Set up an Emergency Fund with Chip
If there was ever a time more in need to set up an Emergency Fund with Chip, a global Pandemic would tick the box. I’ll show you how to set up an Emergency Fund with Chip, the easy to use, goal setting, saving app!
How would you pay the bills if you lost your job tomorrow? Or if you became too ill to work?
It’s amazing how many people have very little or no savings and living month to month is the norm. Being able to or setting aside a decent chunk of money each month can seem daunting and not doable, and that’s where Chip could be the perfect solution for you.
What is Chip?
Chip is an App that you download on your phone that analyzes your spending habits to determine how much you can afford to put away in small unnoticeable chunks.
There are two ways you can link to chip, either through your debit card or your bank account. if you sign up with your card, the App will analyze your spending via your card and work out amounts to transfer to your Chip account every few days. You can also set up automatic payments which you arrange through the App.
The most effective way to sign up is through your bank account so that Chip can gain a full analysis of your spending habits including mortgage and direct debit payments.
Whichever way you choose to set-up, you can manually increase or decrease the amount saved giving you full control of your savings.
Where does the money go?
Good question, and one of my first thoughts.
Chip is not a savings account and doesn’t have FSCS protection, your money is stored as e-money. They work in partnership with electronic-money specialists PFS (Prepaid Financial Services FRN: 900036) to store your money.
PFS store the money with a major retail bank (currently Barclays) in a ‘ring-fenced’ account, which means it’s never used for any trading activities.
You can also withdraw your money whenever you want. Just put in a request before 5pm and it will be actioned the same day. Any requests made at the weekend will be back in your account the following working day.
Setting a Goal
It’s so nice working towards a goal whether its for a Family Holiday or a Deposit for a House.
You can set up three goals, a short, medium and long-term goal which is great. Any payments that you make are spread across your goals making them much more achievable.
Setting up my Account
Next you will be asked to pop in your mobile number and a verification code will be sent to you.
You will then need to fill in your personal details.
Once verified you will need to connect either your bank card or bank account. A payment of £1.01 will be taken by Chip and then refunded within 3 working days.
Setting my Goals
You can set up three financial goals with the Chip App so I’ve set mine to:
- A house deposit (60%)
- A family holiday (20%)
- An Emergency fund (20%)
A goal can be set for any amount up to £5000 so I set the house deposit to £5000, and both the holiday and emergency fund to £1000 but I can adjust along the way.
Since setting up my chip account I’ve saved £17.83. I get a notification on the day to let me know the amount and if, for whatever reason I don’t want it to be taken I can decline the deposit for that day.
Making a Withdrawal
This is simple through the app. If you put in the request before 5.50pm on a week day, the amount will appear back into your account the same day. Otherwise it will be the next working day.
So far so good. I love that random amounts are being taken rather than making a conscious choice to put away a chunk of money into a savings account. It’s nice to be able to pop onto the the app and see the amount saved going up. I love the fact that its an app on my phone that i can check whenever I want as well as still having access to my money should something unexpected happens.
Set up an Emergency Fund with Chip and receive a £10 bonus by using my promo code BABY10.
What’s not to love.
Happy Saving x
*This is a collaborative post with Chip.
If Money Saving is your thing then have a look at our 365 Penny Challenge and download the FREE Printable. A great one to start with the kids!