Interest rates and inflation are closely linked in the UK economy. Inflation, measured by the Consumer Price Index (CPI) and the Retail Price Index (RPI), is the rate at which the prices of services and goods are rising.

The Bank of England (BoE) is responsible for setting the base rate to help control inflation and maintain price stability.

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What Causes Inflation?

When the BoE raises interest rates, borrowing becomes more expensive. This can slow down economic growth and curb inflation. This is because higher interest rates make it more expensive for businesses to borrow money, which leads to slower growth and fewer job opportunities. 

Consumers also have less money to spend because they are paying more interest on loans and mortgages. As a result, demand for goods and services decreases, which can lead to lower prices.

On the other hand, when the BoE lowers interest rates, borrowing becomes cheaper. This can help stimulate economic growth and fuel inflation. When interest rates become lower, it makes it cheaper for businesses to borrow money, which can lead to more investment and create more jobs. 

Consumers also have more money to spend because they are paying less on loans and mortgages. This means the demand for goods and services increases, which can lead to higher prices. 

Learn more about interest rates here.

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How Does the Bank of England Control Inflation and Interest Rates?

The Bank of England uses monetary policy to control inflation and interest rates. The bank sets interest rates, which influence the cost of borrowing and the rate of growth in the money supply.

• When inflation is too high, the bank raises interest rates to reduce spending and slow down the economy.
• When inflation is too low, the bank lowers interest rates to encourage spending and growth.

The bank also uses other tools, such as quantitative easing, to influence the money supply and control inflation.

Quantitative easing (QE) is a monetary policy used by central banks to stimulate the economy by increasing the money supply and lowering interest rates.

This is typically done by purchasing government bonds or other financial assets from banks, which increases the banks' reserves and makes it easier for them to lend money.

The goal of QE is to encourage spending and investment, which can help boost economic growth and reduce unemployment.

This can help to stimulate economic growth and curb inflation by making it cheaper for businesses and consumers to borrow money.

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What You Need To Remember

When interest rates are high, borrowing becomes more expensive and can slow down economic growth whilst curbing inflation. When interest rates are low, borrowing becomes cheaper and can stimulate economic growth. 

Learn more about how our instant access savings account.

I’m convinced I have friends whose birthdays pop up way more often than once a year. Each time, I worry I’ve screwed up in my Google Calendar. To call or not? Get it wrong and they’ll know I haven’t a clue when the real date is.  

But, like losing my car in a multistorey parking lot, the “annual” FT Weekend Festival in London is on another level. It seems as if I’m in the Money tent every few months. Indeed, I began my presentation last weekend with the words “As I was saying…”  

Time flies by as you get old. And then along comes artificial intelligence to make analysts of my generation feel prehistoric. I spent millions of hours building valuation models. AI can do them in minutes.  

This is why my editor Nathan reckoned that it would be amusing to pit my aged investment brain against Claude live on stage this year. “Can an AI chatbot make a better portfolio than you?” was the title of our session, by which he meant me.  

Regular readers may remember that I asked ChatGPT to construct an optimal portfolio for me in February. Back then, though, I held nothing but cash in my pension fund. It was a blank slate for AI to work on.  

It was also before the war in Iran, the subsequent sell-off in equities and the sharp rebound soon after. SpaceX had not begun trading on 95 times revenues — revenues! — either. Bond yields weren’t yet wobbling knees.  

To recap, I told ChatGPT about my goal of reaching a million pounds by 2032. It recommended a portfolio comprising 35 per cent in developed equities, 10 per cent in emerging market stocks, 20 per cent in bonds, half that in private equity and a quarter in alternatives.  

I was impressed. Not only with the fact that OpenAI’s chatterbot had read every academic paper ever written on portfolio construction, but that it knew when to overcomplicate things and — more importantly — when not to.  

How would Claude fare by comparison? And what would it make of my current holdings now that I am up to my gullet in equity funds again? First, though, I had to pay for and learn how to use Claude.  

The FT’s resident expert, Tom Ursell, came to the rescue and ultimately joined Nathan and me on stage at the festival too (watch a replay here). He also showed me under Claude’s hood where you can insert things called “skills”.  

A skill is a reusable bundle of instructions that teaches Claude how to perform a specific task. So, for starters, we made sure that its answers were turned into slides that could be seen from the back of a tent.  

