Fee for saving more than £100 per month?

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.

Hi all!

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

Alex

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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.

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Hi Faye,

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.

Alex

Hi all,

please see an update here: https://community.getchip.uk/t/changes-on-the-3rd-june/3684

Cheers

Alex

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

Alex

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.

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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.

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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.

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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).

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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 :grimacing:

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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

Hi Colster,

Thanks for your message - just to be very clear if a user automatically saves under £100 in 28 days Chip is completely free to use. If a user is able to save over £100 in 28 period then Chip will charge the £1 digital service fee.

We think that’s fair and reasonable. Normal banks do indeed have a charging model that charges the more vulnerable (overdraft usage etc.) we don’t. We only want to pass on the charge when we see people can afford it.

Alex

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Doing the maths, it looks as though in order to make the pound back in interest, you’d need to save about £120 per month (and leave it in Chip). That doesn’t seem unreasonable to me, if your concern is that your automatic saves will tip over the hundred. Happy to forego a little bit of interest in order to save without noticing it. And that figure doesn’t include the 0.25% bonus on 180 days of saving.

Quality summary there, I’d say.

This is my issue. I personally don’t think its a big deal, but people will see that during sign up or whenever, have this reaction and uninstall the app without properly thinking about it and either give up or go to a rival. and to those who say its less than a coffee etc, that’s not the point. People just don’t want to pay for digital things compared to physical things the price isn’t the issue, people just expect things to be free a lot more when an app is involved.