Chime®

According to a 2021 FDIC National Survey, approximately 81% of Americans are “fully banked.” It’s easy to understand why so many people have bank accounts, but consumers can now select from thousands of banks. Each bank offers various perks and features to attract users. Fintech company Chime® ^(*) is one of the top banking service providers to consider.

Chime® is a convenient, utterly mobile banking app ^(*) that allows anyone to open an account free of charge. In addition to its simplified layout, the Chime® financial app offers a few extra perks you won’t find at other banks, like no account or monthly fees ⁽¹³⁾ and a feature to get paid early ⁽⁴⁾ .

It is important to note that Chime® is not a bank per se but a financial technology company whose banking services are provided by The Bancorp Bank or Stride Bank, N.A., a member of the FDIC. This means the funds you deposit in the accounts are held and managed by The Bancorp Bank or Stride Bank, N.A., and FDIC insured up to the approved amount per depositor. Funds are insured by up to $250,000.

Banking Made Easy Through Chime® Mobile App

Chime® began as a small startup in 2012, founded by California residents Chris Britt and Ryan King. The company had a spot on the Dr. Phil show and officially launched in 2014. The fintech company proceeded to secure one million customers by 2018. Just one year later, that number would increase to four million.

Chime® has always been an online financial technology company focusing on making the banking experience easier and more accessible to everyone. Chime®’s founders have also shown that they’re heavily invested in their customers’ financial success. The award-winning mobile banking app offers products that can help people regardless of their income levels, credit scores, and financial goals.

Chime®’s Mission

According to the company’s mission statement, Chime® aims to offer its customers more control of their financial well-being. Some other traditional banks (though not all) have a reputation for profiting off customers with exorbitant overdraft fees and other charges ⁽¹³⁾ . For some banking institutions, these penalties make up 40% of the company’s revenue.

In contrast, Chime® prides itself on having no fees ⁽¹³⁾ whatsoever: the company profits with you, not off you. The founders also believe in offering their customers as much transparency as possible. Everything you need to manage your money is available at the tips of your fingers with the Chime® app.

What Does Chime® Offer?

Chime® offers an easy banking experience through the Chime® app to help you manage, save, and spend your money. The Chime® financial services app comes with features to manage your accounts and your finances easily in one place. And on top of that, pay no monthly fees ⁽¹³⁾ . When banking through Chime®, forget about overdraft fees, minimum balance fees, monthly fees, or foreign transaction fees ⁽¹³⁾ . And you can use fee-free 38,000 free in-network of ATMs to withdraw cash ⁽²⁾ .

• Chime® Checking Account: This account comes with a debit card that you can use wherever Visa® is accepted. It has no monthly fees or maintenance fees ⁽¹³⁾ . To help you grow your money, Chime® rounds up ⁽¹¹⁾ to the nearest dollar each of your debit card purchases and transfers it from your Checking Account straight into your Savings Account. If you need to disable transactions or order a replacement card, you can easily do that through the Chime® app. Also, link your card to mobile wallets so you can easily pay with your mobile phone. A Chime® Checking Account can receive direct deposits and allows you to access your paycheck up to two days early ⁽⁴⁾ .
• High-Yield Chime® Savings Account: You must have a Chime® Checking Account to open a savings account, and it is additional and optional if you want to save money. With no minimum balance requirement ⁽¹⁾ , no maximums on interest earned, a competitive variable annual percentage yield (APY) ⁽⁸⁾ , and rounds up ⁽¹¹⁾ from your Checking Account, Chime® makes it easy to help you save money. You can also access some savings settings that you can configure to transfer a portion of your paycheck to your savings account once it’s deposited.
• Credit Builder ⁽⁵⁾ : With this Visa® Secured Credit Card*, Chime® wants to give a chance to its members to build or raise their credit scores and grow savings. You can apply with no credit check; the card has no interest and no annual fees ⁽⁹⁾ , and your purchases will count against building your credit. By turning in a safer credit building, you will always pay your full balance automatically on time every month, and Chime® will report this positive payment history to credit bureaus. You have to make a security deposit, but the amount you deposit is up to you. That security deposit will become your credit limit, and you can get the deposit back if you close your card or upgrade to an unsecured credit card. The Chime® Visa® Credit Card can help you establish a fresh start and qualify for better financing in the future. Chime members have increased their credit scores by 30 points on average ⁽⁷⁾ with the Chime Credit Builder Card ⁽⁶⁾ .
• Top-tier Customer Service: Chime® offers excellent customer support that is available 24/7 on the Chime® app. Customers can enter live chats, send emails, or jump on the phone to reach a representative from Chime. Knowing customer support is always available can make it easier to become comfortable with the Chime® app and receive quick answers to your questions.
• Chime® SpotMe® ⁽³⁾ : Chime® SpotMe ⁽³⁾ is an optional service that does not have any fees ⁽¹³⁾ involved. If you overdraw your Chime® Checking Account’s balance, Chime® will spot you some extra money to cover the difference. You have to pay this back with your next direct deposit, but it can save you from accruing overdraft fees ⁽¹³⁾ . Chime SpotMe® ⁽³⁾ starts at $20 and can go as high as $200. A high direct deposit frequency can help you get closer to the $200 limit.

