Changes to Chip on the 3rd June

Hi all,

We posted this in the investor section earlier today, but posting it here for you all too:

We hope you’re having a good day and staying well.

As discussed over the coming months Chip is changing. This change is fundamentally around the roll out of Interest Accounts, ChipX and loads of other features too. There is one change we think is very important to be transparent about so please have a read here:

https://www.getchip-community.uk/our-new-fee

As alway our community is at the heart of Chip. Although this fee is coming, we’re all ears how best to communicate this and looking forward to your help in the roll out.

Alex
CMO

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That’s a very disappointing interest rate considering the big build up.

You’re very selective in what accounts you compare with but (in a one minute search) I found 4 x accounts with interest rates higher than that - NS&I give 1.16% AER with an easy access account.

As you’ve said, rates will increase as time goes on but I expected more to begin with.

To be fair to Chip, NS&I are very well-established, and manage around £150 billion in savings, whereas Chip is relatively new and manages far less money - I think that the amount of savings Chip has to offer its partner banks must be a factor in the interest rate available.

The 0.26% extra available with NS&I is only worth around £13 on the £5,000 maximum deposit with standard Chip.

There are also a lot of accounts with a worse rate than 0.9%. It is not quite “market-leading” but it is competitive.

You do get the AI, goals feature, save streak bonus as small perks.

NS&I also has a minimum £500 deposit and the minimum withdrawal is also £500.

I personally am happy with the 0.9% initial offering and I think it is a good sign that the rate compares well to Monzo, Starling and Revolut.

Ben

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