‍Interest rates reflect the cost of borrowing money. When you take out a loan you are charged interest on the amount borrowed.

AER stands for "Annual Equivalent Rate" and it is a way to express the interest rate on a savings account or other type of deposit account in a way that makes it easy to compare the effective rate of interest you will receive. 

AER takes into account the effect of compound interest and expresses the rate as if interest were paid and compounded once per year. So AER is a standardised way to compare the interest rates across different accounts, and make sure you understand the interest you earn.

Interest rates are also relevant to savings accounts but for this, they are usually referred to as the “yield” or “return” on your deposits. 

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Why Do Interest Rates Change?

There are several factors as to how interest rates are determined. This includes the monetary policy of the central bank (such as the Bank of England), the strength of the economy and the overall level of inflation.

1. Inflation: When inflation is high, it means the purchasing power of money is decreasing and requires more money to purchase goods and services. Raised interest rates make borrowing more expensive which can slow economic growth whilst reducing inflation.
2. Economy: If the economy is struggling and unemployment is high, central banks, such as the Bank of England, could lower interest rates to encourage borrowing and spending. This can help stimulate economic growth.
3. Monetary Policy: Central banks can use a variety of tools to control the money supply and interest rates in the economy. For example, buying or selling government bonds on the open market can influence interest rates and the supply of money. Governments can also have an influence on interest rates through policy decisions.

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What Types of Interest Rates Are There? 

There are several different types of interest rates which can apply to different types of financial products. The two common types of interest rates are:

1. Fixed Interest Rate: A fixed interest rate is when an interest rate remains the same over the life of a fixed term or other financial product. For example, a fixed-notice account means it’ll have the same interest rate for the entire fixed term period. 
2. Variable interest Rate: A variable interest rate is when an interest rate can change over time. This is typically based on an underlying index such as the prime rate, market conditions and is dictated by the bank's strategy and control.

There are different types of interest rates that can impact the overall cost of a loan. It’s important to understand the type of interest rate that applies to any given product before making a financial decision.

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How Do Interest Rates Affect My Savings?

Interest rates can affect and benefit your savings account by increasing the amount of money you earn on your deposits. Often, when you deposit money into a savings account, the bank pays you interest on that money. This is expressed as an annual percentage of the total deposit. 

When interest rates are high, it means you can earn a higher return on your savings. This can help your money grow faster. High-interest rates can also help you protect the value of your cash against inflation. This means that your savings lose less value over time. 

Interest rates can vary widely between different types of savings accounts and between banks. It’s always important to do your research into savings accounts and banks to ensure you’re getting  a competitive interest rate and that your money is protected by initiatives such as the FSCS (Financial Services Compensation Scheme).

How do Stock Markets Work?

Stock markets are essentially auction houses for shares. Companies list shares to raise money – this is called an Initial Public Offering (IPO), and investors can then buy and sell those shares with each other on an exchange.

Prices change in real-time, depending on how many people want to buy or sell a stock. 

The major stock exchanges (like the NYSE or London Stock Exchange) have set opening hours and are highly regulated to try and ensure trading is fair and transparent.

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How do Stocks Work?

When you buy a stock, you’re buying a small piece of a company – a share in its ownership. If the company performs well and becomes more valuable, so do your shares – and you! 

You can also earn money through dividends, which are portions of the company’s profits paid out to shareholders. 

Of course, the value of stocks can go down too. If the business performs poorly or market conditions shift, your investment can lose value. More information about how stocks work.

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Understanding the Stock Market

The stock market isn’t a singular place where all stocks are traded –  it’s made up of lots of exchanges, sectors, industries, and regions. Tech, healthcare, energy, retail all react differently depending on the economy, news and investor sentiment.

That’s why most investors don’t just pick one stock and hope for the best. Instead, they build a diversified portfolio to spread their risk (more on that in the next section). Learn about investment portfolio management.

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Why does the Stock Market go up and down?

In short: confidence and expectation. When investors are optimistic about a company or the economy, they tend to buy, which pushes prices up. When uncertainty hits (interest rate hikes, political instability, global events, natural disasters), investors might panic and sell, which drives prices down.

