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Chip - Earn 1.25% on savings - free @ iOS App Store
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Chip - Earn 1.25% on savings - free @ iOS App Store

iOS App Store Deals
Posted 19th Jun 2021

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I received this offer via my Snoop finance app stuck £10,000 in to leave it there plus it’s easy access

Savings rates have taken a huge nosedive this year with the top rates for easy access accounts dropping from 1.35% to 0.5%, which is the best right now

But some welcome relief comes from auto-saving app Chip. It’s currently offering a savings bonus of 1.25%.

Usually you need a friend to refer you to get the 1.25% interest rate but I've bagged you a code. New customers to Chip (which I think you are) just need to download the app and sign up via this Chip* link and use the VIP code SNOOP21. 💪

But first, here’s what you need to know…

⭐️ What is Chip?

Chip is an auto-saving app available on both Android and iOS. Its big pitch to-date has been its auto-saving functionality – you connect an account to Chip (like you do with me) and then it works out how much you can afford to save based on your spending patterns.

Previously it moved this into an electronic savings pot which didn’t earn interest or have the same Financial Services Compensation Scheme protection that traditional savings accounts have (which is why it’s never been my favourite savings vehicle). However, this account is different.

⭐️ Earn 1.25% with the Chip+1 account

It’s newly launched Chip+1 account offers 1.25% interest on balances up to £10,000 if you’re new to Chip (which I think you are). To access the account, you need a code – I’ve bagged one just for Snoopers – it’s SNOOP21. Just download the app* and enter the code once you've signed up

Chip has two membership plans to choose from which give access to the platform. The first plan is ChipAI which gives you access to the Chip+1 account and the 1.25% rate on balances up to £10,000. This costs £1.50 every four weeks after a one month free trial.

The alternative plan is ChipLite which also gives access to the Chip+1 account but only gives 1.25% on balances up to £2,000, however it’s free.

⭐️ Your deposits into Chip+1 are fully covered by the FSCS

Traditional savings accounts regulated by the FCA are covered by the Financial Services Compensation Scheme (FSCS), which means if the provider goes bust, up to £85,000 of your money is covered per institution. Many of the new savings apps aren’t regulated in the same way.

However, the Chip+1 account is working with ClearBank to provide the account. ClearBank has a full UK banking licence so any money you put into the account is protected. If Chip went bust, you’d be able to access the money from ClearBank, if ClearBank goes bust, the FSCS kicks in.

There is one small caveat to this – the interest you earn is put into a separate (ring-fenced) account as this is being paid by Chip. So, the interest isn't protected in the same way as the money you deposit. The account the money goes into is ring-fenced by a high street bank.

If Chip goes bust, you would be able to access your interest from the high street bank. If the high street bank goes bust, you won’t get your bonus back.

It’s also worth noting that the interest paid doesn’t compound (this is where you earn interest on your interest). However, even when you factor that in, this account still beats the best of the rest out there.

⭐️ Why is Chip doing this – is it too good to be true?

This is a significantly higher rate than the other accounts in this market, and I know I always tell you that if it sounds too good to be true, it probably is. However, this is legit. Chip is funding the interest bonus itself and it says that this money is coming from its marketing budgets.

➡️ Get Chip+1* with the code SNOOP21
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