Is Chip FSCS protected? Where your money is actually held

Chip is not a bank. Its Instant Access, Easy Access and Prize Savings accounts, and the closed Chip Cash ISA, are accounts with ClearBank Limited, FSCS-protected up to £120,000 per person in total at ClearBank, including any money you hold through other apps that use ClearBank. The Smart Cash ISA and Everyday Savings Account are pooled across a panel of banks, with FSCS cover at each bank. Investments are covered only by the £85,000 investment scheme, and not against market falls.

Chip is an FCA-authorised payment institution, not a bank, with a separate investment firm for its ISAs and investments: customers contract with Chip Financial Group Ltd (formerly Chip Financial Ltd) (FCA firm reference 911255). Every statement below is taken from the source named beneath it, last checked 22 October 2026. It is information, not advice.

Who holds the money, product by product

Who Chip is

Chip is the trading name of two FCA-authorised firms: Chip Financial Group Ltd (company 10113174, firm reference 911255), an authorised payment institution, and Chip Financial Wealth Ltd (company 15161994, firm reference 1005114), an investment firm that provides the Smart Cash ISA and investments. Both were renamed in May and June 2026 from Chip Financial Ltd and Chip Financial (Investments) Ltd, and many product documents still use the old names. Chip states: "Note that Chip is not a bank".

How each product is protected

The ClearBank-held accounts are contracts between the customer and ClearBank Limited, which Chip services on ClearBank's behalf, so they are deposits with FSCS cover at ClearBank. In the Smart Cash ISA, money is pooled with other customers' in trust accounts that Chip opens at the partner banks, kept separate from Chip's own money; if a bank fails, customers have a claim for a share of the money in the trust accounts there.

Chip states that the Everyday Savings Account "is not regulated by the FCA"; the banks' interest goes to Chip, which pays customers' returns separately. Investments held through Seccl are covered by the FSCS investment scheme up to £85,000 per person per firm if Seccl or Chip defaults, which does not cover investments falling in value.

If Chip or a partner bank fails

Chip says that if it fails, money in the ClearBank accounts "would continue to be held by ClearBank and there would be no need for the FSCS to step in", and Smart Cash ISA money would stay at the partner banks and could not be used by Chip's creditors. Money in transit is protected by safeguarding, which has no limit but may be reduced by an administrator's costs.

If ClearBank fails, the FSCS protects up to £120,000 per person across all ClearBank-held accounts. If a Smart Cash ISA or Everyday Savings partner bank fails, Chip makes the FSCS claim on customers' behalf, which Chip says may take up to three months, longer than holding an account with the bank directly.

Does it share your FSCS limit?

Yes. Chip states that "your £120,000 cover is spread between the Chip Instant Access Account, the Chip Easy Access Account, the Chip Cash ISA and the Prize Savings Account (and any other ClearBank provided accounts you hold elsewhere)". Its example: £80,000 in Prize Savings plus £80,000 in Instant Access gives £120,000 of protection, not £160,000.

ClearBank applies the same single limit to money it holds through other intermediaries, which its FSCS page lists, including Coinbase, Capital on Tap, PayCaptain and Chip itself. For the panel products, money at each partner bank counts toward that bank's £120,000 limit together with anything you hold there directly; HSBC Bank plc and Barclays Bank plc are different licences from the high-street HSBC UK Bank plc and Barclays Bank UK PLC.

Size

Chip had 402,000 active customers and £5.51 billion of assets under administration at 31 December 2025, more than £3.0 billion of it in the ClearBank-held Chip Cash ISA. The group lost £3.25 million before tax in 2025 (2024: £1.22 million) on turnover of £29.8 million; its auditor reported no material uncertainty over going concern.

Regulatory record since 2020

No FCA fine, final notice or public enforcement action against either Chip firm was found in searches. Chip's 2025 annual report states that a third-party audit of its safeguarding was carried out and reviewed by its board risk committee.

The fine print

The Chip Cash ISA (ClearBank, closed to new customers) and the Smart Cash ISA (Chip's panel of banks) are different products with different holders. Smart Cash ISA interest is not FSCS-protected until it is paid into the account, and closing or transferring the ISA forfeits unpaid interest. Chip keeps the difference between what the partner banks pay and what it pays customers.