So, after reviewing what accounts and products you can access through Chime®, let’s review what you can do through the Chime® app to improve your everyday banking experience.

The Chime® App Features

Apart from the bank accounts and credit builder cards ⁽⁶⁾ , you can also access other financial services through the Chime® app or their online banking experience.

• Easy Online Banking and Mobile App: Keep track of your account balances, daily transactions, and savings from anywhere, get notifications and alerts for purchases, or send money to friends with the Chime® mobile app. The website and app are both easy to use.
• Get Paid Early ⁽⁴⁾ : Since financial emergencies don’t operate on a schedule, if you need a paycheck in advance, Chime® can give you access to your hard-earned money faster, up to two days earlier. Your direct deposit will hit your Chime® Checking Account as soon as it’s available, up to two days early ⁽⁴⁾ .
• Fee-Free Overdraft with SpotMe® ⁽³⁾ : Allows you to overdraw up to $200 on debit card purchases without charging a fee and automatically applies what you owe from your next deposit. So, if you are short on cash, they don’t have to be a big deal with Chime® since overdrafts happen.
• Integrated Automatic Savings: Automatically rounds up ⁽¹¹⁾ your purchases and puts the extra change into your savings account, plus 10% of all direct deposits. With Save When I Get Paid ⁽¹⁰⁾ , you can automatically transfer 10% of your direct deposits of $500 or more from your Checking Account into your savings account. You can manually save money, but the automatic approach can reinforce your financial habits. Customers who implement automatic savings may become less prone to impulsive spending.
• Pay Friends ⁽¹⁴⁾ : Send money to your friends instantly if they are also a Chime® member. Chime® is a growing fintech company with a lot to offer, so you may come across more people who have Chime® bank accounts.
• Stay Under Control: Through the Chime® app, you can instantly block your card, get alerts and notifications related to your purchases, and use your cards. Chime® supports fingerprint and two-factor authentication for another layer of security. The Chime® debit cards are protected by the Visa® Zero Liability Policy ⁽¹²⁾ to protect you against unauthorized purchases. Your deposits are FDIC-insured up to $250,000 through The Bancorp Bank or Stride Bank N.A.; Members FDIC.

How Much Does Chime® Cost?

Opening an account through Chime® or downloading and using the Chime® mobile app costs no money. The accounts opened through Chime® have no minimum balance requirement ⁽¹⁾ . You also won’t be charged any overdraft fees, late fees, or any fees for sending money to other Chime® members ⁽¹³⁾ . Chime® doesn’t even have a monthly maintenance fee. You’ll be charged a small fee if you use an out-of-network ATM ⁽²⁾ .

