New savings account launching soon!

Over the last couple of weeks, we’ve been teasing a brand new savings account that’s been in the works. I’m delighted to announce that this will be launching early next week!

Chip’s brand new Prize Savings Account is a radical reimagining of premium bonds. Every month, we will pay over £10,000 in prizes. This includes a Grand Prize of over £10,000, as well as hundreds of smaller prizes starting from £10.

It’s an easy-access savings account, and the more a user deposits, the higher their chances of winning. Every £10 deposited will equate to 1 entry, with a minimum balance of £100 required to be entered. So, if a user deposits £1000, they will have 100 chances to win.

Premium bonds in the UK are one of the most popular savings products, with over £118billion in them. However, the Trustpilot rating is just 1.3 stars out of 5, with complaints about slow withdrawals and a painful user experience.

We will be the first fintech to challenge that.

Our account has lightning-fast withdrawals. Withdrawing takes 6 seconds back to your current account. The user experience is simple where users can see prizes in the app, as well as getting more entries for referring friends in the future.

The more money that is deposited in the account overall by everybody, the bigger the prizes will be. Moving forward, we also intend to offer more unique prizes, from experiences and getaways to rare objects!

So… for those who want something more from saving… meet the Prize Savings Account.

We can’t wait to share it with you!


Sounds very interesting! I’m not overly familiar with Premium Bonds but I have a few questions that I hope you can answer:

  • Will money deposited into the account attract interest? If so, what rate?

  • What is the monthly prize breakdown?

  • How will the prizes be funded?


Interesting idea. Is there a maximum holding you can have like the £50k Premium Bonds have. I suppose the main attraction there is the prizes are tax free whereas it won’t be the case here?

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Doubt it. Premium bonds don’t.

Why not?

This is a great move from Chip and absolutely matches the target market. Millennials grew up with premium bonds as investments from their parents. I have had numerous payouts from premium bonds and offering this alongside the established capabilities of chip to disrupt how people save is revolutionary. Financially at the moment it is offering more ingenuity than any other banking app and is moving forward. I am thinking that chip is reluctant to make it possible to use savings to accept purchases. On the other hand i would love if they would offer their own savings account for sports teams. I play hockey and clubs are struggling to put their money somewhere safe. As a millennial Chip for sport could be launched to accept payments from a card reader to a chip account.


My assumption is that as Premium Bonds are a Government backed scheme that they have special tax exemptions that Chip couldn’t tap into. If this this not the case then it could be a real game changer. I used NS&I to look after my deposit and they completely messed up the withdrawal which almost cost me my first house. I know of many others that would be happy to risk a slightly lower return for the chance of a big win

I assumed the tax free status of Premium Bonds was because it’s a bit like gambling (albeit without loss of your stake), rather than any government connection. I’m not sure though and could be wrong on this. It would be helpful if Chip could clarify the tax implications of the Prize Savings Account.

The big benefit of the government ownership of NS&I is deposits are 100% government backed. So appealing to those wary of FSCS or who have more than £85k cash and don’t want to bother spreading around multiple banks.


This sounds interesting - especially the quick transfers back to the bank (which I would like on all Chip accounts)…I will look at the finer details when this comes out.

It will be interesting to see if it is like Premium bonds…e.g prize fund is based on the interest rate, with no interest being paid to the account (or bond) holders or more like the Nationwide account Member Prize Draw which offers Nationwide members the chance to win their share of £1 million…

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I didn’t consider the ‘gambling’ aspect, which of course is not taxable. I use inverted commas as I do distinguish it from gambling as you retain your stake (less inflation) if you don’t win

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Yes, probably better to say luck/chance based returns than actual gambling.

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Another important question - will the win rates be published? With premium bonds its well known the average win rates. Will Chip do the same?

Will the wins be taxable or in some sort of tax wrapper? Assume not but doesn’t hurt to ask!

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Hey all, will answer the question/comments that I can right now here:

  • There will be no interest on this account, as with premium bonds
  • You’ll be able to hold a maximum of £85,000 in this account
  • Tax exemption is as of yet unconfirmed - unfortunately we don’t offer tax advice, in these cases we recommend seeking advice from a professional
  • Withdrawals will be simple and fast

With regards to the rates of winning, this is a little more complicated. I can say for sure that in the first month there will be one “Grand Prize” of £10,000 and hundreds of smaller prices. However, the winners will be selected randomly - this means that the win rate is completely dependent upon how many people enter the account, and how much is deposited per person. We will be monitoring the account closely, and be as transparent as possible with the data without compromising on user privacy.

Is it one entry per £10 deposited that month, or one entry per £10 of balance held (as the two are different)

Hi Nik, I realise that the amount of prizes you can pay out depends very much on the total balances of the new account. Premium Bonds pays approx. 1.4% out as prizes. With Premium bonds, I think you have to wait a month before you are eligible for the draw as well.

When the total balances allow and the account settles down…will Chip be looking to offer something similar to premium bonds e.g. 1.4%.


It’s one entry per £10 of balance held

Hey - as above, there is no way to judge as of yet whether the rate will be similar to Premium Bonds, we really cannot comment at this time due to a lack of any available data. If only one person deposits, however much they deposit, they have a 100% chance of winning. If two people deposit an equal amount, they each have a 50% chance of winning. If 100 people deposit the same amount, each will have a 1% chance of winning. It is a truly random process in order to ensure fairness.

Thus, we cannot calculate the chances until the account is populated and we have an idea of users and entries. However, please rest assured that once we are able to, we will publish as best we can the %chance of winning.


Held when? On the draw date or does it have to be for the whole month? If the former, what’s to stop people moving money in just for the draw and then back to an interest bearing account.

I just a look at the prize savings account webpage: Prize Savings Account

One of the FAQ answers is a bit concerning.

Do any winnings count towards future entries?

No, any prize you win will be credited to your account as a bonus.

Bonus cash is in effect money we owe you, it is not the same as money you have deposited and is not covered by the Financial Services Compensation Scheme (FSCS). Whilst you’ll be able to see it as part of your balance, it is always the last money to be withdrawn from the account, in essence it is only realised when you withdraw all the money from your account. For the same reasons above, it is not counted towards entries in the prize draw

I’m not particularly bothered about whether winnings count towards future entries, but if I understand correctly winnings are not covered by FSCS and the only way to access those winnings (for example to move them elsewhere to bring under FSCS protection) is to withdraw all money from my Chip account. Am I understanding this correctly? That bit is concerning. Why don’t you just provide a a dedicated bonus balance/account which can be withdrawn without having to withdraw everything else?


The draw will be held in the first week of every month - we’ll be able to publish the details in-depth next week when we’re ready to launch, I’ll be expanding on this delay shortly.

For the initial launch, we will be monitoring behaviour closely, and add additional criteria if we do find a mass-gaming of the system in the kind you have rightly pointed out. As this is a unique offering there is little precedent to draw from, and as such the first draw can be seen as something of a test - once we have more data points we’ll be able to adjust accordingly if we need to.

Hey - this web page was non-indexed and not meant to be public as terms are still being updated with the latest guidance. We’ll be able to answer fully in-depth next week, but for now I can say that it would take an unreasonable amount of dev work and legislative hurdles in order to create a second account just for bonuses, it’s simple not business-viable at this time