Set up by the government, the FSCS is an independent body.
If the financial firm you've used has gone out of business and can't pay your claim, the FSCS can step in to pay compensation.
This protection is automatic and free. If you'd like to learn more or check your eligibility, you can visit the FSCS website (www.fscs.org.uk).
For your savings accounts
Chip Prize Savings Account, Chip Instant Access Account, Chip Easy Access Account, Chip Cash ISA
The money you deposit into these accounts is protected by the FSCS up to £120,000. The FSCS protection is per person, per bank, not per account. Since all of the savings accounts listed above are held with the same partner bank, ClearBank, the £120,000 limit applies to the total amount you hold across them, and any other accounts you may have with ClearBank.
Chip Smart Cash ISA
The Smart Cash ISA is also FSCS protected, but the protection works a little differently. Because the funds in this account are held across a number of partner banks (such as Lloyds, Barclays, Virgin Money, Santander, and Qatar National Bank), the £120,000 limit applies to each of those banks individually.
It’s worth remembering that if you already have funds with any of those specific banks outside of Chip, your £120,000 protection would be split across those too.
This protection is automatic and free. If you'd like to learn more or check your eligibility, you can visit the FSCS website (www.fscs.org.uk).
Is interest FSCS protected?
Interest is covered by the FSCS up to £120,000.
Important note on pending interest:
Interest that has accrued but not yet been paid into the Smart Cash ISA is not FSCS protected until it has been paid into your account.
Interest that has accrued but not yet been paid in the Chip Cash ISA, Chip Easy Access Account, and Chip Instant Access Account is FSCS protected while it's still pending.
Are bonuses and prizes FSCS-protected?
Bonus and prize funds are not FSCS-protected.
Are investment returns FSCS-protected?
With investments, the value can go down as well as up. If you were to lose money due to market movements, you would not be able to claim compensation from the FSCS.
FSCS protection on investments protects you against a firm going out of business, not against a fall in the value of your investments.
If you are eligible, you could make a claim for up to £85,000 through the Financial Services Compensation Scheme (FSCS) under their Investment Scheme.
This means that in the event Chip Financial (Investments) Ltd is declared to be in default and cannot meet our obligations, you may be able to claim compensation. It’s also worth bearing in mind that Seccl (the custodian of money held in the Stocks & Shares ISA and the General Investment Account) are also covered by the FSCS.
Further information is available from the FSCS website.
Need further help?
If you have any further questions, get in touch with our support team using the in-app chat. This can be found in the Contact Us section on the Profile tab.