How we protect your money
Chip is your wealth app, giving you one easy place to manage your savings and investments. We work hard to make sure you enjoy the highest levels of protection for all the accounts available through Chip.
In different scenarios your money is protected in different ways.
We explain how the savings and investment accounts currently available through the Chip app protect money in detail below, but at a glance; all money that passes through Chip is is eligible for cover by the Financial Services Compensation Scheme (FSCS).
All money deposited into a savings or investment account through the Chip app is eligible for cover by the Financial Services Compensation Scheme (FSCS) subject to the Scheme’s conditions.
Whilst your transactions are pending (usually a period of 1-3 working days) your money is held in a safeguarded client money account, your money is also eligible for FSCS cover during this time.
Chip Instant Access Acc. & Prize Savings Acc.
How does FSCS protect your money?
Both these accounts are powered by our partner bank ClearBank, a UK authorised bank (read more about ClearBank here). These are savings accounts opened in your name, and come with your own individual sort-code and account number.
A total of £85,000 you deposit in these accounts is covered by FSCS.
Please note, that as both these accounts are provided by the same bank, your £85,000 cover is spread between the Chip Instant Access Account and the Chip Prize Savings Account (and any other ClearBank provided accounts you hold elsewhere).
For example:
If you had a balance of £50,000 in the Prize Savings Account and £50,000 in the Chip Instant Access Account (£100,000 total) only £85,000 of your deposits would be eligible for FSCS protection through ClearBank.
In the unlikely event that ClearBank fails, the FSCS will protect your money up to £85,000 across both accounts (and any other accounts you hold via ClearBank).
As your money is held by ClearBank who provide the accounts, it will not be affected in the unlikely event that we go out of business and will still be covered by FSCS.
To make a claim, all the information you need is on the FSCS Website.
What is the FSCS?
The Financial Services Compensation Scheme (FSCS) is an independent organisation, set up by parliament, which can step in to pay compensation if authorised firms fail.
As a guide, the FSCS aims to make all payments back to savers within three months. The compensation limit is £85,000 of eligible deposits per customer per banking licence. If you have money with different banks and building societies who share the same licence, you’ll only have a total of £85,000 protection through the FSCS.
If you split your money across banks and building societies who don’t share a banking licence, you’ll have higher protection.
All of the savings accounts we list are covered by FSCS. You can find out more about the FSCS and your eligibility through their website.
Where your money is and how it’s protected with the Chip Instant Access Account & Prize Savings Account.
You can deposit into these two accounts using four methods. Below you’ll find more information about managing these accounts and how your money is protected.
Deposit via bank transfer (from your bank)
Initiated by you from inside your banking using sort-code, account number and unique reference.
Through your linked current account.
FSCS covered up to £85,000.
These savings accounts are in your name and come with a sort-code and account number. Deposits and interest have £85k FSCS cover spread over both accounts.
Deposit via bank transfer
Initiated by you from inside the Chip app using the “add money” button.
FSCS covered up to £85,000.
Initiated by you from inside the Chip app using the “add money” button.
These savings accounts are in your name and come with a sort-code and account number. Deposits and interest have £85k FSCS cover spread over both accounts.
Deposit via Autosave or Recurring save
Programmed by you using the ‘Recurring’ button or in your ‘Profile’ tab under ‘Savings Plans’.
FSCS covered up to £85,000.
Programmed by you using the ‘Recurring’ button or in your ‘Profile’ tab under ‘Savings Plans’.
These savings accounts are in your name and come with a sort-code and account number.
Deposits and interest have £85k FSCS cover spread over both accounts.
Deposit via card payment or Google / Apple Pay.
Initiated by you from inside the Chip app using the “add money” button.
FSCS covered up to £85,000.
Initiated by you from inside the Chip app using the “add money” button.
These savings accounts are in your name and come with a sort-code and account number.
Deposits and interest have £85k FSCS cover spread over both accounts.
What if I have a Chip +1 account?
