A solid write up from ChipperBen there I see
I am gunna attach two pictures to put things in perspective here folks…
I fully appreciate chip has a difficult challenge of marketing this correctly… but this is a little bit of a moot point.
Exhibit A - RBS charges… and I’m getting less than 0.55% with them on any of those. And you must have one of those before u can attach an ISA for greater interest rate… and note, the better the rate, the less it becomes “instant access”
Exhibit B: what I’m getting for Chip right now… in the real world… not theoretical. And is instant access, (except bank holiday weekends)
RBS world famous, leader of industry… offers £2 - Twice the price a month. For a worse product.
And for good measure … here’s keiko
Come on, I’ve got that account. Not a fair comparison. You get charged £2 a month yes. But you get back £1 for just logging into the app once a month. And £4 for 4 direct debits. So they effectively pay you £3 a month to have a functioning current account. To get £3 a month off Chip you’d need hundreds in there if you have a sky high bonus rate but more likely thousands. Yes you could find other bank accounts that charge and offer a worse deal than NatWest/RBS but they’d be an exception and not likely to be attracting customers in their droves.
So what you’re saying is… if an account offers interesting perks… you’re willing to waive the fee?
It must just be a case of marketing the product correctly:
Chip has saving streaks… saving bonuses thrown in… all on top of market leading interest rates… i’m pretty sure they already have these features already thrown into the “free version”.
And remember, not everyone is even going to be affected by the £1 fee. And even if they are, it’s not to say that it will even occur more than once or twice a year depending on their unique circumstances.
If you are lucky enough to save £1200 a year, without intentionally doing anything… . and if the AI has truly done it’s job… and you didn’t notice… then i would strongly argue that £12 is fair. especially when it’s spread out across a whole year. Thankfully it’s not my job to market this, because i do truly appreciate that the knee jerk reaction from people about this…
I just feel word of mouth might be a stronger powerful tool… “hey moneybags, where’d you find the money to go on holiday this year?” …
“oh yeah? got this neat little app called Chip”
“how’z it work?”… “well i have a referral code” and the rest hopefully will be history…
If it genuinely works… then it works…and i guess we won’t be arguing about anything…
You know i was giving this more thought.
You could actually have the example that you got a “bonus” from work… or a gift from a grandparent at christmas. So you put in £1150 into chip in January.
The rest of the year you have between £80 and £90 saved a month.
That would mean at the end of the year you would have used “free” chip… for a year… and saved at least £2030 for only £1 that you spent in January. So i guess it’s not about the “amount” you save. It’s how it’s used.
Which, the user does have control over through the use of payday-putaway and adjusting the slider for how much the AI takes from you.
Thank you so much for all the comments and thoughts. I can’t express enough how amazing this is to have feedback like this. I’ve written up a long “letter-kinda-thing” that I’ll post later today - would love all your thoughts on it too.
In other news (breaking forum etiquette of crossing topics, apologies!) Interest Account rollout begins today: https://community.getchip.uk/t/interest-accounts-the-roll-out-begins/3683
The introduction of a fee is really disappointing to hear. I know people use chip in different ways, but for me paying to save my own money is just a no go. I usually manually save around £100-£150 at the start of the month then use small autosaves to add a little bit extra to that. If I understand correctly I would be paying the fee for performing my own save as it is over the £100 threshold? I can do the same thing and move the money into a normal savings account and not pay anything.
There are lots of features I looked forward to when I first joined chip, such as multiple goals and especially shared goals with other people. Some of these features have been implemented but with considerable room for improvement, and others I never heard anything about again. It’s disappointing to say the least, especially as an investor I don’t feel like Chip is moving in the direction I originally believed it would. If the fee is introduced then I’m afraid I will unfortunately be leaving chip. Sad news.
As I mentioned I’m posting a much longer article about this this afternoon - but just quickly manual saves are outside of your usage and completely free. The fee is only for use of the algorithm (and using it beyond the £100 in 28 days). If you imagine it as “if the algorithm can help you save an additional £100 on top of the £150 you’ve manually saved - then we hope you wouldn’t mind tipping it £1 in return.”
Watch this space.
please see an update here: https://community.getchip.uk/t/changes-on-the-3rd-june/3684
Link doesn’t work for me.
Hey there, it’s currently in the investor only section - that might be why. You can read the article here: https://www.getchip-community.uk/our-new-fee
I think the 3 tier approach suggested earlier in this thread would be the ideal solution. it’s easy to understand, it’s transparent.
Looking at the proposed UI, which allows you to track your progress towards £100, there doesn’t appear to be any allowances for individual saves that are over £100, which does happen.
It also seems misguided to introduce this now. Not only because of, well, the world, but also because there is no compelling offering for those who are in this looking for returns. The savings account feature isn’t live yet for non-investors, neither is ChipX an option, so people end up paying £13 a year for what is exactly the same product. I get the need to bring in revenue, but it has be compelling for customers, which ChipX might be, but the current vanilla product isn’t. But I also get that I may not be the target market.
It would be nice to see the auto-save feature make some adjustments to reflect the new fees. So if it would just have tipped you over the £100 for a 28 day period, it should be aware and favour saving a slightly lower amount. Otherwise you’re open to accusations of the AI arbitrarily pushing users over the threshold just to take additional revenue from them. I’m not accusing you of doing this, but I give it a month before someone notices they auto-saved £101 automatically, gets charged, and blames the AI.
You make a good point at the end there . I think they need to cover themselves and allow users to set a max or min limit on what should be saved in each 28 day period so that AI can be “controlled”. Having to manually check each auto save and calcualte if its goign to take you over £100 is a backward step in functionality as it negates the “set and forget” approach of the auto saving. They’ve got the Overdraft limit check, so why not a savings in 28 days min or max limit, that indicates what a user woudl like to stay under or above and the AI operates within that boundary.
Alex one question maybe I missed it in the volume of information somewhere but let’s say I signed up for ChipX and I am paying the £3.50 every month do I also get charged the additional £1 for auto saves above £100 every month !
If you are a ChipX user, you are not charged the £1 fee.
Perfect analysis. It’s so bothersome to manage, and so much easier just to walk away.
I hereby claim credit for bringing back the old phrase ‘take it or leave it’ (or from my Mum ‘like it or lump it’!). Chip have offered a product, i as a member of society choose if i want the product, and make that choice. I choose to take it, with the (possible) cost.
To infinity and beyond, Chip! (No credit wanted for bringing that phrase back).
Totally agree with this. I’m happy to pay £1 for someone to do the dirty work for me and find out the best deals. Luckily I’ll be joining Chip X and be paying the fee for that anyway but even if I was just having to pay the £1 for “normal” chip then for a max of £13 a year it’s not exactly breaking the bank surely…
You can’t even buy a packet of decent crisps for a £1 theses days
I question how much of a return you’re likely to get as an investor if we were promised 8% interest was coming and I personally am still waiting yet I’m now being told I’ll be charged for continuing to save. And to add to that the only interest currently mentioned is under 1% and we’re still waiting for even that.
So an app designed for people who find it hard to save is going to prey on people because they find it hard to save? I’ve been a supporter of Chip and invited friends to join but I’m not about to start paying to save money. I’ll just turn off the saves and switch to Plum