What is passive investing?

Passive investing is a long-term investment strategy that aims to replicate the performance of a market index, rather than trying to beat it.

Investors typically buy into funds, such as index funds or exchange-traded funds (ETFs), that track a broad market benchmark like the FTSE 100 or S&P 500.

Key passive investing characteristics

• Low cost: Passive funds generally have lower fees because they require minimal management. 
• Buy-and-hold approach: Passive investors aim to ride out market ups and downs over time. 
• Diversification: Tracking an index provides exposure to a wide range of companies.

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What is active investing?

Active investing involves ongoing decision-making to buy, hold, or sell assets in an attempt to outperform the market. 

This strategy is often managed by fund managers or individual investors who analyse market trends, company performance, and economic indicators to make investment choices.

Key active investing characteristics

• Higher costs: Fund management, research, and transaction fees tend to be higher. Learn about investment fees and costs.‍
• Tactical decisions: Active managers may buy or sell holdings frequently to exploit market opportunities.
• Potential for higher returns: Success depends on skill, timing, and market conditions.

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The advantages and disadvantages of passive investing

Advantages of passive investing include:

• Lower fees: Less management means reduced ongoing costs.
• Simplicity: Ideal for beginners; less time and knowledge required.
• Market-matching performance: Often performs better than many actively managed funds over the long term.

Disadvantages of passive investing include:

• No chance to outperform the market: Returns will always closely mirror the index.
• Limited flexibility: Can’t adjust quickly to market shifts or exploit short-term opportunities.
• Market downturns: Passive funds track indexes even during declines, with no defensive measures in place.

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The advantages and disadvantages of active investing

Advantages of active investing include:

• Opportunity for higher returns: Skilled asset managers can outperform the market, especially in less efficient markets.
• Flexibility: Managers can pivot strategies in response to changing conditions.
• Tailored investment strategies: Portfolios can be aligned with specific goals or themes (e.g., ethical investing, emerging markets).

Disadvantages of active investing include:

• Higher costs: Active funds charge more, which can eat into returns.
• Greater risk of underperformance: Many active funds fail to beat their benchmarks after fees.
• Requires more research and monitoring: Not ideal for novice investors or those short on time.

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Is active or passive investing right for me?

Choosing between active and passive investing depends on your goals, how much time you want to dedicate to managing your investments, and how comfortable you are with risk. How to know your risk tolerance.

If you're just starting out, passive investing is often a practical and beginner-friendly option. It requires little ongoing effort, keeps costs low, and provides broad exposure to the market.

It’s especially suited to long-term investors who prefer a “set it and forget it” approach and are happy with market-average returns.

On the other hand, if you're someone who enjoys researching companies, keeping up with economic trends, and believes in your ability (or that of a professional) to spot investment opportunities, active investing might appeal to you. 

It offers the potential for higher returns but comes with more risk, higher fees, and a greater time commitment.

You should also consider your risk tolerance. Passive investing tends to be more stable and predictable, while active investing can be more volatile, especially over shorter periods.

Importantly, you don’t have to choose one or the other. Many investors find that a blend of both, using passive strategies for long-term stability and active ones for targeted opportunities, gives them the best of both worlds.

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How to combine active and passive investing

Many investors choose a blended approach, combining both active and passive strategies to balance cost, control, and opportunity.

Common combinations:

• Core and satellite: Use a passive fund for the core of your portfolio, with smaller “satellite” allocations to active funds targeting specific sectors or regions.
• Thematic investing: Stick with passive index funds for broad market exposure and add active investments in areas you believe have strong growth potential.
• Rebalancing over time: Start passive, then explore active strategies as your confidence and knowledge grow.

This approach allows flexibility while keeping fees manageable and risk diversified.

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Passive and active investing summary

Understanding the core differences between passive and active investing is essential for building a strategy that suits your financial goals and comfort level. 

While passive investing offers cost-efficiency and simplicity, active investing presents opportunities for higher returns, albeit with added risk and effort.

Ultimately, there's no one-size-fits-all answer. Many UK investors successfully use a mix of both approaches to suit their needs.

In the next guide in our Investment Strategies series, we’ll explore another foundational concept: Growth Investing vs Value Investing, two popular approaches to selecting individual stocks.

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The writer is chief multi-asset strategist at HSBC.

Given the scale of negative developments that markets have had to contend with in the last five years — from a pandemic to energy shocks — it seems nothing short of breathtaking that riskier assets like equities have been so resilient.

One popular narrative is that this has recently been a result of AI, which is seen as the sole driver of current strong earnings growth in the US. But that belies the broader trend.

