Check, save, pros and cons

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Digital-first financial services are the trend of the future: all fund management does not come off the sofa.

Chime is one of the earliest participants and leading companies in the branchless banking game. This is a financial technology company founded in 2013 by Chris Britt (current CEO) and Ryan King (current CTO).

Like other online banking options, Chime provides many of the most important features of traditional deposit accounts, and the fees are much lower—there is even a savings account option with much higher interest rates than typical savings accounts.

Although the controversy in the summer of 2021 is not over yet, Chime has become more and more popular. After Chime suddenly closed hundreds of accounts, the Consumer Financial Protection Bureau received nearly 1,000 complaints. Chime stated that the closure is related to COVID relief fraud, but the issue has not been publicly resolved. PSAs Reporting the situation in July, Penny Hoarder is waiting for a solution.

Chime Review: Account

In this review in late 2021, we looked at Chime’s checking and savings accounts and considered the details you need to decide whether to register. Chime offers a “checking account” option called a Chime spending account. Every Chime member starts with this account.

If you open a Chime spending account, you can also access the Chime Savings Account, which is an FDIC insurance savings account with automatic savings function, high APY and no fees.

Chime consumer account

Best for simple and free inspections

main feature

  • No monthly fee
  • Cash deposit through Green Dot
  • Free overdraft options

Chime’s check option is the expense account. This is a very basic product: an interest-free deposit account associated with a debit card. It works similarly to most traditional checking accounts, including free overdraft options and access to credit builder accounts (if needed).

Chime consumer account

Minimum balance

0 USD

ATM access

Over 60,000 free ATMs

Prime Minister’s Privilege

et Direct deposit payment up to two days in advance

More information about Chime consumer accounts

With a Chime spending account, you will get:

  • Visa debit card: Use your Chime debit card for point-of-sale transactions, ATM withdrawals, and Green Dot cash deposits.
  • Mobile phone deposit: Deposit any checks into your account by taking photos using the Chime smartphone app. How easy is this?
  • Cash deposit: You can use Green Dot to deposit cash into Chime accounts at more than 60,000 retail locations, which is a feature that many online banks do not allow.
  • Point-to-point transmission: Send money to friends and family directly from your Chime account, whether they use Chime or not.
  • SpotMe overdraft protection: If the total amount of direct deposits you receive each month is 500 USD or more, you can use this free overdraft protection feature. If you spend more than the amount in your account, Chime will make up the difference, with a minimum of $20 and increase to $200 or more based on your account activity. You will repay the overdraft amount from the next deposit.
  • Bill payment: By providing your Chime routing and account number to the company, rent and bills are paid directly from your account via ACH transfer. Or use the Chime Checkbook function to mail paper checks.
  • Expert tips

    View our current list Bank promotion When you register a new bank account, you have the opportunity to receive cash rewards.

    Chime savings account

    Best for automatic savings

    main feature

    • Saving cash rewards
    • Automatic saving function
    • No minimum or maximum balance

    Chime savings account does not charge any fees, there is no minimum balance or maximum interest. It allows you to use automated functions to make it easy for you to deposit funds. Savings accounts earn interest at an annual rate of return (APY) of 0.50%, and there is no minimum deposit requirement.

    Chime savings account

    APY

    0.50%

    ATM access

    Over 60,000 free ATMs

    Prime Minister’s Privilege

    Automatic savings, 10% of each deposit is used for savings

    More information about Chime savings account

    Anyone with a consumer account can choose to add a savings account.
    Automatic savings features include:

  • round: Whenever you use a Chime debit card to make a purchase, you can automatically round the transaction to the nearest dollar and deposit the digital change into your savings account.
  • Save when I receive payment: Automatically transfer 10% of every deposit or payment (500 USD or more) received to your savings account.
  • Unlike some online accounts, Chime cannot easily set specific savings goals or further personalize your account based on purpose. You also cannot deposit money directly into your Chime savings account; it must be remitted through your spending account.
    The Chime savings account is a federally regulated savings account, so it is subject to any definitions or restrictions set by the Federal Reserve, including potential withdrawal restrictions.

    Other chime products

    Except for a simple checking account and savings account, Chime’s product is quite simple. It does not provide any loans, credit cards or investments, so you must work with different agencies to pay for these fees.

    It does provide a rather unique Credit Builder account associated with the Chime Credit Builder Secured Visa credit card.

    You can open an account without a credit check and without paying an annual fee. You only need to deposit any amount (no minimum limit) and this will become your credit limit. You spend on the card like any other Visa credit card and use the money in your Credit Builder account to repay the balance. Your activity will be reported to the credit bureau to establish your credit history.

