Chip Instant Access Account Review 2023
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One of the biggest frustrations for savers over recent years has been the failure of banks to pass on Bank of England base rate rises fast enough – if at all!
In this Chip Instant Access Account* review we look at how the Chip savings account solves this problem for many savers.
Let’s begin by looking at who Chip are and how they came to be.
Who Are Chip?
Chip started mainly as a savings app using AI to find easy ways for users to save money. As the company has evolved and grown, they also now have a huge investment focus too.
Chip boasts over 500k registered users. The app is supported by a team of 130 people and 25,000 individual shareholders.
Chip have also won a few awards such as the Best Finance App of 2022.
When it comes to savings, Chip now offer their own Instant Access savings account.
Chip Instant Access Account Interest Rate
Chip used to pay interest on its Instant Access Account in the form of a bonus. Starting this week, though, they now pay interest monthly. This also means deposits are now protected by the FSCS (Financial Services Compensation Scheme)
The Chip Instant Access account* currently pays 4.51% AER (variable) on a monthly basis. Also, as the words ‘Instant Access’ suggest, you can deposit and withdraw your money anytime and almost instantly. At the time of writing this interest rate is market leading.
The maximum amount you can deposit is currently £250,000. You can deposit as little as £1 to get your account up and running.
How is a Chip Savings Account Different?
Many banks today don’t seem to be passing on interest rate rises when the Bank of England increase them. Others that do pass these rate increases on are often slow to do so. All this has left savers frustrated after many years of earning little interest.
To solve this problem, the interest rate paid on your Chip Instant Access Account will rise and fall with the Bank of England base rate. With a starting rate of 4.51% AER you will also benefit from an instantly competitive rate compared with some banks.
Is Your Money Safe With Chip?
Money you deposit in a Chip savings account is held by ClearBank. ClearBank are a UK authorised bank and deposits are FSCS eligible. This means up to £85,000 will be covered if they fall within the scheme’s conditions.
Don’t forget that you can also withdraw your money at any time with no penalty. Once withdrawn you will have your money back almost instantly.
Chip Instant Access Account Fees
There are no fees or charges to hold a Chip Instant Access account.
There are some optional extras that Chip offer such as Recurring Saves (25p per save) and Auto-Saving (45p per save). These further utilise Chip’s AI technology but as we say, these are optional.
What is ChipX?
If you want unlimited free access to the above optional features then you might want to check out ChipX. ChipX is a paid plan priced at £4.99 for 28 days paid annually or £5.99 if paid every 28 days. ChipX offers many other features (especially when it comes to investing) but we’ll outline those in a future Chip review.
Conclusion
We hope our Chip Instant Access Account review has been useful. To summarise…
The Chip Instant Access account is simple to understand. It automatically moves with the Bank of England Base Rate and already has a competitive rate. This will make it an interesting option for many people. It’s free to open a Chip Account* and there are no monthly fees. Your money is also protected by the FSCS scheme. A minimum investment amount of just £1 also makes this account accessible for all those looking to save and get rewarded for doing so.