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This website is an informative comparison site that aims to offer its users find helpful information regarding the products and offers that will be suitable for their needs. We are able to maintain a free, high-quality service by receiving advertising fees from the brands and service providers we review on this website (though we may also review brands we are not engaged with). These advertising fees, combined with our criteria and methodology, such as the conversion rates, our team of reviewer's finding and subjective experience and product popularity, impact the placement and position of the brands within the comparison table. In the event rating or scoring are assigned by us, they are based on the position in the comparison table, or according to other formula in the event specifically detailed by us. See our How we Rate page and Terms of Use for information. The reviews, rating and scoring are provided “as-is” without guaranties or warranties regarding the information contained in our website, which shall not be considered as endorsement. We make the best efforts to keep the information up-to-date, however, an offer’s terms might change at any time. We do not compare or include all service providers, brands and offers available in the market.

Chime Bank Review

Murad Jaffery Murad Jaffery Last update:

Overview

Chime is an online financial services company that offers a range of banking services through its website and mobile app. Unlike traditional banks, Chime does not have any physical branch. Nevertheless, the accounts are still backed by FDIC insurance, making them fully secure.

With over 8 million account holders, Chime is one of the most popular online banks in the US. The cost of operating the business is relatively lower than the conventional banks, and Chime is able to pass these savings to its customers in form of fee-free banking and overdraft services.

Let us explore the different types of accounts offered, the key features of each account and the benefits of having an account with Chime.

Bank Account Types

Chimes currently offers the following three types of accounts:

Account Type Key Features
Savings Account ·         0.50% APY

·         No fees

·         $0.01 minimum balance

Spending Account ·         No monthly fees

·         $0.01 minimum balance

·         Mobile payments

Credit Builder ·         No credit checks

·         No fees

·         No interest

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Savings Account Review

The Chime Savings Account offers an annual percentage yield (APY) of 0.50%. It also allows you to enable the automatic transfer feature, whereby you can transfer a specific percentage of every paycheck into your savings. Similarly, you can also enable the round-up transfer feature, where Chime rounds up all of your payments to the nearest dollar and transfers the round-up amount to your savings account. You can connect this account with your Spending account to automate the transfer process.

Chime does not charge any standard or hidden fees for offering the services. Besides, there are no minimum balance limits and no maximum interest threshold. The fees are, in fact, lower than other banks, mainly due to the savings generated as a result of branchless banking. Chime uses encryption to secure the entire process and your bank accounts. Besides, the funds are kept at FDIC-insured banks, making them as secure as a conventional bank account. Savings of up to $250,000 are insured and fully secured.

Chime calculates the interest on the basis of daily bank balance. This interest is credited to your account on the first day of the preceding calendar month. Unlike many banks which only grant interest for amounts above a certain limit, there is no such condition when you use Chime Savings Account. This means you can earn proportional interest even if you keep just $10 in your savings account.

Spending Account Review

The Chime Spending Account, also referred to as checking account, comes with a Visa Debit Card. It enables you to spend your money whenever and wherever you prefer without incurring any monthly or maintenance fees. There are no charges for requesting a replacement card either. Out-of-network cash withdrawal charges are, however, still applicable.

Unlike traditional bank accounts, you do not need to maintain any minimum balance. The Spending Account can be integrated with the Savings Account, allowing you to make instant savings of round-up dollar amounts. Still, your account is as secure as the conventional bank accounts.

Chime also supports mobile payments from popular platforms, such as Google Pay and Apple Pay. This means you can conduct transactions without carrying your card. Besides, the mobile app allows you to disable local or international transactions, and you don’t need to go through the anxious process of calling the bank in case your card is lost or stolen.

Unlike many banks which offer a nominal APY on the checking account, you do not earn any interest on your Spending Account with Chime. While this may sound like a drawback, you can always transfer your funds into the savings account, and there are no limits on the amount and volume of these transfers. Besides, you can also earn a referral bonus of $50 for inviting your friends to create an account.

Credit Builder Review

Chime Credit Builder Account allows you to easily increase your credit score by an average of 30 points. The account comes with a secured credit card, and the good thing is that you don’t have to pay any annual fees or interest for using this card. Chime does not even check your score when you apply for the account, making it an attractive choice for those with a lower score.

You can make everyday purchases and make them count towards building your credit history. You can also enable a special feature called safer credit building, which ensures that your balances are automatically paid before the due date.

The money can easily be moved between your Spending Account and your Credit Builder account, so you can use your credit card instead of the debit card to make the purchases. You need to have a Chime Spending Account and direct deposits of $200 or more in the last 365 days to apply for the Credit Builder Account.

“SpotMe”, Chime App Review

The Chime app is the newest app release for consumers looking to gain more control over their money and finances. This app is ‘the world’s first free checking account, with no hidden fees or overdraft charges.

The Chime app is entirely free to download and sign up for; there are no minimum balances or fees to use this account. Instead, you’ll only be charged a monthly fee of $4.95 if you don’t maintain a minimum Chime account balance of $200 or more each month.’

