Our Strategy for savings.
In the last several years we have worked on a range of features and accounts that make saving easier, more convenient and more rewarding. We’ve known for a long time that the interest rates available and the returns we can all earn on cash savings have paced well below inflation. However, at Chip we recognised saving as the foundation for wealth building, for longer term wealth creation.
We’ve built some great tech that enables us to partner with third party banks to pool our customers’ deposits and leverage the best possible rates in the market without the need for them to keep jumping between banks. This offering is valuable, scalable and will continue to expand across a wider range of saving products.
On Easy Access savings (the most popular savings product in the UK) we have at times been able to offer access to the leading rates in the market, and then, at the whim of a bank outside of our control, at other times we haven’t been able to do so. Needless to say this has led our customers and our team to become increasingly frustrated. In particular at how slowly our partner banks have been to raise rates in line with the recent market movements.
This isn’t good enough and this is what we’re doing about it.
We are taking matters into our own hands and launching The Chip Savings Account. An Easy Access Savings account with a rate set and controlled by us. This account will be held at the Bank of England and of course will be eligible for FSCS protection up to £85K.
The Bank of England base rate which is currently 2.25% is now forecast to peak at almost 5% next year. Thanks to the investment we’ve made in our core banking infrastructure, we will be able to cause enormous disruption to the UK easy access cash savings market….
Our intention is to pass on as much of the Bank of England base rate as possible, and also update our saving rates immediately following changes in the base rate. We are even building the functionality to offer higher rates for ChipX and ChipWealth customers.
The Chip Savings Account will offer instant deposits and withdrawals. No more waiting days for deposits to clear to third party banks or for withdrawals to be returned to current accounts.
This flexibility of rate, instant access and of course all of Chip’s savings tools will truly make this a revolutionary account and I can’t wait for you all to be among the first to try it out.
When?!!! I hear you ask.
The Bank of England are expected to raise interest rates again on 3rd November so watch this space.