More importantly, though, Tom included the following: “Build a model investment portfolio using traditional fund and portfolio management theory (investment policy statements, capital market assumptions, modern portfolio theory/mean-variance optimisation, strategic asset allocation, diversification, rebalancing rules).”  

I couldn’t have said it better myself — and I encourage readers who are keen to use Claude (or other AIs with similar functions) to copy and paste the skill above before asking their own investment questions.  

So what did it think of my portfolio? Claude wasn’t impressed — by which I mean its suggested weightings across various asset classes were very different from my own. It was quite patronising, too. “Here are the trades I’d recommend in plain English,” it said more than once.  

It reckons I should have 63 per cent in equities versus the 82 per cent I have today. It would chop my 30 per cent exposure to the UK (which it witheringly called a “single-country bet wearing a diversification costume”) down to 10 per cent and halve the fifth of my portfolio in Asia — likewise Japan, which my Asia fund excludes. As for Latin America, that goes to 3 per cent.  

Claude was even more dismissive of one UK gilt being my only fixed-income holding. Too idiosyncratic. Too much reinvestment risk — whatever that means. “No credit exposure, no maturity ladder?” it asked. I was tiring of Claude’s tone.  

Instead, it recommended that I raise my bond weighting from 18 to 25 per cent, adding a global aggregate bond ETF (a broad mixture of government and corporate bonds) to my lonely 10-year gilt.  

And finally, it wanted to push me into having a tenth of my portfolio in infrastructure (roads, ports, bridges, railways and the like) versus the zip I have currently. A big difference, but then again ChatGPT said I needed 15 per cent in so-called real assets.  

Taken together, Claude calculated that the mix above would spit out a 6.3 per cent annual return — close enough to the 6.6 per cent I need for my portfolio to reach seven figures before my 60th birthday.  

Quite a low equity weighting, remarked a few members of the festival audience. Yes, that’s because my short timeframe can ill afford too much stock volatility. For comparison, we gave Claude a 20-year time horizon and no £1mn target, and it immediately raised the weighting to 78 per cent.  

Others in the crowd wondered why we didn’t use Claude’s large brain to come up with a more radical portfolio — with hedging. When we asked it to, however, it failed to appreciate that most of the strategies it recommended (long-dated out-of-the-money puts and so forth) were not available for most UK retail investors to buy.  

“Get it to compare Stuart’s performance with Norway’s sovereign wealth fund,” someone from the rear of the tent shouted towards the end of our session. Turns out our annualised returns are an identical 14 per cent since my first Skin in the Game column almost four years ago.  

I promise the question wasn’t planted — my mum lives in Australia.  

The author is a former portfolio manager.

Savings challenges have taken off because they make the often daunting task of saving money simple, engaging, and motivating.

By "gamifying" the process, they help people build consistent money habits with a clear structure that’s easy to follow.

The key is choosing a savings challenge that fits your lifestyle, so here’s a look at some of the most popular ones, so you can work out which one might suit you best.

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The £1 a day challenge:

What is it?: Save £1 every day for a year and you’ll end up with £365.‍

Why it works: This is one of the simplest challenges out there, and that’s exactly why it works. The amount is small, predictable and easy to commit to. Making it ideal if you’re new to saving or just want to rebuild the habit.‍

Best for: People starting from scratch, or anyone who wants to take things slow and steady, this challenge can ease you in.

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The 1p challenge:

What is it?: Start by saving 1p on day one, then increase by 1p each day. By the end of the year, you’ll have saved £667.95.‍

Why it works: This challenge eases you in gently, with very small amounts at the start and larger ones towards the end of the year. It’s satisfying to watch it grow in value

‍Best for: Those who like visible progress and don’t mind gradually increasing contributions daily over time.

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The monthly incremental challenge:‍

‍What is it?: Start with £10 in January, £20 in February, £30 in March... This increases each month until December. By the end of the year, you’ll have saved £780.‍

Why it works: This challenge lines up neatly with monthly pay cycles and feels manageable even as amounts grow. It’s also easier to plan around than daily saving.‍

Best for: Monthly savers who want predictability without the effort of adding money daily.

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The 52-week challenge:

What is it?: Save £1 in week one, £2 in week two, all the way up to £52 in week 52 (a total of £1,378).‍

Why it works: This is a popular one for a reason. It gives you a clear weekly target and works well if you’re paid monthly or weekly. You can also flip it and start with the bigger amounts first – whatever works for you‍

Best for: Anyone who likes structure and wants a more meaningful savings pot by the end of the year.

