Easy access account via Chip?

maninholland

Hi everyone, first time poster. I need to open a couple of easy access savers, and have already done Cynergy. But I don't properly 'get' the whole thing about Chip and what they offer. The thing that attracts me is that it is app-based, because I am constantly on the move, and it looks like it offers an account through Allica Bank? Am I right in thinking that this account is only available through signing up to Chip? Are there any downsides to this? I don't need the app to 'work for me', as such, as I know exactly how much I want to put in. Any feedback on Chip and this type of operation would be much appreciated, thanks very much. 

Daliah

You are right, the Allica instant access account seems to only be available via Chip. There are other, less complicated 0.7% accounts - Investec, Marcus (or Saga), RCI Bank.

With a little extra effort, you can get yourself a Virgin M Plus account (2% up to £1,000) and attached 1% instant access account on up to £25,000.

n15h

Chip connects to your bank account via open banking and calculates how much you can save every 4-5 days, and then debits the amount from your bank account into the Chip savings account. So you could see a variance in the amount it saves each time e.g. on one day it could save £60 and a few days later, it will save £45.

It doesn't have the option for you to choose upfront how much you want to put in for each save - so that each save would be the same. However, it does send a notification on the day of how much it is going to debit from your bank account and you have the option to amend the savings amount manually e.g. Chip notifies it is going to save £48.35 - you can amend this to any figure you like, and Chip will then save the amended amount that day. If you don't make any amends, it will save the amount it has notified you.

I've been using it for a number of years and built up £10K+ in Chip savings. In my experience, I have found it useful to have it as an option to build savings as Chip does all the hard work analysing and working out how much to save, and I can get on with my day. The app is just useful to have so that I can view/manage my savings on the go, however contacting their customer service is also done through the app, and in my opinion, I would like to talk to someone rather than write a message if I had a question.

Also worth noting that your money held with Chip has FSCS protection up to £85K.

Daliah

n15h said:

Chip connects to your bank account ........

It doesn't have the option for you to choose upfront how much you want to put in for each save ......

It does let you put in as much as you like, directly into the Allica account, and you don't have to activate the regular deposits, and/or you can leave the linked current account (which doesn't have to be your main current account) at a minimal balance, so the regular savings option never gets processed.

As the OP doesn't appear to want to use the auto-saving function, it seems a lot more straight forward to use an account which doesn't snoop about in their current account (which Chip does, on a regular / weekly basis). Besides, the alternatives offer the opportunity for 30% more interest, for £25,000.

@maninholland, all the alternatives mentioned have apps.

PRAISETHESUN

It's a complicated offering so if you don't understand how Chip works then I'd probably recommend to stay away.

If you're just using Chip for access to the linked savings accounts then there are better options out there - the standard to beat really is the Virgin current account (2% on £1k, + 1% linked savings account up to £25k). Otherwise see here: https://www.moneysavingexpert.com/savings/savings-accounts-best-interest/

maninholland

Thanks all for the great feedback, much appreciated. It's the issue/option of the app effectively telling me how much I can afford to save that's my main focus really, as like I say, I know exactly how much of a lump sum I want to put in there, and I only really came to consider Chip because of the Allica option. I already have fixed accounts with Atom and Tandem, so I know who the main - and minor players - are. Thanks again, I'll probably steer clear then for now

Daliah

maninholland said:

 I know who the main - and minor players - are. 

Why are you then not jumping on the real main player, i.e. Virgin Money?

And to repeat: if it has to be Allica via Chip, you can deposit as much as you like into Allica, any time you like. To stop the Chip auto-saving, you can do a number of things - for example, set the minimum bank balance level to a very high number. It won't stop Chip snooping about in your current account but they won't move any of your money to savings. Easiest to find out whether you could live with it is just install the app and play about with it. I think it's a complete gimmick, there are plenty of easier / better savings alternatives, and I only went for it since someone had a £20 referral for me (which they paid as promised). I have since withdrawn all my money but still have the app and the accounts. Note that withdrawals requested after 11am take two working days to arrive in your linked account, so it's not entirely instant access.