Chip Feedback

Barkin

Hmmm... I've installed the Chip app a couple of times, and partly completed the sign up process, but something's always not felt quite right and I've abandoned it. 
Reading this, and given that I only keep relatively small amounts in EA accounts, I'm happy to sacrifice the extra ~15 quid a year that Chip would earn me, and stick with outfits that I'm rather more comfortable dealing with. 

rigby44

Hi guys,

It looks like most would recommend chip. I’m looking for somewhere to put my savings into, that above which Santander stop paying interest.

It’s alot of money to be, so a little nervous, but I need to start making it pay, its foolish just to have it sat in Santander doing nothing. I’d be happy to have 30 days notice on it, but notice accounts such as Moneybox (powered by Investec) still offer a lower rate than the Chip instant access of 4.5%. I’ve read in lots of places that these companies are happy to receive money, but often start asking questions when you want to withdraw.

Thanks for any advice.

Bigwheels1111

rigby44 said:

Hi guys,

It looks like most would recommend chip. I’m looking for somewhere to put my savings into, that above which Santander stop paying interest.

It’s alot of money to be, so a little nervous, but I need to start making it pay, its foolish just to have it sat in Santander doing nothing. I’d be happy to have 30 days notice on it, but notice accounts such as Moneybox (powered by Investec) still offer a lower rate than the Chip instant access of 4.5%. I’ve read in lots of places that these companies are happy to receive money, but often start asking questions when you want to withdraw.

Thanks for any advice.

Until I did my last 5 year fixed I had 84.5k in Chip.
I felt safe, transfers were instant.
Here is a list of todays best fixed notice accounts and including easy access.
Select rate order.
Just a personal note, I would avoid Kent reliance. To many issues with deposits and withdrawals.
https://moneyfactscompare.co.uk/savings-accounts/best-notice-accounts/?quick-links-first=false

rigby44

Bigwheels1111 said:

rigby44 said:

Hi guys,

It looks like most would recommend chip. I’m looking for somewhere to put my savings into, that above which Santander stop paying interest.

It’s alot of money to be, so a little nervous, but I need to start making it pay, its foolish just to have it sat in Santander doing nothing. I’d be happy to have 30 days notice on it, but notice accounts such as Moneybox (powered by Investec) still offer a lower rate than the Chip instant access of 4.5%. I’ve read in lots of places that these companies are happy to receive money, but often start asking questions when you want to withdraw.

Thanks for any advice.

Until I did my last 5 year fixed I had 84.5k in Chip.
I felt safe, transfers were instant.
Here is a list of todays best fixed notice accounts and including easy access.
Select rate order.
Just a personal note, I would avoid Kent reliance. To many issues with deposits and withdrawals.
https://moneyfactscompare.co.uk/savings-accounts/best-notice-accounts/?quick-links-first=false

Thanks very much BW.

I’ve seen that comparison link before but notice that even Dudley are only paying 4.5% - same as chip but with Chip, it’s instant access and interest is paid monthly. Probably my naivety but why would anybody opt for their interest to be paid annually?

Rheumatoid

rigby44 said:

Bigwheels1111 said:

rigby44 said:

Hi guys,

It looks like most would recommend chip. I’m looking for somewhere to put my savings into, that above which Santander stop paying interest.

It’s alot of money to be, so a little nervous, but I need to start making it pay, its foolish just to have it sat in Santander doing nothing. I’d be happy to have 30 days notice on it, but notice accounts such as Moneybox (powered by Investec) still offer a lower rate than the Chip instant access of 4.5%. I’ve read in lots of places that these companies are happy to receive money, but often start asking questions when you want to withdraw.

Thanks for any advice.

Until I did my last 5 year fixed I had 84.5k in Chip.
I felt safe, transfers were instant.
Here is a list of todays best fixed notice accounts and including easy access.
Select rate order.
Just a personal note, I would avoid Kent reliance. To many issues with deposits and withdrawals.
https://moneyfactscompare.co.uk/savings-accounts/best-notice-accounts/?quick-links-first=false

Thanks very much BW.

I’ve seen that comparison link before but notice that even Dudley are only paying 4.5% - same as chip but with Chip, it’s instant access and interest is paid monthly. Probably my naivety but why would anybody opt for their interest to be paid annually?

Putting it in another tax year for one. Others prefer to see their money grow more frequently.

masonic

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.

rigby44

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?

CheekyMikey

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.

What I’d add is that all the digital banks I used last tax year had my annual interest statements available online pretty quickly this year…Marcus, Chase, Zopa, Gatehouse, Shawbrook, even Kent Reliance and Santander were pretty sharpish….no chasing needed. I took monthly interest from all of them as I find the extra monthly income boost very useful…

gt94sss2

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?

You need to declare the total amount of interest received if you need to fill in a self assessment tax return.

You are correct that banks used to take 20% tax off interest automatically but even then this data was needed for tax returns in case you were a higher rate tax payer and thus needed to pay more tax.

rigby44

gt94sss2 said:

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?

You need to declare the total amount of interest received if you need to fill in a self assessment tax return.

You are correct that banks used to take 20% tax off interest automatically but even then this data was needed for tax returns in case you were a higher rate tax payer and thus needed to pay more tax.

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

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!

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…