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The fiver challenge:

What is it?: Save £5 in week one, £10 in week two, £15 in week three. All the way to £260 in week 52. Giving you a total of £7,000.‍

Why it works: This one isn’t for the faint-hearted, and can really supercharge your savings. Contributions ramp up quickly, so you’ll need planning and discipline to stay on track but it can be very powerful if you’re saving for something big.‍

Best for: Higher earners or experienced savers working towards a large, time-bound goal.

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The no-spend challenge:

‍What is it?: Pick a week, fortnight or a month where you only spend on essentials, and move everything else you would’ve spent into a savings account‍

Why it works: This is a bit different as it isn't about saving fixed amounts, it’s more about awareness of your spending. It can be hard to stick to, but for many people this can be eye-opening, and the chance for a bit of a reset.    ‍

Best for: Anyone who likes to challenge their willpower, reset and quickly boost savings with no tech or maths required.

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So… which one should you choose?

The best savings challenge is the one you’ll actually stick to.

If you’re building confidence, start small. If you’re saving for something specific, choose a challenge that lines up with your goal. And, if you’ve fortunate to have more disposable income, push yourself to save those bigger amounts.

Remember, you don’t have to follow these rules perfectly. Tweaking amounts, skipping weeks, or restarting is still progress. Saving isn’t about being perfect. ‍

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How Chip can help

Savings challenges work best when they’re automated and that’s exactly where we come in.

‍With our smart recurring deposits, Chip can regularly move money into a savings account for you automatically, so you don’t have to remember every contribution yourself.‍

With our Goals feature, you can set clear targets and track your progress in the app, whether you’re aiming for £365, £7,000 or beyond.

Whatever challenge you choose, Chip helps turn good intentions into real results - and earn interest while you do it.

Learn more about our savings accounts.

What are the types of investment accounts in the UK?

• Stocks & Shares ISA
• General Investment Account (GIA)
• Stocks & Shares Lifetime ISA (LISA) - not available with Chip
• Workplace Pension - not available with Chip
• Self-Invested Personal Pension (SIPP) - not available with Chip
• Investment Bond - not available with Chip

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What is a Stocks & Shares ISA?

A Stocks & Shares ISA is your tax-efficient friend when it comes to any gains you might make on your investments. 

Why choose an SSISA?

They’re tax-free

Unlike the General Investment Account, any returns on your portfolio within your SSISA remain free from income tax. This is often referred to as a ‘tax wrapper’ on your ISA. 

You also won’t owe any capital gains tax if you decide to sell your investments at a higher price than you bought them, or any tax on dividends you earn.

With Chip – It’s flexible

Another added benefit to a Chip Stocks & Shares ISA, is it’s flexible, you can withdraw and redeposit funds from your ISA without it affecting your annual ISA allowance. 

For example, if you deposited £10,000 into your SSISA in May, and then needed to make a withdrawal of £1000 on June; once you redeposit the £1000 in July, you would still only have used £10,000 of your ISA allowance (tax year runs from April 6 to April 5 the following year). 

What are the drawbacks?

You are currently limited to invest or save £20,000 per year across all your ISA’s. So, you’ll need to make sure you keep track of all your ISA’s between platforms. In the Chip app, it’s easy to view your ISA allowance with us in the ‘Profile’ tab. 

It’s also worth remembering that having multiple SSISA’s could come with paying a variety of fees, which may work out greater than holding all your SSISAs in one place. Learn more about investment fees.

Can you have a Cash ISA & a Stocks & Shares ISA?

Yes! If you already have a Cash ISA, you’re able to open a Stocks & Shares ISA, and have both at the same time but don’t forget you are currently limited to invest or save £20,000 per year across all your ISA’s. 

Previously, it was only possible to hold one type of ISA at a time, so you’d be limited to one of each (Cash ISA and Stocks & Shares ISA), but as of April 2024, you are allowed to hold multiple of each type of ISA, with the exception of a Lifetime ISA, where you are only allowed one open at any one time. 

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What is a General Investment Account (GIA)?

A General Investment Account (GIA) is the standard option for investing as much as you like, without the ‘tax wrapper’ of the Stocks & Shares ISA. 

Why choose a GIA?

With a GIA, you aren’t restricted to the £20,000 investment per tax year that the SSISA is. You can take advantage of unlimited deposits and withdrawals, without worrying about what you might have invested elsewhere. 

