Chip account 1.25% ?

[Deleted User]

Anyone got one of these chip accounts?
https://www.moneysavingexpert.com/savings/savings-accounts-best-interest/#chip
Apparently 1.25% on 10k, but a bit unsure of the process of getting the actual bonus of 1.25% with talk of it being separate from the money. 
Am wrong to say if I put 10k in I will get £125 bonus in three months? (minus the £1.50 charge per two months - first month is free)

PRAISETHESUN

I've used Chip in the past (not this particular version though) and found it rather clunky. I also didn't approve of the lack of FSCS protection - they say your money is protected, but it's a rather convoluted arrangement with their partner bank. Definitely make sure you read what you are signing up to before you commit to anything. 

The "bonus" is 1.25% annually, not per 12 week period. They pay into a separate linked Chip account to avoid compounding (ie. bonus on your bonus), otherwise it is fully accessible - it appears as a separate line in the app from what I remember (somewhat like Barclays Blue, or NatWest/RBS Rewards). The charge is also per 28 days, not per month - so it'll add up slightly faster than you think. It's a lot of confusion for what is effectively a ~1% (after accounting for fees, assuming £10k balance) easy access account.

quirkydeptless

I have the account. I don't do any of the auto-save shtick though.
It tells you how much bonus is accumulating, when it becomes available, and on the quarterly date, it gets added to your Chip+1 account. You'd need to keep the £10000 in it for a year to get £125 bonus.
If you had £10000 in there for 3 months, then your bonus would be 1/4 of the yearly amount, i.e. £31.25, so you'd get £31.25 every three months.
Note I don't work for Chip or claim to understand exactly how it works 

[Deleted User]

quirkydeptless said:

I have the account. I don't do any of the auto-save shtick though.
It tells you how much bonus is accumulating, when it becomes available, and on the quarterly date, it gets added to your Chip+1 account. You'd need to keep the £10000 in it for a year to get £125 bonus.
If you had £10000 in there for 3 months, then your bonus would be 1/4 of the yearly amount, i.e. £31.25, so you'd get £31.25 every three months.
Note I don't work for Chip or claim to understand exactly how it works 

Ok cheers, 

I might give it miss, I don't fancy leaving 10k in there for a year. I find the whole concept of the money being split a bit shadowy. 

• Money you put into a Chip+1 is held in a ‘segregated client trust account’ with other Chip savers’ money. By pooling all Chip savers’ money we can negotiate better on behalf of all Chip savers.

• When your money is held by Chip, it is not protected under the FSCS scheme, but it is safeguarded

• Whilst your money is being processed (during withdrawals and deposits) it is stored in safeguarded accounts, just like all other funds that Chip handles. When your money is held by Chip directly, it is not protected under the FSCS scheme, but it is safeguarded. 

https://global-uploads.webflow.com/5d65390243727621f8413d93/5fa94cf9a88b4b8259a5979c_Chip+1 FAQ_.pdf

[Deleted User]

Just opened this account, stuck £10,000 away from a maturing ISA. Can't get anything like that return elsewhere for 12 months.
Taken from the MSE site:
The money you put in is fully UK savings-safety protected. Chip has partnered with ClearBank to run its Chip+1 account. As ClearBank has a full UK banking licence, money held there gets the normal UK savings safety protection like other savings. 

[Deleted User]

Deleted_User said:

Just opened this account, stuck £10,000 away from a maturing ISA. Can't get anything like that return elsewhere for 12 months.
Taken from the MSE site:
The money you put in is fully UK savings-safety protected. Chip has partnered with ClearBank to run its Chip+1 account. As ClearBank has a full UK banking licence, money held there gets the normal UK savings safety protection like other savings. 

So if Chip goes bust your 10k is protected and you would get it back (minus the bonus)?

[Deleted User]

That's what it says. Let's be honest, if there was a 12month savings account out there paying 1.25% we'd all be jumping on it.

[Deleted User]

Deleted_User said:

That's what it says. Let's be honest, if there was a 12month savings account out there paying 1.25% we'd all be jumping on it.

If the money is protected without question, it is a good deal. I just was unsure.