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.
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.
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.
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.
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.
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 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…
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 + 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!!