Chip Instant Access Account

wiseonesomeofthetime

If that reply was truly from FSCS, why all the different font sizes?

Just saying  🤷‍♂️

masonic

Not the first time, and certainly won't be the last, that the FSCS is wrong. It's like asking a bank about the ISA rules, except the FSCS ought to know the rules under which it operates.

dgpur

oshoshitzu said:

oshoshitzu said:

dgpur said:

oshoshitzu said:

I have been informed that money held in this account is not protected by the FSCS. 

Even if this were true, and it isn’t, just posting that without a source is pointless. Who informed you?

The FSCS informed me

How did they do that?

By email (italics):

Dear FSCS

Re the statement below which I have copied from the website of Get Chip UK, Please could you confirm if this statement is correct?

"Covered by FSCS

All money you deposit in the Chip Instant Access Account is held by the UK authorised bank ClearBank, and is eligible for the Financial Services Compensation Scheme (FSCS) up to £85,000* subject to the scheme’s conditions.

The account has easy access to your savings, so you can withdraw deposits at any time, and withdrawals will be back with you in just a few seconds.

Please note you are covered up to £85,000 per bank whether your deposits are made via Chip or not. Chip Instant Access is provided by UK authorised ClearBank Ltd, who also provision the Prize Savings Account. This means deposits held across both Chip Instant Access and the Chip Prize Savings Account would be eligible for a total of £85,000 of FSCS protection ONLY."

https://www.getchip.uk/savings-accounts/instant-access-account

3.40% AER Instant Access Savings Account | Chip Our own instant access savings account where you can access your cash at anytime. Built to get you better returns today, not tomorrow. FSCS Protected www.getchip.uk

Reply  (italics):

Good afternoon,

Thank you for contacting FSCS on 20th March 2023.

Chip is a trading name of Chip Financial Limited. Chip is authorised by the Financial Conduct Authority under the Payment Service Regulations 2017, firm reference number no. 911255, for the provision of payment services. Note that Chip is not a bank.  Electronic money (including pre-payment credit cards and pre-paid cards) is considered a method of payment, in the same way as cash/currency, and not a deposit held by a bank or building society. Therefore it's not protected by FSCS. You can find out more in our e-money article.

 

Below are two links from the FCA register relating to Get Chip

https://register.fca.org.uk/s/firm?id=0010X00004VrUlpQAF FRN 911255

https://register.fca.org.uk/s/firm?id=0010X00004NbgJjQAJ FRN 833551

If you deal directly with ClearBank Limited FRN 754568 your savings will be protected by the FSCS:

https://register.fca.org.uk/s/firm?id=001b000003TEU71AAH

If you have any further queries, please contact us by email at enquiries@fscs.org.uk, or call us on 0800 678 1100 between 0900 and 1700 Monday to Friday.

What you are actually being told there is that CHIP are a payment service, not a bank. They act as an intermediary between you and ClearBank (who do not offer direct access to their products by the public). Your money is safe because ClearBank are covered by the FSCS. It’s that simple.

oshoshitzu

wiseonesomeofthetime said:

If that reply was truly from FSCS, why all the different font sizes?

Just saying  🤷‍♂️

The  "e-money article" part of the FSCS  reply was in larger font