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Chip+1 Account moving to Allica Bank

3 Posts
Hello
I joined the Chip+1 account via app etc as mentioned on the Money Saving Expert website savings. However, the Chip+1 account ( currently offering 1.25%) is closing and they are offering to move savings to Allica Bank offering 0.7%. Does anyone else use Chip+1 and feel comfortable with this offer?
Thank you
Alan
I joined the Chip+1 account via app etc as mentioned on the Money Saving Expert website savings. However, the Chip+1 account ( currently offering 1.25%) is closing and they are offering to move savings to Allica Bank offering 0.7%. Does anyone else use Chip+1 and feel comfortable with this offer?
Thank you
Alan
0
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Allica gives you 0.7% interest on up to £30k, however given that many Chip+1 users are being charged £1.50 per month to get the previous £10k/1.25% deal (and assuming this charge persists when the change takes place), the new effective rate is 0.64% when saving £30k. Worse if saving less. This is worse than the current MSE top easy-access savings accounts.
So saying, I'm likely to withdraw all of my cash when Chip+1 ends.
Read the full story:
Warning: Chip to slash 1.25% rate to 0% and it'll still make some pay for the privilege - act now
Assuming the partial interest is paid on the 8th December into the +1 account, can I then withdraw the money including the interest, or do I need to withdraw before the 8th December?
Assume someone at MSE towers didn't get the message, could MSE_Emily respond or update the article rather than scaremongering? It's still a better rate than the top easy access posted in last nights' email!
My crude calculations are that if the £10K is moved from Chip+1 to the 0.7% savings account, the £10K would earn £70 interest per year (at 0.7%) or £5.80 per month. Deducting the £1.50 monthly fee, leaves £4.30 per month interest or £51/year i.e. a net savings rate of 0.51%.
I also like the fact that with Chip, there is no minimum withdrawal limit so you can withdraw as much/little as you need. I saw that with Shawbrook easy access, there is a minimum withdrawal requirement of £500.
I'll continue to stay with Chip but of course, make your own judgement and decide what is best for you / your money.
Looking for a click batey-esque headline? Look no further than Emily White.
How about informing Chip users they can still get 0.7% as part of the headline rather than as a footnote at the bottom of the article? I know you make your money by getting people to continuously click links/move their accounts through your MSE webpage, but still...
Tabloid scaremogering behaviour Emily. Shame on MSE.
Edit: I'd missed the debate above about whether action is needed or not, so assumed that the MSE article was factually correct about the account continuing but at 0%, whereas email recipients are apparently being told that it's closing and funds moved to the 0.7% account. If the latter is confirmed as true then yes, I agree that the MSE article and its headline aren't accurate!
Will they close my account and move the money somewhere?
Will the account remain open, but earn no interest?