Simon
CEO
June 1, 2020

Interest Accounts: the next big step for Chip

Chip’s AI has already helped you save up, now we’re bringing back returns. It’s time to make interest smarter and fully automate savings accounts.

Chip has one clear mission; to be the savings app. This means finding clever new ways to help people save, but also using technology to make savings more accessible, simpler and… just better.  

Millions of people in the UK have less than £100 in savings, Leaving a huge chunk of the UK too reliant on credit, unprepared for a financial shock and not sufficiently planning for their financial future.

And even if you do have savings, for the last decade it has been all but impossible to find a risk-free savings account that offers any kind of return. You can’t rely on banks to deliver, so this has left a problem for Chip to solve.

Chip: solving savings

With clever AI and a radical approach to banking technology, we’ve helped tens of thousands of people who couldn’t, or wouldn’t, save up.  

It’s now time for Chip to take the next step, and automate returns on money you’ve saved up.  

We don’t think you should have to spend hours trawling comparison sites, filling out form after form, and opening multiple accounts. We’ve built something that’ll do everything for you at the push of a button.  

Interest Accounts - changing the game

We not building *a* savings account.

We’ve reimagined what savings accounts should be, and are building Interest Accounts.

Interest Accounts enables you to open a new savings account with a bank with just a few taps. You can deposit, withdraw, and track the performance of your savings all within the Chip app.  

And as you sit back, save and earn interest, we’ll keep going to the banks on your behalf to negotiate better rates and bring them to your app.

This was a service that used to only be available to the super-rich, but by combining Chip savers’ money into a trust account, all our savers can benefit from a service for millionaires, whether they have £1, £100, or £10,000 in their account.  

The more money in the trust account, the better the rates we will be able to negotiate for you. As time goes on, and Chip grows we expect to be able to negotiate higher and higher rates.

The launch rate

For this early investor-exclusive launch of Interest Accounts, we’re bringing you a rate of 0.9% in an easy-access cash savings account with our partner bank.

Given the market conditions, this is a very competitive rate that’s above inflation and significantly higher than the Bank of England’s base rate. Remember:  

  • This is an easy access rate. Many of the headline rates you’ll see are notice accounts, where in exchange for getting a slightly higher rate, it takes months to get your money out. For launch, we wanted to keep things simple and offer easy access, so you can get your money out as early as the next working day.  
  • It is better than you can get with any of the UK’s leading challenger banks. At the time of launch the easy access rate of 0.9% AER is higher than both Monzo (0.5%) and Starling's (0.5%) easy access savings accounts, and Revolut's (1.05%) is behind a £6.99 per month paywall.
  • This is only the start. This isn’t just one savings account. Interest Accounts is a platform that negotiates better rates on your behalf. We already have more account types and more rates in the pipeline. And when these new rates are here you’ll be able to switch your money into them tapping a button.

Safety first - FSCS eligibility  

Your savings, should make you feel safe. Your, nest egg, your literal safety net, is not something that you should need to worry about.  

So Chip has built one of the most secure platforms in our industry. Using Open Banking to verify your identity, state of the art fraud prevention technology, and safeguarding your money throughout all stages of processing.  

And most importantly, your money, when in an Interest Account with one of our partner banks, will be eligible for the Financial Services Compensation Scheme (FSCS). Giving you the ultimate level of protection and peace of mind.  

No risky investments, no weird crypto-currencies, just access to proper grown-up FSCS-eligible savings accounts, with real compounding interest.

There were no shortcuts to get here, and we had to go through an intensive process to become fully authorised by the FCA.  

First-come first-serve

We’ve negotiated for our partner bank to take a total of £5 million of deposits from Chip savers at the 0.9% rate. We’re making this £5 million allocation available on a first-come first-serve basis and we’re expecting this to go fast.

You can only initially deposit £5,000 now, but this cap will be lifted to the full £85,000 limit with the launch of ChipX later this summer.

To manage demand we're asking investors to pre-register. You will be invited to register in batches by email. We will be managing this very similarly to a crowdfund, where we will offer access to A-investors first, then XVIPs and so on…  

Once you've registered you will receive more details about the account and the terms and conditions.

Every deposit our investors make now will help us prove to the banks that Chip is the future of savings and enable us to negotiate the best possible rate for our savers.

We're expecting to launch to all Chip savers in mid-late June.

Only the beginning

Interest Accounts is a major disruption to the savings industry. You’ll be able to open some of the market’s best savings accounts, deposit money and withdraw all from your Chip app.

We will gradually iterate on Interest Accounts and add more features and make any changes you suggest. One of the strengths of Chip, is our engaged investor community, and your input is what’s got us to where we are.  

Again, the 0.9% easy access rate is only the first of many Interest Accounts. We’re already fighting to bring you better rates, more savings account types and FSCS eligible products.

We’re committed to owning the savings space. We won’t rest until Chip is universally known as the place to get the best rates on secure savings.

You can read more on the official webpage for Interest Accounts here.  

Simon Rabin

CEO

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