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Chip Savings Deposit Warning!

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Good morning everyone,

I count myself as tech-savvy but have to admit that this went over my head a little bit with Chip.  

I have a Chip account and have used this for a few years now - no issues.  Loads of deposits and withdrawals - all pretty instantaneous.  Obviously read about their new instant access saver at 3.15% on MSE and thought lets move some money over there.  

Bank account is linked and it's all done through open banking and you make deposits directly in the Chip app - great!  Except for this time it didn't work - all was well until I was returned to the Chip app and it says 'deposit failed'.  No problem - I can just try again...

Except I can't, because the money has already gone from my bank and cleared.  Transaction does show on the Chip side but as 'cancelled'.  Contact Chip who take 24 hours to reply saying don't worry, the money hasn't been sent and just ask your bank to re-add it to your current account.  

An hour on the phone with the bank - transaction has cleared, they're going to contact ClearBank (who hold Chip deposits) to see what's going on but it could take up to 20 working days.  

It's not an insignificant amount of money so please do be aware this kind of 'limbo' can happen - certainly not instant access in this case and who knows where my money is currently!?  Has this happened to anyone else?

It's certainly put me off Chip!!
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Comments

  • barlowlady
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    Hello
    I opened a Chip easy access account - never again.  The auto save took money from my current account despite having turned off auto save.  I asked them to close my Chip account but the £55.75 they took from me hasn’t been returned.  I now have no access to the Chip app. and no £55.75.  High price for 3.15% interest.
  • keiran
    keiran Posts: 742 Forumite
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    Somewhat connected, I'd like to report/query another issue with Chip

    In previous years I've been able to transfer large sums in and out without problem

    Attracted by the new 3.15% interest rate, I've tried to make large payments into my Chip account, but my linked Barclays acc seems to have a daily limit of £2000 for what they regard as "new payees"

    It seems that every Chip request to Barclays is treated as a new payee, and it will take me days and days to transfer my money over.

    And of course, Chip doesn't have a sort and account number for my Chip acc - in which case I could make the transfers from Barclays using those details.

    Have others experienced this issue?
    Maybe other regular banks don't restrict to £2000/day in the same way?


  • PloughmansLunch
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    keiran said:
    Somewhat connected, I'd like to report/query another issue with Chip

    In previous years I've been able to transfer large sums in and out without problem

    Attracted by the new 3.15% interest rate, I've tried to make large payments into my Chip account, but my linked Barclays acc seems to have a daily limit of £2000 for what they regard as "new payees"

    It seems that every Chip request to Barclays is treated as a new payee, and it will take me days and days to transfer my money over.

    And of course, Chip doesn't have a sort and account number for my Chip acc - in which case I could make the transfers from Barclays using those details.

    Have others experienced this issue?
    Maybe other regular banks don't restrict to £2000/day in the same way?


    Yes, £2k max with Barclays for me. I wish Chip could be funded with Faster Payments but no dice, so I changed my linked bank account and it's now higher. Some report on here that Santander has a particularly high limit.
  • Band7
    Band7 Posts: 2,285 Forumite
    First Post Name Dropper
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    Concerning that there appear to be holes in the OB (Truelayer) processing. In your case, I eould open formal complaints with both, CHIP and your bank.

    Having said this, I have made countless OB transactions with both, CHIP and Tandem (both using Truelayer) and not had any money going into a black hole.

    As to Barclays limiting OB to £2K - that’s a Barclays issue. With other banks, you can move up to their normal FP transaction limits. Have happily used this with Santander and with Starling. So change banks / add another bank account if Barclays make life difficult for you.
  • mynameisboba
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    I opened a Chip Instant Access Account on Wednesday for savings (3.15% easy access) and my main bank account (Santander) hit all the security flags when trying to transfer in £12k.  I got it resolved though.  I've checked the FSC register and it all stacks up. Chip Financial Ltd (fca.org.uk)

    A couple of things:
    • that AI auto save is naughty and has charges associated with it - cancel those in the app immediately.
    • Chip seems to be some sort of investment platform and the savings account facility is actually "powered by ClearBank". Be careful not to accidently buy some sort of investment product or service you don't necessarily want.
  • grumbler
    grumbler Posts: 58,629 Forumite
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    edited 24 February 2023 at 7:16PM
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    ...  I've checked the FSC register and it all stacks up. Chip Financial Ltd (fca.org.uk)


    Really?
    The Financial Services Compensation Scheme will not be able to consider a claim against this firm if it fails
      :'(




  • masonic
    masonic Posts: 23,647 Forumite
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    edited 24 February 2023 at 7:28PM
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    Moral of the story is to know who is holding your money. It's a landscape that's becoming increasingly complex, with several firms subcontracting services or trading under brand names.
  • dgpur
    dgpur Posts: 159 Forumite
    First Anniversary First Post Name Dropper
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    grumbler said:
    ...  I've checked the FSC register and it all stacks up. Chip Financial Ltd (fca.org.uk)


    Really?
    The Financial Services Compensation Scheme will not be able to consider a claim against this firm if it fails
      :'(




    Unless I’m missing something, it’s ClearBank who actually provide the account, and they are fully FSCS protected.
  • grumbler
    grumbler Posts: 58,629 Forumite
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    edited 24 February 2023 at 8:00PM
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    dgpur said:
    grumbler said:
    ...  I've checked the FSC register and it all stacks up. Chip Financial Ltd (fca.org.uk)


    Really?
    The Financial Services Compensation Scheme will not be able to consider a claim against this firm if it fails
      :'(




    Unless I’m missing something, it’s ClearBank who actually provide the account, and they are fully FSCS protected.
    The OP posted a link to FSCS webpage as a proof that "it all stacks up". In fact this very page says what I quoted above.

    Was it me who misunderstood "it all stacks up"?



  • pantaiema
    pantaiema Posts: 183 Forumite
    First Anniversary First Post Combo Breaker
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    Does Chip Instant Access Saving Account have a Saving AC number?
    I just tried a test saving of £1 and arrive instantly to CHIP AC. I think they are using true layer, I also save my Debitcard for the same current account. Is it possible to deposit using Direct Debit? 
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