One of the best features of the Chime app is that customers will receive their pay stubs two days before they hit their bank accounts. This allows them time to make purchases instead of spending their funds later in the week.

The app has been designed to incorporate those who have lower incomes and are constantly struggling to make ends meet. In addition, it is beneficial to those who are looking to keep track of their spending.

The Chime app is entirely digital, allowing users to quickly and easily monitor their spending each month. When you spend money on your debit card, it will be recorded within the app itself.

This app is unique in allowing account holders to make deposits up until midnight on any given day. It is beneficial for those who make their income on the side and typically receive payments in cash or check, as holding onto these forms of payment can be cumbersome.

The Chime app is unique in its ease which allows people to have a single account that tracks both spending and savings while being charged no fees.

SpotMe App can be linked to a Visa card, allowing users to access over 38,000 fee-free in-network ATMs across North America.

What is Chime Account Best For?

If you want to open a simple bank account without any hassle, then Chime is your best choice. You can easily fill out the application on their website or mobile app and receive your card within days. The bank is known for offering free services, making it a particularly attractive option for new account holders. Amounts up to $250,000 are fully insured, and Chime sends you instant notifications whenever a transaction is conducted. You can instantly disable your card from your mobile without calling customer service. Finally, the Credit Builder Account is recommended for those looking to improve their credit history.

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Overdraft Facility

Chime bank review reveals that it prides on offering a fee-free overdraft facility for its account holders. If you have deposited at least $500 over the preceding 31 days, you can overdraw up to $100 without bearing any charges. However, it is important to note that the limit only applied to debit card purchases and cannot be used for ATM withdrawals, transfers or checkbook transactions.

Opening an Account at Chime Bank

You can skip the branches, queues, and all the paperwork when you open an account with Chime. The process is fully online and straightforward. Plus, it does not require any initial deposit. To open an account, you need to be an 18+ US citizen or resident. The bank will require your home address and social security number. Just fill out the enrollment form available on the company’s website and the account will be opened within 2 minutes. The debit card is mailed within 7 to 10 days.

Similarly, if you open a Credit Builder account, you can avoid all the hard credit checks and start improving your credit history regardless of how low it is.

Pros and Cons of Chime

# Pros Cons
1 The bank offers competitive APY savings rate. With the current APY at 0.50%, it is way above the national average APY of 0.05% The bank does not offer any in-person service. This means you may face difficulties in resolving issues over the phone. You will also it difficult to deposit cash due to the lack of physical locations.
2 Chime also allows you to receive your payments earlier than the conventional banks. You can receive the direct deposits almost instantly, which is up to 2 days earlier than the traditional banking methods While there are no minimum balance or transaction limits, there are daily as well as monthly limits on the maximum amount you can transfer, withdraw or pay via your Chime accounts.
3 The free services and minimum balance limits are among the key benefits of Chime bank accounts. You do not get this facility with every other bank. The customer service offered by the bank isn’t the best. It may take two to five working days for the bank to respond to your requests.

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Disclaimer: The APY currently offered by Chime is variable and may be changed without notice. It was last revised downwards from 1.00% to 0.50% in December 2020. The APY is only offered on the savings account and not on the spending account. The maximum overdraft limit of $100 is not applicable to all the users. The bank may assess and decide the limit, starting from $20 and then gradually increase it over time. This limit cannot be manually changed. Network and over the counter fees of $2.50 per transaction may be applicable. There are additional limits on the maximum amounts you can transfer to and from the account, and update list of these limits can be provided by the bank. The insurance coverage is only up to $250,000, and if you are looking for a higher investment, Chime may not be your best choice. Credit Builder account does not offer a credit limit. Instead, this is based on the amount transferred from the spending account to your credit builder account.

Disclosure
This website is an informative comparison site that aims to offer its users find helpful information regarding the products and offers that will be suitable for their needs. We are able to maintain a free, high-quality service by receiving advertising fees from the brands and service providers we review on this website (though we may also review brands we are not engaged with). These advertising fees, combined with our criteria and methodology, such as the conversion rates, our team of reviewer's finding and subjective experience and product popularity, impact the placement and position of the brands within the comparison table. In the event rating or scoring are assigned by us, they are based on the position in the comparison table, or according to other formula in the event specifically detailed by us. See our How we Rate page and Terms of Use for information. The reviews, rating and scoring are provided “as-is” without guaranties or warranties regarding the information contained in our website, which shall not be considered as endorsement. We make the best efforts to keep the information up-to-date, however, an offer’s terms might change at any time. We do not compare or include all service providers, brands and offers available in the market.
Murad Jaffery Murad Jaffery
Murad Jaffery is a chartered accountant specializing in the field of banking and finance. He has been writing on these areas for nearly a decade. Apart from content writing, he is also an accounting and finance tutor. He holds master’s degrees in accountancy and English literature. Murad enjoys travelling and reading.
This review is based on the writer's personal opinion.