I recently read an excellent blog on different ways and tips to save money over at Take Heart – Be Courageous which inspired me to share one of the new the ways I have found to help me save the occasional penny or pound.
The Chip savings app.
A new means of saving which I have recently started using is via an app called “Chip”. Geared towards “millennials”, Chip launched late in 2016 and is pretty simple to use. You sign up to the Chip savings app (available from the App store and Google Play), which then connects to your bank account (Chip currently works with many of the major UK banks). Everything thing is done via the app, who is quite chatty! You’ll see regular messages updating you on your account plus the occasional Mary Berry gif. You can also communicate with Chip directly via the chat bot feature “Chip chat”.
In week one, your Chip savings app monitors your spending and calculates how much you can afford to save. It then sends you a message via the app to advise how much the suggested amount is. You have a couple of days to decline the opportunity otherwise, your proposed savings amount is moved to your Chip savings account. After this, you just leave Chip to it and the process begins again the next week and the next. Chip will propose that less money is saved in some weeks than in others, if you’ve been spending more than usual, Chip will transfer less. You are also able to manually transfer money into your Chip savings account, up to a maximum of £100 per day – in case you are feeling flush one day!
Is it safe to use?
The Financial Conduct Authority (FCA) governs Chip, so if anything were to go wrong you are protected. The Chip savings app uses bank-grade security encryption, and your money is held in an instant access savings account. There are no fees to use the Chip savings app and no limits (at the moment) to the amount of money you can save with it (other than a daily cap). Chip also say that if they were to move money into your savings account that put your bank balance into an overdraft, they will replace the money, give you a £10 apology bonus and pay the associated bank charges.
How much interest can I earn?
Here’s the interesting bit. The interest rate starts at 1%, not great but not really much worse than most high street bank offerings. However, you can earn up to 5% interest which is far better than you will find in most instant access savings accounts. You increase the interest you earn, by referring other people to use the Chip savings app. Every person that you refer who then goes on to sign up will earn you another 1%. If you are thinking of signing up you can help me earn another 1% by using my referral code – U2A8NK. Chip also give you a £10 headstart too if you sign up using a referral code. Interest is calculated weekly and paid to you every three months.
Does it work?
I’ve been using Chip for around 8 weeks and I’ve saved £120 so far. At an average of £15 a week that would be a tidy £780 per year, plus the interest. I’m not saving for anything in particular, but it’s good to know that the money is there and instantly available.
Have you used the Chip savings app, if so what do you think of it? If not, does the above sound like something that would enable you to be a better saver? Let me know in the comments.Follow