Prize Savings pays no interest, and prizes and Chip bonuses are not FSCS-protected. Chip's own documents conflict on money in transit: its terms say safeguarded pending funds do not benefit from FSCS protection, while its protection page says they are also eligible for FSCS cover; the same page still quotes the old £85,000 limit for pending transactions.

Frequently asked questions

Is Chip FSCS protected?

Chip is not a bank. Its Instant Access, Easy Access and Prize Savings accounts, and the closed Chip Cash ISA, are accounts with ClearBank Limited, FSCS-protected up to £120,000 per person in total at ClearBank, including any money you hold through other apps that use ClearBank. The Smart Cash ISA and Everyday Savings Account are pooled across a panel of banks, with FSCS cover at each bank. Investments are covered only by the £85,000 investment scheme, and not against market falls.

Which bank holds my Chip money?

Instant Access, Easy Access and Prize Savings accounts: ClearBank Limited (a deposit with that bank, FSCS-protected up to £120,000 per person at that bank's licence). Chip Cash ISA (closed to new customers): ClearBank Limited (a deposit with that bank, FSCS-protected up to £120,000 per person at that bank's licence). Smart Cash ISA (pooled across partner banks): HSBC Bank plc (a deposit with that bank, FSCS-protected up to £120,000 per person at that bank's licence). Smart Cash ISA (pooled across partner banks): Lloyds Bank plc (a deposit with that bank, FSCS-protected up to £120,000 per person at that bank's licence). Smart Cash ISA (pooled across partner banks): Barclays Bank plc (a deposit with that bank, FSCS-protected up to £120,000 per person at that bank's licence). Smart Cash ISA (pooled across partner banks): Qatar National Bank (Q.P.S.C) (a deposit with that bank, FSCS-protected up to £120,000 per person at that bank's licence). Smart Cash ISA (pooled across partner banks): Santander UK plc (a deposit with that bank, FSCS-protected up to £120,000 per person at that bank's licence). Smart Cash ISA (pooled across partner banks): National Bank of Kuwait (International) plc (a deposit with that bank, FSCS-protected up to £120,000 per person at that bank's licence). Smart Cash ISA (pooled across partner banks): Nationwide Building Society (including Virgin Money) (a deposit with that bank, FSCS-protected up to £120,000 per person at that bank's licence). Everyday Savings Account (bare trust across partner banks): HSBC Bank plc (a deposit with that bank, FSCS-protected up to £120,000 per person at that bank's licence). Everyday Savings Account (bare trust across partner banks): Lloyds Bank plc (a deposit with that bank, FSCS-protected up to £120,000 per person at that bank's licence). Everyday Savings Account (bare trust across partner banks): Qatar National Bank (Q.P.S.C) (a deposit with that bank, FSCS-protected up to £120,000 per person at that bank's licence). Money in transit (pending for 1 to 3 working days): Chip's safeguarded client money account at ClearBank Limited (e-money safeguarded by the firm, not FSCS deposit protection). Stocks and Shares ISA, General Investment Account and pension: Seccl Custody Limited (client money the firm holds on trust at banks: FSCS deposit cover up to £120,000 per person per bank if a bank fails, and investment cover up to £85,000 for any shortfall if the firm fails). Money-market fund option: BlackRock ICS Sterling Liquidity Fund (BlackRock Asset Management Ireland) (units in a fund, an investment rather than a deposit).

What happens if Chip goes bust?

Chip says that if it fails, money in the ClearBank accounts "would continue to be held by ClearBank and there would be no need for the FSCS to step in", and Smart Cash ISA money would stay at the partner banks and could not be used by Chip's creditors. Money in transit is protected by safeguarding, which has no limit but may be reduced by an administrator's costs.

Does Chip share the FSCS limit with my other savings?

Yes. Chip states that "your £120,000 cover is spread between the Chip Instant Access Account, the Chip Easy Access Account, the Chip Cash ISA and the Prize Savings Account (and any other ClearBank provided accounts you hold elsewhere)". Its example: £80,000 in Prize Savings plus £80,000 in Instant Access gives £120,000 of protection, not £160,000.

More: other savings apps and platforms, how FSCS protection works and which banks share a banking licence.