    Timekeeping fee

    Chime is easy in terms of cost, which means:

    • There is no monthly fee for account maintenance.
    • There is no minimum balance requirement.
    • No overseas transaction fees.
    • There is no account deposit requirement.
    • There is no charge for SpotMe overdraft protection and no additional overdraft fees.
    • There is no charge for sending paper checks using Chime Checkbook.
    • There is no need to pay ATM fees when using ATMs within the network.

    You can withdraw money from more than 38,000 free ATMs in the United States through MoneyPass and Visa Plus Alliance ATMs.

    If you use an ATM outside the network, you need to pay the provider’s fee. You need to pay for depositing or withdrawing cash at the counter at Green Dot locations-Chime charges a withdrawal fee of $2.50, and you may have to pay Green Dot fees, up to a maximum of $4.95 per transaction.

    Chime customer experience

    Like everyone else Online bank account, Chime’s convenience factor is relative: if you are looking for a physical banking experience, then you are looking for the wrong (earning) tree.

    Since Chime is a technology company, its mobile app is easy to use, allowing you to manage your funds 24/7 anytime, anywhere. If this is what you are looking for, Chime can score online savings accounts and savings accounts.

    It also includes features that many online banking competitors do not have, including cash deposits, free overdraft protection, and advance payment check deposits.

    Chime is highly rated in the Google Play Store and Apple’s App Store-4.6 and 4.8 stars (out of five stars), respectively.

    The app can easily access and interact with all of Chime’s banking functions, including SpotMe overdraft protection, automatic savings options, and simple mobile payments, which are particularly simple for transactions between Chime users.

    Through this application, you can:

    • View your Chime spending and savings account balance and transaction history.
    • Transfer money between expenditures and savings.
    • Use mobile check deposit to deposit checks.
    • Find a free ATM in the network.
    • Contact customer support.
    • Set up automatic savings and aggregation for debit card purchases. A survey by the Federal Reserve Bank of Atlanta stated that in 2020, Americans made an average of 68 payments or purchases per month, of which 23 were debit card payments.
    • Transfer money to other Chime members through Pay Friends. The money is transferred immediately.

    The app does not have a lot of extra features provided by some other digital-first banks. For example, budgeting tools are a useful way to restructure finances, and banks of all types are increasingly integrating them into their digital tool suites.

    On the other hand, Chime is still very simple-you can think of it as positive or negative, depending on what you are looking for.

    Is Chime right for you?

    Chime’s product suite and in-app tools are very streamlined, but if your banking needs are relatively simple, it might be right for you. This is our view on the best and not so good things about opening a Chime account.

    Pros and cons of Chime

    We have compiled the advantages and disadvantages of Chime to help you determine if this is right for you.


    advantage

    • Free currency service
    • No overdraft fees, plus flexible protection
    • Get paid early
    • Cash deposit


    shortcoming

    • Not interested in checking
    • No small business banking option
    • No budgeting tools or financial services
    • No joint account

    Frequently Asked Questions (FAQ) about Chime

    Below are our answers to some frequently asked questions about banking with Chime.

    First of all, technically speaking, Chime is not a bank, but an online money management system. A good financial platform or institution is different for everyone. Chime offers free consumer accounts and savings accounts, above-average APY, credit cards, free ATM networks, and free overdraft protection. Its features may be attractive to anyone, but if you want more comprehensive services, such as loans, credit cards, investment, or small business banking, you may not meet the requirements.

    Is Chime a legitimate account?

    Chime’s deposit accounts are held by its partner banks Stride Bank, NA and The Bancorp Bank and are insured by the FDIC, both of which are chartered banks in the United States and federally regulated banks

    Will you be scammed on Chime?

    With a Chime account, your funds are safe. Chime uses a secure mobile banking platform that includes two-factor authentication, fingerprint authentication, transaction alerts, easy debit card freeze and Visa zero liability protection to prevent fraudulent charges on your Chime Visa debit card. Its accounts are backed by partner banks, Stride Bank in North America, and The Bancorp Bank, which provide FDIC insurance up to $250,000 for your balance.

    Chime’s mobile banking platform uses encrypted data, two-factor authentication and fingerprint authentication to prevent strangers from accessing your account. The platform gives you access to real-time transaction alerts and instant debit card freezes.

    Dana Sitar (@danasitar) has been writing and editing since 2011, covering personal finance, career and digital media. This report contains information from Jamie Cattanach, a former Penny Hoarder contributor.




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