Mia from Chip here (second from left).

January has been a massive month for us, because we crowned our first-ever £250k Grand Prize winner. Her name was Lisa. She cried. I cried. We all cried.

We invited her to a beautiful countryside hotel near her home in Hampshire, where we let her know she was the lucky winner of our December draw. Having been a loyal Chip user since 2018, Lisa grew her balance over time – building up 6,326 entries along the way.  

Her words stuck with me:

“I’m proof real people win.”

And honestly, watching her realise it in that moment was something I’ll never forget.

She told me she’s going to use the money to pay off her mortgage, pay towards her stepdaughter’s wedding, help put her 16-year-old through uni – and even retire early.

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Watch the full reveal video below:

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Lisa’s win was the headline – but she was one of 11,000+ winners in the draw, and nearly 40% of winners had never won before. In fact, 16% of everyone who entered took home a win.

And if you’re feeling a tiny bit jealous of Lisa (we certainly were), then there’s good news: we’re doing it again!

We’ll be announcing another £250,000 Grand Prize winner at the end of our £500k March draw (entries close 31 March 2026). T&Cs, eligibility criteria and minimum average balance of £10 apply.‍

Any entries you earn in our January and February draws also count towards the March £500k one, so keeping money in your Prize Savings Account really does matter.

Lisa was first, but you could be next. Enter here.

Thanks,
Mia from Chip

Pension death benefit rules  

The tax rules for passing on a pension depend almost entirely on the age at which you die.

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Before age 75

If you die before age 75, your remaining pension pot can usually be passed to your beneficiaries tax-free.

• Beneficiaries can usually choose to take the money as a single lump sum or as a flexible income stream.
• Currently they won’t pay Income Tax on the money they withdraw, regardless of earnings.

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After age 75

If you die after age 75, your pension can still be passed on, but it is no longer tax-free.

• Your beneficiaries will pay Income Tax on any money they withdraw.
• This money is included in your beneficiaries earnings for the year and taxed at their marginal rate.

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Pension death benefit 2 year rule 

The ‘2-year rule’ states that for death benefits to be paid tax-free (when dying before 75), the pension provider must pay the funds (or designate them to a beneficiary’s drawdown account) within two years of being notified of the death.

If the provider takes longer than two years to settle the funds, the money becomes taxable even if you died before age 75. 

Important to note:

• Beneficiaries should notify the provider promptly of the death to preserve the tax-free status of pots (where death was before 75). 
• Tax-free lump sums are limited by the Lump Sum and Death Benefit Allowance (LSDBA) of £1,073,100. This is a limit on the total tax-free lump sums paid out across life AND death. 

If a spouse, civil or cohabiting partner passes away, separate Bereavement Support Payments are available, provided the bereaved meets certain eligibility criteria.

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Pension beneficiaries  

Because pensions are held in a trust, the pension provider’s trustees have the final legal say on who receives the money. They are not legally bound by your Will.

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Expression of wish form  

An Expression of Wish (or Nomination of Beneficiaries) form is a document that tells your pension provider who you would like to receive your pension when you die.

• While the provider’s trustees ultimately have discretion, they will almost always follow your latest Expression of Wish.
• If you forget to update this form, for example, following a marriage or divorce, the trustees may pay this money to an ex-partner, as that is the last instruction they have on file.

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Rules for defined contribution pensions

Defined contribution pensions (like SIPPs and workplace pots) are the easiest to pass on.

• Your remaining pot is fully inheritable. 
• This money can be passed on multiple times, for example, to a spouse and then if any is left when they die, onto children.

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Rules for defined benefit pensions

Defined benefit (or final salary) schemes are less flexible. Because there is no ‘pot’ of cash, you cannot usually pass a lump sum to children.

• Most schemes will pay a reduced income (often 50%) to a surviving spouse or civil partner for the rest of their life.
• Some schemes pay an income to children if they are under 18 (or 23 if in full-time education).
• Once your spouse dies and children grow up, the pension payments usually stop completely.

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Changes to inheritance tax on pensions (April 2027)

Historically, pension pots have been exempt from Inheritance Tax (IHT). This made them a popular way to pass wealth to family without hitting the IHT threshold.

However, the government has announced that from April 2027, unused pension funds and death benefits will be included in the value of a deceased person’s estate for Inheritance Tax purposes.

