New Savings Account on the way!

Chip forum members! We are about to launch a new market LEADING savings account.

It will be an 0.7% interest easy access savings account that is powered by our good friends at Allica Bank. This account will pay interest into your Chip app daily! You heard me right, Daily! We are talking about compound interest ladies and gentlemen.

Getting a market leading savings account is no easy job, it takes blood sweat and tears to negotiate deals like this but we have an amazing team who have closed this deal on your behalf! You won’t find this savings account on the high street or any comparison site.

The cap on this account will be £30,000 and it will be FSCS protected.

When we said we are here to build the best savings account in the world, we weren’t messing around. This is just the start, we have our hearts set on global domination, we have more savings accounts on the way, we are not the type to take our foot off the gas… Everyone at Chip is incredibly proud of this new savings account and we just can’t wait for you to get the returns you deserve.

Now I have a question, we’d love to know what you think about the £30,000 cap. We had to land on a number that we think is fair, but we can change it pretty quickly so let me know.

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If the cap is arbitrary, why not the full £85k FSCS limit?

I understand it’s to give the most people access to an account as there will be a finite amount of funds that can be deposited in total for all the accounts held.

An arbitrary 30k limit allows 2 and a bit accounts to be opened rather than one with an £85k limit

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Yep Rob’s exactly right here. We’re trying to target £30m in deposits a month from this account. £85K limit would only be 352 people until that get’s hit…£30K is 1,000 people. Saying that we’ll be monitoring it constantly.

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An FAQ, or a list of benefits, would be useful too please. eg: why is a new account with a 0.7% rate better than the existing account @ 1.25%

(I suspect compounding interest ?)

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It compounds and also has a £30k limit (for now) rather than the £10k limit on the +1

In a nutshell

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yep - should go in the promotional launch materials (wasn’t in my ‘first 1,000’ bumph)

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Well
You could go into the account on your app and then press settings and then terms and conditions. Is all accounted for there

Clunky I know

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Hi @FredChip you mentioned the interest compounding but I noticed in the T&C’s the AER and Gross amounts are the same and the example of a £1000 deposit being left for 12 months gives £7 of interest. Both suggest the interest doesn’t compound, could you please confirm?

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Sounds awesome.

When can we expect this?

Hey Alex, I am speaking to our Compliance officer now about the T&Cs they were written by Allica bank I will see what I can do to make it clearer, 100% this account is offering compound interest.

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We are doing internal testing right now, the account should launch in the next ten days. We don’t have an exact date yet but it will be made clear when it’s available. Great to hear you are liking the sound of it!

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Hirsty! We are about to release a blog explaining in detail exactly how the account will work, will send it your way when it’s out.

Just got access to new account today, a few things to note, maximum single deposit transaction is 5k with a max of 5 transactions in a day, i.e you can only deposit 25k in day. Understand this is a restriction of Chips payment processor.
Bit of a flaff especially flipping between bank apps to reauthenticate and approve payments.

How did you gain access?

Sounds like a great account!

As a shareholder I got early access

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Shame the account isn’t available for all tiers.

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Hey Hirsty,

Here is a blog we just wrote explaining the new account in more detail.

A new market-leading savings account comes to Chip (getchip.uk)

This account will be available to the general public in the next couple weeks. It will only be available on our two paid plans.

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Is 0.7% the AER (annual equivalent rate)?

Every bank makes clear the AER figure for their savings accounts as it makes it easy for customers to compare between accounts at different banks that pay interest with different frequencies (with monthly and annually being the most common). I assume its a requirement to provide the AER. But I don’t see the term AER in this Chip blog post.

If 0.7% is not the AER, what is the AER for this account?