Use the free Chip savings app to skim your bank account to save money automatically. Plus, grab an instant 3% interest rate using the Chip promo 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 included 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.
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.
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 paid regularly.
They look at how much you spend on direct debits/standing orders and general card payments/cash withdrawals to see how much you can afford to miss. This gets transferred into a saving account for you.
Your transfer could be as little as a few quid or even around £50, depending on how much spare cash they think you can afford. The average saving is around £20.
There are over 100,000 people who now save with Chip and (as a Chip saver myself) we collectively save millions a month!
You’re able to start saving if you’ve got an account with NatWest, Halifax, Lloyds, Nationwide, Barclays, HSBC, First Direct, Santander, TSB, RBS, Metro Bank and Co-operative Bank.
Starling, Monzo and other challenger banks will get added soon.
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% interest to a maximum of 5% interest.
The interest rate is far higher than most savings accounts out there at the moment! I know my bank’s savings account is nowhere near that!
Find the links to download the Chip app here 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.
Having used the app for around two years, 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 get transferred 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, which 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.
Chip is an appointed representative of Prepaid Financial Services Ltd which is authorised and regulated by the Financial Conduct Authority.
Don’t just take our word for it!
Here are a few comments from people who started using the app when they found out about it on Skint Dad:
With a new house, recent wedding and baby to pay for I really didn’t feel I had any spare money to save but having chip has made it really easy to ferret away several hundred pounds already, seriously without me noticing.
Savings were always one of those things that I knew I should have, but never quite got round to doing…that was until I discovered Chip! Now saving has never been easier!
At first I was dubious about the amounts the Chip algorithm was calculating, I thought there was no way I could afford to save that much on a regular basis. But it turns out I was completely wrong, I now have a steadily growing savings account with Chip!
Chip has really helped me to save and buy things I wouldn’t have purchased otherwise, kept the Mrs happy with the new furniture. I wouldn’t have used it without Skint Dad’s recommendation boosting me to 3% interest. Now I use the app all the time!
Thanks to Ricky at Skint Dad for the Chip promo code, I’ve managed to save around £200 in a few months without even noticing, which is pretty awesome for someone as bad with money as I am! Chip is easy to use and a great pain free way to start accumulating a wee nest egg, and I especially like that you can save even if you’re overdrawn. Recommended.
I struggle to save a regular amount each month so therefore never really saved. I never noticed or miss the money that Chip saves and it soon mounts up, I’ve recommended it to everyone as it’s a fantastic and easy way to save (particularly for lazy people like me!). Huge thanks to Chip as the money I’ve saved will pay for my car insurance all in one go (first time ever), car service and spending for my holiday, happy times!
Your money gets held in a savings account in your name, but you access your cash via the Chip account.
You can see your savings going up, and you’re able to withdraw your money whenever you want (which is when the chart goes down).
If you need your savings (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 back in your bank account the next working day.
You can choose to make savings even if you are in your overdraft. This option is off as standard, so it’s something you will need to turn on if you plan to use it.
Overdraft charges are HIGH. Did you know that they are 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 the light at the end of the tunnel.
You can choose to disable overdraft saving if you want to.
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 doesn’t apply.
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 can change the savings level within the settings.
You’re also able to pause the option to save if you need a break.
In the same way, you can 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 (up to 6 times a month).
All customer support is built into the app.
Instead of having to call the bank and wait on hold, you’re able to start a live chat.
It’s open from 8 am to 5 pm during the week and they’ve always got back to me quickly.
If I’ve messaged over the weekend, I usually get a response early on Monday morning.
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 as they are rolling out Chip 2.0.
They aim to create the best savings account in the world!
Watch this space for new features in 2019!
Naomi knows the burden of living on very little and became debt free by learning from past mistakes and following her own money saving tips and tricks.