I refer to the following, taken from here
I’m on ChipAI plan and have not yet used first £100 auto-save. I’m not sure yet if I want to continue with ChipAI. When exactly would I need to downgrade to ChipLite by if I want to avoid ChipAI subscription fee? Is it downgrade by 24 April 2021?
Thanks
I think that would be the sensible date yes looking at it saying it will start from the 25th April
It looks like they’ve realised a ton of people worked out how to qualify for the ChipAI trial forever by disabling autosaves before the £100 threshold was reached, meaning you could get the 1.25% on £5k forever without ever paying for the £1.50 ChipAI fee.
The 25th April looks to coincide with the second bonus payout for early adopters, so if you got your £5k in early you’ve managed to get 1.25% for 2 bonus cycles for free.
You might as well cash out and downgrade your account on the 24th/25th to get the most out of the £5k, as after this date you’ll be paying £1.50 every 28 days for the privilege of 1.25% interest, which is reduced to 0.89% after paying the ChipAI fee.
Yeah, that’s my assumption too.
Since the 1.25% is avalable on first £2k for free I think about what the effective rate is on the non-free portion (£3k) before deciding whether to move it elsewhere. Effective interest rate on this portion is only 0.65%. However, I’m actually thinking of keeping it with Chip. 0.65% is still better than the best I can get elsewhere on that amount of money (0.50%).
Just occurred to me the effective bonus rate on a £3,000 deposit is actually 0.60%. This is because £1.50 fee is paid every 28 days rather than every month (which I didn’t previously properly account for).
So,
£ bonus over 12 months: £3,000 x 0.0125 = £37.50
ChipAI fee over 12 months: £1.50 x 365/28 = £19.55
Net bonus (£): £37.50 - £19.55 = £17.95
Net bonus (%): 100 x 17.95/3000 = 0.60%
(just updating case someone else reading this doesn’t actually use the AI and is only interested in a hard-nosed view on the bonus/interest rates)
If you use AI, investments and eventually ChipX what monthly (28 day) fee would be charged, £3 or £4.50?
The way I understand it the Chip X fee will encompass the AI fee so £3 all in
Further to this in light of the recent increase of threshold to £10k the above is now incorrect- but for clarity, the updated info is as below:
The effective bonus rate on a £8,000 deposit is actually 1.00%. This is because £1.50 fee is paid every 28 days rather than every month
So,
£ bonus over 12 months: £8,000 x 0.0125 = £100
ChipAI fee over 12 months: £1.50 x 365/28 = £19.55
Net bonus (£): £100 - £19.55 = £80.45
Net bonus (%): 100 x 80.45/8000 = 1.00%
WHICH I THINK YOU WOULD SERIOUSLY STRUGGLE TO ACHIEVE ELSEWHERE IN AN EASY ACCESS ACCOUNT ON A BALANCE OF £8k - WELL DONE CHIP 
(For absolute comparison you would now be achieving an effective rate of 1.055% after fees on a maximum balance of £10k so ChipAI really is a no brainer 
)
How do you even find all these fee update documents 
Thanks for the clear calculation. All things equal it would be a no-brainer but I still remember the unnerving past experiences I’ve had where chip seemed incapable of accurate calculation of bonus/interest payments. That added to the less than transparent communications about the whole debacle mean I am still very hesitant in trusting Chip with any significant funds.
