Chip, the savings app that fights to bring you the best rates while automatically building your savings, has announced changes to its membership plans as it sets out to make more of the app free and gears up to introduce a simplified fee structure.
Chip, on a mission to build the best savings account in the world, has put aside over £690 million for its 400,000+ users to date. The average Chip user saved an extra £3,000 in 2021. By simplifying its membership structure and adding more features to the free plan, Chip aims to enable even more people to save and grow their wealth in the coming year.
As part of the shift, Chip has lifted the cap on cash deposits to £85,000 per savings account, regardless of the plan a user is on - effective immediately. This also includes Chip’s chart-topping account with Allica Bank, offering interest of 0.7% - 7x better than the high-street banks. Chip works with partner banks to offer users market-beating accounts and hold their deposits, which are eligible for the Financial Services Compensation Scheme (FSCS) up to the amount of £85,000.
From mid-January, the fintech will introduce a simplified fee structure, replacing the old plans with just two membership options; ‘Chip’ (free) and ‘ChipX’ (£3 every 28 days).
The free standard ‘Chip’ membership will include a whole host of features:
• FSCS-eligible savings accounts with partner banks
• Cash deposits up to £85,000 per savings account, including into the Allica account offering the chart-topping interest rate of 0.7%
• Compounding interest, paid every single day
• Amazing rates brought to you as Chip negotiates with banks to get even better rates
• Unlimited penalty-free withdrawals from Chip’s easy-access accounts
• Award-winning auto-saving technology
• Savings goals to keep track and stay motivated as you build your savings
• Investments, allowing you to open a General Investment Account and start seeking inflation-busting returns*
• Three basic investment funds**, powered by the biggest asset manager in the world, BlackRock
The premium ‘ChipX’ membership will continue to be £3 every 28 days, offering users access to a much wider range of investment funds and a lower platform fee for investments:
• Everything from the standard free 'Chip' plan
• Full range of investment funds managed by the biggest names in the business
• Stocks & Shares ISA, offering tax-efficient returns from investments
• Ethical and Clean Energy funds
• Emerging Markets fund
• Actively managed funds
• Innovative new funds, as Chip continues to add new products and funds, like the new Crypto Companies fund coming in January 2022
• Investment platform fee of just a 0.25% per annum, making it one of the lowest in the industry
Chip’s CEO and Founder, Simon Rabin, commented: “It seems like a lifetime ago we set out on our mission to build the best savings account in the world. But today Chip has over 400,000 savers, 20,000 shareholders and a team of 130 people. Things have certainly changed from the team of three people sitting in a coworking space in Canary Wharf… but our mission hasn’t.”
“After working closely with our user and crowd-investor communities this past year, we have decided to simplify our fee plans and make more of Chip free to use, with immediate changes to the cap on cash deposits”, Simon continued. “One of the most important aspects of Chip is that by negotiating on behalf of our users we can get the best rates possible. 400,000 people have so much weight, it truly is the power of the community. As Chip grows, this community will only have more power and be able to demand better terms. We are confident this big step of simplifying the app, features and fees will take our mission to the next level, and remove any question that we’re building the best savings account in the world.”