Even outside of tech and AI, US earnings are currently about 50 per cent above the pre-Covid trend. Higher nominal economic growth and multi-decade low corporate tax rates have been major drivers behind this. And outside the US, earnings growth has been rising in the last 12 to 18 months.

From a top-down perspective too, there is a gap between current conditions in the economy and the consensus view which has persistently run counter to the popular adage of “never bet against the US consumer” in the past few years. As a result, the US economy has repeatedly surprised on the upside.And there’s a long list of other reasons behind the strength of equity markets.

Increased allocations to equities: Higher inflation since 2021 has spurred a shift in equity-bond market correlations, with the asset classes moving more in tune with each other. Bonds no longer diversify portfolios as they used to, let alone hedge them.

We think this means allocations to equities will probably remain high in the coming quarters, with big investors seeking downside protection via option markets and other more exotic strategies. These allocations support not just higher valuations of equities but also the spectrum of riskier assets.

The wealth effect: The increase in US household wealth has been much more rapid than pre-Covid. This isn’t just a function of higher equity markets. Even the value of cash holdings is almost 50 per cent above trend.

The vast majority of this increase in US wealth is among high-income households — those that not only spend the most but also invest a bigger portion of their wealth back in financial markets.Larger central bank toolkit.

Analogies between current conditions and the lead-up to the 2007-08 financial crisis are often made. What those comparisons miss is that central banks have a much wider toolkit nowadays — and they aren’t afraid of inventing new ones if need be, even in the middle of a rate-rising cycle.

The Federal Reserve’s emergency liquidity programme in 2023 was one example of this. Such implied support boosts risk appetite.Lower oil intensity of developed economies. Compared with the 1970s and 1980s, consumer spending on energy as well as economy-wide energy consumption per GDP is much lower nowadays.

This means that, even as shocks such as Russia-Ukraine or the Middle East conflict have led to higher oil prices, riskier assets have largely taken them in their stride.Low private sector leverage and lower sensitivity to interest rates.

The US housing market remains in the doldrums and interest rates have risen. But the average effective rate on existing mortgages is actually some 2 percentage points lower than the current rates being offered. And housing activity is no longer as important as it was before the financial crisis.

Lower interest rate sensitivity also applies to consumers and corporates overall: the ratio of US household debt payments to disposable income, for example, is not even at the average levels seen in the 2010s, let alone the levels before the financial crisis.

For companies, net interest payments have slumped to a more than 20-year low and to record lows when compared with record-high corporate profits. And almost two-thirds of bonds and loans of S&P 500 companies won’t expire until after 2030, with only about 10 per cent of debt being on a floating rate these days.

Quicker information flow and price discovery and other technical factors.

Programme trading, AI, social media etc have all contributed to a quicker information flow. Drawdowns now happen much quicker. But so do recoveries, in turn fuelling the buy-the-dip mentality further.

Other technical factors include the rise of index investing. Buying and selling linked to the rebalancing of index fund vehicles can dampen stock market volatility.

As ever, there are risks to the bullish view and we may well see short-term drawdowns in riskier assets in future. But the list of structurally supportive factors is simply too long for me to join the bearish camp.

A US government shutdown* has been triggered after a deadline to reach a funding agreement before the start of the new fiscal year (1 October) came and went without a deal.

Noisy headlines like these can feel unsettling, but history shows that markets usually take them in stride. While shutdowns can cause short-term noise, they rarely derail the bigger picture for long-term investors.¹

‍Chip explains: What is a government shutdown?: In the U.S., Congress has to approve funding for government operations. If lawmakers can’t agree on a budget before the 1 October deadline, parts of the government temporarily close until a deal is reached.‍

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What might happen in the short term?

• Data delays: Key economic reports could be postponed, creating a temporary “blind spot” for analysts and traders.
  
• Government-linked sectors: Contractors and defence companies may face small payment lags, but these tend to be resolved once funding resumes.
  
• Market sentiment: Expect some short-term jitters and reactive headlines in the news cycle, but past shutdowns haven’t caused lasting damage.

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Why investors don’t need to panic

The most important thing to note is that history is on your side. U.S. markets have been largely unaffected by previous shutdowns, with long-term returns back on track once political gridlock passes.²

Diversification also plays an important role. By spreading your money across different regions, sectors, and asset classes, you avoid being overly exposed to temporary political standoffs like this.