This gives you the freedom to open multiple GIAs and deposit as much as you like to take advantage of the best rates. For example, with a Chip X subscription, you can take advantage of 0% platform fees which can save you thousands over time as your portfolio grows. 

What are the drawbacks? 

With a GIA, investors are liable to be taxed on their investments. If your investments have grown in value, you may owe Capital Gains Tax (CGT) on these gains. However, every tax year you get an ‘Annual Exempt Amount’. 

For the 2025/2026 tax year this is £3000, so anything above this amount is taxed at 18% for basic rate taxpayers, and 24% for higher rate and additional taxpayers. 

You are also liable to be taxed on any dividends you receive from income funds that pay out on your gains. Similar to the CGT rules, you are given an allowance per tax year, which for 2025/2026 is £500.

Beyond this the tax rate is 8.75% for basic rate taxpayers, 33.75% for higher rate taxpayers, and 39.35% for additional rate taxpayers.   

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What is a Stocks & Shares Lifetime ISA?

A Stocks & Shares Lifetime ISA (LISA) is similar to a Stocks & Shares ISA, but was designed to help you buy your first home (up to a value of £450,000) or save for retirement (withdrawal after age 60), offering a 25% government bonus of up to £4,000 per year. 

For example, if you invest the maximum £4000, the government will give you a £1000 bonus per year. 

Your money is invested, like in a Stocks & Shares ISA, so it has the potential to grow, but early withdrawals (outside of a first home or retirement after 60) will incur a 25% penalty, making a LISA more of a commitment. 

You must be aged 18-39 to open a LISA, and can only hold one LISA at any one time. 

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What is a Workplace Pension?

A Workplace Pension is a way to save for your retirement, set up through your employer. Each time you’re paid, a portion of your salary is automatically put into your pension, and your employer adds a contribution (currently a minimum of 3% on qualifying earnings). 

You’ll also get tax relief on what you contribute, which helps boost your savings. Most people are enrolled automatically if they meet certain criteria (age and salary), but you can opt out if you wish.

While you won’t be able to access your pension until you’re 55 (rising to 57 from 2028), it’s a great long-term investment account, especially with the free boost from your employer. 

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What is a Self-Invested Personal Pension (SIPP)?

A SIPP is a personal pension that gives you much more control over where your money is invested, think of it as a DIY pension. Unlike workplace pensions, where investment choices are often limited, a SIPP lets you pick from a wide range of funds, shares, and other assets.

You’ll still get tax relief on what you contribute, just like with a workplace pension, and you can contribute up to 100% of your income (up to £60,000 a year) tax-free.

It’s ideal for people who are self-employed, or those who want to supplement their workplace pension and have more say in how their pension pot is invested.

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What is an Investment Bond?

An Investment Bond is a type of investment product that usually includes life insurance and often provides favourable tax treatment. You pay a lump sum into the bond, and it’s then invested on your behalf, typically into a mix of funds.

It’s generally aimed at medium to long-term investors (more than 5 years) and can be useful for estate planning or for higher-rate taxpayers looking for an alternative to ISAs or GIAs.

Tax is a bit more complex here, the bond itself is subject to tax, but you won't pay further income or capital gains tax unless you withdraw more than your ‘5% annual allowance’. This allows some flexibility when managing tax liability on withdrawals.

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Understanding Investment Types & Asset Classes

Within these investment accounts, it’s possible to invest in a variety of asset classes, which we’ll cover in more detail in the guide that follows this one. 

Different providers will give you access to different asset classes, and a varying degree of control over how your investments are made. Some will allow you to engage in high risk, active trades, whereas others will offer a few simple investment choices to encourage a passive investing strategy. 

Seccl Custody Limited is the ISA Manager for the Chip Stocks and Shares ISA. Fund management charges apply. ISA limits apply. Invest £20k per tax year. Chip does not provide tax advice or financial advice. 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. 

‍Workplace Pensions, Self-Invested Personal Pensions, Investment Bonds and Stocks & Shares Lifetime ISAs are not available via the Chip platform.

What is portfolio rebalancing?

Rebalancing a portfolio means adjusting your investments back to their original mix of assets in line with your goal, risk tolerance, capacity for loss and time horizon when market changes cause them to drift.

Over time, some investments grow faster than others, which can leave you with more risk (or less) than you intended. Rebalancing helps keep your portfolio aligned with your goals, risk tolerance and capacity for loss.

