why in the app account section does it now say “E-Wallet - Closing Sept 21” ??
Because it’s being closed……
There was an email about it a few weeks ago. Switching over to FSCS which that account isn’t hence the closure
not seen any email. had problems with chip since the outset dont suppose you could paste the email content as might help others that havent received it either. thanks
No I don’t have it anymore sorry
thanks ! just checked again and definitely did not receive that email. have sent a direct message to chip to ask why im not getting these emails.
Important change 1: from 20 July 2021…
We will close your Chip ‘e-wallet’ to new deposits and a regular administration fee will apply.
After 20 July 2021, you won’t be able to make any new deposits (manual saves, autosaves, or Payday Put Aways) into your e-wallet account, and we will have to charge an administration fee of £5 every 28 days where there is a balance above £0 in your e-money account.
We will charge this fee directly from money in the account, including any accrued bonus, until the balance is £0. If the balance is under £5 we will charge whatever the balance is. Once the balance reaches £0, we will close the account.
If you have a positive balance in your e-wallet account you will be able to withdraw to your nominated bank account only.
Important change 2: from 20 September 2021…
We will no longer support your ‘e-wallet’ and you’ll need to pay a fee to withdraw your money.
After 20 September 2021 your e-wallet will be closed, will no longer be accessible through Chip, and will revert entirely to the care of Prepaid Financial Services (PFS), who power the account.
If you wish to withdraw your money after 20 September you’ll need to pay an additional £5 charge to PFS and provide them with ID and Proof of Address, before they will send you your money.
To access any remaining accrued bonus on your account you will need to contact us separately.
To avoid these charges and other changes please move money from your e-wallet into your Chip+1 account before 20 July 2021, following the two easy steps above. Alternatively, you can close your account and withdraw your funds without cost any time before 20 July 2021.
What’s FSCS? What’s an e-wallet? Why is Chip doing this?
A quick jargon buster if you’re lost.
FSCS stands for the Financial Services Compensation Scheme, it’s a government initiative that guarantees the return of up to £85,000 of your savings - provided you’re eligible.
All eligible savings and bank accounts in the UK are covered by FSCS. You can read more on the FSCS website here.
When we first built Chip we offered an e-wallet powered by Prepaid Financial Services (PFS) to our customers.
Until 2020 this was the only account available with Chip, and has had a few names over the years, most recently ‘Chip - Instant Access’.
This is how many other fintechs and challenger banks started (Monzo, Revolut etc…) because they’re very easy to set up and grow with.
However, while PFS is authorised by the Financial Conduct Authority, and the money in an e-wallet is safeguarded and never used for lending or business purposes, it’s not covered by the FSCS guarantee and doesn’t pay interest.
As Chip matures, the time has come for us to replace these e-wallets with FSCS-eligible savings accounts.
You will hear more about this over the next few months, as we’re very keen you avoid any administration charges or withdrawal fees.
thats one heck of an email to have not been sent
thanks for sharing. money has been withdrawn !
@smashdurant Thank you for sharing that. I hadn’t had the email either. I got here by googling ‘What does chip ewallet closing september 21 mean’
Does anyone know whether I need to cancel transfers from my bank account to CHIP? Or will they be automatically redirected to where they need to now go?
You will have to open a +1 account, if you haven’t already, and change the autosaves to go into that
Thank you. I already have one but I don’t want all my money going in there because sometimes I need it back urgently - from +1 it’s not instant access. Will there be an alternative?
No idea as I don’t work for Chip but I believe they are going to open one that’s FSCS protected
It is same day I thought ?
No idea sorry. I’ve been finding the +1 is only taking a day or so at the moment to withdraw