Use the free Chip savings app to automatically skim your bank account to save money. Plus, grab an instant 3% interest rate using the code SKINT123.
Even if you’re paying off debt, trying to save a bit of money each month is really important. You need to have a little stashed away to cover things you’ve not got covered in your day to day budget.
Like what if your fridge freezer packed in? Or what if your child’s school shoes came apart and sound like flip flops when they walk?
Finding money at the drop of a hat doesn’t need to be hard.
The Money Advice Service has said there are 16 million people who have less than £100 saved. If you’re one of those people then it can be really easy (it really can) to start getting a small pot of money put aside.
In fact, it’s even easier if you automate your savings with an app like Chip.
What is Chip?
Chip is a free to use app that automatically makes savings for you. It skims any spare money from your bank account and transfers it into a savings account set up in your name.
After you link your bank account, it uses clever algorithms to work out how much money you can actually afford to save, making sure you’ll have enough money until next payday. It even works if you don’t get money paid into your bank regularly.
What they do is look at how much you spend on direct debits/standing orders and general card payments/cash withdraws to see how much they can transfer into a saving account for you.
This could be as little as a few quid or even around £50, depending on how much spare cash they think you can afford.
There are over 60,000 people who now save with Chip and (as a Chip saver myself) we collectively save millions a month!
Do I get interest on my savings?
Sign up to Chip here and enter the code SKINT123 to get an instant interest rate of 3% on your savings!
If you refer a friend (with your Chip referral code) you’re able to add 1% a time to a maximum of 5% interest.
This is far higher than most savings accounts out there at the moment! I know my bank’s savings account is nowhere near that!
To start using the app, visit this page and enter your phone number. They’ll then send you the instructions to get your savings underway. Just remember to use the code SKINT123 to boost your interest.
Any interest you earn is calculated weekly and paid to your Chip account quarterly.
Is Chip savings safe?
Having used the app for around 2 years (Skint Dad has been using Chip to save too) we’ve had absolutely no issues!
It accesses your bank as read-only so isn’t able to do anything to your account other than review your transactions (to see how much you can afford to save). The savings transfer is done via a direct debit which you agree to as part of setting up your account.
When you connect your online banking login details they are protected using 256-bit encryption and Chip does not store your data. This is the same level of encryption as banks use.
Some people have mentioned they are worried about using bank login details in the app. However, this isn’t an issue.
From January 2018, the government changed how banking works and banks now have to open up their systems to 3rd party apps (like Chip).
The way we use technology is changing and you may remember your bank updating their terms and conditions a few months back to show that apps like Chip are ok to link to.
How do I get my money?
Your money is held in a Barclays savings account in your name.
If you need to access it (perhaps you’ve hit your savings goal or need it for an emergency), then you can request to withdraw as much as you need from the Chip app.
Ask before 2 pm on a weekday and you will get your money back into your bank account on the same day. If it’s after 2 pm or at the weekend then your money will be in your account the next working day.
What if I have an overdraft?
You can choose to make savings even if you are in your overdraft. This option is set as standard to off, so it’s something you will need to turn on if you plan to use it.
Overdraft charges are HIGH. Did you know that the is usually higher than a credit card?! They are really expensive!
The best thing would be to look to clear them. However, I know, all too well, how hard it is to get rid of that overdraft!
One option is to use Chip to save while in your overdraft. When you get to, say, £100 transfer it back to your current account to start clearing your overdraft.
When trying to clear my overdraft, I felt having the money in my main account too much of a temptation. By saving the money elsewhere it was out of sight, out of mind.
Clearing off a little every few months, the interest would slowly come down and I could see light at the end of the tunnel.
Chip Overdraft Guarantee
They are so sure of the algorithms that they promise to never intentionally go into your overdraft and leave you short of cash.
They are so confident about this that they’ve set up the Chip Overdraft Guarantee. If they ever make an automatic save and it causes you to go into your overdraft, they’ll deposit a £10 savings bonus in your account to say sorry.
However, please note, if you’ve selected the option in the app to save into your overdraft (see point above) then the overdraft guarantee obviously doesn’t apply.
How do I save less?
So Chip works out how much it thinks you can afford and makes a save once a week or so.
However, if you feel that the app is saving too much then you are able to change the savings level.
Simply press “save less” on the chat screen.
You’re also able to pause the option to save entirely if you need a break.
In the same way, you are able to increase your savings level if you feel you could afford it. If you want or can afford it, you can also add up to £100 a day manually.
Final thoughts on Chip
Having used Chip for ages now, I love the fact that it makes saving really easy.
Because I haven’t been saving much money each time I didn’t miss the cash from my bank account, but it really adds up quickly. Within a few months, I had hundreds of pounds stashed away!
Saving using Chip has made me feel that saving money is possible and achievable.
I just wish I started using it earlier.
Remember, when you sign up to Chip via Skint Dad and use the promo code SKINT123 you will be able to get an instant 3% interest rate added to your account.
The future of saving with Chip
The way Chip works will see some slight changes soon as they are rolling out Chip 2.0.
Their aim is to create the best savings account in the world!
In July 2018, brand new features are being introduced so you can get better returns on your savings.
Also, the app is having a complete redesign and there are new features including:
- group saving
- savings goals
- instant saves
- stash button
- access to lending for higher returns
- savings analytics
- to name a few…
Chip are giving members of the Skint Dad community early access to their brand new Chip 2.0 and you’re able to give feedback on how it all works (plus you can nab your instant 3% interest rate).
Naomi knows the burden of living on very little and become debt free by learning from past mistakes and following her own money saving tips and tricks.