Chip Launches Savings Account With 0.7% Interest Rate and FSCS Protection

The digital savings app Chip has launched an attractive new savings account that offers a 0.70% rate of interest, easy access, and Financial Services Compensation Scheme (FSCS) protection.

Chip has cultivated this new offering to bring a competitive interest rate to its consumer base. Unlike traditional savings accounts, Chip has negotiated with private banking bodies to secure such top-table savings rates for its users.

This launch comes after the savings and investments provider established the Chip Investment Platform with funds powered by the investment manager BlackRock.

The rate that Chip has secured is exclusive to their new account offering and comes complete with protection from the Financial Services Compensation Scheme (FSCS); where eligible.

An FSCS exists to protect the value of an account up to the amount of £85,000. This service is provided for free for all banks, building societies, and credit unions that are authorised by the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA). In the instance of a company going under, the scheme ensures that account holders will receive their money back within 7 days.

With interest accruing and compounding daily, Chip users can view the progress of their finances directly in the app. As the account is easy to access, savers can also withdraw their money whenever they like without incurring a penalty.

Chip, which has saved its users over half a billion pounds to date, has partnered with the UK-based cash deposit platform Flagstone, to provide access to this level of interest and combine the savers’ money into a trust account. This means that all Chip savers – regardless of whether they have £5 or £5,000 in their account – can benefit from some of the advantages normally only available to Flagstone clients.

The new account is powered by Allica Bank, a UK-based business bank working with British small-medium enterprises. To ensure that as many users as possible are able to take advantage of the account, Chip is initially capping total deposits per person at £30,000.

Simon Rabin, CEO, ChipSimon Rabin, CEO, Chip
Simon Rabin, CEO, Chip

“I’ll never tire of saying that at Chip, our mission is to build the best savings app in the world,” comments Simon Rabin, CEO of Chip. “Granted, it’s a hell of a goal, but in the last 12 months alone we crossed the half a billion-pound mark for the amount saved for our users, started working with the world’s largest asset manager, launched investments, built ChipX, and now we have negotiated the best easy-access interest rate on the market for our savers.”

“We have even more exciting savings accounts on the way”, Simon continued, “and are in fact in the process of negotiating with a few banks right now. We’ll continue on working hard to bring our users the best savings rates and put market-leading returns in the palms of their hands – just as the world’s best savings app should.”

  • Tyler is a Fintech Junior Journalist with specific interests in Online Banking and emerging AI technologies. He began his career writing with a plethora of national and international publications.