• What’s changing? Your remaining pension savings will be added to the value of your other assets (like property and non-pension savings) when calculating if your estate owes Inheritance Tax.‍
• What could be owed? If your total estate, now including your pension, exceeds your tax-free allowances, the estate may be liable for Inheritance Tax at 40% on the excess.

You can find regulated and impartial advisers through the MoneyHelper website. Or, if you’re over 50 with a defined contribution pension you can get free and impartial guidance through Pension Wise.

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Clean energy isn’t just about climate headlines or ‘going green’ anymore; it’s now a serious industry and a fast-growing investment opportunity.

What started as a niche, policy-driven sector is now a global growth engine, attracting billions in capital and reshaping how we power our world.

Energy companies, infrastructure providers, and technology firms are all benefiting, and potentially, so could investors.
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Three reasons to take notice

The pursuit of net-zero and the need for cleaner energy solutions isn’t confined to one region or developed economies, it’s truly global.

1. UK leads on solar and wind

Here at home, the UK has approved over 16 GW of new renewable projects this year – that’s almost double last year’s figure. Solar power is having a record run too, already generating more electricity in 2025 than in all of 2024.¹

2. US investment hits new highs

Across the Atlantic, the US clean energy sector attracted more than $300bn in investment last year, boosted by policy support like the Inflation Reduction Act. Wind, solar, and EV infrastructure are all scaling up rapidly.²

3. Asia doubles down on renewable growth

China remains the world’s biggest investor in renewables, rolling out huge capacity in solar and batteries.³ Meanwhile, India is quickly catching up, with its renewable output expected to grow 10% this year alone.⁴

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Why it matters for you

Clean energy is no longer a future promise — it’s happening right now. Policy support, infrastructure spending, and technological advances are all driving investment opportunities in this space. 

So for long-term investors, exposure to clean energy generation, renewables, storage, and supporting sectors could be an important part of any portfolio focused on future growth.

Always remember, when considering a specific sector, a diverse portfolio across different asset classes, industries and regions can manage risk and smooth returns.

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How Chip can help you take advantage

At Chip, we offer a range of thematic funds such as Clean Energy which includes multiple companies involved in the global clean energy transition, all in a single investment.

Open a Stocks & Shares ISA in minutes, invest from £1, and manage everything right from our app. Just go to the ‘Invest’ tab to get started.

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¹ Financial Times

² Environmental Protection Agency

³ The Renewable Energy Institute

⁴ AL Circle

We want to build something game-changing

We’re working on something exciting at Chip HQ – an AI powered guidance tool designed to give you personalised financial guidance.

Traditionally, financial guidance and advice has been out of reach and expensive. We think that new technology can make financial guidance smarter, faster and most importantly – more accessible to everyone.

In this blog we’ll share with you why we’re building it, what it will mean for your money, and how in the future, this new tool could bring you a level of personalised support that was previously only available to a select few.

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Why we are building an AI guide

One of the most common pieces of feedback we hear is: “I have savings, but I don’t know if I am on the right track to achieve all my plans.”

For over eight years, we’ve been helping people grow their wealth, but we know saving is only the first step. The real challenge is figuring out what comes after.

That’s why we’re building a personalised AI guide: to make financial guidance available to everyone.

With the game-changing power of AI, we would be able to help our customers not just save, but help them achieve their ambitions and goals too.

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The vision: what our AI will do

The concept is to start with an AI guide to help you understand your goals and how you can achieve them faster.

Our ambition will be to evolve it into a powerful tool that can build a personalised guide to plan your entire wealth journey.

However, a quick caveat: there’s no shortcuts to us building this - we’ll need to do a lot of hard work with the regulator to make sure we’re doing this properly and explore the best way to build it (it’s cutting edge stuff!).

But here’s our ultimate vision of where we want to take it.

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Start with a conversation

Imagine this: discuss your goals and ambitions — where you are now and where you want to get to.

Chip’s AI wealth guide would then build a personalised guide based on this conversation, suggesting which savings and investments accounts to open, how much to put into a pension vs an ISA, what short and long term goals to set, and recommend an automated plan to effortlessly top up your savings.

You would be able to review the suggestions, easily tweak them to fit your needs in an open discussion and when you’re happy, you simply say “make it so” and Chip’s AI could crack on with the leg work – opening the accounts, initiating deposits, transfers, with all the admin done for you.

