Chip chips into savings market with new account, taking on new rivals

AI-powered savings app Chip has today launched an interest savings account for its 250,000-strong customer base. 

The new product will have an easy access rate of 0.90 per cent AER and will be FCCS eligible, meaning any funds deposited in it will be protected up to £85,000. 

Chip’s new launch comes after the fintech gained approval from the FCA to operate as an Authorised Payment Institution back at the end of March 2020. 

Simon Rabin, CEO of Chip, said: “This isn’t just one savings account - it’s a platform that negotiates better rates on your behalf as you sit back, save and earn interest.” 

“We don’t think people should have to spend hours trawling comparison sites, filling out form after form, and opening multiple accounts, so we’ve built something that’ll do everything for you at the push of a button.” 

Due to high demand the new account will be rolled out gradually among users and savers will initially be able to deposit up to £5,000, with the cap lifted to the full £85,000 limit once the product properly launches later this year. 

According to the savings app, to date Chip has helped users put aside over £150m. 

Compared to other fintech savings accounts, Chip’s interest rate is favourable to rivals like Moneybox and Klarna which are currently offering lower rates at 0.8 per cent and 0.35 per cent respectively. 

In early June, Chip also begun charging its customers £1 if the app helped them save more than £100 in a 28-day period. 

Chip’s new product launch also comes just a few months after it completed a £2.6m private funding round on Crowdcube, which saw over 4,000 investors taking part and the original £1m target being reached in just a matter of hours.