Chip - Interest can be paid away or compounded

SickGroove

Good evening, 

Can someone explain how the monthly Chip interest can be paid away please?

Is there a setting in the app that allows you to select the monthly interest payments to go directly to your linked nominated account, rather than having the interest compounded, and having to manually transfer it each month?

Also, do you see the interest being added daily within the app, or does it just all get added on the 4th working day of the month?

Cheers 

Hattie627

Not sure about your main question about paying away interest into another account but it's easy enough to manually transfer out each month after it's been added to the account. Takes all of maybe 15 seconds to do.

On your second point, I have the Chip instant access account (3.4% currently). Each day the app updates to show interest accrued but not yet paid. It's cool to watch this go up every day in the app. When the interest is paid on the 4th working day, the accrued interest meter recalibrates to zero and you start again. Very satisfying.

masonic

Where did you see something suggesting that interest can be paid away?

allegro120

SickGroove said:

Good evening, 

Can someone explain how the monthly Chip interest can be paid away please?

Is there a setting in the app that allows you to select the monthly interest payments to go directly to your linked nominated account, rather than having the interest compounded, and having to manually transfer it each month?

Also, do you see the interest being added daily within the app, or does it just all get added on the 4th working day of the month?

Cheers 

There's no option for auto-withdrawal.  You have to withdraw your interest manually. 

Yes pending interest is displayed on the app.

SickGroove

Hattie627 said:

Not sure about your main question about paying away interest into another account but it's easy enough to manually transfer out each month after it's been added to the account. Takes all of maybe 15 seconds to do.

On your second point, I have the Chip instant access account (3.4% currently). Each day the app updates to show interest accrued but not yet paid. It's cool to watch this go up every day in the app. When the interest is paid on the 4th working day, the accrued interest meter recalibrates to zero and you start again. Very satisfying.

Thanks for the info...

So I paid in the first £500 on 27/3 & £1500 on 28/3 but the overall balance still only showing £2000 with no interest applied.

Both transfers were done via open banking & are showing as manual saves

I've checked its definitely in the 3.40% instant access account 

flaneurs_lobster

SickGroove said:

So I paid in the first £500 on 27/3 & £1500 on 28/3 but the overall balance still only showing £2000 with no interest applied.

Both transfers were done via open banking & are showing as manual saves

I've checked its definitely in the 3.40% instant access account 

Recon you're owed about 34p. Maybe they wait until it's over a quid?

Harryo

I opened up an account early March. Very pleased as good interest rate and so easy and quick to transfer money out - don't even have to log in. Transferring in from Santander is a little slow as Santander require two stage authentication. No idea whether all banks require this.

Sickgrove - if you scroll down on the Home screen in the 3.4% instant access account and click on the balance under ""Your Portfolia"" you can see the interest earned under ""Pending This Month"". It is of course best to select Annual interest rather than Monthly Interest unless you need the interest or you want to invest it in a higher rate account. That way you get compound interest on the interest.

allegro120

Harryo said:

I opened up an account early March. Very pleased as good interest rate and so easy and quick to transfer money out - don't even have to log in. Transferring in from Santander is a little slow as Santander require two stage authentication. No idea whether all banks require this.

Sickgrove - if you scroll down on the Home screen in the 3.4% instant access account and click on the balance under ""Your Portfolia"" you can see the interest earned under ""Pending This Month"". It is of course best to select Annual interest rather than Monthly Interest unless you need the interest or you want to invest it in a higher rate account. That way you get compound interest on the interest.

I don't think there's annual interest option on this account, but it doesn't matter, if you don't withdraw your monthly interest you will get your compound interest.

SickGroove

Harryo said:

I opened up an account early March. Very pleased as good interest rate and so easy and quick to transfer money out - don't even have to log in. Transferring in from Santander is a little slow as Santander require two stage authentication. No idea whether all banks require this.

Sickgrove - if you scroll down on the Home screen in the 3.4% instant access account and click on the balance under ""Your Portfolia"" you can see the interest earned under ""Pending This Month"". It is of course best to select Annual interest rather than Monthly Interest unless you need the interest or you want to invest it in a higher rate account. That way you get compound interest on the interest.

Thanks for the info. I've located the "pending this month" section...I had to open the app on my ipad as it wasn't showing the accrued interest in my iphone...it's there but you could see the amount!)

Also, how do you select monthly or annual interest. I thought the interest was automatically paid monthly?

Finally, are transfers into Chip quicker via open banking or by debit card?

Cheers 

masonic

SickGroove said:

Finally, are transfers into Chip quicker via open banking or by debit card?

Much quicker by open banking. If you deposit by debit card, then it takes a couple of working days for the transaction to complete and start to earn interest.

Band7

SickGroove said:

Harryo said:

I opened up an account early March. Very pleased as good interest rate and so easy and quick to transfer money out - don't even have to log in. Transferring in from Santander is a little slow as Santander require two stage authentication. No idea whether all banks require this.

Sickgrove - if you scroll down on the Home screen in the 3.4% instant access account and click on the balance under ""Your Portfolia"" you can see the interest earned under ""Pending This Month"". It is of course best to select Annual interest rather than Monthly Interest unless you need the interest or you want to invest it in a higher rate account. That way you get compound interest on the interest.

Thanks for the info. I've located the "pending this month" section...I had to open the app on my ipad as it wasn't showing the accrued interest in my iphone...it's there but you could see the amount!)

Also, how do you select monthly or annual interest. I thought the interest was automatically paid monthly?

Finally, are transfers into Chip quicker via open banking or by debit card?

Cheers 

I am also not aware that there is an annual or monthly option for CHIP interest. They pay it monthly.

Don't use the debit card or ApplePay/Google Wallet to deposit

1. you don't get interest until the deposit is cleared, which takes 3 working days
2. your deposit is not FSCS protected until it's cleared