When it comes to managing your money, understanding the rules surrounding tax on savings interest is essential for making informed financial decisions.

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Understanding savings interest and tax

Savings interest refers to the money you earn from your savings accounts, which can include standard savings accounts, fixed-term savings, and cash ISAs (Individual Savings Accounts).

The interest you earn may be subject to tax, but there are several factors that determine whether you need to pay tax on your savings interest.

Please note that Chip does not offer tax or financial advice, and this should not be considered as a personal recommendation. Tax treatment depends on individual circumstances and may be subject to change in the future.

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Personal Savings Allowance (PSA)

The UK government introduced the Personal Savings Allowance (PSA) in April 2016. The PSA allows most people to earn a certain amount of interest tax-free each year. The allowance you receive depends on your income tax bracket:

• Basic rate taxpayers (20% tax bracket): You can earn up to £1,000 in interest tax-free
• Higher rate taxpayers (40% tax bracket): You can earn up to £500 in interest tax-free
• Additional rate taxpayers (45% tax bracket): You do not receive a personal savings allowance.

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Individual Savings Accounts (ISAs)

One of the most effective ways to save tax-free is through an ISA. There are different types of ISAs — Stocks and Shares ISA, Lifetime ISA (LISA) and Junior ISA (JISA), to name three — but the most relevant for savers are cash ISAs. 

The interest earned in a cash ISA (as with all other ISAs) is completely tax-free, regardless of your earnings, or how much you have saved in your ISA. Each tax year, you can save up to £20,000 tax-free, but most ISA accounts do not have a limit in terms of how much you can accumulate in total over the years. 

Your annual ISA allowance of £20,000 can be placed in just one ISA or can be spread a number of them.

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Do you have to pay tax on your savings?

Whether you have to pay tax on your savings depends on the total interest you earn and the allowances available to you. Here are a some scenarios to showcase these variables:

1. Earning interest below the PSA: If the interest you earn from your savings is within your PSA, you won't have to pay any tax on it. For example, if you are a basic rate taxpayer and you earn £800 in interest, this is within the £1,000 PSA, and no tax will be due.
   
2. Earning interest above the PSA: If your interest earnings exceed your PSA, you will have to pay tax on the amount above the allowance. For instance, if you are a higher rate taxpayer and earn £600 in interest, you will need to pay tax on the £100 that exceeds your £500 allowance. This, as noted in the previous section, is not the case for money saved in an ISA.
   
3. Interest earned in ISAs: Any interest earned within an ISA is tax-free, and it doesn't count towards your PSA. This means you can maximise your savings by utilising ISAs effectively.

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How do you pay tax on savings?

If you do need to pay tax on your savings interest, HMRC will usually collect it automatically. This, however, is not always the case. Here’s how it works:

• Through PAYE (pay as you earn): If you're employed or receive a pension, any tax due on your savings interest can be collected through the PAYE system. Your tax code will be adjusted to reflect the interest earned and the tax due.
  
• Self-assessment tax return: If you complete a self-assessment tax return, you’ll need to include the interest earned on your savings. HMRC will calculate the tax that is due and notify you of both the need to pay tax, and when it needs to be paid by.

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When do you pay tax on savings?

Tax on savings interest is generally due at the end of each tax year, which runs from April 6th to April 5th of the following year. If HMRC collects the tax through PAYE, adjustments will be made throughout the year.

For those filing a self-assessment tax return, the deadline for submission and payment is usually January 31st following the end of the tax year.

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How to maximise your tax-free savings

To maximise your tax-free savings, it’s essential to understand how to strategically utilise your annual annual allowance, and put your money in accounts that will earn you the highest amount of interest.

1. Utilise your ISA allowance: Ensure you make the most of your £20,000 ISA allowance each tax year. Even if you only have a small amount to save, using your ISA can, potentially, provide you with tax benefits over the longer term.
   
2. Monitor your interest: Once you have maxed out your ISA allowance, keep track of the interest earned across all your savings accounts to ensure you stay within your PSA.
   
3. Consider high-interest accounts: If your savings are substantial, explore high-interest accounts and ISAs to maximise returns while minimising your tax liabilities.

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Conclusion

Whether or not you have to pay tax on your savings in the UK depends on your individual circumstances. This should not be seen as tax advice and you should seek independent advice if unsure on your tax status.

‍The PSA provides a buffer for tax-free interest, and ISAs offer a valuable means of saving without tax implications. By understanding and utilising these allowances and tax-free savings accounts, you can maximise your tax-free savings.

