Chip launches new savings account with highest return on the market

By Aisling Finn on Monday 30 November 2020

Savings and Investment

Chip+1 can only be accessed by customers who already have a Chip account and invite another person to open a savings account.

Chip launches new savings account with highest return on the market
Image source: Simon Rabin (second on the left)/Chip

AI-powered savings app Chip has officially launched its hotly-anticipated Chip+1 account, which carries a 1.25 per cent return on savings up to £5,000.

The new account has the highest rate of any savings account currently on the market, with most high street banks currently offering as little as 0.01 per cent and fellow fintechs aren’t far behind, with most offering not much more than 0.5 per cent. 

Rather than being considered interest, Chip+1’s return will be given to customers in the form of a bonus that will be paid out every 12 weeks, and because of this, the bonus will not compound.

Chip’s new account is covered by the Financial Services Compensation Scheme (FSCS) up to £85,000 and any money put in a Chip+1 account will be held in a ClearBank-backed trust account.

Users can unlock access to the market-beating account by either inviting a plus one or by being someone else’s invitee.

Simon Rabin, CEO and founder of Chip, said: “We’re flipping the traditional approach to marketing by prioritising our users and giving a chunk of our advertising budget directly to our savers in return for recommending Chip to their friends.”

“This allows us to grow our user base organically by attracting people who genuinely love Chip and recommend us to their friends, and we think they deserve it more than Facebook and Google do.”

As interest rates continue to fall as a result of the pandemic, Chip’s new account is offering returns 125 times higher than most big banks and is also the highest return a saver can get on an FSCS-supported easy-access account.

However, it’s unclear how long Chip’s market-leading payout will last. Chip says “there is no time limit, and the 1.25% bonus is not set to expire at a set date”.

Rabin added: “We’re building Chip to be the best place to accumulate long-term savings and build wealth, and part of that is competitive returns. Both our Interest Accounts platform and, now, the Chip+1 account represent massive strides towards achieving that goal and also enable us to further democratise savings.”

Chip has had a strong 2020 as more people turn to focus on their finances amid Covid-19-related turbulence.

The fintech has doubled its user base to 250,000 customers and has seen its customers put away 103 per cent more money under lockdown, both through its auto-save function and manual deposits. 

Chip is also responsible for one of the biggest crowdfunding campaigns, not just this year, but ever. The fintech raised £10.7m from just shy of 6,500 investors in only three days.

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