New savings account launching soon!

It was and still is indexed:

I’ve seen a number of other savings/investment platforms provide ability for income to be diverted to accounts other than the account in which the deposit is held. So disappointing that Chip is unable to do this. To my mind, the significant issues around bonus payments outlined in my previous post mean it should be a priority.

So what is new about this? It is not a savings account in any sense. It is effectively the same as premium bonds but minus the tax free winnings status with £10 = 1 entry rather than premium bonds which is £1.

Can you tell us the interest rate given up ie what makes the total prize fund? With premium bonds I think the rate of interest to determine prizes is 1.4% but may have moved.

What will be the minimum prize given?

What I was hoping for here was an account that paid some interest eg 1% but then there were still prizes to be won with the other lost interest.

Thanks for flagging with the website. It will be live this week with the full terms.

With regards to the bonus - I appreciate and hear your point, I’ll be passing this point onto the Product team to have another look at.

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Hey! As Alex said in his initial post, this is indeed an answer to premium bonds, the main difference is the functionality. For example, with the NS&I Premium Bonds product, you can see a withdrawal time of 6 days - we tested our account and saw withdrawals as fast as 6 seconds. The aim is for the user to have a much smoother experience.

With regards to the rates of the total prize fund (and minimum prize)… We’re fixing prizes to start with, this will be one ‘Grand Prize’ of £10,000 and 250 smaller prizes of £10 each. The reason for this is the reason we can’t yet answer what rate this reflects from the account - quite simply, there’s no money in it yet, and we can’t predict what the balance of the account will be. Once the account has launched, we’ll be better placed to answer these questions.

Another point that is related to all of your questions, is that looking to the future, we’re also looking at the possibility of providing more unique prizes, such as collectibles or rare objects. However, this is something we’ll be able to talk about more in the future once it’s more set in stone.

I hope this clears things up for now!

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Hi Nik

So what you are saying is the problem with premium bonds is the time to withdraw? And this product solves only that.

In terms of the prize fund I’m not sure you are understanding my question so I’ll try again. With premium bonds, the number of prizes is determined by the total interest on the money in the pot. They have a rate of 1.4% so if there is £100b in the pot, then the interest given up for prizes is £140m per year or £11.67 per month. So I know you don’t know the size of the pot but you must know the interest rate that will apply, and that is what I want to know.

If the prizes are paid as bonus, will people be able to withdraw them first or like other chip historic accounts will they have to withdraw the whole balance?



I believe Nik is saying that, at least initially, the prize fund is fixed regardless of deposits. I think the subtext is that this is an experiment, and so they have an allocated prize budget (£12,500) and they will see how the account performs (in terms of deposits) and decide whether or not they will continue to offer the account and invest further in it.

So, putting it in terms of interest rate:

If there are 10,000 deposits of £1,000 into the prize account (£10,000,000 total) then the interest rate would effectively be £12,500 * 12 = £150,000 = 1.5%. If there’s only £1m of deposits, then the interest rate is effectively 15%. If there’s £100m of deposits, the interest rate is effectively 0.15%. Given there’s no guarantee that Chip will offer this account for a year, the use of “interest rate” here is very loose.

The difference is that premium bonds work based on a target of 1.4% of deposits, whereas Chip are (at least initially) working with a fixed pool of money (£12,500).


Bear in mind that NS&I have an entire month to calculate and adjust the amount of prizes being dispersed and have decades of data to draw upon. I am excited for this new proposition and it would be interesting to see the uptake

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A re-imagining of Premium Bonds. It certainly is. If you had £50,000 of Premium Bonds and won a tenner, if it worked as Chip does you’d have to withdraw the whole £50,010 to access the tenner you’d won. And you call this a prize? No of course you don’t, you call it a bonus, despite the number of times you talk about prize draws and prizes. Silly me, all you need to do is withdraw £50,010 then pay £50,000 back in and you’ve got the tenner you won. You could almost have guessed how poorly this great new idea would have been set up from previous experience of Chip.


Its not that original. Several banks/building societies have (or have had) prize draw type accounts.

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Innovative. I like it.

When is it being released? Projected date was this week and we’re towards the end of the week now.

Is it being postponed to next week?

Hey all - apologies for the delay but can confirm the account is now live!


Can I just check, is there any incentive to leaving money in the account. Like from the above it sounds like you could transfer in £25,000 on the last day of the month and then out again the next day just to get entries?

Yes I thought that as well…and surely thats not Chips intention. To tighten up the t&cs you should have to keep your money in for a month…with Premium Bonds, you have to put your money a full month before you are eligible for the next months draw…(I think)…


That’s right, when you buy new premium bonds they’re not entered into the draw until the next month.

Does this new account still support auto-saves?

I have to be honest, I’m a bit confused over Chip. I don’t quite know what you are now. The auto-save AI was what drew me in all those years ago but it feels as if barely a month goes by now without some kind of new account replacing an existing one.


This bit of the app under Settings in each account suggests you can only AI save into one account…

@NikChip Can you confirm the above please?

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Hey - this is technically correct but we’ll be monitoring to see if this kind of mass-gaming of the system is happening, in which case we’ll have a look at tightening up the rules in the future.

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You can auto-save into the account, yes.

Hey all, just an update on one of the recurring questions in this thread - happy to confirm that PSA winnings will be not be subject to income tax.

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