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You’re in control

Let’s be very clear: this wouldn’t be about surrendering control of your money. You would have complete authority and full visibility in the app, with clear graphs, portfolio views, and progress trackers to keep you on top of your goals.

You’d be able to pre-program nudges for yourself and book in regular reviews, and at any time simply discuss with the AI to update the plan for you if your ambitions grow or circumstances change.

We believe that this will help you achieve your financial goals with greater simplicity and confidence.

And don’t worry, you’ll always be able to interact with a real person at Chip when you need us.

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How we’re building it

You would interact with the tool through a large language model (LLM) – think of it as your conversational guide, ready to answer questions and help you navigate financial decisions.

Behind the scenes, an intelligence layer will analyse your data to provide personalised, actionable recommendations tailored to your situation.

And of course, we’ll be rigorously testing the AI and putting strong guardrails in place, so everything stays compliant, safe, and focused on delivering the best outcomes for you.

We’ve already applied to join the Financial Conduct Authority’s (FCA) development “sandbox”  which would allow us to test it alongside the FCA. If granted approval, we will have support from the regulator and access to the Nvidia AI Enterprise software suite which will accelerate our ability to build and refine our AI tech stack further.

Our ultimate goal, as we say above, is that our AI wealth guide will be able to connect to your accounts, offering actionable recommendations and taking the heavy lifting off your shoulders – bringing you the sort of service that was previously reserved for the very wealthy.

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The wider context: why we’re doing this

There are big changes coming together in our industry right now:

1. A game-changing new technology

The use of AI has exploded over the past couple of years, since ChatGPT first burst onto the scene in 2023.

We believe we can be at the cutting edge of this technology in our sector as we’ve seen a huge opportunity to leverage AI to disrupt the financial advice sector and bring advice to everyone.  

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2. Once in a generation reforms

Adding to the mix, the Financial Conduct Authority (FCA) has just introduced a “once-in-a-generation”¹ reform to the financial advice industry, allowing firms to offer targeted support to customers, opening up the door for innovation here at Chip.

The FCA’s research shows the gap we can close:

• 24% of people with over £10,000 in cash savings don’t invest because “they don’t know enough”
• 12% feel overwhelmed by the number of options
• 8% say they need more support before investing

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3. A legacy industry ripe for disruption

We think the legacy advice providers and currently available wealth services leave a lot of room for improvement.

We’re not alone - you might have heard the term ‘advice gap’ where people who could benefit from advice are not being served by the currently available services.

These services are seen as exclusive, only open to the very wealthy and expensive - typically costing anything between £500 and £5,000+ a year.

Or to quote the 2025 Advice Gap report:

“It seems there are a significant number of people who need advice and would benefit from it, whether that’s financially or from the peace of mind that advice brings.

“But they can’t access it because it either costs too much, or the services they need are just not profitable at those levels for companies. Finding a solution would not only help those people but open up a huge untapped client list.”

Whilst we don’t believe AI can fully replace the world of face-to-face human consultations at the moment, it’s clear that this legacy advice model can’t provide service at scale, and stops many millions of people who could benefit from the advice seeking it out.

We believe we are very well placed to build an AI that can fill this gap in the market – delivering real value to Chip customers while opening the door for millions of people across the UK who want financial guidance, but are currently under-served.

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Where this will take us

We’ve spent much of the last eight years putting as many tools, products and accounts in the palm of your hands as possible, so you can build your wealth at the tap of a button.

But now, we’re presented with a game changing moment to tie it all together with a personalised user experience powered by AI.

Essentially, you’ll have everything you need to build and grow your wealth in a couple of taps across cash, investments, pensions (and eventually even more).

But also, you’ll have a guide that listens to what you want, asks about your goals, and builds a plan around your needs that is personal to you.

There’s many people who are ready for better guidance and as one the UK's fastest growing companies, we are built to move quickly and capture a share of this £2.4 trillion² financial advisory market.

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Please note it will not have direct control over your finances and all of Chip’s AI solutions will operate exclusively inside our own infrastructure.  This will be an optional in-app service.

Source:

1 Financial Conduct Authority

2 St. James's Place

Recognising savings burnout

Savings burnout is more than just feeling the pinch before payday. It can show up as:

• Apathy towards financial goals;
• Increased impulse spending;
• Neglecting your budget;
• Resentment towards your savings efforts.