And most importantly, while headlines can spark short-term nerves, it’s worth remembering that the bigger picture matters far more than these short-lived disputes, so stick to the plan.  
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How Chip helps you stay steady

At Chip, we keep investing simple and diversified. Choose from over 40 investment funds – offering clear, curated choices without overwhelming you with thousands of options.

If you’re investing for the long term, the message is clear. Stay the course, let diversification do its job, and keep your goals in focus.

Head to the ‘Invest’ tab in your Chip app and see how you could put your money to work today with a tax-free Stocks & Shares ISA or General Investment Account.

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Sources:

¹ JP Morgan

² Voya

Understanding investment risk tolerance

Your risk tolerance refers to how much risk you are comfortable with. A high risk tolerance means you're more comfortable with the idea of losing money, and a low risk tolerance means you're less comfortable. 

Generally, there is a trade-off between risk and reward in investing. That means asset classes that historically have yielded the biggest returns, have the most potential for volatility.

For example, the equities markets have outperformed lower risk bonds long-term, but typically fall further during bad market days. 

If you decide you want to pursue higher risk investments, ask yourself, "Would I be happy seeing a significant drop in the value of my investment during volatile periods?”

Maybe look at risk through the lens of your day to day life. Do you often take risks? Would your close friends and family describe you as a risk taker? 

It’s also important to consider:

1. Investment time horizon – How much time do you have to invest? What stage of life are you in? If you have longer, you might be able to cope with some volatility, as long-term there’s a much greater chance your investment will yield greater returns than losses. 

2. Financial situation – How much would a fall in your investment affect your standard of living? (this is known as your financial capacity for loss). It’s recommended that you save 3-6 months of essential living expenses in cash as an emergency fund, and clear any outstanding high-interest debt before you consider investing. 

3. Liquidity needs – How much cash do you need access to in order to meet immediate financial needs. It might be a good option to keep some of your investments in something that’s easier to liquidate (sell) if you may need access to the cash in the near future. 

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How to calculate Return on Investment (ROI)

ROI is a simple way to see how much money you’ve made (or lost) on an investment, relative to what you put in.

To work it out, subtract the cost of your investment from the final value, then divide by the cost. Multiply that number by 100 to get a percentage.

ROI = (Final Value - Initial Investment) / Initial Investment × 100

It’s a handy tool for comparing different investments, but keep in mind it doesn’t factor in things like time or fees.

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Investing Strategies

There are a number of strategies you can use when investing, that suit a variety of risk tolerances and investment horizons.

Not all of these strategies cater to a long-term strategy, so keep that in mind when choosing what’s right for you.

You also don’t have to stick to one strategy. Depending on your risk tolerance, you could combine conservative and speculative strategies, as a weighting of your portfolio – similar to the way you diversify using asset classes. 

Growth Investing Strategy

Growth investing focuses on putting your money into companies that are expected to grow faster than average – think up-and-coming tech companies or innovative startups.

These companies often reinvest profits to fuel growth, so you might not see big dividends, but the share price could rise significantly over time.

This strategy tends to suit investors with a higher risk tolerance and a long-term outlook.

It can be rewarding, but also more volatile, especially if markets dip or the company doesn’t live up to expectations. How do stocks work?

Value Investing Strategy

Value investing is like bargain hunting. You're looking for companies that are deemed ‘undervalued’ by the market – quality businesses going for less than what they’re really worth.

The idea is that over time, the market will catch on, and the stock price will rise.

It’s a more patient, long-term strategy and usually involves digging into the specifics of a company (like earnings, assets, and debt).

This approach has been championed by legendary investors like Warren Buffett.

Index Investing Strategy

Index investing is a low-maintenance, low-cost way to invest by investing in a whole market index (like the FTSE 100 or S&P 500), rather than picking individual stocks.

You’re spreading your risk across hundreds of companies, which helps balance out the ups and downs of any single stock price.

It’s a popular strategy for beginners and long-term investors who want steady exposure to the market without trying to ‘beat’ it. 

Pound-cost Averaging Strategy

Pound-cost averaging means investing a set amount of money regularly, regardless of whether the market is up or down.

Over time, this helps smooth out the price you pay for investments and can reduce the impact of volatility.

You end up buying more units when prices are low, and fewer when prices are high, as the same amount is invested each time.

It’s a great way to build a habit of investing and avoid trying to time the market (which even the pros struggle to get right).

Momentum Investing Strategy

Momentum investing is about chasing market trends. You buy investments that have been going up in value, with the belief that they’ll keep climbing (for a period of time).

This strategy relies on trends and market psychology, rather than company fundamentals. It can be potentially profitable in the short term, but it also comes with higher risk, prices can fall just as quickly. It’s not regarded as a long-term strategy, and it’s important to have an exit plan.

