Chip

Trebor192126

Hi, I am confused by this FSCS with Chip Financial Ltd they operate the app that facilitates linking a bank acct to move money to their easy access interest bearing account, but they are not covered by the 85K FSCS but ClearBank are with whom I do not have an account and as they appear to be a Clearing Bank would I presume only have a single acct arrangement with Chip, so if Chip go into liquidation how would the FSCS work, and no doubt take years to resolve if ever ? The point being that Chip does not appear to have FSCS cover and ClearBank do not know me. 

JJ_Egan

What does this have to do with MSE ??

Post would be better in banking etc .

[Deleted User]

Trebor192126 said:

Hi, I am confused by this FSCS with Chip Financial Ltd they operate the app that facilitates linking a bank acct to move money to their easy access interest bearing account, but they are not covered by the 85K FSCS but ClearBank are with whom I do not have an account and as they appear to be a Clearing Bank would I presume only have a single acct arrangement with Chip, so if Chip go into liquidation how would the FSCS work, and no doubt take years to resolve if ever ? The point being that Chip does not appear to have FSCS cover and ClearBank do not know me. 

Press reports indicate that all deposits are held in an escrow account with Barclays Bank. Deposits are not protected by the FSCS.

From the Chip FAQs:

Money held in your main Chip account (you "e-money wallet") is stored as e-money and is not covered by FSCS. 

We work with electronic-money specialists PFS (Prepaid Financial Services FRN: 900036) to store your money. PFS store the money with a major retail bank in a ‘ring-fenced’ account, which means it’s never used for any trading activities.