These ups and downs are part of the deal when you’re investing. They’re known as market fluctuations or volatility.

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What is Market Volatility?

Volatility refers to how much – and how quickly – the price of an investment changes. High volatility means big up and down price swings. Low volatility means steadier, more predictable price movements.

Volatility is normal and often driven by short-term news, but it doesn’t always reflect the long-term value of a company. That’s why many investors focus on time in the market rather than trying to time it perfectly.

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Global Stock Market Indices

Market indices track the performance of a specific group of companies, giving you a snapshot of how that part of the market is doing. Some of the most well-known include:

• FTSE 100 – Top 100 companies listed in the UK
  
  
• S&P 500 – 500 of the biggest companies in the US
  
  
• Nasdaq – Primarily tech companies in the US
  
  
• Nikkei 225 – Major companies listed in Japan
  
  

You can’t invest in an index directly, but you can invest in index funds or ETFs that aim to track them, which is a great way to get broad market exposure. What are asset classes?

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How to Invest in the Stock Market?

You can access the stock market through an investment platform or app (like Chip), and typically you’ll invest via one of the following:

• Stocks & Shares ISA – for tax-efficient investing
  ‍
  
• General Investment Account (GIA) – flexible, no contribution limits

You can invest in popular stock market indices by investing in index funds that track their performance directly, such as the S&P 500, FTSE 100 and the Nasdaq.  

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Investment Portfolio Management

Once you’ve got to grips with the basics of the stock market, and the different asset classes available to invest in, you’ll want to figure out the type of investment portfolio management style to suit you. 

The next guide in our series takes you through the options in more detail. 

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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. 

What is an economic indicator?

An economic indicator is a data point or set of statistics used to assess the performance of an economy. 

Governments and independent agencies regularly publish these indicators to provide insight into economic activity, trends and turning points.

Economic indicators are usually grouped into:

• Leading indicators: Signal future economic activity.
• Lagging indicators: Confirm trends that are already occurring.
• Coincident indicators: Move in line with the economy.

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Main economic indicators for markets

There are a variety of economic indicators investors in the UK tend to watch. Some of the main indicators relevant to investing include:
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Gross domestic product (GDP)

• Measures the total economic output of a country (the value of goods and services produced).
• A key indicator of overall economic health and growth.

Consumer price index (CPI)

• Used to measure inflation, which impacts interest rates and purchasing power.
• Tracks changes in the price of a basket of goods and services.

Unemployment rate

• Reflects the percentage of the workforce that is jobless and seeking work.
• High unemployment rates may indicate economic distress. Low rates often signal economic strength. 

Bank of England base rate

• The interest rate set by the central bank.
• Influences borrowing costs, mortgage rates and investment decisions. 
• Learn how interest rates affect the stock market. 

Purchasing managers’ index (PMI)‍

• A forward-looking indicator based on surveys of businesses.
• Indicates trends in manufacturing and services activity.

Retail sales data‍

• Tracks the value of goods sold by retailers.
• A measure of consumer spending and confidence.

Balance of trade‍

• The difference between imports and exports.
• A trade surplus or deficit can impact currency value and market sentiment.

Consumer confidence index

• Gauges how optimistic or pessimistic consumers feel about the economy.
• Often aligned with future spending behaviour. 

Wage growth

• Measures the pace at which average earnings are increasing.
• Impacts inflation and consumer spending power. 

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Interpreting economic indicators as an investor

Economic indicators rarely tell a complete story in isolation. Context always matters when it comes to investing. For example:

• Rising GDP might be positive, but if inflation is also climbing rapidly, it could signal overheating.
• Low unemployment might boost consumer spending, but it could also lead to rising wages and higher inflation.

As an investor, it’s essential to consider how indicators interact and how markets might react; not just what the numbers say. 

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How to use the stock market as an indicator

The stock market itself can act as a leading economic indicator. Equity markets often reflect investor expectations about future growth, interest rates and corporate earnings.

Key stock market signs to watch can include:

• Sustained market rallies often signal optimism about economic prospects. 
• Sharp corrections or volatility may reflect economic uncertainty or risk aversion. 
• Sector performance (such as consumer discretionary vs consumer staples) can hint at changing investor sentiment. 

