Chip launched a new instant access savings account around one year ago, which currently has a market-leading rate of 4.84% (as of 30th January 2024). 

The account is free to open and offers a 4.84% return in the form of a bonus, paid monthly on your savings. 

Read on to learn more about this savings product and how it can kickstart your New Year’s saving goals in 2024.

Table of contents:

• What is the Chip Instant Access Account?
  
  
• What are the main benefits of the new Chip Instant Access Account?
  
  
• Sign up for your free Chip account in just a few minutes!
  
  
• What are the drawbacks of this new Chip account?
  
  
• The final word on the new Chip Instant Access Account

What is the Chip Instant Access Account?

This is a savings account from the popular automatic savings and investment app, Chip.  They say it’s built to move with the Bank of England base rate and they plan to reward you faster than the banks with a market-leading rate.  

The return isn’t interest, but a bonus that Chip will pay on a monthly basis.  Providing your Chip Instant Access Account has at least a £1 deposited balance, you will be paid the bonus on the first Tuesday of each month.  Returns accrue daily and are paid monthly.

"Your returns are paid as a bonus which is paid monthly on the first Tuesday of the month. You need to have at least £1 of bonus accrued for it to appear in-app but don’t worry if it's less, we’re still calculating your returns behind the scenes."

This new savings account is free to use, with no charges or fees.  While Chip does offer paid plans with extra features, the Instant Access Account is available on their free membership, so anyone can access it without paying a monthly subscription charge. 

What are the main benefits of the new Chip Instant Access Account?

Let’s take a look at some of the main benefits of this account so you can see if it’s right for you:

• Firstly, it’s free!  The Chip Instant Access Account is available on the free Chip plan.

• Market-leading returns!  Chip is offering a market-leading return..  This may rise or fall as the Bank of England rate changes.  Chip plan to offer the highest bonus they can.

• Fast deposits and withdrawals - almost instant!

• Low entry! Open the account with a deposit of just £1.

• No fees or charges!

• If you do have a paid Chip plan then you can set up auto-saving features into this account.  Otherwise, on the free plan simply add your deposits as and when you like.

Sign up for your free Chip account in just a few minutes!

If you’re wondering how long it takes to sign up for an account with Chip and whether it’s a lot of hassle, then I’m glad to tell you it only takes a few minutes to set up your free Chip account.  

Here are the eligibility requirements and sign-up process: 

“You need to be over 18, a UK resident and need to pay tax solely in the UK to be eligible for a Chip Instant Access account. 

All you need to do is provide some details, pass an identity check with Chip and ClearBank and you’re good to go, in most cases this will take a couple of minutes. If not, we may ask for additional documentation to confirm your identity.” 

What are the drawbacks of this new Chip account?

There are also a few things to be aware of when deciding if this account is right for you.  It’s a little different to some other savings accounts.  The main things to know are:

• As Chip is not a bank, the return is paid monthly as a bonus, not interest.  This is not necessarily a bad thing, as they can sometimes be more generous than banks with their returns.

• The bonus does not compound, so you won’t earn a bonus on your earned bonus money.  

• The bonus funds can only be withdrawn once the full cash balance has been withdrawn from the account.  It will show in your balance, but it will be the last cash that is withdrawn from this account.

• The return itself is not FSCS-protected.  However, your savings are protected if eligible, up to a total of £85,000.

Not really a drawback, but it's good to be aware that "if you close your account before a bonus payout date you will forfeit any pending bonus due". 

So if you're planning to close your account, perhaps wait until just after you've received your bonus! 

Although you don't need to close your account to withdraw your money.  As this is an Instant Access Account, there are no limits on withdrawals, so you can access your money whenever you like. 

The final word on the new Chip Instant Access Account

The Chip Instant Access Account has a lot of great features making it an appealing choice for savers right now.  The main benefits are zero charges or fees, fast withdrawals and deposits, 4.84% returns at the time of writing, and of course, the account is instant access so you can get your money whenever you need to! 

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