At Chip, we're on a mission to build wealth for our generation.

The last two years have been a rollercoaster for all of us. Chip members, along with the British public, have had to navigate a new world of interest rate hikes from the Bank of England (BoE).

Chip has been at the forefront of this, doing our best to support our members with competitive savings rates and a new home for their savings. We've now grown to manage the wealth of over 300,000 people and have won a few awards and five- star customer reviews along the way.

We’re not slowing down, but we are now facing a new environment where interest rates are coming down across the market.

This shift means different things for different people, so here’s what Chip is doing about it, along with some changes we’ll be making in the coming months to help our members adapt to this new reality.

Updating our savings accounts

All of our interest rates are on a tracker basis, and that is not changing. You can read more about how tracker rates work at Chip here.

Cash ISA: This rate is a tracker of the Bank of England and will remain unchanged. It continues to be among the top in the market even as rates decline.

Easy Access Saver: This is a new easy access savings account which will have a highly competitive rate, albeit with some withdrawal limitations.

We aim to keep this account near the top of the market, even as rates fall. (We've initially launched with a lower rate to ensure we're fully prepared to manage a large influx of customers effectively before we increase the rate to 4.84% AER (variable tracker) from 6 September 2024.)

Over the next year we are planning to launch many more accounts similar to the Easy Access Saver, bringing more competitive rates to Chip.

Chip Instant Access: We are reducing the AER by 0.57% (by changing the tracker rate from; 0.51% under BoE rate, to; 1.06% under BoE rate) to make the Easy Access Account above more attractive to customers who want to save with Chip over a longer term. However, this remains our best instant access account with unlimited withdrawals, bringing it more in line with most banks.

Our mission: Building long-term wealth

As mentioned, our mission is building long- term wealth for our generation.

To enable wealth-building with our app, there are two key actions our members can take;

• Being tax-efficient by using our ISAs.

• Building consistently over the long term (ideally without withdrawing).

That’s why we’ve decided to make our two most competitive savings accounts align with that goal.

The Cash ISA and Easy Access Saver will be our most competitive offerings, while the Instant Access Account will be adjusted to match the rest of the market.

Instant vs Easy Access

The Instant Access Account offers unlimited, instant withdrawals.

While that functionality is fantastic, some members are using it more like a current account than a savings account.

For example, some members withdraw much more frequently than others (sometimes as much as every few days), which isn't in line with Chip’s mission of building long-term wealth.

However, we still want to accommodate these members and they can continue using the Instant Access Account, safe in the knowledge that the rate remains higher than many big banks’ current accounts.

For those who are happy to withdraw less frequently and focus on long-term wealth-building, the Easy Access Saver will reward you with a higher rate.

As always, we’re making it incredibly easy to move money between accounts. Just head to the app to tailor your portfolio to your needs.

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