Chip Accounts not FSCS protected according to Chips own Terms and Conditions

Not sure how this got missed but its unbelievably worrying that Chips T&Cs explicitly state (multiple times) that their product is not covered under the FSCS. This may be in relation to the main Chip product but there doesn’t appear to be a mention of the +1 or HTB account.

Obviously this was a big selling point for the new products (and the reason why I actually started saving with Chip again) but at the end of the day, our rights would be applied as laid out in the Terms and Conditions.

Right now, this states that we have no rights if the worst was to happen.

If I am missing something then I would love it to be cleared up, as it’s a great application, but this is very concerning.

T&C’s below from

Short of time?

Here’s a quick run down of some of the main terms of use for Chip.

Chip is our app. We use other firms who specialise in securely connecting us to your bank account, so that we can look at transaction data to calculate little amounts to put aside and offer you a range of features and products.

We use another firm to take debit card payments from your account. Your money is sent to an authorised e-money issuer who will provide you with a digital wallet and safeguard your money. Together this makes up the system behind the app.

Some of the things Chip does are regulated by the FCA, but none of the services that we offer to you are covered by the Financial Services Compensation Scheme.

The basic Chip product has no monthly fee and we have some premium services that we hope you will like. You can stop using Chip at any time.

You really should read the terms of use below.

9.3 The Wallet Provider is obliged to safeguard your money, which they will do by placing funds into a segregated account. If Chip ceases to trade, or becomes insolvent, the Wallet Provider will arrange for the redemption of the electronic money in your Wallet. If the Wallet Provider ceases to trade, or becomes insolvent, Chip will make claims for the redemption of your electronic money on your behalf. Even though your funds are segregated, you should know that your money is pooled with money belonging to other Chip users and other clients of the Wallet Provider, which means that if the Wallet Provider is unable to redeem the funds in your Wallet, your claim will not be against a specific account but against the pool in general and an insolvency practitioner’s costs of distributing the safeguarded funds would be paid in priority to your claim. There is no FSCS protection.

9.4 As an FCA Authorised Payment Institution Chip also safeguards funds in relation to payment services in our safeguarded account with Clearbank Ltd. ClearBank Ltd is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority (Financial Services Register number: 754568). Even though your funds are segregated, you should know that your money may be pooled with money belonging to other Chip users, which means that if Chip fails, your claim will against the pool in general and an insolvency practioner’s costs of distributing the safeguarded funds would be paid in priority to your claim. There is no FSCS protection.

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There are dedicated T&Cs for Chip+1

On your Chip+1 page click info then Terms and Conditions


I believe there was separate T&C’s for HTB account. This account and the other 1.25% have the FSCS symbol next to them so I won’t worry too much. It’s just the normal chip account that isn’t FSCS. With these new accounts I wouldn’t expect many people to have much money in their main chip account these days.


For the HTB account:

2.0 Your money with the Provider is eligible for the Financial Services Compensation Scheme (“FSCS”) for amounts up to £85,000

The money you deposit is eligible up to a total of £85,000 by the Financial Services Compensation Scheme (FSCS). The FSCS apply this limit to each person and to the total amount of any money you have with the Provider, whether held through Chip or not. To find out more and to check your eligibility please visit

When your money is held by Chip, it is not protected under the FSCS scheme, but it is safeguarded.

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Hi @Trevt, @o99, @Masquerade31 & @Ben20006

Niamh here from the Product Team.
On onboarding you are automatically provided with Chip e-wallet which you are correct funds placed in this account are not eligible for FSCS compensation but are safeguarded in a UK regulated Bank account.

The other accounts available to users which have their own Terms & Conditions are the
HTB account
Chip+1 account
Both of these accounts are eligible for FSCS compensation of up to £85,000 as per the FSCS compensation scheme.
If you would like a copy of all of the different Terms and conditions for each account we can send these to you by email please just DM me your email addresses.
Also more information on the Chip+1 can be seen here

Let me know if I can help in any other way,
Many thanks

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Hi @NiamhChip

Can I suggest you put a link to the formal T&Cs document on the product page for Chip+1

I’ve noticed a trend amongst fintech startups (so not just Chip) that T&C documents often don’t get included on product web pages (and therefore not easily accessible in advance of applying for or obtaining a product). Contrast this with established banks. Formal T&C documents are always easily accessible as key documents on product pages. For example: .

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Hi @o99

We have the Terms and conditions available for the user within the “Info” tab on the top left hand side of the Chip+1 account.

I have just re-read this and noticed it is not within the app but indeed the webpage you are suggesting to place this. I will feed this back to the team to make more visible!

Thank you for your feedback and please let me know if there is any further feedback for the app.

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thanks. I’m glad you cleared this up. Terms and conditions can often appear very ambiguous at times and they’re often unnecessarily long, overly complicated and sometimes outright misleading. I don’t know how companies are getting away with it.

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