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How to rebalance your portfolio

Start by asking yourself a few key questions:

• Am I still comfortable with my original asset allocation?
• Has my financial situation or goals changed since I set it?
• Is my portfolio more aggressive or more conservative than I’d like it to be?
• Has my risk tolerance or capacity for loss changed?
  

If the answers suggest your portfolio has drifted away from where you want it to be, it’s time to consider rebalancing.

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Simple steps to rebalance your portfolio

There are a few different approaches investors use:

• Selling and buying. Selling some of the investments that have grown beyond your target and using the proceeds to buy more of the underweighted assets.
  
• Adding new funds. Directing new contributions into areas of your portfolio that are underrepresented, rather than selling anything.
  
• Automatic rebalancing. Some platforms and funds offer built-in rebalancing, adjusting your portfolio for you on a set schedule.

Which method you choose depends on your investment style, account type, and comfort level with making changes.

See our full guide on portfolio management.

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How often should I rebalance my portfolio?

There’s no strict rule, but generally checking your portfolio consistently, once or twice a year or if your circumstances have changed.

Some investors prefer a “threshold” method, where they only rebalance if allocations drift by more than 5-10% from their targets.

The key is consistency, regular reviews and not overreacting to every short-term market movement.

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Advantages of portfolio rebalancing‍

• It keeps your portfolio aligned with your goals and risk profile.
  
• Improves diversification over time.
  
• Reduces the chance of being overexposed to one asset or sector.
  
• Helps manage volatility and risk.
  
• Supports long-term investing discipline.

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Disadvantages of portfolio rebalancing‍

• May reduce exposure to sectors that are currently performing well.
  
• Could increase exposure to underperforming assets.
  
• May trigger taxes or transaction fees, depending on your account type.
  
• Requires time, effort, and a clear understanding of your goals.

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Rebalancing your portfolio summary

Rebalancing is a practical way to keep your portfolio on track as markets shift. By comparing your current allocation to your target, making adjustments where necessary, and sticking to a consistent review schedule, you can manage risk and stay aligned with your long-term goals.

Next in this series: Pound-cost averaging and how investing small amounts regularly can reduce risk and smooth out returns.

OpenAI has held early conversations with investors about raising another private funding round at a $1.2tn valuation before its planned IPO, as it seeks to capitalise on the success of its latest AI model.The ChatGPT maker, which in March raised $122bn at an $852bn valuation, including the new money, has recently held discussions with large backers about a fresh capital raise that would increase its value to about $1.2tn, according to people familiar with the matter.

The conversations with investors were at an early stage and the figure could change over the coming months, the people added.Whether to go ahead with the private round, and its timing, would depend on when OpenAI opts to go public, according to one of the people, who added that the conversations had been initiated by investors rather than the company.

Chief executive Sam Altman on Saturday said a listing was unlikely to come before 2027. He has said it would be an “ill-advised moment” to go public amid rising concerns about the existential risks posed by AI.Altman’s company is looking to capitalise on renewed demand for its products following the release of its latest models,

GPT-5.6 in July and Astra earlier this month.Those models have boosted the company’s revenue growth after a relatively slow start to the year, during which rival Anthropic leapfrogged OpenAI to a $965bn post-money valuation and investors questioned OpenAI’s direction and price tag.

The ChatGPT maker confidentially filed its IPO prospectus in June but has since pushed out the timing of its listing. A further private funding round would give longtime backers, such as SoftBank and Thrive Capital, a chance to increase their exposure to the company but will probably extend their wait for the big payouts they are expecting from an IPO.

OpenAI “needs capital”, one of the people said, referencing the billions of dollars the company has burned through in recent years to train its models. The start-up, which spent $34bn last year, insists it has ample resources after the March fundraising. The group’s annualised revenue passed $40bn last month after a 20 per cent leap following the launch of GPT-5.6, according to a person familiar with the matter.

Anthropic is on track to be profitable for the second quarter in a row, on an adjusted basis, the FT reported last week. It is expected to go public as soon as October at a valuation of about $2tn. OpenAI declined to comment.

What Is buy and hold?

Buy and hold is a passive investment strategy. It involves purchasing an investment and holding it over the long term, often years or decades, with minimal trading. 

The rationale is based on historical data showing that markets tend to rise over time despite short-term volatility.

Rather than reacting to daily market news or price swings, buy and hold investors focus on the long-term potential of their investments, allowing compounding returns and capital appreciation to work in their favour.

