolet said:

CuparLad said:

Zopa_Trooper said:

Chip have announced their instant access account will from the 14th February be directly linked to the bank of England rate, less 0.51%.

It seems from "Harry"'s eMail that they've taken the last few months to revamp their market offering. I can imagine their business was decimated once Tandem forced EA rates over 5% and perhaps their existing deal with Clearbank didn't give them any further wiggle room so they've renegotiated a new arrangement that allows them to effectively offer a base rate-linked fix. Worth keeping an eye on once base rates start to shift downwards.

And they introduce ISA's as well to hold on for longer to funds as it is more work moving it around, although the new rules state you can just open a new account anywhere you like but will be interesting to see if they launch with any promotions to attract funds. Once there easy access becomes attractive again, my balance with them is 0 and I have enough other and tracker accounts that I don't foresee any cash going there anytime soon. ISA's may well change this

I like trackers in principal because they give some certainty, but it doesn't look like -0.51% will become competitive in near future.  My Chip balance stays £0 since 6th Sept 2023 when I withdrew the remaining interest.