Chip Automatic Saving

Money, investing, mutuals etc

Re: Chip Automatic Saving

Postby planteria » Wed Nov 22, 2017 9:48 am

it is quite a statement :mrgreen: .. i'm not sure if they are going to be sophisticated enough to enable account holders to factor in interest free overdrafts, for example. if so, it will be clever kit.

as per this thread viewtopic.php?f=5&t=81215 i'll be interested to see whether Chip can be useful in this respect.
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Re: Chip Automatic Saving

Postby Sarah » Wed Dec 13, 2017 6:23 pm

As posted here the code MSE3 gets you 3% from the outset if joining Chip, removing the need to refer 3 other customers for that rate. Limited to the first 10,000 new customers and whatever T&Cs apply, etc.

I'm still unlikely to be signing up... :P
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Re: Chip Automatic Saving

Postby pabenny » Wed Dec 13, 2017 8:55 pm

From this week's MSE newsletter "This app currently has no way of making money".

This seems very reminiscent of the early days of dot.coms when start-ups thought they could give stuff away (sometimes literally) and somehow generate income out of thin air. We would all take free/heavily discounted goods, especially when our payments are protected by our credit cards. The fintech sector seems to have convinced itself and its investors that this time it's different.

One reason why it isn't different is that customers' money and customers' earnings are at risk - which will keep potential customers away. Your deposits may not really be at risk should Chip go under, but the interest certainly is. And because of the complexity of the model, it may be difficult to prove that the deposits are actually yours.
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Re: Chip Automatic Saving

Postby Thunderfog » Thu Dec 14, 2017 7:40 am

Seems overly complicated and the criteria for earning interest are easily made more harder.

I'm out.
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