About Chip

Introducing: overdraft saving

Overdraft saving is here, and it’s excellent.

You spoke and we listened. Lots of you asked us to make it possible to save when you’re overdrawn. Well, we’ve made it so. We’re excited to announce that you can now save automatically and manually even when you’re in your overdraft. 🙌

An overdraft is a really useful tool. It can tide you over when you need cash. It can keep you afloat until your next student loan payment comes in. You can use it to manage your cashflow when you’re paying for something big. And we think you should be able to keep up your saving habit all the time, whether or not you’re using your overdraft.

Want to be able to save while you’re overdrawn? Here’s what you need to do.

If you’re on iPhone

  1. Update Chip in the App Store so that you’re using the latest version of the app.
  2. Go to sidebar and hit ‘Overdraft’.
  3. Turn on ‘Save in overdraft’.
  4. Move the slider to tell Chip the balance limit you’re happy to go to.
  5. Hit ‘Confirm’ and you’re all set up to save like you’ve never saved before.


If you’re on Android

If you’re using an Android phone, you do have the option to save in your overdraft. However, the app interface isn’t quite ready for release yet so you can’t turn it on yourself. If you’re on Android and you want to be able to save while you’re overdrawn, you just need to tell us so we can turn it on for you. Hit ‘Live Chat’ to speak to one of us and let us know that you want to enable overdraft saving. It’s just as quick and easy, plus we get to have a chat!

Just for lols.

Why save when you’re overdrawn?


Three reasons.

It’s psychological

When it comes to money, a positive outlook is half the battle. That’s why having money ring fenced in a savings account, whether for a holiday or in case of emergency, is an important part of feeling like you’re on top of your money situ.

Keeping cash in a separate pot to your current account also means you’re less likely to spend it. Remember the old saying about cash “burning a hole in your pocket”? It’s the same with numbers on a screen. So even if you’re overdrawn, it’s natural to want to put money aside (and out of arm’s reach).

Your overdraft is free

If you’re a student or a recent graduate and you have a free overdraft, even better. It won’t cost you anything to borrow money from yourself and save it with Chip, and your savings can earn up to 5% interest – that’s free money! So if your overdraft is free, you should definitely be saving. It’s just maths.

It helps you pay it off

Overdrafts can be super helpful, but they can also be one hell of a slippery slope.

This slippery 👆 but not as cute.

One month you dip £50 into your overdraft to help you afford a weekend away, the next month it’s £100 and six months later you’re £1,000 overdrawn with no idea how you got there. It’s too easy to promise yourself that you’ll start being good next month. You know, next month when you’re also going to start that new paleo diet. And your new fitness regime. Yup.

But if Chip saves for you, little and often (so that you hardly notice it), you’ll soon have enough of a stash built up to transfer back into your current account. Once you’ve payed off your overdraft in one go, you’re back into the black and it’s a clean slate. A fresh start.

What about the Chip Overdraft Guarantee?

If you’ve ever been concerned about Chip pushing you into your overdraft accidentally, or you’ve read the FAQs, you’ll know that we offer something called the Chip Overdraft Guarantee. This basically means that if an automatic save by Chip makes you go overdrawn, we will cover any fees or charges and send you a £10 peace offering to say sorry. We’re very, very confident in the algorithm’s ability to predict your spending and calculate saves accurately, to make sure it never happens.

However, if you enable overdraft saving the Chip Overdraft Guarantee no longer applies. That means that if you choose to save in your overdraft, you are liable for any fees or charges. If you have enabled overdraft saving and your account is overdrawn, and then you decide to turn overdraft saving off, you are still liable for any fees or charges. Please make sure you’re fully aware of and happy with this before you turn overdraft saving on.

Turn it on

So, iPhone users: update Chip and get saving. Android users: come and have a chat to us about overdraft saving. See you there. ✌️