2.55%.... Market leading... The Chip Instant Access is live

The Chip Instant Access account is now live!

We’re launching at a 2.55% return, which is market-leading as of this moment.

For the first time in our history, we’re in complete control of the returns. We’ll be able to move fast and respond to changes in the Bank of England base rate, something that third-party banks are often slow to move on - whereas we were able to react instantly once the rate rise was announced today.

Right now, we are the top savings account in the UK. Will we always be top? No - but unlike banks, our rate won’t yoyo about. Ours will always be “good” and that’s what we’re proud to commit to. When the markets move, we will too - and fast.

You’ve often heard us say that we want to build wealth for our generation. This is what this means. Effortless wealth-building with our award-winning Savings Plans, combined with a product that is sustainable and can rapidly adjust to changes in the base rate, so we can always offer a competitive return - the Chip Instant Access is the culmination of all of our efforts, and something that we truly can’t wait to share with you all.

As such, this account of course comes with all the benefits of saving with Chip. Instant deposits and withdrawals, seamless integration with our savings tools (so that you can autosave and recurring save with ease), and FSCS protection on your deposits (up to £85k) where eligible.

To find the full details of this account, please visit 2.55% Instant Access Savings Account | Chip.

And a little bonus challenge for those of you who want to take part…

  1. We need to get this account out into the world - tell your friends
  2. Head over to our Instagram, Twitter or Facebook and share our launch posts once they’re live
  3. Tag us, MSE (@moneysavingexp) and your favourite news publication

Finally, an update on our crowdfund - the A-shareholders round will be open until early next week, at which point we’ll be opening up the crowdfund to our B-shareholders! We’ll be providing updates to you directly via email in the coming days, so watch your inboxes.

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That’s good news and the rate will probably be market leading until next week. Could you explain how you earn a spread from this account? The account is a Clearbank account and I assume they are the ones who hold a deposit account with the Bank of England to access the base rate. How much of the spread between the base rate and the 2.55% rate is being paid to Chip by Clearbank, or have I not understood how this works in practise?

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Fantastic guys! This is what a lot of us has been waiting for - keep it up!! And the transfer within the account worked very smoothly, no faff with transferring out and back in again

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I was literally Account opened and money transferred from Allica within seconds. Seamless

:muscle::muscle:

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Hey, the spread itself is not something that we can disclose, but I can confirm that this account will generate revenue for the business.

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Being it a bonus and not interest, does it mean not tax liable?

I am up to date on iOS and the app but the account is not showing up in Chip, any suggestions? :pray:

Unfortunately this will still count towards your personal savings allowance, the reason the Prize Savings Account bonus is tax-free is that it’s treated as ‘winnings’.

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Hey - please drop into our live chat (via app, profile tab, contact us) and the CS team will be able to get this sorted for you!

Regarding the following (taken from the account web page):

“Bonus” money is not cash, and is not the same as money you have deposited and is not covered by the Financial Services Compensation Scheme (FSCS). This is money Chip promises to pay you when you withdraw all the cash you’ve deposited from your account. Whilst you’ll be able to see bonus money as part of your balance, it is always the last money to be withdrawn from the account, it is only accessed after you withdraw all the money from your account and will not compound.

I could probably overlook the limitation of bonus cash not being covered by FSCS and not compounding. However, I can’t overlook the limitation of needing to withdraw the deposit amount before the bonus can be accessed. So I won’t be using this account or recommending it to family and friends.

Please consider adopting an approach where the bonus is paid into a separate bonus account, not the same account as the deposit.

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How is it market leading when Santander are currently paying 2.75% instant access unlimited savings account?

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That account is no longer available to new customers

Can I ask what Chips definition of market leading is?

From the above it is clear that you have taken into account this week’s 0.75% base rate increase when setting your rate at 2.55%.

However, according to Moneyfacts at least two banks match or beat this rate on their instant access accounts.

The highest paying 2.81% and that is before any changes to the increase in the base rate. Similarly, there are several other savings accounts which currently pay just under 2.55% but again, don’t yet reflect the change in base rates.

Out of interest why do you perceive this as a negative and to such a point that you won’t be recommending such a decent rate to others?

If you want to withdraw the portion of your balance which is not FSCS protected and is not attracting a bonus (the bonus you have already received) you have to first withdraw the portion of the balance which is protected and attracting a bonus (the deposit). To me this is self-evidently a substantial negative point. I don’t know how to explain it further.

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I appreciate the fact that it doesn’t compound is an obvious negative but you will still be able to withdraw that bonus money so why does it matter that it’s at the end?

I hope you are aware that not everyone has the same privilege as you. Most people aren’t able to move money into the new savings account in seconds. It can take 24 hours on a working day and longer if weekends or bank holidays are involved. Yes, you may see the amount showing but it’s actually showing in both the old and new account at the same time, and is still processing therefore I would expect you wouldn’t be able to access it, therefore not transferred in seconds at all, but in actual fact, account opened and money transferred in 24 hours. Seamless. Admittedly within the rules Chip state but needing to be said as people could be misled into believing others can do it in seconds.

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I suspect Chip structure the account the way they do (deferral of bonus payments until customer chooses to withdraw full balance) to give themselves more opportunity to earn money on the bonus cash. The trouble is this is at the expense of customer opportunity to earn money on the bonus (an opportunity that would be there if the bonus was more easily accessible). This doesn’t sit well with me.

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Will this account be available to used to transfer funds into investment funds and build wealth . Currently can’t used to transfers into stock and share isa will this change ? @actlatham

What privilege is that then?