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. 

We need to stop supporting Chip on an older version of Apple Operating System (OS), iOS 15. This is due to it no longer being supported by Apple’s security updates.

If your device is on iOS 15, and you don’t / won’t / can’t update to a newer version of iOS, you no longer be able to access your Chip app.

This is most likely to affect you if your phone is around 10 years old, and/or you don’t have automatic iOS updates switched on.

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What this means

This means after 23 July 2025 you won't be able to log in to Chip using a device running iOS 15 unless you update to a newer version of iOS.

If you use an older Apple device (i.e. around 8-10 years old) you may need access to a newer device that supports a  newer version of iOS, as older Apple devices don’t always support the newer operating systems.

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How to find which version of iOS you're on

You can double check this on your phone by navigation Settings > General > About and look for ‘iOS Version'.  

Apple offers a guide to find the software version on your iPhone, iPad or iPod touch.

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How to update

It’s easy to update your phone, simply open your device, go to Settings > General, then tap Software Update.

Apple offers a clear and simple guide here, which also covers how to switch on automatic iOS updates.  

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Why are we doing this?

If you’re confused about the above, here’s a quick explanation.

Your device’s software is powered by an Operating System (OS) called iOS, which is built and maintained by Apple.

Apple regularly releases new versions of iOS to make your phone work better and keep you safe. The latest version is iOS 18.

Apple no longer maintains or releases security updates for iOS 15.

This means we can’t guarantee the security of Chip accounts using our app on devices running iOS 15.

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What if you can't update?

After 23 July 2025 you won't be able to log in to Chip on a device running iOS 15.

You should be able to update your device to a newer version of iOS, but if your phone is 8-10 years old you may need to get access to a newer, supported device.

If this is not possible for you, you may wish to consider withdrawing your money and closing your account before 23 July 2025.

However, if you don’t withdraw, your account will remain open and secure, and you'll be able to access it at any time using a newer device.

Finally, as a Chip customer you can contact us in writing or via email to withdraw your money (note there will be additional security measures and identification you’ll need to provide).

If you have any further questions don’t hesitate to drop into your in-app customer support.

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 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. 

What are the biggest companies in South America by market cap?

This list ranks South America’s biggest public companies by market capitalisation. We’ll also highlight other key figures, such as revenue, gross profit, and 1-year return. Key facts like the company's exchange, founding year, and country are also covered.

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1. MercadoLibre (MELI)

• Market cap: $127.3 billion
• Revenue: $24.1 billion
• Gross profit: $11.05 billion
• 1-yr return: +18.99%
• Exchange: NASDAQ
• Year founded: 1999
• Country: Uruguay

Often called the "Amazon of Latin America," MercadoLibre is the dominant e-commerce and payments platform in the region.

• E-Commerce: Operates a massive online marketplace connecting millions of buyers and sellers.
• Fintech: Its Mercado Pago division provides a full suite of financial services, including digital payments, credit, and asset management.

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2. Petrobras (PBR)

• Market cap: $82.4 billion
• Revenue: $91.05 billion
• Gross profit: $37.72 billion
• 1-yr return: -10.15%
• Exchange: NYSE
• Year founded: 1953
• Country: Brazil

Petrobras is Brazil's state-owned and largest oil and gas company, with a major focus on deep-water oil exploration and production.

• Exploration and production: A global leader in deep and ultra-deepwater oil extraction technology.
• Refining and distribution: Manages oil refineries, pipelines, and a large network of service stations across Brazil.

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3. Nu Holdings (NU)

• Market cap: $77.34 billion
• Revenue: $10.33 billion
• Gross profit: N/A
• 1-yr return: +9.21%
• Exchange: NYSE
• Year founded: 2016
• Country: Brazil

Nu Holdings is the parent company of Nubank, one of the world's largest independent digital banks. It has disrupted the traditional banking sector in Latin America.

• Digital banking: Offers a user-friendly mobile app providing free credit cards, bank accounts, and loans.
• International expansion: Rapidly growing its customer base in Mexico and Colombia in addition to its core Brazilian market.

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4. Itaú Unibanco (ITUB)

• Market cap: $73.74 billion
• Revenue: $62.93 billion
• Gross profit: N/A
• 1-yr return: +20.56%
• Exchange: NYSE
• Year founded: 1924
• Country: Brazil

Itaú Unibanco is Brazil's largest private-sector bank and one of the most valuable financial institutions in the world.