Chip+1 is a legacy Chip Savings Account that is no longer open to new customers or deposits. This is a bare trust account.
A bare trust account is where all customer money has been combined together, and is held in trust by a business and managed on behalf of those individuals. This bare trust is held in Chip’s name.
If you have deposited into Chip+1, you are an individual beneficiary of the bare trust for the amount of money you have deposited. If the bank (ClearBank) were to fail, the FSCS will protect your money up to £85,000, provided you are eligible. Any bonus that you may have accrued on this account is not covered by the Financial Services Compensation Scheme (FSCS).
It may take longer to receive your money from the FSCS than if you saved directly with ClearBank. However as a guide, the FSCS aims to make all payments back to savers within three months.
In the unlikely event that Chip goes out of business, your money is held by ClearBank. It will not be affected, and will still be covered by FSCS. Please contact Chip or ClearBank directly in this unlikely scenario.
All other savings accounts available through the Chip app
How FSCS protects your money for all other savings accounts available through the Chip app.
There are three other savings accounts available through the Chip app, via our savings account partner, Flagstone. Note, these are bare trust accounts where your money is pooled with other Chip customers in a trust by our partner Flagstone. You are beneficiary of this trust for your deposits and interest.
90 Day Notice Account
From OakNorth Bank (OakNorth)
Easy Access Account
From Allica Bank (Allica)
Easy Access Account
From Hampshire Trust Bank (HTB, closed to new customers)
A bare trust account is where all customer money has been combined together, and is held in trust by a business and managed on behalf of those individuals. Each bare trust is held in the name of our partner, Flagstone.
Once you deposit into any of these savings accounts, you are an individual beneficiary of the bare trust for the amount of money you have deposited (plus any of your interest you may have accrued).
If the bank (Allica, OakNorth or HTB) were to fail, the FSCS will protect your money up to £85,000 per bank, provided you are eligible.
It may take longer to receive your money from the FSCS than if you saved directly with the bank (Allica, OakNorth or HTB). But as a guide, the FSCS aims to make all payments back to savers within three months.
As an individual beneficiary, your money will be FSCS eligible in the unlikely event that one of the partner banks (Allica, OakNorth or HTB) fails, Flagstone will carry out the FSCS claim on your behalf (provided you are eligible).
As your money is held by one of the banks who provide the accounts (Allica, OakNorth or HTB), it will not be affected in the unlikely event that Chip or our partner Flagstone go out of business, and will still be covered by FSCS. Please contact Chip, Flagstone and/or the applicable partner bank (Allica, OakNorth or HTB) directly in this unlikely scenario.
Where your money is and how it’s protected in all other savings accounts.
You can deposit into all other savings accounts available through the Chip app using three methods. Below you’ll find more information about managing all of the other accounts and how your money is protected.
Deposit via bank transfer
Initiated by you from inside the Chip app using the “add money” button.
FSCS covered up to £85,000.
Initiated by you from inside the Chip app using the “add money” button.
Covered by FSCS up to £85,000
Covered by FSCS up to £85,000
Covered by FSCS up to £85,000
Deposit via Autosave or Recurring save
Programmed by you using the ‘Recurring’ button or in your ‘Profile’ tab under ‘Savings Plans’.
FSCS covered up to £85,000.
Programmed by you using the ‘Recurring’ button or in your ‘Profile’ tab under ‘Savings Plans’.
Covered by FSCS up to £85,000
Covered by FSCS up to £85,000
Covered by FSCS up to £85,000
Deposit via card payment or Google / Apple Pay.
Initiated by you from inside the Chip app using the “add money” button.
FSCS covered up to £85,000.
Initiated by you from inside the Chip app using the “add money” button.
Covered by FSCS up to £85,000
Covered by FSCS up to £85,000
Covered by FSCS up to £85,000
Investment Accounts
How FSCS protects your Stocks & Shares ISA and General Investment Account (GIA)
You are covered by FSCS for money you have in an investment account, subject to eligibility.
