Goodbye Mr Chip+1

Thanks for the message Scott and interesting feedback. So out of interest do you think a flat % across all Chip balance would be simpler? Interested on your take here.

As always, if anyone has any thoughts on how fees should be charged, or made simpler I’d be interested in your thoughts.

Hi Alex

I think it is a complex thing that needs to meet both the objectives of chip customers and future growth numbers. The challenge is the product mix is constantly changing so the change would have to be also based on the plan or at least the next year of product launches. Without the data it is hard to make a recommendation. I am sure that each method would have its weaknesses as well as its benefits. But it is easier to make a decision if you know all the details and pros and cons.

So, my advice would be to come up with 2-3 models of how it could work with full details against the plan and then put it to a vote across investors. That way you can get some insight into what investors think and then management can decide what to do.



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Another bank has now launched an easy access account paying 0.7% with no fees or £30,000 limits on balances etc.

If Chip want to retain customers goodwill, they really should have timed the withdrawal of the 1.25% rate, to coincide with the new products mentioned in the recent webcast.

Hi there,

Which bank are you referring to?

Probably Cynergy Bank

Yes, as mentioned by @john I was referring to Cynergy Bank

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Thanks for letting me know

So you have to leave it in for 12 months to get the 0.7% paid out with that one? (0.4% of it bonus)

Is chip paying out daily at the full 0.7% not better?

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No, both accounts pay 0.7% a year and calculate interest daily

The only difference is that Cynergy add it as a lump sum once a year and Chip show a smaller sum as a daily amount.

As Chip say on their website:

You end up with the same amount.

I won’t be waiting a year…

I’ll stick with Chip :raised_hands:


I prefer the daily payment with Chip to waiting a year for interest payment - a bird in the hand and all that …

The daily interest amount will increase in 2 weeks’ time when users’ Chip+1 balances are transferred over and by anything else you then pay in to Allica 0.7%. If a Chip user paid in up to full balance once the cap is lifted to £85k, they could be getting about £1.60/day = £48/mth (after 1.50 fee) with Chip rather than wait for Cynergy interest payment at end of the year.

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Has this changed?
When I look in the app it says ChipLite pays interest on up to £10k

Yes changed last week to a bigger limit


Someone should tell MSE!

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