• Retail banking: Provides a full range of services to millions of individual customers, including accounts, credit cards, and mortgages.
• Wholesale banking: Caters to large companies and institutional investors with services like investment banking and treasury management.

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5. Vale (VALE)

• Market cap: $46.29 billion
• Revenue: $38.21 billion
• Gross profit: $12.55 billion
• 1-yr return: -1.62%
• Exchange: NYSE
• Year founded: 1942
• Country: Brazil

Vale is one of the world's largest producers of iron ore and nickel, key ingredients for the steel and electric vehicle industries.

• Iron ore production: Operates vast mining complexes in Brazil, producing high-grade iron ore for the global steel market.
• Base metals: A leading global producer of nickel, essential for EV batteries, as well as copper and cobalt.

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6. Ambev (ABEV)

• Market cap: $36.54 billion
• Revenue: $16.59 billion
• Gross profit: $7.67 billion
• 1-yr return: -2.54%
• Exchange: NYSE
• Year founded: 1853
• Country: Brazil

Ambev is a brewing giant and a subsidiary of Anheuser-Busch InBev. It is the largest beverage company in Latin America.

• Beer production: Brews and distributes a huge portfolio of popular beer brands, including Skol, Brahma, and Antarctica.
• Soft drinks: Holds the license to produce, sell, and distribute PepsiCo products in Brazil and other Latin American countries.

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7. Banco Bradesco (BBD)

• Market cap: $33.25 billion
• Revenue: $55.8 billion
• Gross profit: N/A
• 1-yr return: +27.66%
• Exchange: NYSE
• Year founded: 1943
• Country: Brazil

Banco Bradesco is one of Brazil's largest banking and financial services companies, known for its extensive branch network and insurance operations.

• Banking: Offers a complete range of banking services to individuals, small businesses, and large corporations.
• Insurance: A market leader in Brazil's insurance sector, providing auto, health, life, and property insurance.

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8. WEG (WEGE3)

• Market cap: $28.77 billion
• Revenue: $7.1 billion
• Gross profit: $12.86 billion
• 1-yr return: -34.56%
• Exchange: BMFBOVESPA
• Year founded: 1961
• Country: Brazil

WEG is a multinational company that is a global leader in the manufacturing of electric motors and industrial automation equipment.

• Industrial motors: A top global supplier of electric motors, generators, and transformers for a wide range of industries.
• Renewable energy: A major player in the wind and solar energy sectors, producing wind turbines and solar power components.

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9. Ecopetrol (ECOPETROL)

• Market cap: $19.78 billion
• Revenue: $30.95 billion
• Gross profit: $8.72 billion
• 1-yr return: +4.86%
• Exchange: NYSE
• Year founded: 1948
• Country: Colombia

Ecopetrol is Colombia's largest and primary petroleum company, engaged in all parts of the oil and gas chain.

• Exploration and production: Manages oil and gas exploration and production activities primarily within Colombia.
• Refining and petrochemicals: Operates the country's main refineries and is involved in the production of petrochemicals.

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What are the biggest companies by total annual revenue?

• Petrobras: $91.05 billion 
• Itaú Unibanco: $62.93 billion 
• Banco Bradesco: $55.80 billion 
• Vale: $38.21 billion 
• Ecopetrol: $30.95 billion

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What are the biggest companies by workforce?

• Vale: 236,100 
• Ambev: 57,000 
• MercadoLibre: 54,338 
• Itaú Unibanco: 51,700 
• Petrobras: 46,730

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Summary

Understanding a company's performance is crucial; it's how you truly know what you own. These metrics directly drive the value of your stocks and funds. When you understand these key drivers, you can navigate market changes with confidence, rather than just reacting to headlines.

Next we’ll be looking at the biggest companies in India by market cap.

All market data sourced from TradingView and company reports as of 25.09.2025.

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.

‍

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.

‍

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.

‍

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 biggest companies in the USA by market cap?

This list ranks the USA’s biggest companies by market capitalisation; the cumulative value of a company's total outstanding market shares. We’ll also be highlighting other key figures, such as the company's revenue, gross profit, and 1-year return (all based on the previous fiscal year). 

Some other key facts such as the exchange the company is listed on, the founding year and country the company is headquartered in are also covered. 

