Chip - Interest can be paid away or compounded

Band7

From the CHIP T&Cs:



So the AER is 3.546% rather than 3.55% and you get £35.46 per £1,000 instead of £35.50. I Can live with that.

Although on another of their web pages, they state 

AmityNeon

Band7 said:

From the CHIP T&Cs:



So the AER is 3.546% rather than 3.55% and you get £35.46 per £1,000 instead of £35.50. I Can live with that.

Although on another of their web pages, they state 

Even with all those assumptions, that standard illustration doesn't account for Chip's unique method of interest application (with the delayed payment), so you'd need to add at least four days to the 12 months, and even then, the resulting interest would be at most £35.43 (forty-three not forty-six) with such a low deposit balance.

piker57

Band7 said:

piker57 said:

..... especially as I had to wait 3 days for a withdrawal, that they just blamed on a glitch, with no hint of an apology or sniff of compensation. 

I have made countless withdrawals since I first took out the account in December. Each and every single one has been instant. My linked account is Santander. What is yours? Have you raised a formal complaint with CHIP?

Yes I did. 2 days after the money reached my HSBC account I received the message back to say they could see they’d completed the payment 2 days earlier. I followed up to say I knew that & repeated my question as to what had happened. They initially tried to blame HSBC, but I pointed out it was the same linked account I’d used to deposit the money initially. That’s when I got the glitch response. Yes I complained, but with no response.

So I’ve now withdrawn everything (in a number of transactions so I didn’t lose everything, if there were more glitches), & I’ll save elsewhere. I’m not losing anything as I’ve split the money I had with CHIP between the YBS Loyalty ISA which is paying 4.25% (albeit with restricted access) & the Zopa instant access Smart Saver. 

As for the complaint I can’t be bothered to pursue this any further. Fortunately I had other funds, so not receiving the initial withdrawal meant I lost a small amount of interest elsewhere, & the hassle of involving the Ombudsman represents unnecessary stress. CHIP as far as I’m concerned are now in the rear view mirror, after I transferred out the March interest this morning that they credited to my account at 23:41 last night. They can keep the 45p accrued this month.

huw01

interest finally arrived later yesterday, still contemplating just moving my money back to the Santander e-saver at 3.25% just for the convenience they offer. Chip is a bit of a faff to be honest and I share others concerns about what if something happend to my phone