Learn more about the stock market. 

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Advantages of economic indicators‍

• Accessible and public: Most indicators are released on regular schedules and available to everyone.
• Helps identify trends: Indicators reveal patterns in economic growth, inflation, employment and more.
• Supports informed decision-making: Investors can use indicators to anticipate potential shifts in interest rates, asset prices or policy changes. 

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Disadvantages of economic indicators‍

• Lagging effect: Some indicators only confirm trends after they’ve occurred.
• Market overreaction: Markets and investors may respond emotionally or irrationally to a single data point.
• Interpretation required: Indicators can be complex or give conflicting signals.  

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Economic indicators summary

For new and aspiring investors, economic indicators serve as essential signposts that help explain what’s happening in the broader economy. 

While they don’t predict the future with certainty, they offer valuable clues that can shape investment thinking and strategy. Understand how to build a passive income through investing. 

By learning to interpret these signals, alongside other tools and personal financial goals, you can make more informed, confident investment decisions in an ever-changing market environment. 

Why retirement planning matters

Saving alone often isn’t enough. Rising living costs, longer lifespans, and inflation can eat into the value of your savings over time.

Investing helps your money grow faster than inflation — giving you a better chance of reaching your retirement goals.

Starting early means your investments have more time to grow through compound returns. Even modest monthly contributions can snowball into a chunky retirement pot if you begin in your 20s or 30s.

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What is long-term investing?

Long-term investing generally refers to committing your money for 10 years or more, often with retirement as the goal. It’s less about picking stocks and more about staying the course and letting time do the heavy lifting.

By sticking with your investments long-term, you’ll be able to see the effects of compounding (snowballing returns).

Short-term volatility will matter less, and you’ll be less tempted to make impulsive decisions, because you have a plan in place. 

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Common investment options for retirement

Pensions (State & Private)

• State Pension: In the UK, this provides a basic income from age 66+, but for most people, it’s not enough to live on alone.
  
• Workplace Pension: You and your employer contribute to help boost your retirement savings. You’ll get tax relief, and this is an opt-out scheme so if you meet the requirements, this will build automatically.
  
• Private Pension (SIPP): You invest the money yourself, and you’ll still get tax relief. Offers more control and choice over where your money is invested. Generally, employers won’t contribute outside of a workplace pension so this could be a better option to supplement your workplace pension.

Chip does not currently provide these types of investment products.

Index funds and ETFs

Using low-cost, diversified funds that track a broad market index, can be a great vehicle for retirement investing. More information about what ETFs are.

As the holdings of these funds are adjusted in line with market movements, it can be a great passive option, as you don’t have to choose stocks yourself. 

Other ETFs can also offer great diversity, but make sure you’re aware of the holdings, and make sure you aren’t over exposed to one particular sector or market, as any downturns might have a bigger effect on your retirement portfolio. 

Learn about different investment types and asset classes.

Target-date retirement funds (TDF)

Target-date retirement funds automatically adjust the weighting of a portfolio as the investors retirement date approaches.

Weightings shift from higher risk assets such as stocks to lower risk assets like bonds, in line with the funds roadmap. 

The main benefit of using a TDF is the professional management. The ‘glidepath’ or roadmap of the fund is carefully designed to map out an investment journey that mitigates against overexposure to risk, but also seeks to significantly outpace inflation. 

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How much should you invest for retirement?

There’s no one set path for budgeting for your investments, but there are a few popular rules you can follow to keep yourself on track each month:

• The 50/30/20 rule is a simple budgeting technique that ensures each month you can take care of the essentials, like rent and bills (50%), enjoy the things you love (30%), and pay something towards your future with saving or investing (20%). Full guide here.
  ‍
• The 25x rule or 4% rule helps you calculate the total amount of money you should aim to save before retiring. Multiplying your yearly retirement expenses by 25 assumes you’ll be covered, withdrawing 4% of your invested portfolio each year to sustainably cover living costs. 

These are a couple of options that can help, but everyone’s situation is unique, so it can be good to play around with calculators to help you.