‍

1. NVIDIA Corp.

• Market cap: $4.50 trillion
• Revenue: $165.22 billion
• Gross profit: $115.4 billion
• 1-yr return: +48.04%
• Exchange: Nasdaq
• Year founded: 1993
• Country: United States

NVIDIA designs powerful chip solutions supplying various innovative industries:

• AI and datacentres: GPUs that companies like Microsoft and Google use to build AI services. 
• Gaming: ‘GeForce’ graphics cards that power high-quality video games on PCs. 
• Professional & Automotive: Chips for film special effects, car infotainment systems, and self-driving technology.

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2. Microsoft Corp.

• Market cap: $3.89 trillion
• Revenue: $281.72 billion
• Gross profit: $193.89 billion
• 1-yr return: +25.96%
• Exchange: Nasdaq
• Year founded: 1975
• Country: United States

Microsoft’s software offers a range of services to businesses and consumers:

• Cloud computing: Supply computer power and storage to businesses using their Azure software. 
• Software: The Windows operating system and Office suite (Word, Excel, Powerpoint) powers PCs and productivity for businesses and consumers.
• Gaming: Own Xbox and major gaming franchises like Call of Duty.
• Other: Invest in AI with their OpenAI partnership and own professional social network LinkedIn.

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3. Apple Inc.

• Market cap: $3.81 trillion
• Revenue: $408.63 billion
• Gross profit: $190.74 billion
• 1-yr return: +14.24%
• Exchange: Nasdaq
• Year founded: 1976
• Country: United States

Apple are a global giant in consumer electronics and digital services:

• Consumer electronics: iPhone, Mac computers, iPads, the Apple Watch, and AirPods.
• Services: App Store, Apple Music, iCloud storage, and Apple TV+.

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4. Alphabet Inc. (Google)

• Market cap: $2.98 trillion
• Revenue: $371.21 billion
• Gross profit: $218.73 billion
• 1-yr return: +46.11%
• Exchange: Nasdaq
• Year founded: 2015
• Country: United States

Most of Alphabet's revenue comes from advertising on its Google Search and Youtube platforms:

• Google Search & Ads: Core revenue stream comes from selling ads on their search engine and network of other websites. 
• Android: Operating system with widespread applications in mobile devices.
• Youtube: World’s largest online video platform, generating revenue from advertising on videos. 
• Google Cloud: Cloud computing business that competes with Microsoft and Amazon.
• Other bets: Series of investments in future facing projects (Access, Calico, CapitalG, GV, Verily, Waymo, and X)

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5. Amazon.com Inc. 

• Market cap: $2.37 trillion
• Revenue: $670.04 billion
• Gross profit: $332.38 billion
• 1-yr return: +21.22%
• Exchange: Nasdaq
• Year founded: 1994
• Country: United States

Amazon’s two main revenue streams are its world leading online store and cloud computing services:

• E-Commerce: Amazon generates profit from selling its own products and charging commission to sellers on their platform. They also make money from advertising on the site and their Amazon Prime subscription services. 
• Amazon Web Services (AWS): Largest revenue source for Amazon comes from its market leading cloud computing services — clients include Netflix and NASA.  

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6. Meta Platforms Inc. 

• Market cap: $1.79 trillion
• Revenue: $178.8 billion
• Gross profit: $146.53 billion
• 1-yr return: +19.20%
• Exchange: Nasdaq
• Year founded: 2004
• Country: United States

The social media giant that owns Facebook, Instagram, Messenger, and WhatsApp; nearly all of its revenue comes from the highly targeted advertising that reaches its user base.

• Targeted ads: Driven by data collected from their users base that allows advertisers to target different user groups.
• The Metaverse: Investing billions of dollars developing virtual and augmented reality hardware and software. 

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7. Broadcom Inc. 

• Market cap: $1.59 trillion
• Revenue: $59.93 billion
• Gross profit: $37.83 billion
• 1-yr return: +92.43%
• Exchange: Nasdaq
• Year founded: 1961
• Country: United States

Technology company designing chips for networking and smartphones, and sells essential software to large corporations. 

• Semiconductors (Chips): They design and sell a wide range of chips essential for Wi-Fi and Bluetooth in smartphones (key supplier for Apple), as well as networking equipment in data centers. 
• Cloud services: Large software companies (like VMware) that supply big businesses with IT and cloud computing infrastructure on a subscription basis. 

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8. Tesla Inc.

• Market cap: $1.44 trillion
• Revenue: $92.72 billion
• Gross profit: $16.21 billion
• 1-yr return: +73.93%
• Exchange: Nasdaq
• Year founded: 2003
• Country: United States

Tesla is the world’s leading manufacturer of electric vehicles, with further focus on energy and artificial intelligence.