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Understanding Stock Market Basics

The stock market is, simply put, a place where buyers and sellers trade shares in public companies. When you buy a share, you’re buying a small piece of that company.

Stock prices move up and down based on how investors feel about a company’s future, as well as broader economic news.

Our next guide dives deeper into the basics of the stock market. 

The Nasdaq 100 hit a record high on Tuesday as a retreat in oil prices and optimism about AI developments drove a rally in tech stocks.

The index — which is heavily weighted towards the share prices of big tech companies, particularly AI and hyperscalers — closed 0.8 per cent higher at a new peak. It also struck a new intraday high that overtook its previous record set in early June. The broader S&P 500 closed fractionally lower.

Investors said that the success of Meta’s new Muse AI model, which quickly became the most downloaded free app on the Apple App Store after its launch this month, generally boosted sentiment this week. Meta rose 11.4 per cent on Monday, though shed 0.6 per cent on Tuesday.
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Michael Zigmont, co-head of trading at Visdom Investment Group, said the moves “look like the start of a broad momentum trade” for tech stocks, describing Monday’s trading session on Wall Street as an “everybody back into the pool moment”.

Tech stocks have wavered since early June, when a brutal unwinding of big bets on the sector saw some of this year’s biggest stock market winners tumble, including South Korea’s chip and memory giants. The sector has struggled to regain its footing since then, as soaring oil prices and a bond market rout have added to investors’ list of worries.

Oil prices have fallen and bonds have rallied in recent days on hopes of progress towards a settlement in the Iran war. Brent crude fell as much as 2.9 per cent in early trading on Tuesday after Saudi Arabia signalled the reopening of a key export pipeline.

“AI Fomo [fear of missing out] is back in force,” said Emmanuel Cau, chief European equities strategist at Barclays, adding that there were “several factors in play” in the rally, including lower oil prices and reports of US-China talks on AI.

Cau said that “the move was reflective of much cleaner positioning in the tech space” after the June deleveraging.

Chipmakers were among the biggest gainers on Tuesday, as investors bet that the success of models such as Muse would boost chip demand.

Sandisk gained 6.8 per cent, while Seagate Technology gained 4.8 per cent and Western Digital was up 3.7 per cent.

Treasury yields across maturities fell, with the benchmark 10-year yield down 0.01 percentage points at 4.95 per cent. Yields have risen dramatically in recent months, with prices falling, as traders have demanded a higher premium for their exposure to risks including price pressures related to the US war in Iran, worries about the US deficit and an economy firing on all cylinders.

The jump in Treasury yields, which lifts interest rates on debt for companies, has hit the share prices of tech companies heavily dependent on borrowing.

What is ESG investing?

ESG investing is a strategy that considers environmental, social, and governance factors when selecting investments. 

Rather than focusing solely on financial returns, ESG investing also evaluates how companies manage risks and opportunities related to:

• Environmental impact (e.g. carbon emissions, waste management, energy efficiency)
• Social practices (e.g. employee treatment, community impact, supply chain ethics)
• Governance structures (e.g. executive pay, board diversity, shareholder rights)

While financial performance remains important, ESG investing applies an additional layer of scrutiny to assess whether a company acts responsibly and sustainably.

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How ESG investing works

At its core, ESG investing uses specific non-financial criteria to screen or select investments. This can be done in several ways:

• Positive screening: Choosing companies that score highly on ESG factors
• Negative screening: Excluding companies that operate in controversial industries (e.g. tobacco, fossil fuels)
• ESG integration: Incorporating ESG analysis alongside traditional financial metrics
• Thematic investing: Focusing on specific ESG-related themes like clean energy or gender diversity
• Engagement and stewardship: Actively engaging with companies to encourage better ESG practices

Many fund managers and platforms now offer ESG-labelled products, often relying on third-party ESG ratings to guide decisions.

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An example of ESG investing

Imagine an investor wants to support the transition to a low-carbon economy.

Instead of buying shares in a traditional energy company, they invest in a fund that holds companies developing renewable energy technologies, such as wind or solar power.

At the same time, they may avoid companies with poor track records on pollution or that are heavily reliant on coal production.

This kind of decision reflects an ESG mindset, considering not just potential returns, but the broader impact of each investment.

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Advantages and Disadvantages of ESG Investing

Advantages of ESG investing include:

• Alignment with values: Investors can support causes they care about without sacrificing financial goals.‍
• Risk management: Companies with strong ESG practices may be better positioned to handle long-term risks.‍
• Growing demand: Interest in ESG is increasing, which may drive innovation and market opportunities.

