Every year, more and more customers are signing up to open banking apps that make it easier to manage their money. Once such app is Chip, which uses your banking information to make decisions based on your spending before automatically transferring it into a savings account.
Many people find it difficult to save and often rely on payday loans to help make ends meet. An app like Chip could make it easier to put money aside so you don’t have to remain in a cycle of debt.
Read our Chip review below to find out if this is the app for you.
What is Chip?
Chip is a free app available on both Apple and Android stores that works to automatically save your money. You authorise it to connect to your bank account(s) and then it analyses your spending, before recommending how much you should save and then withdrawing it into a savings account.
How does Chip work?
In order to benefit from the automatic savings service offered by Chip, it has to be linked to your bank account(s). They currently work with all of the major banks and building societies, including the likes of Santander, NatWest, Co-Operative Bank and much more.
Once connected, Chip uses in-built algorithms to analyse your spending habits. Without leaving you penniless until payday, it will suggest how much you can afford to save. Every few days it will then automatically transfer small amounts of money from your account into a Chip account. You can change the amounts at any time and also pause the service if you wish.
This means you don’t have to worry about the app suddenly pushing you into your overdraft and leaving you in the red – although you do have the option to let it do so if you wish. You always stay in control of the Chip app and are guided by the Chabot through each step.
Can I earn interest with a Chip savings account?
A standard Chip account doesn’t allow you to earn any interest on the money you are saving. The only exception to this rule is based on inviting new people to use the app. This allows you to earn as much as 5% on your savings across the course of the year, depending on how many you encourage to use the app. The maximum amount you can earn is 5%, even if you get more than 5 people to sign up.
If you want to invite a friend, simply click the ‘Free money’ tab in the sidebar of the app. After sending the invitation the app will apply a bonus to your account once the attendee has made their first transfer to a Chip account. The attendee will also receive 1% for using the referral code sent by you.
How do I withdraw money from my Chip account?
Anytime you want to release the money back into your account you can transfer it without restriction.
Is there any charge for using Chip?
Chip is completely free to use, so while you may not earn a lot of interest, it’s a free service that makes it much easier to save. And you can pause or cancel the app anytime you want, free of charge.
The daily deposit limit is £100 per day, which can be actioned a maximum of six times a month, while the minimum transfer amount is £1.
How safe is it to use Chip?
Once the money is withdrawn from your account it is placed into a Barclays E-Wallet account. This means the funds are regulated by the Financial Conduct Authority (FCA). Chip also state they have a data control license which means it works in accordance with the Data Protection Act and you can find it on the Information Commissioners Office (ICO).
Chip also say they do not store any of your data on their servers and your banking login details are protected by 256-bit encryption, which is currently the best quality available and used by some of the leading financial institutions in the world.
Does Chip offer customer support?
There is no telephone number to call as all customer support takes place via a live chat in the app. This is available between 8 am to 5 pm weekdays and if you send a message over the weekend they will get back to you first thing on Monday.
Should I use Chip?
Chip is very simple to use, and just as importantly, easy to control. Users who are comfortable with the idea of an app helping them to save and transferring money into a savings account will find Chip to be extremely useful. If you do not feel comfortable with money being moved out of your account into another, then you are probably best served setting up your own savings account and a direct debit to transfer money across each month.