For our investment platform, Chip is an Appointed Representative of P1 Investment Services Limited, which is authorised and regulated by the Financial Conduct Authority, under Firm Reference Number 752005.
Seccl Custody Limited acts as the custodian for the money held in a Stocks and Shares ISA or General Investment Account (GIA) with Chip. We use Seccl to provide the behind the scenes technology that powers our investment platform, and Seccl is responsible for holding your cash and investments.
However, you won’t need to liaise with them, as Chip’s Customer Service team support team can handle all your queries at either hello@getchip.uk or via our in-app “Contact Us” button. You don’t pay any fees to Seccl. Seccl Custody Limited is authorised and regulated by the Financial Conduct Authority under Firm Reference Number 793200. You can read more about them here: https://seccl.tech/
In the unlikely event Seccl, P1 Investment Services Limited or Chip Financial Ltd is declared to be in default and cannot meet our obligations, you may be able to claim compensation.
If you are eligible, you could make a claim for up to £85,000 by the Financial Services Compensation Scheme (FSCS) under their Investment Scheme. Remember, this doesn’t cover you for investment performance. Further information is available from the FSCS website (https://www.fscs.org.uk/what-we-cover/investments/ ).
Where your money is and how it’s protected.
You can deposit into Chip investment accounts using three methods. Below you’ll find more information about managing all of our other accounts and how your money is protected.
Deposit via bank transfer
Initiated by you from inside the Chip app using the “add money” button.
FSCS covered up to £85,000.
Initiated by you from inside the Chip app using the “add money” button.
These savings accounts are in your name. Your money is covered from the moment it lands with Seccl, but it may take up to 7 workings days for your money to be invested in an investment fund.
Deposit via Autosave or Recurring save
Programmed by you using the ‘Recurring’ button or in your ‘Profile’ tab under ‘Savings Plans’.
FSCS covered up to £85,000.
Programmed by you using the ‘Recurring’ button or in your ‘Profile’ tab under ‘Savings Plans’.
These savings accounts are in your name. Your money is covered from the moment it lands with Seccl, but it may take up to 7 workings days for your money to be invested in an investment fund.
Deposit via card payment or Google / Apple Pay.
Initiated by you from inside the Chip app using the “add money” button.
FSCS covered up to £85,000.
Initiated by you from inside the Chip app using the “add money” button.
These savings accounts are in your name. Your money is covered from the moment it lands with Seccl, but it may take up to 7 workings days for your money to be invested in an investment fund.
Where your money is not covered by FSCS
Any pending transaction is not covered by FSCS, but it is safeguarded.
This money is protected through the FCA’s safeguarding rules.
Your money is kept separately from our own company money in a safeguarded 'client money' account with an approved bank (currently ClearBank Ltd) that creditors can’t access.
As Chip's safeguarded client money account is with a UK approved bank, your pending transaction money held in this account is also eligible for FSCS (following regulation changes in April 2023).
Whilst your FSCS allowance is £85,000, there’s no limit to the amount protected through the safeguarding, but some costs could be taken by the administrator or liquidator if Chip were to fail. This could impact the amount that you receive, and it could take longer to get your money back than if it were held directly with a bank.
In the unlikely event that ClearBank Ltd were to fail, and your funds were in the safeguarded client money account, then your funds are FSCS eligible and you can make a clam via FSCS.
Just note that your FSCS allowance is per bank, and as we use ClearBank for our safeguarded client money account, this means your £85,000 cover on pending transactions is spread between any deposits you have in the Chip Instant Access Account and the Chip Prize Savings Account (and any other ClearBank provided accounts you hold elsewhere).
In the unlikely event that Chip fails, your money will be held by ClearBank and you will be able to recover your money from them.
What is safeguarding?
Safeguarding is another way of protecting your money. It’s a set of rules, governed by the FCA, which are designed to ensure your money is kept safe.
It requires firms to either keep your money separate from their own, or protect it with an insurance policy or similar guarantee. All authorised payment institutions must safeguard your money.
You can find out more about safeguarding on the FCA’s website.