Interest is coming

Published on
January 11, 2023
3 min read
VP of Marketing
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The bonus on the Chip Instant Access Account is changing to monthly compound interest.

Our Chip Instant Access Account currently has the market's highest easy-access savings return* of 3.00%.

This return has been paid in the form of a bonus, however…from 11 February 2023 the return on the Chip Instant Access Account will accrue as interest, which will compound and be covered by FSCS.

Goodbye bonus, hello interest

Earn interest on your interest every month

From 11 February 2023, the Chip Instant Access Account % return will be replaced with interest, shown as variable AER (which stands for Annual Equivalent Rate, the industry standard for comparing interest).

Your interest will accrue daily, and be paid monthly directly into your account as cash that you can withdraw anytime (first payment will be 6 March 2023). It will also compound on a monthly basis, meaning each month you earn interest on your interest.

To reflect this compounding, your AER will be slightly higher than your % bonus. For example, the current 3.00% return would become 3.04% AER.

Interest covered by FSCS

Your money kept safe

Your eligible deposits are currently covered by the Financial Services Compensation Scheme (FSCS), but from 11 February 2023 both your deposits and any new interest accrued will be eligible for FSCS cover up to the FSCS’s threshold of £85,000.

The Chip Instant Access Account is provided by our partner ClearBank who ultimately hold all deposits at the Bank of England itself, you can read more about FSCS and how you’re covered on their website here.

Do you need to do anything?

No! This change will happen automatically from 11 February 2023

The Chip Instant Access Account is still an easy-access account with near instantaneous deposits and withdrawals, and the rate remains variable and we’ll aim to follow market movements to keep it competitive.

Any deposits you have in the account will start accruing interest from 11 February 2023.

You will still accrue your 3.00% return as a bonus for January, and this will be awarded to your account on 7 February as per usual.

For 1 - 10 February you will also accrue the 3% bonus and this will be awarded to your account on 11 February as a one-off final award before the change to interest.

T&Cs and important details

Please download and keep a copy of the T&Cs for your records​

Please find the links to the new T&Cs for the Chip Instant Account that will come into effect 11 February 2023.

And just to be clear:

  • You will not earn interest on any bonus you’ve already accrued and past bonus will not be automatically converted to an interest payment.
  • From 11 February, bonus will no longer accrue or be awarded on the Chip Instant Access Account, only interest will be accrued and paid.

As Albert Einstein once said “Compound interest is the 8th wonder of the world”, and we think he wasn’t far off. We hope you like the change!

As always, if you have any questions don't hesitate to get in touch by replying to this email, dropping a line to, or head into your in-app chat.

*The current bonus return is awarded monthly as a bonus, not interest. The bonus return is not FSCS protected.  Highest return on easy access savings on, Go Compare, and Money Saving Expert as of 11/01/23.

Income Tax

If you’re unsure whether the total amount of interest or bonus you will receive could exceed any personal savings allowance then you should check with His Majesty’s Revenue and Customs (HMRC). You may have to pay tax on any interest or bonus over your personal savings allowance. Chip does not provide tax advice. Tax treatment depends on individual circumstances and may be subject to change in the future.

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