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Advantages of a buy and hold strategy

• Compounding Returns: Over time, reinvested dividends and interest can significantly increase the total value of an investment.
• Lower Costs: Because it involves less buying and selling, this strategy reduces trading fees and potentially lowers capital gains tax liabilities in taxable accounts.
• Less Emotional Investing: A long-term view helps investors avoid reactive decision making in response to market dips or economic news.
• Tax Efficiency: In the UK, assets held longer than a year may be subject to more favourable capital gains treatment, especially when held within tax-efficient wrappers such as ssISAs or pensions.

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Risks of a buy and hold strategy

While buy and hold is relatively simple and historically effective, it’s not without risk:

• Market Downturns: Bad market days can still negatively affect portfolio values, particularly if they occur near an investor's time of withdrawal.
• Company or Sector Risk: Holding individual stocks over long periods can expose you to company-specific risks such as poor management or disruptive competition.
• Inflation Risk: Over decades, inflation can erode real returns if your investments don’t grow faster than inflation.
• Behavioural Risk: The strategy requires patience and discipline, emotional decisions can undermine its effectiveness.

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How to build a buy and hold strategy

1. Set Clear Objectives

Determine your financial goals, risk tolerance, and time horizon. Buy and hold works best with long-term objectives such as retirement planning.

2. Choose a Diversified Portfolio

Instead of focusing on single shares, many investors use diversified instruments like index funds or ETFs to spread risk across different sectors or markets.

3. Use Tax-Efficient Accounts

In the UK, Stocks and Shares ISAs or Self-Invested Personal Pensions (SIPPs) allow your investments to grow free from Capital Gains Tax and dividend income won’t count towards your Personal Allowance.

4. Automate Where Possible

Regularly investing a fixed amount (pound-cost averaging) can smooth out market volatility over time and build a habit of disciplined investing.

5. Review, But Don’t Overreact

Check and manage your portfolio annually or after major life changes, but avoid frequent trading. Adjust only if your goals or circumstances change.

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Buy and hold strategy summary

The buy and hold strategy is a cornerstone of long-term investing. Its simplicity and historical success make it especially appealing for new investors looking to build wealth over time.

While not without risks, its disciplined, passive nature aligns well with long-term financial goals.

In the next guide, we’ll compare two distinct investing styles: defensive and aggressive strategies, helping you understand how different approaches to risk and return can shape your investment journey.

What is the Prize Savings Account? 

Our Prize Savings Account is an instant access savings account, where instead of earning interest, your cash deposits give you entries into a monthly draw to win tax-free¹ prizes paid directly into your account.

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Is it free to enter?

Yes! Entries are completely free of charge, all you need to do to enter is deposit and hold an average balance of at least £100 at the end of the month. 

Note - from 1 December 2025 onwards you will only need to hold a minimum average balance of £10. 

Every £10 of average balance gives you one entry in the monthly draw.

But to be clear; entries don’t cost you anything, and any money that you deposit can be instantly withdrawn whenever you want (but note that you will lose entries in the monthly draw).

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Is it a normal instant access savings account?

The Prize Savings Account is an instant access savings account with instant deposits and withdrawals.

It is powered by our partner bank ClearBank, and all deposits are ultimately held by them and covered by the Financial Services Compensation Scheme (FSCS) up to £120,000 (see our ‘how we protect your money’ webpage to learn more about FSCS at Chip). 

The only difference between the Prize Savings Account and any other savings account is that instead of earning interest, you will have a chance to win tax-free¹ prizes.

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How much can I save?

The maximum amount of cash you can save into the Prize Savings Account is £85,000. Any prizes won are paid as ‘bonus’ and are paid directly into your Prize Savings Account, and don’t count towards the £85,000 balance limit. 

It is not possible to deposit more than this amount, or to open multiple accounts in order to do so. Any attempt by an individual to open multiple accounts would result in a breach of the Prize Savings Account terms and conditions.

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What are the prizes?

All prizes are tax-free¹ sums of ‘bonus money’ we pay directly to your Prize Savings Account.

The prize amounts can change each month and we’ll publish next month’s prizes on this site no later than five calendar days before the start of the next draw. 

We commit to always paying at least one Grand Prize of £10,000 and 250 ‘additional prizes’ of £10. Though, generally we pay much more than this!

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What’re the odds of winning?

We can’t be exact with the odds of the next draw, as it depends on how many people enter and how many prizes are awarded. But we can share past odds. Please also note that you can win more than one prize per draw.

