Chime Review—The Pros And Cons
A lot of banks offer a full slate of account options, with various bells and whistles that can make it hard to determine the best fit for your needs. Instead of overloading you with options, Chime keeps it simple with one checking account, one savings account and one secured credit card, all tied up with an attractive mobile app.
This review provides an overview of Chime’s personal banking products. It’s important to note that Chime is a financial technology company, not a bank. Chime’s banking services are provided by The Bancorp Bank or Stride Bank, N.A., Members FDIC.
Here are the facts you should know about Chime and how its services compare to your other banking options. Account details and annual percentage yields (APYs) are accurate as of April 28, 2021.
Account Basics
Chime Spending Account
Chime’s checking account, known as a Spending Account, prides itself on its lack of fees. It charges no monthly account fees and doesn’t require a minimum balance.
Chime offers a program that accelerates your direct deposits, making them available up to two days early. Once you establish direct deposit into your Spending Account, you’re eligible and can choose to receive your payment up to two days early, as soon as your employer deposits it.
If you receive direct deposits of at least $500 each month, you can enroll in Chime’s SpotMe service. This optional service allows you to overdraw your account by up to $20 on debit card purchases without a fee. Chime can increase your SpotMe allowance up to $200 at its discretion based on your account history. You can check your SpotMe limit in the mobile app.
Need to send a paper check? You can generate one from the Chime mobile app and Chime will send it in the mail for you.
Chime Savings Account
Chime’s high-yield savings account offers an 0.50% APY. It doesn’t charge monthly fees or require a minimum balance. There is no cap on the amount of interest you can earn and, as long as you have at least a penny in your account, you’ll earn interest. There is no minimum deposit to open an account, but you must have a Chime Spending Account in order to open a Chime Savings Account.
Chime has two optional programs to make saving money easier.
The Save When You Spend feature allows you to save small amounts when you make purchases. Whenever you use your Chime debit card, Chime rounds the transaction up to the nearest dollar and transfers the difference to your Savings Account. Spend $25.50 at the grocery store? You’ll pay the store for that amount from your debit card, and Chime will move 50 cents from your spending account to your savings account. It may not seem like much, but if you make a lot of debit purchases, you could see your savings accumulate.
Chime also offers a Save When I Get Paid feature that allows you to set up a recurring transfer of 10% of your direct deposit paycheck of $500 or more from your Spending Account to your Savings Account each time you get paid.
Other Accounts and Services
Chime offers a Credit Builder secured credit card that’s available without a credit check. If you’re working to build your credit history, you can add money from your Chime Spending Account to your Credit Builder account to spend on your Chime Visa credit card. Chime reports your payments to all three major credit bureaus. The Credit Builder secured card is unusual in that it charges a 0% APR.
You can make free mobile payments to family and friends through Chime’s Pay Friends peer-to-peer system. There’s a monthly limit of $2,000.
Access on the Go
Since Chime is designed to be used primarily through its mobile app, it offers plenty of features to make mobile banking convenient. Chime is known for its mobile app, which is rated 4.8 out of 5 stars at the App Store and 4.6 out of 5 at Google Play.
The Chime app sends daily account balance notifications and transaction alerts when you make a purchase. You can disable transactions from the Chime app, saving yourself a customer service call if you misplace your card. You can also choose to disable international transactions via the app.
Your Chime debit card works anywhere Visa is accepted, and you can add it to your Apple Pay or Google Pay mobile wallet. You also have access to more than 60,000 fee-free ATMs.
If you want to deposit a check to your Chime Spending Account, you can do so via mobile deposit on the Chime app.
Replacement debit cards are free and can be requested in the Chime app.
Pros
- Simple lineup of free account options
- Competitive savings APY
- Automated savings tools to help improve your habits
- Early receipt of direct deposit payments
Cons
- Pay Friends mobile payment program only available when both parties have a Chime Spending Account
- No branches for in-person service
How Chime Stacks Up
If you’re looking for a full suite of banking services, Chime may not be the best fit for you. But if you’re just getting started on your financial journey and want a user-friendly set of financial tools, facilitated by a multipurpose app, Chime covers the basics well. Its automated savings tools are particularly attractive for customers who want to boost their emergency fund or save for another goal.
A Note on Chime Products
Chime is a financial technology company, not a bank. Banking services are provided by The Bancorp Bank or Stride Bank, N.A., Members FDIC.
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