A Monte-Carlo simulator allows you to input your investment asset allocation and details of your investing timeline, providing you with a series of outcomes.

No portfolio path is binary, and viewing the variety of possible outcomes and their probability, can help you ground your expectations. 

Starting early will always give you the best chance of reaching your retirement goals, and in some cases you may be able to beat your retirement target.

Starting in your 20s is ideal as you can comfortably invest little and often, but it’s not too late for you if you’re starting in your 30s, or even 40s. 

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Strategies for long-term investing success

Stick to the following principles, and you can build a long-term, passive investment strategy that you can have confidence in:

• Start early, stay consistent. Even small amounts compound over time
  ‍
• Automate your contributions. Remove friction and emotion
  ‍
• Diversify your portfolio. Reduce risk and improve stability
  ‍
• Reinvest dividends or choose accumulating assets. Accelerate growth through compounding
  ‍
• Avoid market timing. Focus on time in the market, not timing it
  ‍
• Review and rebalance annually. Adjust as life goals and risk tolerance evolve

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Mistakes to avoid when investing for retirement

Keep the following in mind when investing with retirement as your goal:

• Starting too late. Start as soon as you can, even small amounts can make a big difference
  ‍
• Taking on too much or too little risk. Make sure your asset allocation is right for where you are in your investment journey
  ‍
• Not accounting for inflation. Remember to account for the effect of inflation when tracking your required retirement pot
  ‍
• Cashing out early (highlight penalties or lost growth). There are tax implications for taking your pension early, and you might miss out on potential growth. Stick to your plan
  ‍
• Ignoring fees and charges. Fees compound in the same way returns do, so don’t pay more than you need to

Learn more about behavioral investing and common mistakes.

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Ethical and thematic investing

The investing landscape is shifting. Ethical and thematic investing is growing in popularity, as more investors week to align their portfolio with their own values. 

Our next guide will go into what ethical and thematic investing are, the different types, how they work and how to get started. 

The word investing can send a chill down some people’s spines.

Terms like “volatility” and “risk” can sound straight out of a horror film. And ‘losing all your money’ well that’s the stuff of nightmares.

But here’s the truth: investing doesn’t have to be scary. In fact, once you understand it, it’s far less Freddy Krueger and much more Casper the friendly ghost.

Let’s (ghost)bust a few myths and show you how Chip helps keep your money safe from what’s lurking in the shadows.

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Myth 1. “I could lose everything!?”

This is the classic jump scare. But barring something like a zombie apocalypse, it's almost impossible. 

Yes, markets go up and down, that’s part of the story. 

But when you invest through Chip, your money is spread across hundreds (sometimes thousands) of companies, sectors, and regions. So even if one part of your portfolio takes a fright, others can help you get through the night.

And if we do have a ‘28 Days Later’ scenario, then I think we all have bigger problems than the stock market.

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Myth 2. “I need to be an expert”

You don’t need to be a mysterious, all-knowing spectre hiding in a candlelit library to invest. With Chip, you can start from as little as £1, choose from clear, ready-made investment funds that are good to go.

The hard work is done for you, partnering with (real) experts who manage your investments funds for a low-transparent fee, so you can focus on growing your money without wondering what’s hiding under the bed.

Simple, smart, and built for everyone – not just the wizards of Wall Street.

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Myth 3: “Now’s not the right time.”

Trying to time the market perfectly is like trying to cheat death in Final Destination – it’s highly unlikely to happen

Markets move, the news cycle changes, and there’s always a new headline to worry about. But history shows that staying invested, rather than trying to time it, is how you survive the scary bits and see the best long-term results.

If you’re nervous, try easing in with pound-cost averaging: investing small amounts regularly, so you smooth out the ups and downs over time. It’s a calm, steady way to build your confidence - and your wealth.

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Myth 4: “You need loads of money to get started.”

This one is another work of fiction – like a 104-year-old vampire who decides to use his immortality to endlessly repeat high school.

In fact, getting started early (even with small amounts) can make a huge difference thanks to the magic of compounding; where your returns start earning returns of their own.

At Chip, you can begin with just £1 and build from there. No big commitment, no minimums — just a realistic, approachable way to put your money to work.

