Bonus Explained

Everything you need to know about Bonus funds

Ryan avatar
Written by Ryan
Updated this week

What is a bonus?

It's important to remember that while your deposits are protected, bonus is not cash and isn't covered by the Financial Services Compensation Scheme (FSCS). This is money Chip will pay when you withdraw all of the cash you've deposited into the relevant account.

Whilst you will be able to see bonus funds in your balance, you won't be able to withdraw them unless you're withdrawing your entire balance. Although withdrawals from the account are near-instant, the bonus funds can take up to one working day to reach you.

Bonus funds can also not be transferred to another Chip product. It's also worth bearing in mind that bonus funds do not compound. This means that you won't earn bonus on your bonus like you would with compound interest.

Is my bonus taxable?

Interest/bonus received from savings accounts and products counts towards your personal savings allowance, which includes the bonus you receive from your Chip accounts.

Chip would always recommend consulting a tax professional if you are unsure about any tax you may owe.

You can read our full terms and conditions here!

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