Disadvantages of ESG investing include:

• Inconsistent ratings: ESG scores can vary between providers, leading to confusion.‍
• Greenwashing: Some companies may overstate their ESG credentials without meaningful action.‍
• Limited track record: While ESG funds have grown, long-term performance data is still evolving.

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ESG metrics used

Measuring ESG performance involves analysing both qualitative and quantitative indicators. Common metrics include:

• Carbon emissions and energy usage (Environmental)
• Workforce diversity, employee turnover (Social)
• Board independence, executive compensation (Governance)

These metrics are typically aggregated into an ESG score by third-party rating agencies. However, scoring methods vary, making it important for investors to look under the surface rather than relying on a single number.

In the UK, regulatory bodies like the Financial Conduct Authority (FCA) are working to improve transparency and standardisation in ESG disclosures, but this remains a developing area.

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How ESG differs from sustainable investing

While ESG and sustainable investing often overlap, they’re not identical. ESG investing focuses on how environmental, social, and governance risks and opportunities affect a company’s performance and, in turn, an investor’s returns.

Sustainable investing prioritises broader long-term goals, such as promoting a more sustainable future, even if the financial returns take longer to materialise.

In simple terms, ESG is often about risk and responsibility, while sustainable investing is more explicitly mission-driven.

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Other considerations for UK investors

• Regulation and Disclosure. The UK has committed to making climate-related financial disclosures mandatory for many large companies and asset managers. This is intended to help investors make more informed decisions and reduce the risk of greenwashing.‍
• Tax and Investment Wrappers. As with any investment, ESG assets can be held in ISAs or SIPPs, offering potential tax advantages. However, ESG status doesn't inherently make an investment more or less tax-efficient.‍
• Due Diligence is Key. Regardless of ESG labels, it’s important for investors to review the fund’s holdings, strategy, and costs, and ensure it aligns with their personal goals and risk tolerance.

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The bigger picture of values-based investing

ESG investing offers a growing range of options for UK investors who want to align their financial decisions with their values.

It’s not about choosing between returns or responsibility, but about understanding how both can work together when guided by thoughtful analysis.

As ESG awareness matures, many investors are exploring even more focused strategies, like thematic investing, which allows you to back specific trends or ideas (such as clean tech, water security, or ageing populations).

Next in this series: Fractional Shares: Investing in Pieces, where we’ll explain how fractional investing works, and how it’s opening up access to markets for beginners.

What is portfolio rebalancing?

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

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

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How to rebalance your portfolio

Start by asking yourself a few key questions:

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

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

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Simple steps to rebalance your portfolio

There are a few different approaches investors use:

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

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

See our full guide on portfolio management.

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How often should I rebalance my portfolio?

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

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

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

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Advantages of portfolio rebalancing‍

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

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Disadvantages of portfolio rebalancing‍

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

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Rebalancing your portfolio summary

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

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

Recognising savings burnout

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

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

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

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

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Reframe your mindset

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

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

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Celebrate small wins

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

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

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Embrace flexibility

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

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

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Diversify your savings strategy

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

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

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

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Practise financial self-care

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

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

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

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Support and inspiration

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

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

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Reassess, realign

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

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The path forward

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

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

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

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You may have seen Chip’s Prize Savings Account featured on BBC Morning Live and how it stacked up against some big names in Prize Draw Accounts. For those of you who don’t know, it’s our easy-access account with a free monthly prize draw, you can get started with £100 which will earn you 10 entries.

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Your savings could earn you tax-free cash prizes every single month. It’s a fun way to grow your money while having the chance to win up to £50,000!

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How Does It Work?

• Save money — Every £10 in your account = 1 prize draw entry (minimum average balance of £100 required)
• Automatic entry —  The more you save, the better your chances‍
• Win tax-free cash — No tax, no fees, just free money!

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What Can You Win?

• A share of £75,000 in prizes
  
• £10,000 grand prize every month
  
• +6,500  winners of £10 every month

Please note prize pools can change.

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Why It’s a Game-Changer

• Tax-free winnings — Keep 100% of your prize money
• No fees — It’s free to enter and we don’t take any fees‍
• Instant access — Withdraw your cash at any time

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The next grand-prize winner could be you!

If you love the idea of saving with a chance to win big, this account is a no-brainer. It’s perfect for anyone who wants an exciting, effortless way to grow their money.

You can learn more about the Chip Prize Savings account here.

So, download the Chip app and deposit to get started today. Good luck!