Autosaving app Chip starts charging some users a £1 fee every 28 days - MSE News story 4 June 2020 at 4:25PM edited 4 June 2020 at 4:43PM in Savings & investments 5 replies 332 views

MSE_Petar

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Autosaving app Chip starts charging fees

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MovingForwards

@MSE_Petar the link is wrong as it takes people to the Admiral refunding £25 car insurance story.

MSE_Petar

MovingForwards said:

@MSE_Petar the link is wrong as it takes people to the Admiral refunding £25 car insurance story.

Thanks! Should now be fixed.

DireEmblem

So we are talking a maximum 1% fee here, for an app that tries to save in the background amounts that you won’t miss.  I don’t see the harm in that as before I joined chip, I was saving far less as just spent what was in my account.  It would be nice if they did pay the equivalent of an easy access account rate though, not sure why they can’t?

Zanderman

DireEmblem said:

So we are talking a maximum 1% fee here, for an app that tries to save in the background amounts that you won’t miss.  I don’t see the harm in that as before I joined chip, I was saving far less as just spent what was in my account.  It would be nice if they did pay the equivalent of an easy access account rate though, not sure why they can’t?

Well they can, if they want to.  But why should they?  They are providing you with a free (unless you trigger the monthly fee by saving more than £100) service.  Paying interest on top is icing on the (not very tempting, to me at least!) cake.

If you want interest, ditch Chip and either save manually or use an alternative auto-saving app such as like Tandem, which does pay interest.

Read the reviews here:  https://www.moneysavingexpert.com/banking/digital-banking/#savings

grumiofoundation

DireEmblem said:

So we are talking a maximum 1% fee here, for an app that tries to save in the background amounts that you won’t miss.  I don’t see the harm in that as before I joined chip, I was saving far less as just spent what was in my account.  It would be nice if they did pay the equivalent of an easy access account rate though, not sure why they can’t?

You've kind of answered your own question - why would they need to pay interest as the amount they 'save' you is far more than you would get in interest on the amount.