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  • FIRST POST
    • Nardge
    • By Nardge 6th Sep 18, 10:38 AM
    • 61Posts
    • 10Thanks
    Nardge
    Chip savings app
    • #1
    • 6th Sep 18, 10:38 AM
    Chip savings app 6th Sep 18 at 10:38 AM
    Good to see this thread


    I have been using CHIP since it's first inception and publicity via Martin Lewis' weekly e-mail update


    They have been very helpful as a team, and easy to communicate with efficiently via the app


    I've saved just shy of 9000 at 5% for now, with several months left to go


    Easy money for those who've already rammed all the 5% Regular Saver Accounts!


    Best Wishes all
Page 2
    • Retired Minky
    • By Retired Minky 13th Jan 19, 2:20 PM
    • 68 Posts
    • 45 Thanks
    Retired Minky
    https://getchip.uk/blog/safer-saving/

    Your not covered by FSCS.

    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.
    Last edited by Retired Minky; 13-01-2019 at 2:46 PM.
    Save 40k in 2019 # 96
    • Malthusian
    • By Malthusian 14th Jan 19, 11:32 AM
    • 5,142 Posts
    • 8,375 Thanks
    Malthusian
    "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."
    Originally posted by Robster88
    They are wrong. The correct position is stated by Chip itself (linked to by Retired Minky).

    They seem to think your ok unless Barclays goes under.

    Im not sure if this is correct. If I run a business and it fails Im not sure what would prompt Barclays will pay my customers back.
    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.

    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.

    "Were pretty confident that theres 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.
    • ozaz
    • By ozaz 14th Jan 19, 9:46 PM
    • 200 Posts
    • 69 Thanks
    ozaz
    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.
    Originally posted by Malthusian
    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?
    • Malthusian
    • By Malthusian 15th Jan 19, 10:57 AM
    • 5,142 Posts
    • 8,375 Thanks
    Malthusian
    From what I am reading, Farepak was under no regulatory requirement to ring-fence their customers deposits, unlike current firms using emoney wallets.
    Originally posted by ozaz
    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.

    Is there a more recent example of a firm operating with similar regulatory requirement to Chip collapsing and customers losing their deposits?
    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)?
    • Voyager2002
    • By Voyager2002 15th Jan 19, 10:58 AM
    • 12,694 Posts
    • 8,672 Thanks
    Voyager2002
    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.
    • Nardge
    • By Nardge 16th Jan 19, 12:03 PM
    • 61 Posts
    • 10 Thanks
    Nardge
    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.
    Originally posted by Voyager2002
    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. They've 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 Regards
    Last edited by Nardge; 16-01-2019 at 12:07 PM.
    • Nardge
    • By Nardge 16th Jan 19, 12:09 PM
    • 61 Posts
    • 10 Thanks
    Nardge
    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 regards
    • youngretired
    • By youngretired 16th Jan 19, 12:34 PM
    • 246 Posts
    • 145 Thanks
    youngretired
    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.
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