Goodbye Mr Chip+1

In the announcement of the imminent closure of Chip+1 and its splendid 1.25% bonus, predictably enough, there is no mention of the less than splendid £1.50/4week fees! Will I be able to stop paying that once my savings are transferred to the Allica account? I don’t think that 0.7% is enough to make all the fees, confusion, and hassle of Chip worthwhile. I have no use for any of the autosaving features.

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Do you use the investment funds in chip X? If not then downgrade to chip lite probably the answer

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Thank you. I’m not rich enough to use Chip X! So, Allica 0.7% account works fine on Chip Lite? Are there any restrictions or limits?

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You’ll have to read the chiplite info in the app. But yes limited to £2k deposit as you can’t have all the bells and whistles for free

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Well, it’s not worth it then! I get 0.6% from my Marcus account, so would need over £20,000 in Allica at 0.7%-£19.50 to beat that. Looks like I’ll be leaving Chip in December…

And is that totally free for Marcus? No hidden charges anywhere?

Yes, no fees, no strings, instant access. It does include a 0.1% bonus but, unlike others, the bonus rates are available to existing customers, not just new ones. I’m on my second and I fully expect to get a new bonus when this one ends.

I’ll stick with Chip myself. Obviously being a large investor I want them to succeed and get unicorn so it’s my duty to back them

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Yeah I have downgraded to Chip Lite, as paying more in fees than I am earning in interest is not cool.

Am an investor so sticking around but, the move to fees on the auto save accounts has always been something that disappointed me. I joined Chip as it had a mission to help people change their financial situations, which when you have low income, all money saved is a bonus.
I wish Chip all the best, to be profitable and be sold but, I feel the re-positioning of the company means I no longer promote it to all my friends, especially those that really need the financial help.

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Whilst I am a large investor too, I often think investors get clouded by the desire for those investments to succeed and I really do want Chip to succeed but I look at what would Joe Bloggs non investor do if they were in this situation and can’t see how they would stick with Chip. After all, success requires the Joe Bloggs of this world to belive the product benefits them in order for the growth to occur.

It is a really interesting point about recommending Chip. When it launched, I recommended it to everyone I knew but they have all left it, some questioning why I recommended it in the first place and it made sense when I said I was an investor. Now sadly I wouldn’t recommend it and as an investor that is sad.

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With any investment that takes years to come to fruition there is a natural and very understandable ebb and flow of sentiment. In Chip’s case we see this in the trial of some ideas, the retirement of others and the consequent disappointment or euphoria this engenders from time to time.
In view of this it is scarcely surprising that some lose hope, fall by the wayside, even as others have joined in their thousands only a month ago.
There is nothing particularly unique about this; all of us have our different reasons for joining, staying or going, but I do think one must as an investor expect there to be these lower periods as well as the higher, and persevere accordingly, even if disinclined to invest further.

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Hi, I have a significant (in my terms) investment in CHIP and certainly want it to succeed. I completely agree with what you say here, in particular the last paragraph. Prior to the last funding round I had recommended CHIP for both savings and investment, those who saved via CHIP have mostly found better (net of fees) rates, and none invested. I wont invest more, will move to the lite savings plan and move the rest of my savings elsewhere.

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Your statement below pretty much sums it up for me too. The initial launch strategy was the one that resonated with me, why I joined and used the app and then invested in it. An app that was for helping people to get control of their finances and live better. IMHO while it still offers some value, the initial target market has changed. I get that a product develops over time and needs to make money but, what makes Chip different to all other finance apps now?

It is a really interesting point about recommending Chip. When it launched, I recommended it to everyone I knew but they have all left it, some questioning why I recommended it in the first place and it made sense when I said I was an investor. Now sadly I wouldn’t recommend it and as an investor that is sad.

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Completely agree @rh73 the more we can promote Chip and use their products as investors the higher the probability they can reach :unicorn: status :muscle:t2: :chart_with_upwards_trend:

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as a new investor i admit, had the changes occurred prior to the new round of funding, i would have given it a miss. i also feel i can not now recommend chip

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I have never understood investors complaining about this introduction of fees.
At the end of the day Chip is a business that we all want to succeed and needs to produce revenue. So how exactly do you think it’s going to do that without charging for the services it provides🤔

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Did you read what I wrote?

If you are a person with not a lot of cash for saving, then the fees Chip charges are far more than those people will make in interest. So the app has shifted from being something to help more people break out of financial struggles and is now more of an investment platform.
In no way should Chip not charge fees for services rendered but, it is no longer for the people starting out trying to regain control of their finances but for people with enough cash that they want an investment platform. (off which there are plenty)

All startups pivot and change from the initial targets, its the way things work, doesnt mean the original idea was not a good one.

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If you don’t have a lot of cash for saving, interest income will be trivial. The benefit for people starting out saving is the autosaving function allows them to save without feeling it. That’s worth paying for in itself because the alternative isn’t saving somewhere else, it’s not saving at all.

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I’m an investor but chip changes it’s core product more times than I have hot dinners.

How can you plan your finances when the savings products changes with the wind.

I’m out.

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With the investment platform, Chip charges a percentage fee of the balance in the account either 0.25% or 0.75% based on which tier you are.

There was a lot of discussion on the launch of fees account whether to charge a fixed fee or percentage and the fixed fee element was taken. At the time I did suggest this would penalise the core customers ie the 90% that save less than £100 a month, but at the time, there was a tier where for these customers they could still get autosaving but incur no charges.

Now to have access to autosaving you need to pay a fee of £19.50 per calendar year.

Whilst I agree, Chip needs to generate revenue to make it a success, the whole fee structure needs a rethink and would make sense it is done on % of your balance as every customer is affected in the same way but also a minimum balance before charges to be able to compete with standard free savings accounts.

Thoughts?

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