Bottom Line
Chip, the automatic savings app, takes the decision of how much to save out of your hands. Its auto-save AI technology finds the perfect amount for you to save based on your spending habits, meaning you don’t even have to think about it. But don’t worry, you can stay in control. The app has options to skip a weekly save, set a minimum account balance and adjust the speed of your savings to what you are comfortable with. Just don’t expect to be earning interest right away – that is, unless you have a willing friend to sign up to Chip+ with you…
What I like
- Automatic savings – A savings habit can be hard to establish, particularly if you have no idea how much you can afford to put away. Chip’s AI technology helps to find the perfect amount for you to save based on your spending habits, so there is no pressure to make big savings commitments. Instead you can see regular small deposits grow and grow.
- Account controls – While automatic savings takes the decision out of your hands, that doesn’t mean you aren’t in control. Chip has features that allow you to adjust the speed at which you save, have a minimum amount you want left in your linked bank account and skip a save if you want to.
- Ease of use – Chip promises you will be set up on its app in 60 seconds, and it is true to its word. Downloading and linking your bank account is quick and painless.
- Free trial – When you sign up, you are automatically enrolled in a free trial of ChipAI. This means you can autosave up to £100 at no cost. After that, the app charges a £1.50 fee every 28 days.
- Payday Put Away – While the autosave AI tool is the main draw of the app, you can also choose an amount to save as soon as you receive your pay. Payday Put Away allows users to set a date and an amount to automatically move money to their Chip account.
- Savings goals – Setting a savings goal can help you to stick to your savings habit. With the Chip app, you are able to set multiple savings goals, and attribute a percentage of your savings that you would like it to go towards. The app will even suggest a date based on your predicted level of savings for when you can achieve your goal by.
- Security – Chip has all the necessary security measures for you to feel like your money is safe. It uses 256+ bit encryption, 3D-Secure and Open Banking technology.
What could be improved
- Interest – When you think of savings accounts, you think of earning interest on your money. Unfortunately, Chip’s Easy Access Interest Account currently offers no interest on your savings. It has reached maximum capacity on its 0.3% account, and you can only access Chip+ (which offers a rate of 1.25%) if you invite a friend. While Chip promises it is working on deals to secure higher interest rates for its customers, there is nothing to show for it just yet.
- Connected banks – While Chip does connect with 17 UK banks, there are some not on the list, most notably Metro Bank, Tesco Bank and Co-operative Bank.
- Fees – You may get the first £100 of autosaving for free, but after that expect to pay a fee of £1.50 every 28 days. You can drop down to the ChipLite plan if you don’t want to be encumbered by fees, but this means you would lose the AI autosave feature that the app is all about.
How does it stack up?
With the lack of interest on your potential savings and a monthly fee once you breach the £100 threshold, arguably Chip’s Easy Access Interest Account doesn’t really stack up next to that of traditional savings accounts. You could stand to lose money through fees, rather than earning it through interest.
The interest situation with the Chip Easy Access Interest Account is not easy to understand. Unless you invite a friend and secure the 1.25% on offer with Chip+, standard account holders currently earn 0% on their savings due to the previous offer of 0.3% now being at capacity.
However, what it does offer you is a path towards starting a savings habit, with very little effort from you needed. By automatically identifying how much you can save, and doing it little by little, you could find your savings pot grows a lot faster, rather than if the emphasis was on you to make savings deposits.
The app is also designed to make it super easy and painless. In your other financial interactions, you may have failed at the steps required to set up a traditional savings account, like sending in your proof of identity. With Chip, because it is a closed loop with your linked bank account, all you need is for your bank to verify your account and you are all set to go.
Meanwhile, the extra features on the app do make it stand out next to more traditional savings accounts. The ability to portion off your savings into separate goals, alongside the AI auto-save, means you are thoroughly supported in your savings journey.
Eligibility
- Residents in the UK can use the app.
- You must be aged 18 or over.
- The app is available for iPhone and Android only.
- You must have a bank account with one of the 17 connected banks.
- There is no minimum deposit. You can save up to £5,000 in Chip+. All accounts are protected by the FSCS up to £85,000.
How to apply
Simply download the app, and set up the link to your bank account. You will automatically be enrolled in the free trial for ChipAi, but can change your plan to ChipLite if you wish.
Is Chip Easy Access Interest Account right for you?
Chip is an app designed for the new generation of savers: those who prefer to access all their financial information on their phone and who want to harness the power of AI tools.
If you are someone who struggles to establish a savings habit, or who just doesn’t know where to start, Chip’s app takes some of the stress away. Regular auto-saves based on your spending habits means that you can be relatively confident you are growing your savings pot in a responsible way, and its savings tools mean that you stay in control of your finances.
However, if you are looking to grow your money, you may want to shop around for higher interest-paying accounts. Chip is there to support you in money management and setting savings goals, but it won’t earn you huge returns.