If any of this sounds familiar, take a step back and review your financial patterns.

Have you been spending more or saving less? You might be experiencing savings burnout without realising it. Checking your actions holistically can help you pinpoint where things changed.

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Reframe your mindset

Rather than seeing saving as a sacrifice, reframe it as an investment in your future self. Every pound saved isn’t depriving you—it’s empowering your future.

For instance, for every £100 you save, use a savings calculator to estimate what it could be worth in 10 years with compound interest. Seeing your contributions grow over time can motivate you to keep going.

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Celebrate small wins

It's easy to overlook minor successes when chasing big financial goals. Did you resist an impulse buy? Or save that work bonus instead of spending it? Celebrate those achievements!

However, try to choose rewards that won’t drain your budget, like an afternoon to yourself, extra reading time, or skipping a social event you’ve been dreading. Sometimes, self-care and small indulgences are the perfect reward.

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Embrace flexibility

A rigid savings plan can lead to burnout. Build flexibility into your budget to allow for the occasional indulgence.

Setting aside 'fun money' can help you balance saving for the future with living today. It’s essential to enjoy the journey, not just focus on the destination.

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Diversify your savings strategy

Feeling stuck? Shaking up your savings approach might be what you need. Consider:

• Exploring different types of savings accounts;
• Checking out tax-efficient options like ISAs;
• Looking into ethical investment opportunities.

A diversified approach can keep you engaged while potentially increasing your returns.

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Practise financial self-care

Just as you would take rest days in your fitness routine, incorporate financial self-care into your money management. This could mean:

• Taking a day off from checking your accounts;
• Treating yourself within your budget;
• Spending time on low-cost hobbies.

Financial wellness is a key part of your overall well-being, so make time for it.

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Support and inspiration

If possible, connect with people who share your financial goals. Join online communities, listen to finance podcasts, or attend local savings clubs. Building a supportive network can help keep you motivated and accountable.

The Chip community is a great place to start. Engaging with like-minded individuals can rekindle your drive to save.

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Reassess, realign

If savings burnout persists, reassess your goals. Are they still relevant to your current life? Don’t hesitate to adjust your targets as needed. Regularly using the goal-setting feature in the Chip app can help you keep things aligned with your values and life circumstances.

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The path forward

Overcoming savings burnout requires a balance between discipline and flexibility. It’s about moving forward steadily, not racing to the finish line. With the right mindset and tools, you can reignite your savings spark and get back on track.

Remember, Chip is more than just a savings tool – it’s your partner in building a brighter financial future.

With each small step you take, you’re moving closer to your goals. Every great financial journey has challenges, but it’s how you overcome them that counts.

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The big money on Wall Street is changing its tune. According to the latest Bank of America Global Fund Manager Survey¹, professional investors are the most optimistic on global equities investing they’ve been since February, snapping up stocks at a rate not seen in seven months.

So, what's behind this sudden surge of optimism?

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Two big fears have faded

Previous months’ data has reflected fears in the market of a global recession triggered by a trade war, and central banks hiking interest rates to tackle inflation. September’s data shows that fund managers believe the worst of both threats is now in the rearview mirror.

1. Fears of a trade war are rapidly diminishing. This has caused the biggest one-month jump in global growth expectations in nearly a year.
2. Investors are now betting heavily on the Federal Reserve starting to cut interest rates. With inflation concerns easing, 47% of managers expect the Fed to cut rates four or more times in the coming year. Cheaper borrowing costs tend to boost stock market growth, and managers are positioning their portfolios accordingly.

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So, what are they buying?

The survey shows that cash levels remain low, meaning these giant funds are holding back less of a safety net for unforeseen changes. 

The destination for much of this cash is the "Magnificent 7" — the huge US tech firms like Apple, Microsoft, and NVIDIA that have become household names. It's a powerful vote of confidence in the biggest growth drivers of the global economy.

Managers are backing AI with 48% of respondents thinking “AI stocks are not in a bubble” and 50% said “AI is already increasing productivity”. 

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How you can get involved with Chip

Investing with Chip gives you access to a curated range of investment funds. These funds give you access to a basket of assets, including the global and tech stocks mentioned here — but you won’t need to pick the winners. Funds like the S&P 500, NASDAQ 100, and FTSE All-World track the price of hundreds of companies, with the “Magnificent 7” stocks currently leading these indexes. 

