Chip Savings Deposit Warning!

allegro120

StockportSaveree said:

Can I ask if anyone has checked whether the interest is calculated correctly by CHIP?  It states that interest is calculated daily, but the interest amount isn't credited to the account until a few days into the following month (which is strange as other easy access does this last day of the month).  So am I missing a few days compound interest whilst Chip takes its time to credit my account balance?  Or isn't this affected and it uses the modified daily balance to calculate the interest?  I presume that the credit delay is because of the open banking system.  Thanks

I'm not 100% sure, but I think the interest we get on the 4th day of the months includes only the previous calendar month. Definitely was the case when they paid bonus instead of interest - I withdrew full balance on the date bonus was paid and got few more pennies on my account the following month's interest run. 
Don't know what the reason for delay is, could be because Chip is not a bank and it might take time to transfer and process interest payment from Clearbank to Chip, just a guess.

grumbler

https://intercom.help/get-chip/en/articles/6704960-the-chip-instant-access-account-faq

dgpur

grumbler said:

https://intercom.help/get-chip/en/articles/6704960-the-chip-instant-access-account-faq

Well, that pretty much answers all the key questions. Individual accounts, all covered by FCSC, except for the two offerings that have never claimed to be.

SVts

Has transferring money every been so hard and stressful!

This morning I transferred £7500 from FirstDirect to Chip. - No problem
This afternoon I transferred another £7500 from FirstDirect to Chip. - the money disappeared from from FirstDirect in an instant but never showed at Chip. It does say it can take up to two hours so I wait. Three hours later still nothing I receive a call from FirstDirect Fraud Team. 30 minutes later they finally accept that the transaction is genuine but only if I admit 100% responsibility and that the money may not be recoverable if lost. Then the transaction is finally approved I am told I have wait up to two hours for the money to show in my Chip account.
I have previously transferred money from FD to Chip and vice versa surely they can see that.

I fully understand and am grateful that they are monitoring transactions but I feel like I have just been involved in a court case and am now a nervous wreck regarding transferring anymore funds and now have to sit with my fingers crossed for the next couple of hours hoping that the money does show up. 

SVts

Also;

1. does anyone know how you find your Chip sort and account number?
2. Is it better to deposit using a bank transfer or by using a card?
Fraud team advised using a card as offers more protection but Chip recommended using bank transfer?
What's the difference please?

PloughmansLunch

SVts said:

Also;

1. does anyone know how you find your Chip sort and account number?
2. Is it better to deposit using a bank transfer or by using a card?
Fraud team advised using a card as offers more protection but Chip recommended using bank transfer?
What's the difference please?

#1 You are unable to deposit via standard bank transfer even if you manage to extract the account no. and sort code. I took a screenshot of them when transferred over to the payee bank account in Open Banking.

#2 Transfer by Open Banking is by far the best and quickest/safest, although I use debit card for usage reward requirements for another account. I'm also aware I don't get interest for a couple of days until clearing this way, but it doesn't bother me.

SVts

PloughmansLunch said:

SVts said:

Also;

1. does anyone know how you find your Chip sort and account number?
2. Is it better to deposit using a bank transfer or by using a card?
Fraud team advised using a card as offers more protection but Chip recommended using bank transfer?
What's the difference please?

#1 You are unable to deposit via standard bank transfer even if you manage to extract the account no. and sort code. I took a screenshot of them when transferred over to the payee bank account in Open Banking.

#2 Transfer by Open Banking is by far the best and quickest/safest, although I use debit card for usage reward requirements for another account. I'm also aware I don't get interest for a couple of days until clearing this way, but it doesn't bother me.

Ok thanks for the reply.

Another question if I may, why do you lose a couple of days interest? 

Band7

PloughmansLunch said:

SVts said:

Also;

1. does anyone know how you find your Chip sort and account number?
2. Is it better to deposit using a bank transfer or by using a card?
Fraud team advised using a card as offers more protection but Chip recommended using bank transfer?
What's the difference please?

