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Your E-Wallet is Closing. Full FAQ.
Your E-Wallet is Closing. Full FAQ.

We are making some changes to improve our savings accounts.

James avatar
Written by James
Updated over a week ago

We are making some changes to Chip to bring FSCS protection to all our savings accounts. Here's a full lowdown on what the changes are and what they mean for you.

*Update Important Notice After June 8th 2022*

After June 8th 2022 the custody of your E-Wallet will pass to EML Payments Europe Limited (formally known as Pre Paid Financial Services who are the payment service where our E-Wallets are held) you will be required to email:
EU-Info@emlpayments.com and provide the following information to access your funds.

  • Your Chip ID (this will be sent to you or you can request it directly by contacting us via the app or hello@getchip.uk)

  • Proof of ID (Valid Passport/Driving Licence)

  • Proof of address dated within the last 3 months (Utility Bill/Bank Statement)

  • Bank Statement you want the funds to be transferred to (dated within the last 3 months)

EML Payments Europe Limited charge a £5 fee for this service which will be deducted from the amount in your E-Wallet. Chip has no authority to waive or affect this charge.

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What’s changing?

You may have seen in the Chip app that your “E-Wallet is closing soon”.

The E-wallet, formerly known as the “Chip Instant Access account'' is an older type of account, where your cash is stored as e-money. We’re discontinuing this account type and offering an easy access savings account, where your money is held with the UK authorised bank ClearBank and is eligible for the government backed Financial Services Compensation Scheme (FSCS) up to £85,000.

What do I need to do?

The short answer is if you have a balance in your E-Wallet, we need you to withdraw it to your linked bank account and stop using this account before July 20th 2021. (more details below)

We recommend that once these funds have been removed from your E-Wallet you deposit them into your Allica Easy Access account which is now available for you to open in the app if you haven't already.

What do I need to know?

After 20th July 2021, you won’t be able to make any new deposits (manual saves, autosaves, or Payday Put Aways) into your e-wallet account, and we will have to charge an administration fee on any remaining balance beyond this date. We will close all accounts with no balance from that date.

We want you to avoid any charges and continue saving, which is why we are asking you to withdraw your money from your E-wallet. If you take action now, you won’t face charges.

What charges could I face in July if I do nothing?

After 20th July 2021, an administration fee of £5 every 28 days will apply where there is a balance above £0 in your E-Wallet account.

Update: On January 25th the admin fee will rise from £5 to £10. Two months notice was given to communicate this change.

We will charge this fee directly from funds in the account, including any accrued bonus, until the balance is £0. If the balance is under £5 (or £10 after January 25th) we will charge whatever the balance is. Once the balance reaches £0, we will close the account.

How can I avoid all charges?

Simple.

To avoid these charges please withdraw money from your E-wallet and start using your Allica Easy Access account.

It takes two easy steps:

1. Open Chip, go to your account tab and select your E-wallet. Now hit “withdraw” to move the money from your E-wallet back to your bank account.

2. Deposit your funds into your Allica account (and set your autosave allocation there) in order to continue saving with Chip.

What do you need to do to open an Allica Bank Account?

Go to the accounts tab in the app and select Allica, follow the on-screen prompts and you'll have the account open right away! You can earn a 1.10% AER* (variable) interest rate on your savings on up to £85,000

You can keep auto-saving or manually depositing as before, but instead of using your E-wallet you will now use this account instead.

How do I set up auto-saving into my Allica account?

Easy!

Just go to your auto-save settings on the profile tab of your Chip app and change your “Auto-save allocation” to Allica to ensure no further autosaves go to your E-Wallet.

Why are Chip doing this?

When we first built Chip we offered an e-wallet powered by Prepaid Financial Services (PFS) to our customers. Until 2020 this was the only account available with Chip, and has had a few names over the years, most recently ‘Chip - Instant Access’.

This is how many other fintechs and challenger banks started (Monzo, Revolut etc…) because they’re very easy to set up and grow with.

While PFS is authorised by the Financial Conduct Authority, and the money in an e-wallet is safeguarded and never used for lending or business purposes, it’s not covered by the FSCS guarantee and doesn’t pay interest/bonus. As Chip matures, the time has come for us to replace these e-wallets with FSCS-eligible savings accounts.

One last thing..

It’s important to note Allica is an "Easy Access" account (not Instant Access) where deposits take 3 working days to clear and withdrawals will take up to 2 working days to be returned to your bank. With this in mind, we recommend you do not deposit any funds you may need to access immediately for day to day expenses, bills or an emergency. Thank you.


More information on our price plans here

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