What Is Chime? Manage Personal Banking in This Chime Review

Online financial services like Chime bank make it easier for you to manage your money on the go. But with so many apps and online services to choose from, it can be difficult to decide which one is right for your needs.

This Chime Bank review will help you decide whether or not it’s right for you. We’ll go over the service’s features, the advantages and disadvantages of using Chime, and everything you should know before opening a Chime account.

What is Chime?

Chime is a financial technology company that provides personal banking products. It’s important to note that Chime is not a bank itself, but that it partners with banks to offer checking and savings accounts to users. Its banking partners are The Bancorp Bank and Stride Bank, N.A.

Users manage accounts with Chime entirely online. The Chime mobile app allows you to view your accounts and manage your money directly from your smartphone. Chime is a good option for individuals who want to maximize the interest in their savings accounts and who have other external bank accounts for making transfers.

Chime Accounts Overview

Chime aims to keep banking simple by offering fewer account options than traditional banks. Rather than overwhelming users with too many choices about which accounts are right for them, the company offers one savings account, one checking account, and one credit card.

Chime High Yield Savings Account

One of the best features about Chime is its high yield savings account. The company currently offers an annual percentage yield (APY) of 0.50% for savings accounts, and there is no minimum balance requirement. You only need to have $0.01 in your savings account to start earning interest.

If you’re trying to save more money, Chime offers two convenient “automatic” savings options. You can choose to round up every purchase you make using your Chime card to the nearest dollar and deposit the difference into your savings account. Or, you can elect to have Chime deposit 10% of your paycheck into your savings account automatically when you receive it. These features are entirely optional, but they can be extremely helpful for pushing you closer to your savings goals.

There is no limit to the number of transfers you can make from your savings account into your spending account. This increases the accessibility of your money in case you ever need it. You must have a spending account with Chime before you can open a Chime savings account.

Chime Spending Account

Like their savings accounts, Chime’s spending accounts, or checking accounts, don’t require a minimum balance or charge you any monthly account fees.

A Chime spending account comes with fee-free access to 38,000 ATMs. It does, however, charge a $2.50 fee when you use an out-of-network ATM, and if you ever want to deposit cash, you’ll need to do so at a Green Dot location.

Chime also offers an option to accelerate your direct deposits, making them available up to two days sooner than traditional banks. With this option, you can receive your paychecks almost as soon as your employer deposits them.

If you enroll in direct deposit, you’ll be able to deposit checks from your mobile app. While the company doesn’t provide users with a checkbook, you can send payments electronically using the Chime Checkbook feature in the app. This feature has limits of $5,000 per transaction and $10,000 per month.

You can pay bills and receive funds using your account number and routing number, just like with traditional banks.

Additional Accounts and Services

If building credit is a priority for you, you can take advantage of Chime’s Credit Builder secured credit card. This is available to users without a credit check, so it’s suitable for people with little or no established credit. Unlike practically all major credit cards, the Credit Builder card charges a 0% APR.

The Chime app has a built-in peer-to-peer payment service that allows you to send and receive money with your friends and family. This service has a monthly transaction limit of $2,000.

Chime Banking Experience

Because Chime is an online-only banking service, you should be comfortable managing your money online or through an app before you sign up for a Chime account. Both of Chime’s partner banks are FDIC insured up to the standard $250,000, so you can be confident that your money is secure.

Online-only banking options like Chime tend to have lower fees and stronger interest rates than traditional banks. You’ll miss out, however, on in-person customer service, wire transfers, and personal or cashiers checks. If these are important features for your financial purposes, Chime may not be the best option for you.

In spite of its lack of in-person customer service, Chime’s customer service line is available by phone Monday through Friday from 6 a.m. to 10 p.m. CST, and on weekends from 7 a.m. to 9 p.m. CST. Users can also get help with their accounts or answers to their questions through the app or via email.

It’s easy to stay on top of your finances with Chime’s user-friendly mobile app. Users have access to daily balance updates and real-time transaction alerts, so you’ll always be able to monitor your financial health. The Chime app has great customer reviews – users have rated the app as 4.8 out of 5 stars for iOS and 4.6 out of 5 for Android.

What’s the Chime Bank Referral Program?

If you use Chime and want to share it with other people in your life, you can get rewarded! With Chime referrals, you earn $50 when a friend signs up through your referral link and they receive a single qualifying direct deposit of at least $200. Both you and your friend will receive a $50 referral bonus just for enrolling and receiving a qualifying direct deposit.

Here’s how you can start referring people through the Chime app:

1. Select Settings from the top left corner of your screen.
2. Tap Invite Friends.
3. Choose names from your contacts to invite, customize your message, and tap Send.

Another option is to send your customized Chime referral link on the Invite Friends screen by simply tapping Share. Then, you can paste your referral link anywhere and even share it on social media.

Get more information in this Chime bank referral article.

What are the Chime Fees and Limits?

Chime doesn’t charge overdraft fees, and you can even let your account go as low as negative $100 if you’re enrolled in the company’s SpotMe® program. Unlike many other banks, however, Chime doesn’t offer overdraft protection outside of the SpotMe® program, so your card will likely be declined if you’re unenrolled and don’t have adequate funds.

Chime does have daily and monthly transfer limits. The maximum amount you can send to an external bank is $200 per day and $1,000 per month.

Wire transfers are not available for Chime accounts.

Chime vs. Cash App

• FDIC Insurance: Funds in Chime are FDIC insured, while those in Cash App are not.
• Account Structure: Chime offers a high-yield savings account in addition to a spending account, while Cash App only offers one single account for funding.
• ATM Fees: Chime offers fee-free transactions at 38,000 ATMs, but the company charges a $2.50 fee at out-of-network ATMs. Cash App, on the other hand, charges a $2 flat fee at all ATMs. You can avoid this fee altogether by setting up direct deposit.
• Card Services: Chime offers a fee-free credit card to users with the intention of helping people build credit, and it has 0% APR. Cash App instead offers a free debit card.
• Incentives: Chime high yield savings accounts offer a competitive 0.50% APY. Cash App accounts don’t accrue interest, but Cash App does offer Cash Boosts which reward users with cash back on purchases from certain retailers.
• Investment Opportunities: Chime doesn’t offer options to buy and sell stocks or bitcoin from the app, while Cash App provides both.

Both Chime and Cash App are helpful financial apps. Which one you use depends highly upon your unique financial goals and priorities.

Chime Review: Pros and Cons

To wrap up this Chime review, what are the pros and cons of this financial service? Here are the main advantages and drawbacks of Chime: