Chip+1 Account moving to Allica Bank

arthomas

HHarry said:

benhamnett said:

I've got a Chip+1 account and got the email from them saying this will be discontinued, but the money will move into the 0.7% account automatically.

According to the email I received you have to give your consent, before the money is moved automatically.  I haven’t yet worked out how to give, or withold, consent.

Under the account in the Chip app there is an icon with "Your rate is dropping on 8th December" - clicking on it and through the following screens seems to be how you give consent.

One thing I noticed on the app which I haven't seen mentioned elsewhere - it looks like the transferred bonus still cannot earn interest in the new account, so I assume you'd have to withdraw everything and put it back in to be able to earn interest on the whole amount.

PT3

Hello everyone. I have a Chip+1 account containing about 10k and it states my next bonus of ~£20 is due on 28th December.
The automatic switch to the Allica 0.7% account is before that on the 8th..
What will happen on 8th December? Will the bonus offer move with my money?
With the fees I pay (£1.50pcm) I know I need to close down my Chip+1 and moving to a better savings account, but am I better off doing this straight away or letting the money move over to Allica and waiting until 28th Dec before closing it down?
In simpler terms.. Will the £20 bonus go into my new Allica account on 28th Dec or are the scheduled bonuses abandoned when Chip+ shuts down?? 
Any advice appreciated. Thank you MSE! 

PT3

PT3 said:

Hello everyone. I have a Chip+1 account containing about 10k and it states my next bonus of ~£20 is due on 28th December.
The automatic switch to the Allica 0.7% account is before that on the 8th..
What will happen on 8th December? Will the bonus offer move with my money?
With the fees I pay (£1.50pcm) I know I need to close down my Chip+1 and moving to a better savings account, but am I better off doing this straight away or letting the money move over to Allica and waiting until 28th Dec before closing it down?
In simpler terms.. Will the £20 bonus go into my new Allica account on 28th Dec or are the scheduled bonuses abandoned when Chip+ shuts down?? 
Any advice appreciated. Thank you MSE! 

I think I've found the answer to my own question.. 
Chip has an FAQs section regarding this move. They state.. 

What about my Chip+1 bonus, will it still be paid?

Absolutely! Your bonus will be paid in full. If you consent to move your funds, we'll pay this out before the switch to Allica and the bonus amount will be added to your balance in your Allica account. If your bonus pay out is due after the switch to Allica, no need to worry! The payment date will be brought forward and all accrued bonus will be applied directly to your Allica account.

If you do not consent to having your Chip+1 funds moved to Allica we'll still pay your bonus. The pay out date will remain as the date currently stated in the app. To see this tap "Your next bonus payout" on the Chip+1 account page

#######

... so with this in mind I think I'm better off consenting to the switch to Allica, and then after 8th Dec I will check that the 'early' bonus payment has been paid into the account, and THEN I will withdraw it all and move elsewhere.

Hope this helps.

Nardge

PT3 said:

PT3 said:

Hello everyone. I have a Chip+1 account containing about 10k and it states my next bonus of ~£20 is due on 28th December.
The automatic switch to the Allica 0.7% account is before that on the 8th..
What will happen on 8th December? Will the bonus offer move with my money?
With the fees I pay (£1.50pcm) I know I need to close down my Chip+1 and moving to a better savings account, but am I better off doing this straight away or letting the money move over to Allica and waiting until 28th Dec before closing it down?
In simpler terms.. Will the £20 bonus go into my new Allica account on 28th Dec or are the scheduled bonuses abandoned when Chip+ shuts down?? 
Any advice appreciated. Thank you MSE! 

I think I've found the answer to my own question.. 
Chip has an FAQs section regarding this move. They state.. 

What about my Chip+1 bonus, will it still be paid?

Absolutely! Your bonus will be paid in full. If you consent to move your funds, we'll pay this out before the switch to Allica and the bonus amount will be added to your balance in your Allica account. If your bonus pay out is due after the switch to Allica, no need to worry! The payment date will be brought forward and all accrued bonus will be applied directly to your Allica account.

If you do not consent to having your Chip+1 funds moved to Allica we'll still pay your bonus. The pay out date will remain as the date currently stated in the app. To see this tap "Your next bonus payout" on the Chip+1 account page

#######

... so with this in mind I think I'm better off consenting to the switch to Allica, and then after 8th Dec I will check that the 'early' bonus payment has been paid into the account, and THEN I will withdraw it all and move elsewhere.

Hope this helps.

I believe CHIP have made it their modus operandi to always trump others and offer chart-topping accounts.

So whilst there may be a temporary lull in their offerings for now (though 0.7% still remains very competitive),
it won't be long before they pip all to the post again sometime soon and in the not too distant future...

With Kind Regards

Mammamia68

n15h said:

IMHO the new Chip account is still paying a decent rate (compared to many other low interest savings products) even after fees.

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.

Will they deduct a monthly fee once it becomes the easy access 0.7% account? No mention of it in the faqs…

VXman

Mammamia68 said:

n15h said:

IMHO the new Chip account is still paying a decent rate (compared to many other low interest savings products) even after fees.

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.

Will they deduct a monthly fee once it becomes the easy access 0.7% account? No mention of it in the faqs…

My question too. If there is no fee then happy to leave it. If there is a fee I would close - however need to work out when to close it to minimise fees and maximise bonus.

VXman

Found this when looking through the terms and conditions.

StockportSaveree

VXman said:

Found this when looking through the terms and conditions.

Good spot and technically correct,

But the Chip Fee is not for holding money in a specific account.  The Fee is for The Plan that you are on (AI or X) and covers the costs for the chip team to go out on a daily basis and negotiate the best deals with banks.  They can attach lots of different account deals to a specific plan and the ‘fee’ allows you access to all the accounts in that plan.  Subtle definition of what it covers means that chip will continue charging the flat rate fee whether you have money in the account or not, as it’s the plan that you are paying for.

StockportSaveree

The ‘1.25% interest’ in Chip+1 never really existed as it was a bonus being paid out of a marketing budget to attract customers.  This is why it never got compounded, and it was held separately to your funds.  They stopped calculating the bonus from Dec 2, so you should all see the bonus paid now into your account APP, mine was paid Dec 1st.
so I’ve now moved all my money out and closed my accounts with Chip, it’s no longer the best as there’s at least 3 deals that are better without a fee and without a £10k cap.  Make sure you disconnect the open banking settings from your source account in case chip draws out the Fee.  Good luck everyone

teena

StockportSaveree said:

The ‘1.25% interest’ in Chip+1 never really existed as it was a bonus being paid out of a marketing budget to attract customers.  This is why it never got compounded, and it was held separately to your funds.  They stopped calculating the bonus from Dec 2, so you should all see the bonus paid now into your account APP, mine was paid Dec 1st.
so I’ve now moved all my money out and closed my accounts with Chip, it’s no longer the best as there’s at least 3 deals that are better without a fee and without a £10k cap.  Make sure you disconnect the open banking settings from your source account in case chip draws out the Fee.  Good luck everyone

Thanks for the information. How do you disconnect the open banking settings? - I had a look but was defeated.