• Electric cars: Main source of revenue and profit comes from their line of EVs like the Model Y, Model 3, Model X and Cybertruck. 
• Energy generation & storage: Renewable energy for consumers and businesses from solar panels and batteries — the Powerwall for homes and Megapack for utility companies. 
• Future goals: A large portion of Tesla’s valuation is based on future plans for technology like full self-driving technology and developing humanoid robots. 

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9. Berkshire Hathaway Inc.

• Market cap: $1.08 trillion
• Revenue: $370.15 billion
• Gross profit: $89.41 billion
• 1-yr return: +8.69%
• Exchange: New York Stock Exchange
• Year founded: 1893
• Country: United States

A huge holdings company that owns and invests in a diverse network of businesses.

• Owns companies: Key examples include GEICO (car insurance), BNSF (major American railway) and Duracell (batteries). The profits of all these companies flow into Berkshire. 
• Invests in stocks: They own a huge stock portfolio with large holdings in Apple, American Express, Bank of America and the Coca-Cola Company.
• The model: They use cash from their businesses profits and stock growth to buy more businesses and stock, creating a powerful cycle of long-term growth. 

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10. JP Morgan Chase & Co.

• Market cap: $846.07 billion
• Revenue: $278.82 billion
• Gross profit: N/A
• 1-yr return: +45.80%
• Exchange: New York Stock Exchange
• Year founded: 1893
• Country: United States

The largest bank in the United States and a leading global financial institution, operating under two brand names: J.P. Morgan and Chase.

• Consumer and community banking (Chase): serves tens of millions of customers within the US with current and savings accounts, credit cards, mortgages and car loans.
• Corporate and investment banking (J.P. Morgan): serves huge global clients like corporations and governments, with banking and advisory services; helping facilitate mergers and acquisitions (M&A) and managing stock market listings (IPOs). 

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What are the biggest companies by total annual revenue?

• Walmart: $680.99 billion
• Amazon: $637.96 billion
• UnitedHealth Group: $400.28 billion
• Apple: $391.04 billion
• CVS Health Corporation: $372.69 billion

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What are the biggest companies by workforce?

• Walmart: 2.1 million
• Amazon.com: 1.56 million
• UPS: 490,000
• Home Depot Inc.: 470,100
• Concentrix Corporation: 450,000

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Summary

Understanding a company's performance is crucial; it's how you truly know what you own. These metrics directly drive the value of your stocks and funds. When you understand these key drivers, you can navigate market changes with confidence, rather than just reacting to headlines.

All market data sourced from TradingView as of 08.10.2025.

It took 20 years for computers to eliminate the typing pool, 30 years for the electric lightbulb to transform factory floors, generations for tractors to erode the agricultural workforce.

Anthropic’s chief executive Dario Amodei contends AI will halve entry-level white-collar work by 2030. Microsoft’s co-founder Bill Gates warned that in a decade “without the right policies, there will be far fewer [jobs] than exist today”.

Most economists are sceptical about Silicon Valley’s doom-laden prophecies, arguing previous predictions that automation would wreak job market Armageddon — including a widely cited 2013 study warning half of US jobs could vanish within a decade — have failed to materialise.

“Ever since numbers started appearing . . . all the numbers have been proved wrong!” noted Nobel laureate Sir Christopher Pissarides, co-founder of the Institute for the Future of Work.

Yet as warnings over AI’s destructive potential intensify, working out its likely effects on labour markets has become “almost the only topic around economics”, according to Simon Johnson, the former IMF chief economist heading the UK’s new AI Economics Institute.

Economists do not see a future without jobs. But they do see scope for rapid, disruptive change in the nature of work — with no guarantee that gains from the technology will be evenly shared.

Predictions for the eventual outcome vary wildly.

Research, led by Cosmina Dorobantu at the London School of Economics, analysed 74 studies of AI’s actual and potential impact. The recent report said: “Anyone looking for a figure of AI’s effect on employment can choose from estimates ranging from minus 20 per cent to plus 25 per cent. For wages, the range runs from minus 34 per cent to plus 40 per cent. Selecting a single headline number . . . is a decision about which story to tell.”

Few signs exist of AI killing jobs across the global economy. Even in the US, where adoption is most advanced and recent data shows payrolls are down in sectors such as finance, the Yale Budget Lab has found no clear evidence of it changing the mix of occupations in the workforce or putting graduates out of work.