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So this Halloween…

Don’t let the fear of the unknown and old ghost stories stop you from getting started with investing.

And as an added bonus, start now and pay 0% platform fees* until 31 January 2027. Eligibility & T&Cs apply.

With Chip on your side, a clear plan, and a little guidance, investing isn’t a horror story — it’s just another way to grow your money.

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* Fund management charges apply.

What is the Personal Savings Allowance and what does it mean for my savings?

The Personal Savings Allowance is a tax exemption introduced by the UK government to enable individuals to earn interest on their savings without being taxed on it.

The amount of interest you can earn tax-free depends on your tax bracket. As of the current tax year, there are three tax bands:

• Basic rate taxpayers: If you are a basic rate taxpayer, you can earn up to £1,000 in savings interest tax-free.
• Higher rate taxpayers: Higher rate taxpayers have a Personal Savings Allowance of £500, meaning they can earn up to £500 in interest tax-free.‍
• Additional rate taxpayers: Unfortunately, individuals in the additional rate tax bracket do not receive a Personal Savings Allowance, and all their savings interest is subject to tax.

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What counts as savings interest under the Personal Savings Allowance?

The Personal Savings Allowance covers various types of savings interest, including interest earned from:

• Bank and building society accounts.
• Credit union and National Savings and Investments (NS&I) accounts.
• Interest distributions from authorised unit trusts and open-ended investment companies (OEICs).
• Income from government or corporate bonds.
• Most types of purchased life annuity payments.

It's important to note that dividends from shares and other investments are not considered savings interest and are subject to different tax rules.

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How much do I need in savings before my interest is taxed?

The Personal Savings Allowance applies to your total savings interest earned in a tax year, which runs from April 6th to April 5th of the following year. The threshold depends on your tax bracket:

• Basic rate taxpayers: You can earn up to £1,000 in savings interest tax-free.
• Higher rate taxpayers: You have a tax-free allowance of £500 for savings interest.
• Additional rate taxpayers: Unfortunately, there is no tax-free allowance for savings interest in this bracket.

For example, if you are a basic rate taxpayer and earn £800 in interest within a tax year, you won't have to pay any tax on it. However, if you earn £1,200, the excess £200 will be subject to tax. See our interest rates calculator.

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You're taxed on savings interest in the tax year you can access it

It's important to remember that the tax year you're taxed on your savings interest is based on when you can access the funds and not when they were earned.

For example, if you earned interest in March but couldn't access it until April, it would be taxed in the following tax year.

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Summary

The Personal Savings Allowance offers a great opportunity for UK residents to earn tax-free interest on their savings.

By understanding the tax bands and thresholds, you can make the most of your savings and potentially keep more of your hard-earned money.

Remember to consult with a financial advisor or HM Revenue and Customs (HMRC) for personalised advice and stay informed about any changes to the tax laws.

From April 2027, the allowance for saving into cash ISAs will be cut from £20,000 to £12,000

Chancellor Rachel Reeves has delivered the Autumn Budget, setting out the government's financial roadmap for the coming years. After weeks of intense speculation, and some notable late-stage changes to the Treasury’s plans, we now have clarity on changes to the tax and savings landscape.

Here is a summary of the key announcements and what they could mean for your money.

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ISA allowances shift for cash savings — use it or lose it!

In a significant move for savers, the structure of the Individual Savings Account (ISA) allowance is changing from April 2027.  

The total annual limit for saving and investing, with either a Smart Cash ISA or Stocks & Shares ISA, is £20,000 across all accounts, and savers are permitted to open different ISAs of the same type across different providers, provided they remain within the allowance limit.

However, following Rachel Reeves announcement on Wednesday, savers will only be permitted to save £12,000 of their total annual allowance within Cash ISA products — a move the Chancellor hopes will encourage greater use of Stocks & Shares ISAs.

The Treasury has indicated this policy is designed to shift the UK’s savings culture, and encourage savers with solid cash savings to consider investing as a way of getting the most out of their money long-term.