#1 You are unable to deposit via standard bank transfer even if you manage to extract the account no. and sort code. I took a screenshot of them when transferred over to the payee bank account in Open Banking.

#2 Transfer by Open Banking is by far the best and quickest/safest, although I use debit card for usage reward requirements for another account. I'm also aware I don't get interest for a couple of days until clearing this way, but it doesn't bother me.

What might you, or others, bother however is that your debit card deposits do not have FSCS protection until cleared. This can take 3 working days.

Band7

SVts said:

Has transferring money every been so hard and stressful!

This morning I transferred £7500 from FirstDirect to Chip. - No problem
This afternoon I transferred another £7500 from FirstDirect to Chip. - the money disappeared from from FirstDirect in an instant but never showed at Chip. It does say it can take up to two hours so I wait. Three hours later still nothing I receive a call from FirstDirect Fraud Team. 30 minutes later they finally accept that the transaction is genuine but only if I admit 100% responsibility and that the money may not be recoverable if lost. Then the transaction is finally approved I am told I have wait up to two hours for the money to show in my Chip account.
I have previously transferred money from FD to Chip and vice versa surely they can see that.

I fully understand and am grateful that they are monitoring transactions but I feel like I have just been involved in a court case and am now a nervous wreck regarding transferring anymore funds and now have to sit with my fingers crossed for the next couple of hours hoping that the money does show up. 

SVts said:

Also;

1. does anyone know how you find your Chip sort and account number?
2. Is it better to deposit using a bank transfer or by using a card?
Fraud team advised using a card as offers more protection but Chip recommended using bank transfer?
What's the difference please?

You should consider a formal complaint with FD, for overzealous fraud controls. I did that with Santander, after they had subjected me to similar nonsense. My complaint was fully upheld, I got some compensation, and I have since not had any issues with my numerous, often substantial 5-figure deposits into CHIP.

Particularly the advice that debit card deposits offer more protection than OB transfers is just totally wrong. Your money is not FSCS protected until cleared into CHIP. With an OB bank transfer, that happens instantly. With a debit card deposit, it takes 3 working days. You also do not get any interest until cleared. I suppose none of this is of any concern to FD...........

You do have a unique [Clearbank] sort code and account number which you can see on one of the screens you see when making a deposit. However, this number is pretty much useless as you cannot do anything with it. Specifically, you cannot make a Faster Payment to it. If you attempt to do so, your money will be returned -  within whatever timescale it takes Clearbank to process erroneous payments

Band7

SVts said:

PloughmansLunch said:

SVts said:

Also;

1. does anyone know how you find your Chip sort and account number?
2. Is it better to deposit using a bank transfer or by using a card?
Fraud team advised using a card as offers more protection but Chip recommended using bank transfer?
What's the difference please?

#1 You are unable to deposit via standard bank transfer even if you manage to extract the account no. and sort code. I took a screenshot of them when transferred over to the payee bank account in Open Banking.

#2 Transfer by Open Banking is by far the best and quickest/safest, although I use debit card for usage reward requirements for another account. I'm also aware I don't get interest for a couple of days until clearing this way, but it doesn't bother me.

Ok thanks for the reply.

Another question if I may, why do you lose a couple of days interest? 

Because CHIP tell you that you do not get interest on uncleared funds, and debit card clearance takes 3 working days.

You are talking 20-odd year old technology with debit cards. Open Banking bank transfers, on the other hand, has recently been designed from scratch and, as it uses the Faster Payment infrastructure, can deliver your funds in seconds. Read about OB here: https://www.moneysavingexpert.com/banking/open-banking/ and https://www.getchip.uk/the-blog/what-is-open-banking. Perhaps give those links also to the dinosaurs at FD.

NB: just to clarify, I don't call everyone who doesn't know about OB a dinosaur. However, bank personnel and especially customer-facing bank personnel can be expected to understand it and not talk nonsense about safety.