Is Chime Better Than Your Bank?

Chime

Estimated reading time: 7 minutes

Have you been disappointed by your bank because of the lack of transparency, hidden charges, and slow interfaces? If so, we have good news for you. We recently discovered Chime – the financial institution that has been striving to change people’s perceptions of banking since 2013. 

They banked on the idea that essential financial services should be helpful, simple, and free. The company has offered several perks, such as no fees and a user-friendly smartphone interface that makes managing your money a breeze. Read on to know more.

Chime: What You Need To Know

Is Chime A Real Bank?

Chime itself is not a bank. Instead, they represent themselves as a “financial technology” company collaborating with two legitimate banks. Bancorp Bank or Stride Bank, to be specific. 

This means that your Chime account will continue to get all of the usual bank protections and benefits, such as FDIC insurance up to $250,000 in deposits.

Chime operates solely through a mobile banking app, so they actually don’t have any physical branch locations that you can go to in person. But instead of investing in physical branch locations, they took that money and invested it into an excellent mobile app.

What Are The Benefits When Banking With Chime?

As previously mentioned, all accounts are insured by FDIC. That means your money is as safe with Chime as it would be with any online or traditional bank. But, wait, there’s more!

1. No Monthly Fees

There are no monthly or minimum balance fees for checking accounts and debit cards. There are no overdraft costs. There are no Fees on over 60,000 ATMs at Walgreens, 7-Eleven, CVS Pharmacy, and other locations.

2. Spot Me

This is a feature where you do not pay any fees for any transactions that overdraw your account.

To qualify, you should be prepared to have a direct deposit of $200 or more every month. Chime will notify you once you are eligible to enroll for this feature.

Not only that, every month, qualified members will receive Boosts to gift to friends and family to raise their SpotMe limits. And of course, They can also do the same for you and increase your limit. 

When your negative debt is paid off, you’ll be given the option of leaving a tip to help pay it forward. Your SpotMe eligibility is unaffected by whether or not you tip and, yet again, without charging any fee.

3. Payment Convenience

Have you ever left your wallet at home? No worries, you can pay using your smartphone as Chime supports Google and Apple Pay and other mobile payment platforms. Convenience on your fingertips. When you pay friends and families, you help them avoid cash-out fees.

You can also pay someone money or payment via $ChimeSign directly to their bank account even if they aren’t a member. 

4. Get Your Paycheck Early

Another excellent benefit for Chime account holders is whenever you receive a direct deposit on your account; you can access it two days earlier than the traditional bank’s waiting time.

5. Security and Privacy

If you missed it, we would like to mention that your money is FDIC insured. The app provides real-time notifications too, with Visa Zero Liability for unauthorized charges. And seal the deal with fingerprint and two-factor authentication.

What Are the Different Accounts Does Chime Offer?

1. Chime Checking or Spending Account

When you open a Chime Checking Account, you will also be given a debit card. The debit card can be used everywhere that accepts Visa debit cards. There are no monthly account fees or minimum balance requirements.

Chime can also round up to the closest dollar every time you swipe your debit card and transfer the amount from your Checking Account to your Savings Account. It’s a great way to save while you spend. 

Lost or stolen debit card? You may turn off transactions at any time using the app. There’s no need to contact the company or give an explanation. If you require a replacement card, just let them know, and they will send you one. As always, for free!

2. Savings Account

Besides saving while spending, Chime can help you grow your money with an annual percentage yield of 0.50%. This account requires no maximums on interest earned and minimum balance requirement.

3. Credit Builder Account

If you’ve been rejected credit in the past, this might help you improve your credit score moving forward with this feature.

You may fund your Chime account from any of your other Chime accounts. You’ll be allowed to spend up to the amount you’ve deposited to your card while establishing credit.

If you’re qualified for SpotMe, you might be able to get a no-fee overdraft with Chime as an alternative. You’ll need to the following criteria:

  • Must be at least 18 years old
  • Have a deposit of at least $500 in your Chime Spending Account in the last month
  • Have an Android or Apple phone with a data plan

If you’re qualified for this service, you may be able to overdraw your Chime account; however, if your account is underfunded for 15 days or longer, Chime may compensate you by transferring cash from other Chime accounts.

How Much Does It Cost To Add Money To Chime Card?

If you have Walgreen or Duane Reade in your area, hand your cash to the register with your Chime Visa Debit Card, and you’re good to go! It’s as easy as 1, 2, 3! And you probably guessed it by now; it will cost you nothing! Yes, and again, it’s free!

How Much Money Can I Have In My Chime Account?

You can deposit cash up to 3 times a day with a per load amount of $1,000, $1,000 a day, or, if you want, up to $10,000 a month. 

You can also opt to use third-party transfer services to deposit into your Chime account, but the respective companies will impose fees and limits. Below are the following companies you can use:

  • 7-Eleven
  • Walmart
  • Dollar General
  • Speedway
  • CVS
  • Family Dollar
  • Pilot Travel Centers (Pilot Flying J)
  • Rite Aid
  • Circle K Stores
  • Holiday Station Stores
  • Sheetz Incorp
  • GPM Investments
  • Royal Farms
  • TA Operating LLC (Travel Centers of America)
  • Kwik Trip Inc
  • Cumberland Farms Corp
  • Krause Gentle (Kum & Go)

Can You Deposit Checks With Chime?

If you want to deposit your physical check, you will have to do that with their partner banks. Chime uses a Mobile check which can be deposited immediately to your account. You will have to wait for five business days, though, for it to push through. This excludes federal holidays. 

Are There Withdrawal and Spending Limits?

Chime’s perks seem to be never-ending. However, it’s important to note that there are withdrawal limits. 

Here are the transaction types with corresponding limits:

  • Purchasing using the card (unlimited number of uses a day but with a $2,500 limit)
  • ATM Withdrawals (unlimited number of uses a day but with a $500 limit)
  • Point-of-Sale Cashback (unlimited number of uses a day but with a $500 limit)
  • Over the counter purchases (unlimited number of uses a day but with a $500 limit)

Any fees incurred, ATM and Over-The-Counter Cash withdrawals, purchases, and funds withdrawn at a Point-Of-Sale are subject to the maximum card purchase daily. However, this does not apply to all merchants, ATM operators, and banks since they may have a lower cash limit.

So start saving with Chime and rid yourself of the burdens of traditional banking. You’ll never know where it will bring you if you don’t give it a try. It’s a win-win!

Did I miss anything? Let us know in the comments section below.