Chip Instant Access savings account review: fees and features (2024)

Want to make your money go a little further? A savings account could be the ideal solution, paying interest on your balance and helping you save for a rainy day.

There are a huge number of savings accounts available in the UK right now, so it can be hard to know which one to choose.

In this guide, we’ll focus on the Chip Instant Access savings account and what it has to offer. This includes how it works, interest rates, fees, withdrawal limits and everything else you need to know. This should help you work out if it’s the right option for you.

Is Chip a good savings account provider?

Chip is a UK-based savings and investments app. It isn’t a bank, but its savings accounts are provided by ClearBank. This enables it to offer protection for your money under the Financial Services Compensation Scheme (FSCS).

It’s not for us to say whether Chip is a good provider of savings accounts, but a useful resource to help you assess this is TrustPilot. The company has an ‘Excellent’ rating of 4.3 based on over 2,000 customer reviews,¹ although bear in mind that some of these will be from customers using its investment services.

Chip has also won some awards, including Apple’s App of the Day (January 2022) and Best Personal Finance App at the British Bank Awards in May 2022.²

Are Chip savings accounts regulated by the FCA?

Yes, Chip is authorised by the Financial Conduct Authority (FCA) to provide payment services. ClearBank, which powers Chip savings accounts, is also FCA regulated.

How does Chip work?

The Chip app uses Open Banking to connect your bank account, so that it can make automatic savings deposits for you.

However, you can switch the ‘auto save’ feature off if you like. Open Banking is also used to make withdrawals from your Chip account to another bank account.

Otherwise, Chip easy access savings accounts work just like other similar accounts. You can deposit, withdraw, earn interest and check your balance.

Chip Instant Access savings account review

Here’s a quick look at the pros and cons of the Chip Instant Access Account:

Chip interest rate and fees

At the time of writing, the Chip Instant Access Account pays interest of 5.01% AER (variable tracker). This includes a bonus ‘boosted’ rate for a year, so it drops to 4.84% after a year.²

Chip doesn’t have any monthly fees. The only charge is to use the autosave feature, which costs £0.45 every time money is automatically saved to your account.³ However, you can switch this off.

Is there a withdrawal limit?

No, Chip doesn’t have withdrawal limits for its savings account,¹ so you can withdraw as much as you want.

Does Chip work with all UK bank accounts?

As Chip uses Open Banking, it works with most UK banks - but not all. You can see the full list of eligible banks here.

Chip savings accounts: Quick comparison

Chip has a few different savings accounts, so it can be useful to compare them before signing up for one. Here’s an at-a-glance look at them all:⁵

After reading this, you should be all clued up on the Chip Instant Access Account. We’ve looked at interest rates, fees, features and all the other info you’ll need to decide if it’s the right account for you.

Chip savings account FAQs

Does the Chip app work with all UK bank accounts?

The Chip app uses Open Banking, which works with most UK bank accounts - but not absolutely all of them. A notable exception is Virgin Money. You can see the full list of compatible banks here.

How does Chip analyse your spending?

Chip uses AI to analyse your income and spending habits, through the connection to your bank accounts provided by Open Banking. This allows it to automatically calculate how much you can afford to save each month.

Is Chip FCSC protected?

Yes, Chip savings accounts offer FSCS protection of up to £85,000 per person.

Why does Chip need to access my bank account?

Chip needs to use Open Banking to connect to your bank account in order to facilitate deposits and withdrawals. It also needs to analyse your spending and income to calculate how much you can afford to save each month.

Does Chip have a sort code and account number?

Yes, Chip savings accounts come with their own account number and sort code, and are held in your name.⁶

Does opening a Chip account affect credit score?

No, opening a Chip savings account shouldn’t affect your credit score. The company does what is known as a ‘soft’ credit check when you apply. This will appear on your credit report but shouldn’t affect your credit score.⁷

How do I close a Chip savings account?

To close your Chip account, you’ll need to open the Chip app, go to ‘Profile’ and scroll down to find ‘Delete Account’. You’ll be put through to the customer service team, who will help you close your account.

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Sources last checked on date: 14-06-2024