Think you need help with saving money? Then technology could be your answer. Take a look at this Chip app review to see how it could help you.
I am one of those people that always has the intention to save but never gets around to it. Either an unexpected bill comes up, or when I see I have a bit of extra money, I decide to treat myself or my family (well mainly myself). And recent reports have highlighted the fact that one in four families have less than £95 saved. With that in mind, I started to look for better ways to save.
A couple of months ago, my attention was drawn to the Chip app. So, as I’m a lover of technology and money, I decided to try it out.
What is Chip?
Chip is an AI powered saving app that calculates what you can afford to save and stashes money away automatically.
Save without feeling it
We’ve analysed more than 160 million transactions to build a clever AI that can keep you saving, without affecting your day-to-day spending.
Feel good about your money
Whether you’re spending big, times are tight, or even if you’re in your overdraft, we can help you save up some money.
Is Chip safe?
Chip is regulated by the Financial Conduct Authority.
There are two places your money can go when using Chip. Auto-save money goes into a Barclays account, and if Chip were to go bust, you could recover the money from Barclays.
The only real danger is if Barclays were to go “belly-up”. The money isn’t protected by the Financial Services Compensation Scheme (FSCS), so it would be lost. Chip is looking into getting this protection, so it is up to you if you are happy to take the risk till then of Barclays going under.
Or your money can go into the Chip savings account, this is provided by the Hampshire Trust Bank. This is covered by FCSC and up to £85,000 of your money is protected.
Which banks does Chip work with?
- Bank of Scotland
- First Direct
- Lloyds Bank
- Marks and Spencer
- Royal Bank of Scotland
- TSB Bank
- Ulster Bank
Although Chip says that if your bank isn’t listed, you can still connect it by using your bank card.
How does the Chip app make money?
In June 2020, Chip introduced a charge for using its app. If you make more than £100 in autosaves in a 28-day period, you are charged £1. Although this isn’t a huge amount, it’s something worth considering if that final save of the month is going to push you over the £100 mark. There’s no point paying extra when you don’t have to.
How long does it take to withdraw money?
It’s all very well saving this money, but what if you need access to it? According to Chip, withdrawals should happen on the same day as long as they’re made before 5 pm. At weekends, you have to wait until the next working day
Any other benefits?
Open a savings account and Chip will pay you 0.9%. Not great, but a better rate compared to many cash ISA’s out there. When Chip first started, there was the potential to increase your interest rate to up to 5% by recommending friends, but unfortunately, this had to be scrapped.
Chip has also introduced a ‘goals’ option. Goals can be anything you want to save up for and you can have a maximum of 3. Then, when your money is saved into your Chip account, it can be split towards each goal. Then, just set an end date and you are given updates on how you’re getting on.
My experience with the app
I have been a member of Chip for over 2 years and it has helped me save, on average, around £80 per month.
Initial set-up wasn’t the easiest as it failed to recognise my Santander 123 account and Chip never got back to me when I sent in questions. However, connecting to my TSB account was far simpler.
I found the amount that Chip took from my account was a little too much for my liking, so it took a bit of tweaking (well I changed the auto-save level from 3 to 2 in the app) and I was much happier with the results.
It’s a bit of a pain having to relink your account every 90 days… sometimes it runs smoothly, sometimes you have to make a couple of attempts. However, this is necessary due to the rules of open banking.
My Chip app review conclusion
I really enjoy the Chip app and it doesn’t take too long until you can find a savings level comfortable for you.
Although the app is aimed at “millennials“, I think it’s suitable for anyone. You’ve certainly got nothing to lose from trying it out and it might even help you save towards something nice. Click on the button below to find out more.
If this Chip app review hasn’t convinced you, why not take a look at my review of the best budgeting and personal finance apps.