In this section, we'll explain the Chippit plans, features, and terms you may encounter in the app. While navigating through the app is pretty intuitive, this article should provide additional guidance.
Chippit Plans Features:
Contribution per month:
When you sign up on Chippit, you will be presented with different plans, each specifying a monthly contribution amount. This represents the amount you choose to contribute every month throughout the entire duration of the plan. The payment for your plan is debited on the 27th of each month. On the 29th of the same month, the total contributions from all members are paid out to the receiving member. The two-day gap allows for transaction settlements before payouts.
Plan duration (Length):
The default length of a plan on Chippit is 10 months, divided into two cycles of five months each.
Payout per cycle:
The payout to a receiving member in a given month is the total contribution amount by all members for that month, excluding Chippit fees. Each member receives an equal payout on a turn-by-turn basis on their scheduled dates during the first cycle (initial five months). If they continue into the second cycle (subsequent five months), the payout order is reversed. This means that the last person in the group has the opportunity to receive both their savings from the first cycle and the first payout for the second cycle. Members who are saving for more significant purchases within five to six months generally prefer to be the last in the group.
Members:
The default group size in Chippit is five members. If you wish to increase the number of members, adjust the amount, or length, or establish specific borrowing terms such as interest-free or interest-based, you can initiate the process by requesting a custom plan through the app.
Draw System:
When you join a group plan, payout dates are randomly assigned to each member. You can choose to swap dates with another member of your group. (Coming soon).
Order of payout:
Each member of the group is assigned a payout date; this is when the total funds from the group pool are paid to a member in a particular month. The amount consists of portions you have saved and portions lent to you by other members.
Custom Plan:
Using the custom plan, you have the flexibility to define the rules according to your preferences when sharing with friends or family:
- Duration
- Group size
- Contribution amounts
- Rates: interest-free or interest-based.
Note that when you join a group, you are committing to making timely contributions and repayments to other members for any amount you have borrowed from the group.
The information contained on this website is general in nature and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from a financial adviser.