Budget-conscious customers who are tired of getting nickels and dimeds from traditional bank accounts will benefit the most from using the Chime app.
Chime offers checking and savings accounts with no monthly fees or international transaction fees. There is also a credit building tool that you can use to build credit from scratch for free.
The downside is that banking with Chime is entirely online. So if you want to visit a bank from time to time, Chime is not the best option. And if you are looking for a financial institution with a full range of products, e.g. B. bonus credit cards or loans, working with a larger bank might be a better choice.
However, as you will see in our Chime app review, Chime is a disruptor of the banking industry for good reason. With perks like direct deposits up to two days in advance, savings round-up, and overdraft protection up to $200, it’s easy to see why so many are drawn to this app.
Here are the pros and cons.
Chime App Review: Features
Chime is a banking app that helps users manage their money. But Chime is not a bank itself; Instead, it’s a tech company that developed the banking platform. Banking services are actually handled by Chime’s FDIC member partners, Bancorp Bank and Stride Bank. Here are the pros and cons of what Chime has to offer:
Chime checking accounts
Chime’s main product is checking accounts, which you can use to do day-to-day banking transactions like depositing a paycheck, paying bills, and withdrawing.
Every Chime account comes with a Visa debit card that you can swipe at stores or connect to your digital wallet. Notable features are listed below:
- No credit check: Applying for a Chime checking account doesn’t involve checking your previous banking or credit history, which could be a boon if a poor history is preventing you from qualifying for other bank accounts.
- Toll-free ATMs: Cardholders get access to over 60,000 fee-free ATMs worldwide. You could be charged a third-party ATM fee if you go to an off-network one.
- Paychecks up to two days faster: If you set up paychecks for direct deposits into your Chime account, you may get paid up to two days early.
- Saving rounding: The round up feature can group each of your bank account transactions and save the change.
- Free overdrafts: Eligible Account Members who deposit at least $200 directly into their Chime account each month qualify for Chime SpotMe, an optional overdraft service that covers overdrafts up to $20.
- Transaction controls: You can use the app to turn your card on and off and enable or disable international purchases when going abroad for security reasons.
- Special offers: Chime users may get access to special discounts and cashback offers from companies partnered with Chime.
How to add money to Chime
To fund your Chime account, you can set up a direct deposit, transfer money from outside banks, make a mobile check deposit, or deposit cash with deposit partners.
How to withdraw funds from Chime
To withdraw money from your Chime account, you can withdraw from an ATM, transfer money to an external bank account, send money to a friend, send a check, or use your card to pay a bill.
Chime High Yield Savings Accounts
In addition to checking accounts, the Chime app offers savings accounts that you can open to hoard money for emergencies or other purposes.
Chime Savings Accounts currently offers an APY of 1.00%, well above the national average of 0.08% APY for savings accounts.
Chime Credit Builder accounts
Chime’s Credit Builder account works like a secured credit card with no annual fees or interest rates.
There is also no credit check. So if you have a limited credit history or a bad credit history, you can still qualify.
How the Credit Builder account works:
- Sign up for a Credit Builder account through your Chime checking account.
- Transfer funds from your Chime checking account to your Credit Builder account; This money acts as your line of credit.
- Use your Credit Builder Card anywhere Visa is accepted.
- The money in your Credit Builder account will automatically settle your credit card bill.
- Payments to the account are reported to all three credit reporting agencies – Experian, TransUnion and Equifax – to help you build a positive credit history.
Aside from the banking features mentioned above, the Chime mobile banking app is fairly limited in its financial services. Traditional banks can have some frustrating rules such as: B. A minimum balance requirement, but they usually offer more bells and whistles.
For example, major banks may offer loans, joint accounts, certificates of deposit (CDs), and investment services. Banks and credit unions might even let you manage bank accounts and loans from an app profile. The Chime app can help you manage basic banking, but doesn’t have much else to do with your finances that you should consider.
Chime App Rating: Pricing
The Chime mobile app is free to download and the banking services are also free. So how does Chime make money? Every time you use your debit card, the merchant you’re shopping from is charged a transaction fee, and a portion of that fee goes to Chime.
Chime app rating: Ease of use
Clarity and simplicity is what we’re all looking for in an app’s onboarding process, and the Chime sign-up flow provides that. In a friendly manner, Chime guides you through the information required to create an account.
The Chime app is available for iPhone or Android. To get started, you’ll need to provide your email address, home address, and social security number. According to Chime, it only uses your social security number to verify your information and does not cause credit damage.
Once setup is complete, Chime will show you how to fund your account. The main screen of the app also prominently displays your balance, which is great for when you want to quickly check if you have enough cash for a purchase.
Chime App Rating: Support
Chime Customer Support is available Monday through Sunday from 3:00am to 11:00pm CST. When you call, Chime attempts to answer your question without bringing you to a live person by first walking you through several automated customer service options. But if you press 0, you can quickly connect to an agent who’s ready to help you with any account questions.
How the Chime app compares to the competition
Chime is very similar to Varo, another mobile banking app that offers banking services. However, one area where Varo stands out is that it offers higher savings APY ranging from 1.20% APY to 5% APY compared to Chimes’ 1.00% APY. So if you’re looking to maximize interest income, Varo might be a better option.
Chase is a large bank that has a banking app that offers some of the same features as Chime, like the option to use cell to set up savings automation and transfer money to colleagues. However, Chase checking accounts have monthly fees unless you maintain a certain daily balance or have direct deposits of $500 or more per billing cycle.
Like Chase, Bank of America is a large bank that offers banking products, mortgages, and other lending. The Bank of America app lets you send cash, set savings goals, make mobile deposits, and more. But again, Bank of America checking accounts may charge a monthly fee if you don’t meet direct deposit and balance requirements. When it comes to having no fees and no strings attached, Chime reigns supreme.
Chime App Rating: Verdict
Chime is a great app for simple everyday transactions like depositing your paycheck, paying your bills, and saving money for a rainy day. But it’s pretty easy.
Chime customers don’t get access to physical branches or advanced banking services, making it less than ideal if you want to open many types of accounts in one place. One benefit of maintaining many different accounts at a large bank is that it sometimes comes with loyalty perks like interest rebates or bonuses.
Ultimately, if you need a basic bank account, Chime is a good choice. However, if you want to make more complex money movements or need to manage a lot of assets, you might be better off considering other banking options.
Frequently Asked Questions (FAQs)
Does Chime offer online banking?
Chime is a technology company that offers banking services through its app and website, but Chime itself is not a bank. Banking services that support the app are handled by The Bancorp Bank or Stride Bank, and both banks are FDIC members.
Does Chime charge fees?
The Chime app is free to download. Chime does not charge monthly fees, overdraft fees, or international transaction fees for its checking or savings accounts. A Credit Builder account, Chime’s version of a secured card, also has no annual fee or interest rate.
What type of accounts does Chime have?
Chime has bank accounts, checking accounts, and credit builder accounts that work like a secured card that you can use to build your credit history.