Chip Feedback

friolento

rigby44 said:

I’m employed via PAYE, so dont have to do a self assessment on that basis.

Most but not all people on PAYE won't need to do SA. All of them should have an interest to confirm their tax code, which HMRC might alter because of other income, such as savings interest, or because HMRC mde a mistake....

rigby44 said:

I’m afraid i’d have no idea how to declare tax on interest, I certainly wouldnt want to risk tax evasion. This is starting to seem more hassle than it’s worth to earn a few extra quid in interest each month!
…

HMRC gets reports from banks and building societies about the interest they pay you, and HMRC change your tax code if necessary. You are free to try and keep your interest  below your PSA amount (£1,000 / £500 etc). Though others are quite happy to collect 80%, or even only 60%, of extra interest, as opposed to 100% of nothing. So there are various reasons why different people  might want to add up their interest earnings.

rigby44 said:

Can you also toggle off chips insistence on acccessing your bank account for the last 90 days, as i’m only interested in their 4.5% interest account and not their opinion on how I could make other savings…

You can toggle off your OB link as you like, but you need to switch it on again when you want to make a withdrawal. I have used Chip for a while now, never was given their opinion how I could make other savings. Has anyone else? If it worries you, you have an easy choice, as there are a few other providers with very similar rates.

masonic

rigby44 said:

masonic said:

rigby44 said:

Probably my naivety but why would anybody opt for their interest to be paid annually?

It's simpler when you get a single interest payment each year. If you have a number of accounts, adding up interest becomes quite the chore, and banks tend to need quite a bit of chasing for an annual interest summary, so I don't bother these days. For these reasons I always go for annual interest given the choice, but it's rare to get a choice.

Again. Showing my naivety, but why would adding up interest be needed? Before the £1,000 tax cap on interest was removed years ago Santander used to tax it directly and pay out the rest. Do others not do the same?

No bank collects income tax on interest any more. Most (but not all) report interest to HMRC annually, but not only is this information incomplete, but also some of the interest reported may be taxable in a different tax year to that it was paid in. This means that anyone completing a tax return, or anyone who might earn enough interest to owe tax, must add up all interest arising during the tax year to make sure they have not underpaid tax.

rigby44

Hi guys,

Just one more on Chip, another noob question - they say interest is calculated daily and paid on the 4th of the month.

Does that mean I need to hold a decent balance for a full month before they’ll pay out the full interest on the 4th? I’ve moved 50% of what I want to hold with them today, when I move the other half next week will I then get a full interest payment on the 4th? Or will I have only started calculating interest from the point of deposit? Meaning I wouldnt get full interest payment until 4th Sept.

Thank you.

friolento

rigby44 said:

Hi guys,

Just one more on Chip, another noob question - they say interest is calculated daily and paid on the 4th of the month.

Does that mean I need to hold a decent balance for a full month before they’ll pay out the full interest on the 4th? I’ve moved 50% of what I want to hold with them today, when I move the other half next week will I then get a full interest payment on the 4th? Or will I have only started calculating interest from the point of deposit? Meaning I wouldnt get full interest payment until 4th Sept.

Thank you.

Here is how I understand it:

If you withdraw your entire balance on the 1st of a month, you can withdraw all interest you have earned in the previous month on the 4th working day of the same month. The 4th working day may or may not be the 4th of a month.

If you have a balance on any day up to the end of the 3rd working day of a month, you have earned further interest for that month.You cannot withdraw that interest until the next month - see above.

A little known other 'trick' Chip use is that your money does not earn interest until the day after you made your deposit. See also their FAQ

rigby44

lcooper said:

rigby44 said:

Hi guys,

Just one more on Chip, another noob question - they say interest is calculated daily and paid on the 4th of the month.

Does that mean I need to hold a decent balance for a full month before they’ll pay out the full interest on the 4th? I’ve moved 50% of what I want to hold with them today, when I move the other half next week will I then get a full interest payment on the 4th? Or will I have only started calculating interest from the point of deposit? Meaning I wouldnt get full interest payment until 4th Sept.

Thank you.

Here is how I understand it:

If you withdraw your entire balance on the 1st of a month, you can withdraw all interest you have earned in the previous month on the 4th working day of the same month. The 4th working day may or may not be the 4th of a month.

If you have a balance on any day up to the end of the 3rd working day of a month, you have earned further interest for that month.You cannot withdraw that interest until the next month - see above.

A little known other 'trick' Chip use is that your money does not earn interest until the day after you made your deposit. See also their FAQ

I think the info I’m after is in your answer, but possibly not quite as clear for dopey old me.

If I put in my final deposit before the 3rd, will they pay the full interest on that balance on tbe 4th?

friolento

rigby44 said:

lcooper said:

rigby44 said:

Hi guys,

Just one more on Chip, another noob question - they say interest is calculated daily and paid on the 4th of the month.

Does that mean I need to hold a decent balance for a full month before they’ll pay out the full interest on the 4th? I’ve moved 50% of what I want to hold with them today, when I move the other half next week will I then get a full interest payment on the 4th? Or will I have only started calculating interest from the point of deposit? Meaning I wouldnt get full interest payment until 4th Sept.

Thank you.

Here is how I understand it:

If you withdraw your entire balance on the 1st of a month, you can withdraw all interest you have earned in the previous month on the 4th working day of the same month. The 4th working day may or may not be the 4th of a month.

If you have a balance on any day up to the end of the 3rd working day of a month, you have earned further interest for that month.You cannot withdraw that interest until the next month - see above.

A little known other 'trick' Chip use is that your money does not earn interest until the day after you made your deposit. See also their FAQ

I think the info I’m after is in your answer, but possibly not quite as clear for dopey old me.

If I put in my final deposit before the 3rd, will they pay the full interest on that balance on tbe 4th?

On the 4th working day of a month, they pay the interest you have earned between the 1st and the last day of the previous month

wiseonesomeofthetime

rigby44 said:

Hi guys,

Just one more on Chip, another noob question - they say interest is calculated daily and paid on the 4th of the month.

Does that mean I need to hold a decent balance for a full month before they’ll pay out the full interest on the 4th? I’ve moved 50% of what I want to hold with them today, when I move the other half next week will I then get a full interest payment on the 4th? Or will I have only started calculating interest from the point of deposit? Meaning I wouldnt get full interest payment until 4th Sept.

Thank you.

Like all accounts, you only earn interest on the days in which the bank actually has your money. If it's not in your account, it is not earning interest there.