“Employment rates in most OECD countries are still near record highs, despite some recent signs of weakening,” noted Stijn Broecke, who leads research on AI’s job market effects at the Paris-based OECD. It has just run a survey of 8,000 employers in 13 countries, which suggests only one in 10 of those adopting AI are cutting headcount — and just one in 100 is doing so mainly because of AI.
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The most worrying development is a cross-country slowdown in entry-level hiring in tech-related occupations — consistent with AI turbocharging the productivity of senior staff while taking over routine tasks done by juniors.

But there is no consensus on the cause. “Unemployment of young graduates has worsened since 2015. It’s a long-term trend. AI is clearly not the only factor,” Broecke argued, citing a potential oversupply of graduates, the rise of remote work and high interest rates.

The absence of aggregate job losses may simply be the calm before the storm.“Talk to executives in the non-tech sector — those who use AI as customers — and many say they don’t need as many workers as they did before AI,” Johnson said. “It is not yet in the numbers . . . but the automation threat is very real.”

Modelling by the Anthropic Institute, published last month, included an extreme scenario where rapid gains in AI’s capabilities cut “cognitive” employment by a fifth by 2030, leaving one in five white-collar workers and one in 10 of all workers unemployed.

The model is highly sensitive to underlying assumptions. The extreme scenario assumes AI will rapidly become able to perform most tasks without human oversight, will be widely adopted and will generate big productivity gains.

Other scenarios show more modest change, but Anton Korinek, who led the modelling, said he “personally put more weight” on those showing a rapid increase in AI adoption from 2028, with the technology becoming able to rival and replace senior executives, not just entry-level staff.

In practice, companies may be slow to shed workers even when AI tools can do the job.

Broecke of the OECD said: “There is the cost of technology. There are legal barriers, social preferences, ethical issues. There are all sorts of reasons why something that is theoretically possible will not happen in practice.”More alarming forecasts are generally based on measures of so-called exposure to AI — looking at its ability to perform the many different tasks that make up a role.

These studies of potential exposure to AI are “a good first pass” but they overstate likely job losses, according to Ronnie Chatterji, chief economist at OpenAI, as typically “tasks are not weighted by their importance to the job or the wage” and they do not take account of barriers to organisational change or the way roles can evolve.“

A job is not a task,” agreed Luis Garicano, professor at the LSE’s School of Public Policy.All jobs comprise “bundles” of tasks, Garicano argued. Some, such as translation or copywriting, may be relatively easy to split up and automate. Others — including nursing or politics — are primarily based on relationships. In the middle are what he calls “messy jobs”, with “tangled sets of tasks that are hard to separate”.

He gives an example of consultants, who might spend two weeks analysing data to redesign a loyalty programme but months figuring out how to tweak it so stakeholders are happy and commit to implementing it. AI can write the PowerPoint presentation — but it reflects “a whole set of meetings”, he said

.Economists argue bleaker forecasts also tend to play down the potential for AI to create new jobs.

This is partly a failure of imagination, optimists say. A 2024 study by economists at the Massachusetts Institute of Technology found the majority of job occupations in the US — including novelties such as tattooists and hypnotherapists — only emerged after 1940.

Employment could also rise in existing occupations that have higher demand because of AI. Telecoms engineers are in high demand for data centres. If AI boosts overall prosperity, people may have more to spend on labour-intensive luxuries such as spa breaks.

Even in areas where AI is labour-saving, the overall effect on jobs could be positive if prices fall far enough to pull in new customers — for instance if legal advice becomes cheap enough for more people to afford lawyers.

“I’m bullish on humans having a lot to do,” Chatterji of OpenAI said, noting countries often spend more on health and education as they become richer, so gains from AI could be “put into lowering class sizes and providing more healthcare”.

If AI does eradicate jobs, though, it could also cut consumer demand — and in gauging the aggregate effect, “it is not obvious which way it would go”, Korinek said.

One area where tech bosses and economists agree is governments do not have to wait for the AI revolution to play out. Gates has argued certain jobs should be designated as “human reserved”.

Raghuram Rajan, India’s former central bank governor, is among many voices arguing for a “token tax” on AI usage, to make sure companies do not adopt labour-saving AI purely “because it costs less in taxes than human effort”.

Others argue governments should worry less about whether AI is killing jobs and more about whether it is deskilling workers, squeezing wages and creating new divisions between winners and losers.

Pissarides’ main concern is that it will worsen existing inequalities if a few dominant players capture the gains. “It is very unlikely that strong monopolies lead to more equality,” he argued. “Who is going to make nurses or hotel employees get good pay rises if AI increases the productivity of managers?”