The savings app Chip has announced recent changes to its membership plans, which include more of the app’s elements being made free to use, and the introduction of a simplified fee structure.
Each user of the Chip app saved on average £3,000 in 2021, which has accumulated to over £690million amongst its 400,000+ strong userbase. 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.
Effective immediately, Chip has lifted the cap on cash deposits to £85,000 per savings account, regardless of the plan a user is on. This also includes Chip’s account with Allica Bank, offering interest of 0.7%. 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).
What’s included in a standard Chip membership?
- FSCS-eligible savings accounts with partner banks
- Cash deposits up to £85,000 per savings account, including into the Allica account
- Single-day compounding interest
- Unlimited penalty-free withdrawals
- Auto-saving technology
- Savings goals
- Investments, allowing you to open a General Investment Account and start seeking returns
- Three basic investment funds, powered by BlackRock
What does the premium ChipX membership include?
- All elements of the standard free plan
- Full range of investment funds
- Stocks and 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 0.25 per cent per annum
Speaking on the introduction of these new features, 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.
“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.”