Chip savings app
Comments
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"The money you deposit with Chip is fully protected by the FSCS as it is hosted by Barclays, so you would not be affected if Chip went out of business."
They are wrong. The correct position is stated by Chip itself (linked to by Retired Minky).
The money is in theory owned by Chip's customers and ringfenced on their behalf with Barclays. Unlike your business' money, it does not belong to Chip but to the customers.Retired_Minky wrote:They seem to think your ok unless Barclays goes under.
I’m not sure if this is correct. If I run a business and it fails I’m not sure what would prompt Barclays will pay my customers back.
The problem is that you have no protection if they fail to do that for whatever reason. The money of Farepak's savers should have been ringfenced as well.
"But it should have been" doesn't get your money back, FSCS cover does.
"We’re pretty confident that there’s no imminent risk of Barclays going under" (Chip). Well that's alright then. In 2008 everyone was pretty confident there was no risk of Northern Rock or Lehman going under.0 -
Malthusian wrote: »The problem is that you have no protection if they fail to do that for whatever reason. The money of Farepak's savers should have been ringfenced as well.
From what I am reading, Farepak was under no regulatory requirement to ring-fence their customers deposits, unlike current firms using emoney wallets. So while I take your point there is no insurance against mismanagement or fraud, it seems Farepak was an different kettle of fish operating under different regulatory constraints.
Is there a more recent example of a firm operating with similar regulatory requirement to Chip collapsing and customers losing their deposits?0 -
From what I am reading, Farepak was under no regulatory requirement to ring-fence their customers deposits, unlike current firms using emoney wallets.
If your business involves taking £X a week off people which will need to be returned to them or used to send them Christmas hampers in less than twelve months, you shouldn't need the FCA to tell you that the money needs to be ringfenced. I.e. not used to meet the running costs of the company, or its parent. Otherwise it becomes an investment in the company and subject to securities law.
Not off the top of my head, as this stupid idea has not been widely replicated. Why, would it make customers feel better knowing they were the first (since the last time)?Is there a more recent example of a firm operating with similar regulatory requirement to Chip collapsing and customers losing their deposits?0 -
Does anyone know when you are allowed to withdraw the interest that you have earned?
I saved in Chip for over a year, using the code given on this site to open the account (so interest should have been paid at 3 per cent). My interest (they call it a "bonus") is showing as pending but I cannot withdraw it.0 -
Voyager2002 wrote: »Does anyone know when you are allowed to withdraw the interest that you have earned?
I saved in Chip for over a year, using the code given on this site to open the account (so interest should have been paid at 3 per cent). My interest (they call it a "bonus") is showing as pending but I cannot withdraw it.
Good Morning
I know they were and are overhauling their systems as they've grown and expanded over the winter period months. I have received my interest on a 3-monthly basis without issue, including that of December. There have been no problems in withdrawing funds either when I've wanted to. Have you tried 'talking' with them directly via the app? They've always been very prompt and eager-to-please when I've done the same...
With Kind Regards0 -
As for me, my experience with CHIP has been exemplary. I ultimately clocked up £10,000 of savings with them over the course of the last year, and have received 5% interest on a 3-monthly basis without issue. I have since gone on to invest directly in their Crowdfund, and look forward to 7% interest on savings, and 8% interest on future investments in their fledgling CHIP X peer-to-peer scheme.
Hopefully they'll be the next 'Monzo' or 'Revolut'! Fingers-crossed x
With Kind regards0 -
When you say pending do you mean that you have requested the payment and it is showing pending as a -. If this is the case then the payment can take up to 7 working days before hitting your bank account as this is treated by a 3rd party and so unlike your actual investments which when requested goes into your account straight away bonuses (interest) aren't.
I requested my final interest on the 3rd January and it finally hit my account on the 10th.0 -
Just to warn people that closing the account might not be as straight forward as you think or especially in my circumstance.
On the 9th January a auto save was going to be made which I cancelled straight away and received the cancelled email/app confirmation.
I waited until my final interest reached my current account and then requested my Chip account to be closed on the 10th January with £0 balance.
I changed my online security details and cancelled the DD so no more payments could be claimed. I advised Chip that I had done this and was just waiting for the account to be closed.
On the 15th January I received a email from the Chip DD department in regards to a unpaid DD, which was the auto save that I had cancelled. I forwarded this onto Chip explaining that I was waiting for the account to be closed and that I had cancelled this auto save on the 9th.
Today I contacted Chip to ask when the account would be closed to be told that they are waiting for a pending payment to clear before being able to close the account. This pending payment is the auto save that was cancelled and the DD that was unpaid so why were they waiting for it to clear!!!
I was told that apparently on their system it shows as being processed, so I had to wait for it to clear or fail. So even though the save was cancelled (though still attempted to be taken) and the DD unpaid they can't just close the account. I'm hoping this will be resolved by the end of January.0 -
I have a manual save still pending from Jan 8th, but had several after that that have been completed.... odd. Will this fix itself eventually or will i need to contact them to sort it out?0
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I was told that the payment should clear within the next 48 hrs, though obviously in my case it won't. So in theory yours should be cleared tomorrow, if not then contact them.
I had this issue last year where a manual save hadn't cleared in 2 weeks and contacted them as the interest was obviously incorrect and was giving £5 to cover the incorrect interest and inconvenience.0
This discussion has been closed.
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