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
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.
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.
Clearly I’m in the wrong place. People paying someone to save is only going to be of interest to people who find it so hard to save that it is their only option. This feels similar to companies who offer payday/guarantor loans.
the solution to the issue has been suggested many times by multiple people, so i;ll suggesr it one more time
give the user the ability to set a maximum save limit every 28 days
if the user is happy to pay the fee to use the AI they set it above the £100 level, if not they set it below £100, its so simple it hurts my head thinking you wont implement it
Interestingly, I have my save level set to 5. I used to get auto saves of over £20 each time and I managed to save a decent amount relatively quickly (a situation I was very happy with). Recently, since the connection to my bank was made properly (rather than card), the auto save amounts have drastically reduced. I have been on to the team about this many times to no avail. I wonder now whether this is being done on purpose to make sure the limit of £100/month is not exceeded. Whatever the reason, Chip is fast becoming a pointless endeavour for me.
This has broken my brain lol.
I have nothing but debt, being trapped in my bank with extortionate charges, then up came Chip, I gave it a go, and doubted just how it will find any money that I have to spare with this, but I got regular updates of it taking £X amount away, and I left it to it as I was able to pay bills etc without any extra pressure, and I felt that it was going OK due to this, so I’ve just left it to it’s job.
I took a look in after some time, and I truely didn’t believe how much the simple process had managed to put away, so it has truely lived up to it’s claims for me, I don’t get interest from my bank, so it’s not missed here, But, it would be nice one day to be able to have some return on my money, but one thing for sure is that if I start getting charged Any, fee’s, and end up paying you more than I am getting back, then I’ve being doing that for over 3 decades with my current bank, trapped in it, but now I am able to change bank, and once the switch offers on the bank I will move to is on again, then I’m changing bank.
So I’m not about to repeat history again, that said, I totally appreciate your a business, and out to make money, I have no issue with that directly, but I’m certainly not going to be paying for your new holiday home in the Bahamas, not saying you will, just making the point as the other banks have and are doing that, with sickening 6 figure bonuses every year, they already get a well paid salary to do the job to start with, so why the bonus, if they can’t do the job without the bonus, then they aren’t fit to be doing the job to start with, and please remember, this comment is aimed at those with sickening bonuses, I have no problem with a respectable bonus.
But for some reason my amounts have also significantly dropped, from aruond £15 to £6 or £7, I came here today to see what was going on, and got to this thread, I have no way to check any settings in my account, because with changing my host becoming very problematic, and my phone(s) dying, 3 of them, my original one, the first replacement, and nowe the second replacement, I must have seriously pissed someone off to get no end of bad luck, fingers crossed for some sanity to return.
Also while I remember, I’ve had an invite to be a ChipMunk, and no matter how often I have tried, I get nowhere, I’ve clicked to get the link to join, but nothing since, and when I try it now, I just get an error, not sure why?
“Oops! Something went wrong while submitting the form.”
I’ve no problem with bringing in fees and, realistically, it needed to happen for Chip to make business sense. I do think it has been a little clumsily deployed though and, if you’re savvy, it’s easy enough to get around the fees. I think the fee structure will therefore be tweaked over time because I don’t see it being particularly successful in its initial guise. I for one have reduced my auto saves to the minimum until a better system is introduced.
One thing that I do think is particularly worth mentioning though is the use of the phrase ‘fair and reasonable’ which repeatedly crops up and I consider to be somewhat dangerous. It risks alienating those customers who would be liable for the fees but are savvy enough to get around them under the present fee structure. It suggests that those people are acting ‘unfairly’ towards the business and the rest of the community by getting around the fee.
Chip is acting fairly as a business towards it shareholders by bringing in fees to generate revenue. Chip’s customers can equally act fairly (i.e. within the current rules) by avoiding the fees. Whilst customers saving £100+ month could afford to pay the fee, they’re not required to and shouldn’t be seen to be acting unfairly by not paying.
Ultimately it’s not a charity on either side. Use of Chip’s platform will ultimately require some cost and that’s fine. The problem is that any cost currently incurred is essentially charity for which customers are being not-so-subtly guilted into.
The whole fee structure and messaging desperately needs a rethink. It’s just going to annoy people for very marginal benefit to the company.