Start investing from £1. Open a Stocks & Shares ISA or General Investment Account, and you can get started in a few simple steps!

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Sources

¹TradingView

How do ETFs work?

ETFs work by tracking a specific index, sector or asset class, and are traded on stock exchanges throughout the trading day, similar to individual shares. 

This means that prices fluctuate throughout the trading day, unlike mutual funds which are priced once per day at market close.

ETF prices fluctuate during the trading day based on supply and demand, giving investors closer visibility of performance. 

Unlike actively managed funds, most ETFs are passively managed, meaning they aim to track the performance of a benchmark or index, rather than trying to outperform it.

This usually means lower fund management fees, which can become expensive over the long term.

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Types of ETFs explained

There’s a wide range of ETFs available, covering just about every asset type, region, and trend you can think of. Here are some common categories:

• Stock ETFs – Track a group of company shares, often from a major index like the S&P 500 or FTSE 100. They offer broad market exposure in a single investment.‍
• Bond ETFs – Invest in a mix of government or corporate bonds, offering greater stability and often regular income through interest payments.
• ‍Commodity ETFs – Follow the price of physical goods like gold, oil, or agricultural products, either by holding the actual commodity or companies in the sector.‍
• Sector/Industry ETFs – Focus on specific areas of the economy, such as healthcare, technology, or finance, allowing you to invest in a theme you believe in.‍
• Thematic ETFs – Capture emerging trends like clean energy, electric vehicles, AI, or future mobility by investing across sectors aligned to a common theme.‍
• ESG ETFs – Invest in companies that meet environmental, social, and governance criteria – appealing to values-led investors, like the FTSE Global All Cap ESG.‍
• Crypto or Bitcoin ETFs – Provide exposure to digital assets like Bitcoin or Ethereum, often in a more regulated and accessible form than buying crypto directly.

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Why invest in ETFs?

ETFs have become a go-to tool for both new and experienced investors, for several reasons:

• Diversification – One ETF can hold hundreds of underlying investments, spreading risk across sectors, regions, or asset classes.‍
• Low fees – With most ETFs being passively managed, they typically come with lower annual costs compared to actively managed funds.‍
• Transparency – ETF holdings are usually published daily, so you can track price movements more closely. ‍
• Accessibility – Traded on major exchanges and available through investment platforms, you can invest in ETFs just like you would a single share.‍
• Passive investing – For those who want a simple, long-term approach, ETFs allow you to mirror entire markets or sectors without having to pick individual stocks.

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How can ETFs make you money?

ETFs can generate returns in two main ways:

1. Capital growth – If the price of the ETF rises (because the value of its underlying assets has gone up), you can sell your shares at a profit.
   
2. Dividends – Some ETFs distribute income received from the underlying assets, like dividends from shares or interest from bonds. Others are “accumulating” ETFs, which reinvest earnings automatically to prioritise growth. 

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How to invest in ETFs (UK)

If you're in the UK and want to start investing in ETFs, here’s how to get started:

1. Choose a platform – Use a UK investment platform like Chip.
   
2. Open an account – This could be a Stocks and Shares ISA to benefit from tax-free growth, or a General Investment Account (GIA), where proceeds are potentially taxable, subject to any annual exemption that may apply.
   
3. Find your ETF – Search by index, theme, or region. Many platforms offer filters and performance data to help you compare options.
   
4. Place your order – Decide how much you want to invest and place a buy order. You can invest a lump sum or set up a regular monthly investment.
   
5. Monitor your portfolio – Keep an eye on performance over time, and rebalance your holdings if your goals or risk appetite change.

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Risks of investing in ETFs

ETFs offer diversification, but they’re not risk-free. Here are some things to watch out for:

• Market risk – If the assets your ETF tracks fall in value, your investment will too.
  
• Liquidity risk – Some ETFs (especially niche or new ones) may not be easy to buy or sell at your preferred price.
  
• Tracking error – Occasionally, an ETF won’t exactly mirror the performance of its underlying index.

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ETFs summary

ETFs offer a flexible, low-cost way to invest in a wide range of assets.

Whether you’re just getting started or adding diversification to an existing portfolio, they provide instant exposure to markets and themes with relatively low effort.

But like any investment, it's important to research the ETF’s holdings, costs, and strategy before investing.

Our next guide covers commodities, and how physical assets can play a role in a diversified portfolio.