Big piles of cash savings generally lose value to inflation over time, and investing can hold the keys to really growing that money. The Chancellor said in her speech “investing £1,000 a year in an average stocks and shares ISA every year since 1999 would have delivered a £50,000 better return than if it was invested in a cash ISA.”¹

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Income tax stays put, but thresholds frozen until 2030

Following intense debate over potential rises to Income Tax, the Chancellor confirms that the rates for basic, higher, and additional taxpayers will remain unchanged.

However, to raise further potential revenue of £7.5 billion, the freeze on Income Tax has been extended for a further two years until April 2030² — this determines how much you can earn before paying tax (currently £12,570) or entering the 40% tax bracket (£50,270).

This means that while real income tax rates aren’t changing, the effect of ‘fiscal drag’ means that as wages rise with inflation over the next five years, a larger proportion of earnings will likely fall into higher tax bands.

This effectively increases tax contributions of earners without moving the tax bands.

Tax beyond Personal Savings Allowance to increase from April 2027

The rules on rates of tax outside the Personal Savings Allowance are changing from April 2027 with a 2% increase to tax on savings interest outside of ISAs. The increases that apply to your tax band are as follows. Basic (20% to 22%), higher rate (40% to 42%) and additional bands (45% to 47%).

The tax on dividends outside of your £500 allowance will also increase by 2% from April 2027 for each tax band respectively.

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Changes to pension salary sacrifice

The rules for sacrificing a portion of your pre-tax salary to make additional pension contributions are being tightened. Under current rules, employees can opt in to sacrifice a portion of their gross pay to additional workplace contributions as an employee benefit.

This is a more tax-efficient way to pay more into your pension, as the amount comes from your salary before tax and national insurance are taken, meaning it costs you less to make a contribution.  

New restrictions coming into effect in April 2029, will limit the amount of national insurance exempt earnings that can be exchanged for pension contributions to £2,000 a year.

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Pension tax-free lump sum is safe

Providing certainty for those approaching retirement, the Chancellor confirmed that the 25% tax-free pension lump sum will remain as it is, with the current cap (£268,275) unchanged. This ends recent speculation about potential reductions to tax-free withdrawals.

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Things to think about‍

Make use of your cash ISA allowances: If you plan to save more than £12,000 into your Cash ISA, tax year ending 5 April 2027 will be the last year you can do it before the allowance is lowered.

With a 2% increase in tax outside of your personal savings allowance also announced, ISAs are as important as ever.

Keep an eye out for pension changes: If you make additional contributions to your pension through your employer's salary sacrifice scheme, keep your eyes open for any communications regarding changes to your scheme.

The importance of making your money work harder: The Budget is a reminder that factors like fiscal drag may squeeze your take-home pay. Keeping a solid cash buffer is important, but growing your money through investing can be an effective way to stay ahead over the long term.

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Get the most out of your £20k

At Chip, our Smart Cash ISA and Stocks & Shares ISA can help you take full advantage of your tax-free allowance.

Whether you’re looking to make the most of the £20,000 cash allowance before the 2027/2028 Tax Year rolls in, or take your money further with investing, we’ve got you covered — all in one place.

Chip does not provide tax or financial advice. Tax treatment depends on individual circumstances and may be subject to change in the future.

Right now we’re also letting new investors benefit from 0% platform fees* until 31 January 2027. Eligibility & T&Cs apply. Promotion ends 8 January 2026.

¹Budget 2025

²The Guardian

*Fund management fees apply

Seccl Custody Limited is the ISA Manager for the Chip Stocks and Shares ISA. ISA limits apply. Invest £20k per tax year.

The Smart Cash ISA is provided by Chip Financial (Investments) Ltd. ISA limits apply, deposit up to £20k this tax year. Terms apply.

In an ideal world, this isn’t a subject we’d need to feature on our blog. But, the reality is that thousands of people fall victim to financial crime every day.

Scams today are becoming increasingly sophisticated, and in the age of digital money management, it’s more essential than ever to be aware of how criminals act, and what can be done to remain safe online.

At Chip, we want to give you the information you need to stay steps ahead of the criminals, so you can build your wealth securely.

We’ve compiled this guide to help our community fight fraud.

