May 29, 2020

Why we're introducing a fee

Chip's £1 fee. How it works and why we're introducing it.

On 3 June 2020, we’re beginning the rollout of loads of new features. This includes our long awaited Interest Accounts which is already being unlocked for investors as we speak.

Now, Chip will become A LOT more than just the app that helps you save automatically; Chip will also be the app that automatically gets you the best possible returns.

However, as part of rolling out all this, we’re making a change that we believe is important to be completely transparent about - we’re introducing a small charge for the use of the autosaving algorithm and AI.

If a saver is lucky enough to be able to automatically stash away over £100 in a 28 day period, Chip will charge a £1 digital service fee. For savers who don’t automatically save over £100 within 28 days, Chip is still completely free to use.

Now, it’s important to stress a few things.

  • The charge is just the use of the algorithm and AI (i.e. autosaves)
  • Manual saves are still completely free
  • We’re not charging you for storing money with Chip
  • No matter how much you automatically save, you will never pay more than £13 in a year.

You will also be able to track your usage clearly in the app and see how far off you are from the £100 mark. Our design team has done a fantastic job to make this as clear as possible.

Why is Chip implementing a fee?

Over the last few years we have been lucky enough to soar above 200,000 users who all love Chip because it “saves without them feeling it”.

We do this with a very clever set of algorithms that our data team constantly tweaks, so our savers get the best experience possible. Recently this has all been turbocharged with Open Banking data and machine learning, to deliver a true AI.

Chip’s algorithm has helped our community of savers pay for weddings, holidays of a lifetime, house deposits, and much much more (check out the Sauce for some amazing Saver Stories)!

If this algorithm can genuinely “help you save without noticing” and help you pay for those amazing things, we hope you won't mind paying a small fraction for that service. If Chip can’t help you save over £100 then there is no need to pay.

For example, if we help you save £1,200 (or more - there is no limit!) in a year without noticing, then we ask for £12 a year in return to cover our costs in doing so. If you’ve saved £1,200 without noticing, we hope you won’t miss £12.

Our goal is to make sure you save as much as possible without you noticing. We will also be releasing a whole host of new features over the summer. We are ALWAYS working to make sure you have the best experience possible.

Can’t you keep Chip free?

We would love it if we could keep Chip free forever. But we are a business and we do have costs we need to cover. Traditionally, banks would hide their charges behind complicated fee structures and often charge vulnerable customers more.

We wanted to do things differently and make it totally fair for all our savers. This small charge means Chip will be free for our more vulnerable customers, whilst not charging anything for storing your money.

This £1 digital service fee will help cover our costs and enable us to take the Chip magic to millions worldwide. We can focus on making our algorithms more intelligent and give you the best experience possible.

I use Chip to get returns

Right now we have two very clear saver types. The first type are savers who “save up for things” and aren’t particularly motivated by returns - this represents around 85% of our userbase at the moment. The other type of savers are those who use Chip to get great, market-beating returns (this is the other 15%).

For savers motivated by returns, we completely understand this charge on the algorithm is not cool. And that’s why we’re building you ChipX. ChipX membership will guarantee you full unrestricted access to all Chip accounts up to £85,000 at market beating rates.

More info is coming on ChipX, but  Interest Accounts are being rolled out to select groups of investors as we speak.

Keeping Chip clear, fair and not misleading

One of the core principles of Chip is being transparent and fair to all our savers.

There’s no point disrupting the savings industry if we’re going to behave like an old-fashioned bank. Not only do we have nothing to hide, we’ll never build anything we want to hide in the first place.

We totally understand that this will be a shock to some savers. We’re owned by over 11,000 amazing investors and we want to make Chip as scalable and sustainable as possible for them, but also for our entire community of savers too.

The ultimate thing that drives us is to help our savers put more aside without feeling it. If we can do that for you, and do it well (over £100 in 28 days), then we think it’s fair to pass on the £1 cost.

The Chip journey is rolling on next stop Interest Accounts, referral bonus and ChipX. We’re looking forward to sharing it with you


When investing your capital is at risk

Remember your Capital is at Risk and past performance is not a reliable guide to future returns. The value of your investment can go down as well as up and you might get back less than you originally invested.

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