Interest rate increase to 0.90%

Hi All

We will follow with more details next week but just a quick note to say the Allica Easy Access account interest rate was increased today to 0.90%. There will likely be more rate rises to follow so watch this space.

Have a good weekend

Simon

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Excellent news on a Friday - Go Chip :+1:

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Why such a low key announcement? I thought that would be something to broadcast.

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Great news @SimonChip but needs to be communicated much better for future rate increases. Lots of savers are moving to the Chase product at 1.5%, so please communicate this as strongly as you have for the Crowdcube raises.
PS it may be well worth you addressing some of the comments and criticisms on the FB pages as your silence there is speaking volumes @StephenChip

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Who wants Chip shouting that you’re losing £60? Once they get back up there maybe they’ll shout about it, but with others paying more this may be the time to keep quiet. Allica may not have done too badly so far but with them still paying 1% on £250,000 in their own bank possibly Chip should be looking around for other providers.

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Yet another instance of Chip being reactive rather than proactive, and sadly not reactive enough…

The horse bolted weeks ago, with 0.9% falling far short of Chase’s 1.5% and Cynergy’s 1.1%.

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The ironic thing is for years Chip has been saying they are market leading and the banks react too slowly but now the banks have reacted and can react quickly leaving chip behind who can’t keep up with the pace.

As I have said before, the only way to compete against this is to set your own rate using the marketing budget, which was done in the past. The challenge to this is the financial plans from the latest investment round, including breakeven by 2024 would have to be thrown out and redone and breakeven would certainly be pushed back.

Alternatively the plans to expand into Europe could be delayed to focus on the UK market. This would save significant implementation costs that could be redistributed to the marketing budget for interest to UK savers

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I don’t think constantly being the market leader is attainable. There will always be someone new pushing an over the top rate as a way to grab attention. A couple of years ago that was Marcus, but now Marcus has the mediocre rate of 0.7% including 12 month bonus. Today Chase has the attention grabbing rate, but in a year or two I expect the rate will have dropped to mediocre territory, just like Marcus.

For Chip, aiming to consistently be in the top 10 is probably more realistic. 0.9% puts it in top 10 easy access accounts.

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And that is fine, just they can’t use the tag line of market leading savings rates as they have in the past

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I don’t think they do. I don’t see the phrase market-leading on the website or in the app.

But they did in the recent investment deck for funding

I wasn’t interested in investing during the most recent round so haven’t seen this.
Is that deck publicly accessible?

Chip have just been too slow here. The increase to 0.9% is too little too late, especially with what chase are offering.

I have signed up with a chase account today and will be fully switching over in the coming days.

Hopefully Chip can come back with something stronger and maybe I will return.

Yes I have done the same thing … the rate difference is too big to miss. I will leave some in for now but the USP for me was and is a leading interest rate, the other areas interesting but sound a bit WeChip to me (watch Apple TV WeCrash for more details!).

Agreed, the auto saving and investing never did it for me. With chase, I can put money into the savings account instantly and withdraw it instantly. With Chip you lose a couple of days either side.

The only thing that will get me back is an interest rate upwards of 1.75%.