ChipX

livingstonc17

Hi there,

I am also using ChipAI which 1.50 per month and at 1.25%APR worth it if have more that 5K i think.

The ChipX is 3.00 per month and investment charge reduces from 0.75 to 0.25. But I have no idea if worth paying three quid a month if investing??

DireEmblem

ChipAI is £1.50 every 28 days, so £19.50 a year and you also have a 0.75% platform fee.
ChipX is £3 every 28 days, so £39 a year and 0.25% platform fee.

Lets say low users can save £100 a month, medium users £250 a month, and high net worth users £500 a month.

Low user with average balance of £600 in year 1(1.2k saved in 12 months)
ChipAI £19.50 fee plus £4.50 so £24 paid in fees or 4% all in fees year 1.
ChipX £39 fee plus £1.50 so £40.50 paid in fees or 6.75% all in fees year 1.
ChipAI £19.50 fee plus £13.50 so £24 paid in fees or 2.92% all in fees year 2.
ChipX £39 fee plus £4.50 so £43.50 paid in fees or 2.42% all in fees year 2.

Medium user with average balance of £1500 in year 1 (3k saved in 12 months)
ChipAI £19.50 fee plus £11.25 so £30.75 paid in fees or 2.05% all in fees year 1.
ChipX £39 fee plus £3.75 so £42.75 paid in fees or 2.85% all in fees year 1.
ChipAI £19.50 fee plus £33.75 so £53.25 paid in fees or 1.18% all in fees year 2.
ChipX £39 fee plus £11.25 so £50.25 paid in fees or 1.12% all in fees year 2.

High user with average balance of £3000 in year 1(£6k saved in 12 months)
ChipAI £19.50 fee plus £22.50 so £42 paid in fees or 1.4% all in fees year 1.
ChipX £39 fee plus £7.5 so £46.50 paid in fees or 1.55% all in fees year 1.
ChipAI £19.50 fee plus £67.50 so £42 paid in fees or 0.97% all in fees year 2.
ChipX £39 fee plus £22.5 so £61.50 paid in fees or 0.68% all in fees year 2.

What kind of saver are they really looking to entice onto their platform?  I think you can get the myMap funds on Fidelity, so why not just setup a Fidelity account, with a regular direct debit/investment, and pay a simple 0.35% platform fee?

DireEmblem

livingstonc17 said:

I have no idea if worth paying three quid a month if investing??

This is exactly my point, it is an overly complicated / confusing product for what it needs to be.

eskbanker

DireEmblem said:

I think you can get the myMap funds on Fidelity, so why not just setup a Fidelity account, with a regular direct debit/investment, and pay a simple 0.35% platform fee?

Because there are a number of cheaper platforms on which you can hold these? 

Not that cost is everything of course....

DireEmblem

Yeah I wasn't suggesting Fidelity was the best, but a quick 2 min check shows you can get a cheaper platform that has more flexibility should you choose.

MittMonkey

DireEmblem said:

ChipAI is £1.50 every 28 days, so £19.50 a year and you also have a 0.75% platform fee.
ChipX is £3 every 28 days, so £39 a year and 0.25% platform fee.

Lets say low users can save £100 a month, medium users £250 a month, and high net worth users £500 a month.

Low user with average balance of £600 in year 1(1.2k saved in 12 months)
ChipAI £19.50 fee plus £4.50 so £24 paid in fees or 4% all in fees year 1.
ChipX £39 fee plus £1.50 so £40.50 paid in fees or 6.75% all in fees year 1.
ChipAI £19.50 fee plus £13.50 so £24 paid in fees or 2.92% all in fees year 2.
ChipX £39 fee plus £4.50 so £43.50 paid in fees or 2.42% all in fees year 2.

Medium user with average balance of £1500 in year 1 (3k saved in 12 months)
ChipAI £19.50 fee plus £11.25 so £30.75 paid in fees or 2.05% all in fees year 1.
ChipX £39 fee plus £3.75 so £42.75 paid in fees or 2.85% all in fees year 1.
ChipAI £19.50 fee plus £33.75 so £53.25 paid in fees or 1.18% all in fees year 2.
ChipX £39 fee plus £11.25 so £50.25 paid in fees or 1.12% all in fees year 2.

High user with average balance of £3000 in year 1(£6k saved in 12 months)
ChipAI £19.50 fee plus £22.50 so £42 paid in fees or 1.4% all in fees year 1.
ChipX £39 fee plus £7.5 so £46.50 paid in fees or 1.55% all in fees year 1.
ChipAI £19.50 fee plus £67.50 so £42 paid in fees or 0.97% all in fees year 2.
ChipX £39 fee plus £22.5 so £61.50 paid in fees or 0.68% all in fees year 2.

What kind of saver are they really looking to entice onto their platform?  I think you can get the myMap funds on Fidelity, so why not just setup a Fidelity account, with a regular direct debit/investment, and pay a simple 0.35% platform fee?

This is the kind of common sense explanation that I was hoping to see.

As an investing idiot, I wouldn't know if ChipX is a good option or not. In my head I was thinking that it was an "Investing For Dummies" type product.

For small regular amounts, what's a better straightforward option? 

DireEmblem

For small regular amounts, it all depends on timeframe, if you have any concerns what you invest in, and how much choice you would like.

Vanguard direct only offers their own product, VWRP is their All world equity ETF, with a fund fee of 0.22% plus a platform fee of 0.25%.

https://www.morningstar.co.uk/uk/etf/snapshot/snapshot.aspx?id=0P0001I3RZ

Fidelity/Hargreaves would give you more choice.

https://www.fidelity.co.uk/factsheet-data/factsheet/GB00BMJJJF91-hsbc-ftse-all-world-index-c-acc/charges-and-key-documents

 In this example, the fund fee is 0.13%, with a fidelity platform fee of 0.35%.

I would suggest both are no brainer for long term investing without having to put much thought into it.  By long term I mean at least 5-10 years plus.

MittMonkey

DireEmblem said:

For small regular amounts, it all depends on timeframe, if you have any concerns what you invest in, and how much choice you would like.

Vanguard direct only offers their own product, VWRP is their All world equity ETF, with a fund fee of 0.22% plus a platform fee of 0.25%.

https://www.morningstar.co.uk/uk/etf/snapshot/snapshot.aspx?id=0P0001I3RZ

Fidelity/Hargreaves would give you more choice.

https://www.fidelity.co.uk/factsheet-data/factsheet/GB00BMJJJF91-hsbc-ftse-all-world-index-c-acc/charges-and-key-documents

 In this example, the fund fee is 0.13%, with a fidelity platform fee of 0.35%.

I would suggest both are no brainer for long term investing without having to put much thought into it.  By long term I mean at least 5-10 years plus.

Thanks @DireEmblem for the swift and helpful reply.

I'll have a look at those.

MM