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FAQs

What is an ETF in the UK?

An Exchange-Traded Fund (ETF) is an investment fund traded on UK stock exchanges like the London Stock Exchange. It can track markets, sectors, or themes, and is used to build diversified portfolios at low cost.

Does an ETF pay dividends?

‍Many ETFs pay dividends. Look for “income” or “distribution” ETFs. Some ETFs reinvest the earnings automatically (these are called “accumulating” ETFs).

How do I invest in ETFs?

‍Open an account with a UK investment platform, choose a suitable ETF, and place a buy order. You can invest via a Stocks and Shares ISA to make it tax-efficient.

How much should a beginner invest in ETFs?

Start with what you’re comfortable with. The emergence of investing platforms means you can now start investing with very little – with Chip, you can get started with £1. The key is consistency and focusing on long-term growth.

What does ETF stand for?

‍ETF stands for Exchange-Traded Fund – a type of fund you can buy and sell like a stock, offering instant diversification across markets or sectors.

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Seccl Custody Limited is the ISA Manager for the Chip Stocks and Shares ISA. A monthly or annual ChipX membership is required for certain funds selected within a Stocks and Shares ISA. Fund management charges apply ISA limits apply.Invest £20k per tax year. Tax treatment depends on individual circumstances and may be subject to change in the future.

GIA proceeds are potentially taxable, subject to any annual exemption that may apply.

‍Investment into cryptocurrency ETFs is not available via the Chip platform. Chip offers investment funds that invest in different assets as a collective investment.

Understanding pound cost averaging

Pound cost averaging means investing the same amount on a regular basis. As a result of making steady investments, your invested ‘pounds’ are exposed to many different market prices, rather than one (potentially) high price. 

This price averaging helps to smooth out the ups and downs of the market, and potential exposure to a case of bad market timing.

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An example of pound cost averaging

Imagine you decide to invest £200 a month on the first day of each month into your portfolio. Here’s how it might look invested over a fluctuating market environment:

• January - Share price: £10. Shares purchased: 20
• February - Share price: £8. Shares purchased: 25
• March - Share price: £12.50. Shares purchased: 16
• April - Share price: £10. Shares purchased: 20

You invested a total of £800 over four months, acquired 81 shares, at an average market price of £10.13.

However, because you invested consistently over this period and took advantage of the price dip in February, your personal average cost per share was £9.88.

You avoided the risk of investing a single lump sum of £800 in March when prices were at their highest. 

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Benefits of pound cost averaging‍

• Reduces market timing risk: spreads your investments out over time, reducing potential exposure to a high market price if you invested a lump sum. 
• Disciplines investor behaviour: automating regular investments removes emotion from the investment process and encourages long-term thinking. 
• Lowers the average cost per share: your fixed investment naturally buys more shares when prices are low and fewer when they are high.
  
• Makes investing accessible: ideal for those who don’t have a large lump sum to invest upfront, and want to invest small amounts regularly.
• Take advantage of volatility: market dips and downturns become beneficial because they allow your regular investment to purchase assets at a discount. 

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What is lump sum investing?

The opposite of spreading your investments out using pound cost averaging is lump sum investing — the ‘all in one go’ approach. 

Instead of smoothing out the ups and down of the market by investing little and often, a lump sum investment can act differently. By entering into the market at one price, you may be buying in at either a high or low price. 

Investing at a high price, the market could dip, causing immediate loss in portfolio value. Historically markets have trended upwards, so staying the course and not reacting to short-term fluctuations is crucial. That said, this may be one reason that lump sum investing is less suitable for new investors. 

At a low price, investors may benefit from immediate portfolio growth. However, timing the market has historically proved difficult, and this is why many investors opt for pound cost averaging instead of trying to get in at a low price with a lump sum.

So, which is actually better? There are arguments for and against both pound cost averaging and lump sum investing.

Looking purely through the lens of returns, research suggests that taking advantage of time in the market leads to greater returns and potentially lowers your costs over the long term — if you are able to use a lump sum to invest and stay the course.¹

See our full guide on behavioural investing and common mistakes.

¹Morningstar

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Adapting pound cost averaging to your financial goals

Pound cost averaging isn’t a ‘one size fits all’ strategy, and investors can adapt contributions and investments to suit their needs:

• Aggressive strategy might focus on more frequent investments into higher risk assets and sector specific funds, accepting greater risk of short-term losses but willing to stay the course.
• Defensive strategy might focus on steady investments into dividend paying assets, bonds or cash equivalents. 