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More than a wealth-building app

We’re here to help you manage your money safely

Although you can’t send money to anyone else directly from the Chip app and you can only withdraw to your own bank account, it could be the case that you end up withdrawing funds to pay someone from your bank for a fraudulent reason.

With this in mind, we want to provide educational resources and tips on recognising and avoiding common tactics used by fraudsters, ensuring you can build your wealth with confidence.

‍

Some tips to keep you safe

How to be sure about the legitimacy of an email or call

When we get in touch with you to tell you about products, updates or general Chip information, it’ll mainly be via email (secure@getchip.uk, or hello@getchip.uk), in-app messaging, or push notifications. We sometimes send you an SMS, but these will only ever tell you to log onto the app and will never contain any links.

Scammers routinely use email and text messages to pry for personal details or to get you to click a malicious link, and will often try to impersonate financial institutions (such as your bank, or Chip), or people in your contacts list.

Here are some of the key things to be on the lookout for:

• Suspicious email addresses: Scammers often use email addresses that mimic legitimate organisations, but may contain variations or misspellings. Always check who the sender is, that the domain matches the company website in any links (getchip.uk).

• Urgent or threatening language: If an email contains language designed to pressure you into making a decision, it’s most likely from a scammer. Fraudsters often try to create a sense of urgency.

• Requests for personal information: Chip will only ever ask for personal information for a purpose such as verifying your identity, or confirming the information we hold about you.

• ‍Requests for passwords or sensitive account information: This is a big red flag. Avoid any requests that ask you to send sensitive personal account information such as passwords, PINs, one time passwords, mother’s maiden name (etc...). Chip will never ask for this information outside of your app.

• ‍Requests for your full card details: Scammers want your full card details, including expiry dates, and your three-digit CVC number. To be clear, Chip will never ask for your debit or credit card information outside of your Chip app.

• ‍Requests for payment: Be extra wary of emails that request money or payments for goods, services, or fees. Again, Chip would never ask you to complete any transactions outside of your app.

• Poor spelling: Many scam emails contain spelling and grammar mistakes, unusual phrasing, or awkward language.

• Unsolicited attachments/links: Be very wary of emails from unknown/suspicious email addresses that contain attachments or links. They could contain malware/viruses, or link you directly to phishing websites. Check the URL to see if it’s a genuine request from Chip.

• Requests for remote access: Another common email scam asks you for remote access to your computer or mobile device, and will often claim to be from tech support or a company’s customer service team. Chip will never request remote access. We will never ask you to download an additional app or software.

If you’re unsure if an email, call, app push notification, SMS (or any form of contact) is from Chip, you should always double check with our support team using your secure in-app chat, or email us directly using hello@getchip.uk.

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Phone calls

We may, on rare occasions, contact you over the phone for urgent requests.

We will need to verify your identity using information we already hold on you, but we will never ask for sensitive account information like full card numbers, PINs, passwords.

Additionally, we won’t request immediate payment or threaten legal action over the phone.

If you’re ever unsure about whether the call is really coming from Chip, hang up and contact us via email or via our app to confirm if the call is genuine.

Common characteristics of fraudulent calls include:

• Pressure to act quickly: Fraudsters will often try to create a sense of urgency to pressure you into making decisions without thinking it through.
  
• Requests for sensitive personal information: If the caller asks for sensitive personal information, such as bank account details, passwords, PINs.
  
• Fee requests: Fraudulent callers sometimes demand upfront payment for services, taxes, or fees.
  
• Inconsistencies: One of the easiest ways to spot fraudulent activity is by recognising inconsistencies in the caller's story. If something seems off, end the call.

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Protect yourself with biometrics

Keeping your app secure

It's genuinely wise to protect your mobile devices with a password or biometric login. As an additional security layer all Chip users need to create a 6-digit PIN to access their app.

Once you’ve created your PIN, you'll have the option to set up biometric logins using your fingerprint or FaceID for seamless and secure access.

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Take Five to stop fraud

Chip supports the industry fraud awareness campaign ‘Take Five’

‍Take Five offers straightforward and impartial advice to help everyone in the UK protect themselves against financial fraud.