The odds of winning per entry (per £10 deposit) in the September 2025 draw were:

• 1 in 623 to win any prize

The average odds of winning per entry (per £10 deposit) in all 2025 draws were:

• 1 in 964 to win any prize

Data is based on January - September 2025.

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Are prizes tax free?

All prizes are tax-free sums of ‘bonus money’ we pay directly to your Prize Savings Account.

But note that Chip does not provide tax advice, and tax treatment depends on individual circumstances and may be subject to change in the future.

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‍Can I win more than one Prize? 

Yes you can. You can win multiple tax-free prizes in the draw. 

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When are the prizes paid?

If you win an ‘additional prize’, it will be added to your Prize Savings Account within five working days after the start of the month (but we aim to do this as close to the 1st of the month as we can). 

If you win the Grand Prize, we will contact you before it is paid (see below).

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What happens when you win the Grand Prize?

Grand Prize Winners need to confirm their win before the prize is paid. 

We will contact you by email and call you. You’ll have seen the recordings of these calls on our social media accounts. 

We will also ask you to take part in reasonable publicity, like being interviewed and filmed. We will obtain your express consent before filming and/or sharing any media. 

Winners have 10 working days to respond to us and claim their prize (we reach out by email, push notification and phone, leaving voicemails and even SMS).

If we can’t reach the Grand Prize winner, the prize will be deemed forfeit and the amount will be added to the following month’s prizes (i.e. like a ‘rollover’). 

For example, if a winner wins a Grand Prize of £10,000 in January but does not claim it, the Grand Prize available in February’s draw (for this example, also £10,000) would become the value of both January and February’s Grand Prizes combined (i.e £20,000).

Rest assured, we make every effort to contact the Grand Prize winner and we haven’t had a single Grand Prize unclaimed yet!

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How are the prizes awarded?

Prizes are paid as a bonus, not cash, directly into your Prize Savings Account.  

Please note, the prizes do not become cash until your full Prize Savings Account balance is withdrawn back to your current account, or if you transfer your balance to another account in Chip. Also note, when withdrawing prizes to your linked bank account, this can take up to five working days.

Prizes also do not count towards additional entries, unless you withdraw and redeposit. Prizes are not FSCS protected until they are withdrawn and redeposited.

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How do you enter?

Each month you will be entered into the prize draw provided you have an average balance of £10 or above in the Prize Savings Account (and have not opted out).

Every full £10 of average balance = one entry. 

The average balance you have on 11:59pm on the last day of the calendar month is what gets counted as your entries.

For example, if you have an average balance of £10 on 11:59pm on the last day of the calendar month you’d get 1 entries each calendar month (unless you opt out).  

If your average balance drops below £10, and remains at that level at the end of the calendar month, you’d have 0 entries in that month’s prize draw (if you choose to opt out of the draw, you’ll have 0 entries, regardless of your balance).

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How does average balance work?

Before we get into the detail of how average balance works, the important things to take away are:

• The earlier you deposit in the month the more entries you get.
• In the month after you deposit, every £10 of your balance = one entry in the draw (provided you don’t withdraw).
• Use the calculator to see how many entries you’ll get.

Your average balance is calculated by your daily balance divided by the number of days in the month. 

When are my entries counted?

Your entries will be taken at the end of the calendar month, but the draw will take place in the first week of the following month (no later than five working days after the end of the calendar month). 

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Where can I see my entries?

You can see your entries in your app, on the Savings tab under “Prize Savings Account” 

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Can I get extra entries?

You can occasionally earn extra entries through promotional offers. You might be able to double your entries, or earn entries for completing actions like referring a friend.

These are one-off promotions and will have their own eligibility and terms and conditions. Extra entries can count above the deposit cap of £85,000 (8,500 entries)

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How and when are the winners picked?

The draw will take place within five working days after entries close (the first five working days of the following month). Winners are selected using randomised draw software. 

The Grand Prize winner will be paid within 5 working days of them accepting the prize (see above), and we aim to pay ‘additional prize’ winners within the same timeframe, but it’s normally much quicker.

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Can I autosave into this account?

Yes, you can autosave directly into this account (Savings Plans settings can be found on the profile tab) and also deposit one-off amounts at any time by selecting the Prize Savings Account in the Savings tab and tapping ‘deposit’. Saves into this account also count toward your in-app savings goals that you can set up in the ‘Goals’ tab.

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Is this gambling or a lottery? Can I lose money?