To avoid ATM fees, withdraw money at one of the 60,000 in-network ATMs ⁽²⁾ you can locate through the Chime® app. Chime®’s ATM network ⁽²⁾ is larger than the top three national banks combined. You can use the Chime® app to find in-network ATMs near you so you can plan your trips accordingly.

Some of these ATMs are located in well-known stores like CVS and Walgreens. You can do your shopping in these stores and use an in-network ATM ⁽²⁾ if you need extra cash. You can even withdraw cash from these ATMs ⁽²⁾ before buying goods in these stores if they require cash for purchases. It’s far more convenient to withdraw funds in a store you regularly visit than it is to drive to a physical branch. You can save a lot of time this way.

You may wonder how Chime® can afford to stay in business without charging fees ⁽¹³⁾ to its millions of customers. It is simple; Chime® makes a small amount of money each time a customer uses their debit card. This money is paid to Chime® directly from Visa®, never from your account. This business model allows Chime® to make money while helping its users lower their costs.

How Does Chime® Compare to Other Banking Apps?

Chime® has many desirable features that help it stand out from many banks. Chime® has many of the standard features, such as a mobile app, checking and savings accounts, and early access to your ACH transfers ⁽⁴⁾ . It’s also extremely easy to create a Chime® account. The company’s great user experience makes it possible to get started in as little as two minutes.

Some banks narrow their focus and have fewer products, and this is especially true for online banks. However, Chime® doesn’t follow this trend and offers users plenty of resources. Chime® offers financial products that can serve you regardless of whether you have strong financials or a bad credit score through an award-winning mobile app. The company’s checking and savings account protect your money and help it grow, while Chime’s secured credit builder card ⁽⁶⁾ can give consumers a fresh start. If you are not a fan of credit cards, you can use a Chime® debit card for your purchases.

Chime® does not have physical branches like some of the largest financial institutions on the planet, but it has better overdraft protection than most banks. With SpotMe ⁽³⁾ , you can get up to $200 in overdraft protection. SpotMe ⁽³⁾ starts at $20, but a good deposit history, account usage, and other factors can help you qualify for a higher limit. Some banks do not offer any overdraft protection, and you would be lucky to find a bank with overdraft protection exceeding $100. Chime® makes it as easy as possible for consumers to avoid banking fees ⁽¹³⁾ , especially when you compare Chime® with other banks and credit unions.

In its pitch, Chime® highlights its expansive ATM network ⁽²⁾ and how its fees compare to other banks. Chime® has a network of 60,000 ATMs, while JP Morgan only has 16,000 ATMs in its network. Bank of America and Wells Fargo have roughly 16,000 and 12,000 ATMs in their respective networks.

Chime® also doesn’t charge any overdraft fees or monthly account service fees ⁽¹³⁾ . Other financial institutions can charge excessive fees in both of these categories. Chase has a $34 overdraft fee, while Wells Fargo has a $35 overdraft fee. You can also contend with a $25 monthly service fee for Chase and a $35 monthly service fee for Wells Fargo. You can avoid the monthly maintenance fee if you fulfill these banks’ requirements. However, Chime® doesn’t have any hurdles blocking you from zero monthly fees ⁽¹³⁾ .

Opening A Bank Account through Chime®

Enroll online with your full name and social security number to open a bank account through Chime®. You’ll also have to provide an email address and a unique password to access your account. While everyone is usually approved, you must be at least 18 years old and a U.S. citizen.

Once your identity is verified, you’ll be prompted to download the Chime® app on your mobile device. The app can be found in both Apple and Android app stores, or you can just manage your account on your computer. You will also receive a debit card after you’ve been approved.

Since Chime® is not a bank, your deposits will be held and managed by their bank partners, The Bancorp Bank or Stride Bank, N.A., Members FDIC. The Bancorp Bank or Stride Bank also issues the Visa® Debit Card according to a license from Visa® U.S.A. Inc., and you can use it everywhere. Visa® debit cards are accepted. If you want to know what of these banks issued your card, see the back of your card.