Its goal is to raise awareness and provide advice on how you can protect yourself from scams, emphasising the importance of taking a moment to stop and think before parting with personal information or money.

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We’re here to help

Please reach out to the team if you have any questions or concerns.

If you are ever in doubt about communications from Chip being legitimate, send an email to secure@getchip.uk and our team will confirm whether the request is genuine.

Let’s build wealth, safely and securely, together.

As one of Europe’s most crowdfunded businesses, we have 28,000 people (largely Chip customers) who shape what we build and the direction of the business.

This customer focused community has been our secret to success and played a huge role in our growth so far, seeing us named in 2025 as the 6th fastest growing company in the UK by the Sunday Times and the 12th fastest growing in Europe by the FT.

In this spirit, I want to share the key themes from the discussion with all Chip customers, to give you all a view on what’s coming in the next year and a chance to share your thoughts on it.

We’ve also pulled together a quick visualisation to give you a glimpse of what all this will look like.

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We want to use AI to bring personalised planning and financial advice to Chip.

The growth of AI in the last two years has opened up an incredible opportunity for Chip to explore building a truly personalised advice and planning service for our customers.

Imagine instead of having to learn your way around the intricacies of personal finance, you could start with a conversation about you.

Discuss your goals and ambitions — where you are now and where you want to get to.

Chip’s AI could then build a personalised plan 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 and all the boring admin work done for you.

But you’d still have easy oversight of everything in your app, with simple graphs and portfolio views to track your progress against 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.

While we might be some way off replacing the human touch from an expert wealth advisor at this early stage, we do think there's a lot that can be automated via AI to open up the benefits of financial advice to everyone.

In addition to building the technology, we are exploring the correct permissions and regulated set-up to offer more planning and advice. This is an industry that is very strictly regulated and as you can imagine, there are no shortcuts to getting a fully functioning AI advice service live.

However, the regulator is also increasingly recognising the potential of tech to offer a better outcome to consumers and the FCA has announced reforms to help close the “advice gap”.

In their own words:

“These once-in-a-generation reforms will help people navigate their financial lives and give them greater confidence to invest … There are about 7 million adults in the UK with £10,000 or more in cash savings who may be missing out on the benefits of investing throughout their lives.”

So, we hope these changes could open a quicker path for us to bring you a more personalised service within the next year.

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The first step towards more personalisation

Our first step towards offering more personalisation has been rebuilding our Goals feature from the ground up.

Those of you who have been with us for a while will know that we’ve always offered Goals as a feature to help keep our customers focused on achieving their long term ambitions.

I’m delighted to announce that Goals will very soon fully integrate with all the accounts in Chip and offer a seamless easy experience.

We’ll continue to enhance our Goals feature over the next year, with the intention to eventually tie it into our new AI planning service.

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Coming early next year

To be able to offer you a true wealth management experience, we know we need to offer you pensions.

Self-Invested Personal Pensions, commonly abbreviated to SIPPs, offer powerful tax benefits to people saving for their retirement.

This is the last financial product type missing from our fundamental offering. So, I’m delighted to say this is currently under development and should be ready to launch in the first half of 2026.

In the long term we want to offer the ability to transfer your existing pensions into Chip, so you'll have one easy view of all your wealth.

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All of your ISAs in one place

There have of course been some rumblings from the government about changing cash ISA limits, but they remain one of the most popular tools available to UK savers and our cash ISA is certainly one of the most popular products at Chip.

Whatever happens, we believe that ISAs will remain the cornerstone of the savings and investments accounts we offer.

First, we are going to create a seamless experience between your Chip Cash and Stocks & Shares ISAs.

We want to give you one clear view on your tax allowance across both these accounts, so you can easily see how you are diversifying your portfolio and if you’re taking full advantage of your annual ISA allowance.

Then, we’ll look at adding LISAs and JISAs too, so you can enjoy more ways to tax-efficiently build wealth.

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We're here to make you wealthier. Your way.

Our mission remains the same. We want to make our customers' lives wealthier.

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 literally 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.

I know you’re going to love it and I can’t wait to share it with you.  

Again, if you'd like to take a sneak peek at what the future holds, see our webpage for a preview.