Similar to the Financial Times article. A good bit of promo.
When does this interest actually get paid?
My wife’s account has been sitting with its original deposit in it since 26th January with a note saying a “bonus” will be available on 27th April. So is this really 1.25%?
From the Ts & Cs:
The Chip+1 Account Bonus (“Bonus”) is paid by Chip and not by the Provider.
Bonus is paid on the balance in your Chip+1 Account only. Chip will set out the
bonus rate and the maximum balance on which you can earn bonus.
The bonus is calculated on your balance every week. The bonus balance in your
account is updated weekly. Bonuses accrued in a 12 week period will be available
to withdraw at the end of that period only. If you close your account before the
end of the 12 week period you will not receive the bonus accrued for that period.
Your bonus is not interest, it is not FSCS protected, bonus does not accrue on
bonus i.e. it does not compound, bonus is only paid to you by Chip when you
withdraw your full Chip+1 balance.
Thanks (again) Ben, however I would gather from the above that the “bonus” would be shown weekly in the account (even if you cannot withdraw it) but I can see the reasons why this doesn’t happen is described by the end of your 2nd paragraph,. I understood it wasn’t compounded but only because of the limitation at the top end of the account.
In the press Chip allow the “bonus” to be described as “interest” which is misleading, but I will live with it.
To be honest, now the next tax year has started, I will probably withdraw my Chip holding(s) at the end of the next 12 week period to invest as part of my new £20,000 S&S ISA allowance.