See our full guide on aggressive and defensive investing strategies.

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Pound cost averaging summary

Pound cost averaging can help smooth out market volatility and remove the stress of trying to ‘time the market’. It can help lower your average cost per share over time by automatically buying more shares when prices are low and fewer when they are high. 

Practicing ‘pound cost averaging’ is not a guarantee of returns, but if you want to follow a popular principle of investing that uses time as a tool, it’s a great place to start. 

Lump sum investing can help you take advantage of time in the market, but buying at one price might leave you exposed to short-term price swings, so staying the course is important. 

Next in this series: Investment time horizon, how time is your best friend when it comes to setting investment goals. 

The 2025/26 tax year ends at midnight on 5 April 2026 and your annual ISA allowance will reset for a new tax year.

If you have any ISA allowance remaining (you can check this in your app) and want to make a deposit within the 2025/26 tax year, here’s the deadlines you need to know.

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Deposit before:

• 23:00 on Tuesday 31 March 2026 — Stocks & Shares ISA

• 23:00 on Thursday 2 April 2026 — Smart Cash ISA  

Deposits that successfully make it into your Chip ISAs before these deadlines will count towards your 2025/2026 ISA allowance.

Any further deposits into your Cash ISA beyond these deadlines, may still successfully land in your balance, but we can’t guarantee it. Successful deposits made before 23:59 on Sunday 5 April will count towards your 2025/2026 ISA allowance.

But please note that there can be unexpected delays, often caused by banks limiting deposits out and circumstances outside of our control. Your deposit is only valid when it reaches our banking partner—see more below.  

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Next year will be the last year you can use your full allowance in cash

In the 2025 Autumn budget the government announced that 2026/27 will be the last year where you put your full £20,000 annual ISA allowance into cash.

From April 2027 onwards you will only be able to put £12,000 of your total £20,000 annual allowance into cash (unless you’re over 65).

So, bear in mind if you do like to put your full allowance into cash, you’ve only got one more year to fill it up.

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Best ways to deposit

Our most popular option for transferring into your ISA is through connected bank transfer. Simply follow the instructions in the app to connect to your provider.

You can also make a manual bank transfer into your Cash ISA, which is best used for making deposits over £5,000.

In most cases, for both of these methods, your money arrives in seconds, but it can take up to two hours.

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Looking to transfer from another ISA?

You can easily transfer an ISA from another provider into Chip’s Cash or Stocks & Shares ISA.

Transfers don’t affect your annual £20,000 ISA allowance, as your allowance applies to new money only, so you don’t need to factor this in regard to the end of the tax year. You’re free to initiate a transfer anytime you like.

Make sure you check our list of approved Cash ISA providers we accept transfers from.

Unfortunately, we are unable to accept transfers from providers not on this list at the moment, but we are adding more all the time.

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Having trouble depositing?

If this is your first ISA deposit, we’ve found our members have the most success making a first deposit of less than £1,000.

Keep in mind that your bank may limit daily transactions on transferring money from your current account to your ISA.

These limits can vary drastically between providers, so check with your bank if you’re looking to move larger amounts.

You may have also set your personal limits on daily transfers, so adjust these accordingly if you haven’t already.

There may also be additional security checks on larger transactions, so factor this in and try and plan ahead.

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“I’m lost, what’s an ISA?”

ISAs are tax-efficient savings and investment accounts that offer tax-efficient exemptions on interest and returns earned within the account.

However, you are limited to depositing £20,000 within a given tax year (which runs April to April). This is your ‘annual ISA allowance’ and it is available on a use it or lose it basis.

You can learn more about ISAs in our quick guide here.

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It’s simple with Chip

Navigating ISAs is easy with Chip. You can have a Cash ISA, Stocks & Shares ISA or both; all accessible in one easy-to-use app.

Our flexible Smart Cash ISA allows you to make unlimited withdrawals and deposits without affecting your £20,000 allowance. Providing penalty-free access to your funds, whenever you need them, with all the tax advantages.

Our Stocks & Shares ISA allows you to effortlessly set up recurring deposits, which are then invested directly into the funds you've selected. This ensures your money is consistently working for you in your chosen investments to build wealth tax-free.