Chip Savings

numbersrule

Has anyone some knowledge of Chip Savings?
There was a piece in MSE about their savings options and I decided to sign up for the Chip App on my phone on Saturday.
However now that the App is active it doesn't seem to offer a way of paying in funds.
Maybe it's because it's a bank holiday and perhaps it might be clearer tomorrow.
I'm on the Chip Lite Plan recommended by MSE for £2k of savings @ 1.25%.
But how do I pay in?  You would have thought they'd make it obvious?

maxsteam

I read on their web site that "Funds held in your e-money wallet are not covered by FSCS. This money is safeguarded with Prepaid Financial Services Limited." That's enough to put me off having anything to do with transferring money in to any of their "plans". I believe that their system involves you giving them access to your bank account. They are not a bank. They are "a fast growing team of developers, data scientists, writers, designers, entrepreneurs, marketers and more."

colsten

maxsteam said:

I read on their web site that "Funds held in your e-money wallet are not covered by FSCS. This money is safeguarded with Prepaid Financial Services Limited." That's enough to put me off having anything to do with transferring money in to any of their "plans". I believe that their system involves you giving them access to your bank account. They are not a bank. They are "a fast growing team of developers, data scientists, writers, designers, entrepreneurs, marketers and more."

CHIP do have FSCS-protected accounts, too. https://intercom.help/get-chip/en/articles/2730916-your-chip-accounts


@numbersrule, if you want to pay into your e-wallet, that is no longer possible now as the e-wallets are closing. https://intercom.help/get-chip/en/articles/5394241-your-e-wallet-is-closing-full-faq

maxsteam

colsten said:

CHIP do have FSCS-protected accounts, too

Haha. Yes. There are far too many parties involved for anyone to rely on that protection imho. It's essential for anyone putting money into their schemes to be aware that it is not a bank.

numbersrule

Thank you all for your posts.
It seems funds are held with ClearBank which provides the FSCS protection.
Looks to me like it is a similar arrangement to that used by Tide for their business accounts.
I am not concerned about this for a modest amount of easy access savings.
When I opened the App again earlier this evening I found the page for deposits.
I'll let you know how I get on with Chip in the coming months........

maxsteam

numbersrule said:

It seems funds are held with ClearBank which provides the FSCS protection.

There's a bloke in a pub near here who will promise to put your money into a bank with FSCS protection. He's offering 1.33%.

colsten

maxsteam said:

numbersrule said:

It seems funds are held with ClearBank which provides the FSCS protection.

There's a bloke in a pub near here who will promise to put your money into a bank with FSCS protection. He's offering 1.33%.

I don‘t personally use CHIP but I think there is no need to scaremonger. If you have reason to believe they are abusing their licence, you should inform the FCA without delay.

tebbins

... apparently i need to type stuff otherwise it doesn't let me post the screenshot of the website...


...

numbersrule

Hi Tebbins
Thanks for your post but I don't understand your post or what you are trying to say.
Would you mind clarifying please?
I was aware that the interest doesn't go into the Clear Bank account.
What is the meaning of your comment about 9 characters?

tebbins

numbersrule said:

Hi Tebbins
Thanks for your post but I don't understand your post or what you are trying to say.
Would you mind clarifying please?
I was aware that the interest doesn't go into the Clear Bank account.
What is the meaning of your comment about 9 characters?

My point is to clarify that it is fully FSCS backed, but it's debatable how easy it would be to get your money back if it failed due to the additional complexity.

numbersrule

tebbins said:

numbersrule said:

Hi Tebbins
Thanks for your post but I don't understand your post or what you are trying to say.
Would you mind clarifying please?
I was aware that the interest doesn't go into the Clear Bank account.
What is the meaning of your comment about 9 characters?

My point is to clarify that it is fully FSCS backed, but it's debatable how easy it would be to get your money back if it failed due to the additional complexity.

Oh, I see.  Yes, I take your point.  I am beginning to think I may need to reconsider this.  It's interesting that it has been promoted by MSE despite these potential complications.