Chip discussion

Thing is, I was about to post a code myself, until I saw the hides, and I suspected that was the reason.

What do you think about CHIP? I’ve just subscribed myself using a code, although I’m not normally keen on referrals and anything that smells of pyramids.

The 1.25% is tempting, but I understand that there is a cap on what you can deposit, such that the max interest you can earn is £62. So it’s not quite as attractive as it seems.

What’s in it for CHIP? There must be something, otherwise they wouldn’t offer it. I also understand that above a certain level, you are charged for the use of the AI auto-saving facility.

I wouldn’t post your code - or it’s very likely your post will be blocked, like mine was.

Chip need to keep adding users, to keep VC happy… They feel market-leading interest rates is the right way to go.

I invested in them early on, before some of their promises proved hollow. They have great ideals but I increasingly find their execution problematic… the 1.25% isn’t strictly interest - it’s out of their marketing budget I believe, which isn’t long-term viable.

To date they have struggled to monetise/utilise the customer funds they have on deposit. Which is why they’ve now adopted an overly complex charging regime; it’s abhorrent to a veteran like myself, but seems much more palatable to their target audience of millennials. I’m not their target audience.

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I have mixed opinions about Chip

Their key selling point is auto (algorithm-driven) saving. This does nothing for me because I prefer to be in control and use a “pay yourself first” approach to saving and investing. But I think for various reasons (e.g. mindset, income regularity, etc) “pay yourself first” doesn’t work for many and such individuals benefit from an algorithm handling their savings decisions. I don’t think this is a generational thing (i.e. only of value to millennials). I think loads of older people have been atrocious with saving and investing habits over their lifetime and would have benefitted from an algorithm-based approach. Chip have recently introduced a fee for use of their savings algorithm which has received some criticism. But I think for those who need it the £1.50/month autosaving fee will be accepted if it means they save a reasonable amount of money where they may have otherwise saved nothing. So I’m positive on the auto-saving innovation even though I wouldn’t use it myself and even though it now attracts a fee.

What I’m negative on is Chip have a long history of announcing features and then taking ages to deliver or deviating from previously announced plans. Of all the companies I’ve been a customer of in the last couple of years (whether in or outside of fintech) Chip have been the worst for this.

Some other negatives -
Time taken to deposit money is slow (up to 3 working days)
They intend to start charging a withdrawal fee if you need to withdraw more than once in a 28 day period.

On the manual saving plan (ChipLite) you can earn 1.25% on up to £2,000
So max ‘interest’ would be £25

On the auto saving plan (ChipAI) you can earn 1.25% on up to £5,000
So max ‘interest’ would be £62.5
But you would pay a £1.50/month autosaving fee

What’s in it for Chip?
Marketing. This isn’t proper interest. It’s just paying those who refer others and those who join as new customers a bonus from marketing budget, instead of using it for traditional advertising.

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I closed my chip account within 24 hours, didn’t like the offering one bit too be fair. As others have stated I prefer just moving my money on a monthly basis set to whatever amounts I specify. I don’t need an ‘AI’ trying to predict it for me.

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After Chipmunks and ChipX and a million emails hyping NOTHING, I gave up on them out of sheer confusion! Any other scenario, and I’d have thought they are a scam

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I don’t like companies that do not have transparency and operate like amateurs. I was offered a chance to save with their +1 account and receive a bonus of 1.25% up to £5k. At no point did they say that as soon as they introduced paid tiers the bonus would only for up to £2k for the free tier.

It is either amateurish or a blatant attempt to mislead. I’ve ditched them completely.

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As have I. A really amateurish experience with poor explanation of structure. Took three attempts to close.

Thanks, Stephen!

Just to note I’ve edited your post to take out your referral link. There’s a dedicated wiki for those if you search for it.

Whoops. Sorry about that. It’s in the wiki.

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Anyone else get spammed by Chip today?

Alarmed to hear that apparently I’m in their ‘top percentile’ of customers. This gives me serious concern for their viability - I only have a small amount of savings in Chip+1 - I don’t use ChipAI or their investing platform - ie I pay them nothing - I am a loss making customer for them.

They appear to have just disclosed that <1% of their customers actually make them money.

Hi Dan,

I’m the exact same profile to Chip as you, other than I have made a small speculative investment in them in their early days.

The good news is I wasn’t similarly spammed, so maybe your inclusion was just an oversight? Their CRM leaves a lot to be desired (when they do send email, I generally get the same one 3 or 4 times over)!

I wouldn’t read too much into it (though worrying if you’re correct!).

No nothing from them at all

Just got a £5 amazon gift card from chip. Not complaining, but I’ve no idea why!

No idea. I haven’t got a voucher. But seeing this message made me go to the app for the first time in a while. And I had this full screen which I needed to dismiss, which is great, but it expired 10 days ago…

All the promos seem to be for their paid tiers. I’m on free, or whatever they call it

Anybody else actually dumbfounded by Chip’s ability to continually to raise huge money from the crowd despite a rather uninspiring proposition and financials? VC money is always round the corner with them but never materialises which is a big :triangular_flag_on_post: + they never mention Plum as a comparable but every other fintech under the sun hyping valuation prospects

Totally. You should try being critical of their strategy hiccups or poor execution on their own forum - you immediately get ripped to shreds by rabid ‘chipsticks’ who don’t know their Rs from their elbow… the Cult of Chip!!

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I took advantage of the whole 1.25% savings APR, I’m up up the limit of what they allow in that account at that %

The rest of the accounts they offer are :poop: but saying that most the instant access accounts are all pretty low these days.

Chip’s business model is pretty uninspiring, and embedded investing is making providers like this pop up everywhere.

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I interested a few rounds away. Got some tax relief but no more. from me. Although I do still use their automated saving thing.