The Prize Savings Account is not a lottery or gambling and it’s completely free to enter. You can’t lose money. You are depositing money in a FSCS protected account for the chance to win prizes. You can withdraw for free at any time.

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Can I open a Prize Saving Account for my child?

Unfortunately not, The Prize Savings Account is only available to the named individual who must be a UK resident over 18 years of age.

Apple will price its folding iPhone Duo from $1,999 as its new chief executive John Ternus presented the biggest shake-up to the smartphone in its nearly 20-year history alongside cost increases across the range.

The device unveiled on Wednesday, which will cost as much as $3,199 for the top-spec model, marks a record high for iPhone pricing. But the wider increases were less than some analysts had feared.

Ternus said the Duo, which folds out to a screen almost as large as an iPad Mini, would “redefine the experience of using a foldable phone” after rivals had “created foldables that just feel like two phones stuck together”.

The Duo has been in development for almost a decade and comes several years after Apple’s rivals Samsung and Huawei began selling their own foldable phones.

The annual iPhone launch event, held at Apple Park in Cupertino, California, is a crucial moment for the financial performance of the world’s second-most-valuable company.

Whether the new features and pricing on its latest models convince customers to upgrade their hardware is a major driver of smartphone sales, which make up half Apple’s revenue.

The event marked the first big public event for Ternus since he took over from Tim Cook last week. Cook was in the audience for the launch and appeared in an opening video in which he symbolically handed over to Ternus as the “main character”.

Apple said its iPhone 18 Pro and Pro Max models would be $100 more expensive than the comparable devices in last year’s 17 family, starting at $1,199 and $1,299 respectively.

The base model iPhone 18 will launch next spring, marking a new staggered way of releasing an iPhone line-up.Higher-end versions of the Duo with more storage will cost $2,599 for 1TB and $3,199 for 2TB.

The price increase reflects pressure from industry-wide component shortages, notably for memory chips, caused by the boom in data centre building.

This has left Apple with the choice to take a hit to its margins or pass the cost on to consumers, potentially affecting demand. Apple’s $100 price increase on its 18 Pro models was more modest than the worst-case scenarios foreseen by analysts.

Wamsi Mohan, analyst at Bank of America, said the price increase was “less than we thought across iPhones. We had expected $150-$200”.

He said the pricing decision “will enable Apple to take more [market] share but will pressure gross margins in the interim”, adding that the “Duo was extremely well designed”.

Apple is marketing the Duo as a top-of-the-line device that involves minimal trade-offs with its normal iPhone design. It promises the same chip as the iPhone Pro and similar battery life when using one screen, and roughly half as long when using both.

The 48-megapixel camera involves a trade-off from the bulkier camera on the Pro, which has a more advanced lens.

Critical to its success will be if users find the folding screen creases over time or is susceptible to damage, a common problem with foldable glass. Apple said it used a new custom polymer and a novel multilayer lamination technique for the screen, alongside titanium and carbon fibre support plates.

The company showcased how the device can be used to snap pictures while allowing the subject to see the frame and can be partially folded to stand up on its own.

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While the high-priced phone could be popular among Apple’s most loyal fans, the product will be in short supply when it goes on sale in October because of the complexity of manufacturing its display and hinge.

UBS analysts expect it to sell about 10mn units in its first year, based on supply chain checks — a small fraction of the roughly 250mn iPhones sold every year.

“A key thing everyone is watching for is: can the iPhone revenue continue to grow at this double-digit year-on-year growth rate?”

JPMorgan analyst Samik Chatterjee said ahead of the event.

The iPhone accounts for about half of Apple’s revenue, generating $209.6bn in sales for the 2025 financial year. Last year’s iPhone 17 family surprised analysts with stronger than expected sales, driving record revenue.

The memory chip crunch is expected to only worsen in 2027, leading to price rises across the industry. Apple increased its iPad and Mac prices by about 20 per cent in June. The smartphone market is forecast to shrink by more than 14 per cent globally in 2026, according to Counterpoint Research.

Wednesday’s launch also marks the first generation of iPhones since Apple unveiled its new AI-powered Siri voice assistant, using Google’s technology, earlier this year after a botched initial launch.

Ternus, who appeared only briefly on Wednesday to introduce the videos of the new products, emphasised that the iPhone would be one of the primary ways that people access AI, acting as a “personal hub”.

The company showcased a new feature for Siri in its latest Apple Watch, “Siri Recap”, where the device will listen to conversations and store them with summaries and talking points.