Chip links to your current account and uses artificial intelligence (AI) and an algorithm to analyse your transactions and calculate what you can afford to save every few days.

The money is transferred into your Chip savings account, and you can also make manual transactions into your Chip account.

At the moment if Chip automatically saves you more than £100 in a 28-day period, it charges a £1 fee. But if the automatic saves add up to less than £100, you don’t pay anything.

A new charging structure will apply from 3 October. From then onwards if you use Chip’s Savings AI and automatic saving service to save any amount you’ll be charged £1.50 every 28 days.

The charge won’t apply if you just make manual transactions, if you pause autosave, or if your bank balance has fallen below your specified minimum level.

Chip will only start to charge this fee once you have automatically saved more than £100 in total.

There will also be a new fee to withdraw your money if you make more than one withdrawal in a month.

You’ll be charged 50p per withdrawal for the each withdrawal from the second onwards in a 28-day period.

Chip says these charges have been introduced so, in effect, Chip offers a free basic account for anyone who simply wants to move money into Chip themselves and earn returns either from Interest Accounts, or the referral bonus, without using its automatic saving technology.

Auto-saving will also change to be opt-out, rather than opt-in, by default, so if you want to avoid the charge you’ll need to go into the app and turn this feature off.

The following Chip services will still be free from 3 October:

• Holding a Chip account and manually moving money into your main Chip wallet (up to the limit of £10,000).
• The first £100 saved using Chip’s AI.
• A new bonus scheme for referring a friend to Chip.
• Opening an Interest Account and manually depositing money into your Interest Accounts.