Is interest/bonus paid on the amount above the maximum balance?

@Donald-Chip, do you know about this?

I believe the answer is No.

I had an amount above £10k max, but always had bonus paid on an amount less then the £10k

Also I have found out from last quarter then any bonus you have received in the past, you do not earn any interest in this.
Also when you made withdrawals, you actually withdraw saved cash first ahead of previous earned bonuses.

This can lead to a situation where your balance may well be £10k , but you actually earn interest on a balance that is much less.
As earned bonuses can not be withdrawn and they do not attract interest either.

@Donald-Chip Can you confirm that as well?

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Thanks, @anj. I have yet to make a withdrawal, and with the lack of information / functionality around accrued interest in the app, it has made it hard to tell whether anything is being paid on amounts above the max balance.

I wasn’t aware that there was no bonus/interest paid on the bonus paid as well. If this is the case, and bonuses cannot be withdrawn ahead of actual savings, then this definitely should be made clear to all Chip users.

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If we are only paid interest on and upto £10k, I’ll be withdrawing anything over £10k!

Even if you have a balance of £10k exactly, if that balance includes previous earned bonuses, that element will also not be earning any interest either. And is not possible to withdraw.
I am sure someone from Chip will confirm…

One day someone will answer this. If I withdraw money, it should be my money, saved or bonus. And bonus should be paid on it all. If you have max amount in will a bonus be paid that takes you over the max.

Hi guys,

Thanks for your patience. I can confirm that bonus is paid only on funds up to (and including) £10,000. The system will not recognize any funds over £10,000 (so if you have managed to save over the limit (which is very rare) I’d suggest that you withdraw the surplus that will not be accruing bonus!)

Bonus funds can’t be paid out separately to the funds you have accrued in the app as they are processed separately by our providers (which is why bonus funds take longer to arrive in your account when you withdraw, so we withdraw from your funds first.)

We are aware that this is frustrating, and we are looking into ways in which we can get around this (and as you know, we’re working hard towards us becoming FSCS protected accounts which would in turn mean the option to save up to £85,000 with regular interest). If you do have any issues with the bonus on your account, please don’t hesitate to contact me :slight_smile:

That’s bonkers.

I appreciate the numbers of people involved are probably small compared to total, and that becoming FSCS protected/approved is far more important

But having no clarity on the amount on which we’re earning interest AND not being able to maximise that is backwards.

When withdrawals are made from the account, why can these withdrawals not be made first from previous earned bonuses and then from cash savings?

At least this would ensure that balances that do not attract interest, being the previous paid bonuses, are kept to a minimum…

I just tried, only to get an error saying that I don’t have sufficient funds to make that withdrawal! I have since asked the Live Chat team, but a combination of the lack of transparency and clarity around this and the many bugs that seem to have come along with the Chip upgrade really isn’t impressive.

Got to say I agree with @anj here. Even if bonuses are kept separate to savings, there should be a way to overcome this - even if it means a day of lost interest, but the bonus is automatically swept from the bonus account to the savings account? I’m still not clear from your answer @Donald-Chip as to whether bonuses paid accrue any interest on them, but I’m guessing they are not if they are kept separate to savings accounts.

For that matter, where are the bonus funds kept then?

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And does the £10k limit on interest include the bonuses? If they are elsewhere then surely they are excluded. For clarity, if I have saved £9,900 and I have £200 in bonuses (balance £10,100) am I getting interest on £9,900 or £10,000)

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@Donald-Chip please see my previous message

Hi John,

Thanks for your response. You will be accruing bonus on the £9,900 as bonus does not accrue on existing bonus - only on your own funds! If you wish to amend your savings to exactly £10,000, please pop into live-chat and I or a member of our team will be able to assist you to do so :slight_smile:

@Donald-Chip thanks for the response.
And if I had £10,300 including £200 bonus. Would I get interest on £9,800 (on the basis that the £10,000 cap included the £200 bonus) or on £10,000 (given that the bonus is in the part above the limit)?

Hi John,

You would accrue bonus on the £9,900 as you only accrue bonus on your own funds (and not on your bonus funds).

@Donald-Chip did you mean £9,800? (Ref my 2nd scenario)

You can not at the moment withdraw previous earned bonuses.
So even if you withdraw, and get your balance down to £10k, you will not have withdrawn the bonuses at all. The withdrawals are from savings cash.
So in future your interest will only accrue on £9,800.
You will have £200 on which no interest can be earned. It’s just in your account to make your £10k limit.

I found this out last quarter.

@sarahchip I was under the impression that once the interest had been added to your balance (quarterly) you could withdraw it. Can you confirm please? :exploding_head::money_with_wings:

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That’s right, you can withdraw bonus. However as it’s processed separately, bonus withdrawals take longer than your normal balance withdrawals.

I’m just closing this thread to keep everything together here: Everything Bonus

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