Today, digital banking is the best option for anyone looking for a second or third account. They have outshined the traditional brick-and-mortar banks by enabling services with more convenience.
To begin with, lower-income consumers were literally struggling to cope with the comprehensive interest strategies they followed. Still, with the emergence of the online banking system, consumers began to choose it over the conventional method of banking.
Once they realized the comfort of enjoying a relatively simpler mode of payment, they easily swayed and began the era of online payment.
While many feel discomfort in developing trust in an online banking solution with no face-to-interactions, others were ready to give it a shot while all they really wanted was a hassle-free banking experience.
There comes the significance of financial technology companies like Chime Bank, which is an utmost alternative to conventional banks.
In this article, we have summarised more about the financial technology company Chime, its pros and cons, features, and other services.
What Is Chime Bank?
Chime Bank is a US financial technology company that provides trustworthy services including fee-free mobile banking services. Customers can either choose to download their mobile app, or can access the services through Chime’s official website.
With Chime, the account holders do not maintain a customer relationship, but they still do have certain authorities over their customers as the technology banking company can cancel a user account with no prior notice. Also, a reason for the above-mentioned action is neither mandatory to mention as well.
Since Chime does not follow a timely fashion, they go against the trend and do not ensure retrieval of deposits after the cancellation of the account.
But that doesn’t mean Chime is a trap. Although such cases occur rarely, thousands enjoy its benefits each day, which is the reason why it is built. When Ryan King and Chris Brick created Chime in 2013, they would have never thought their start-up would become a massive lucrative company in a decade.
So, in better words, Chime Bank is a financial technology company rather than a bank, which offers digital banking solutions for customers on the go.
Lately, people have begun to opt for “touchless” payment methods for reasons starting from laziness to COVID-19 and it is reported that a major percentage of customers have decided to consider Chime, for their day-to-day transactions and to fulfill many other financial requirements.
But after running your eyes through the aforementioned paragraph, you must have received an idea of what Chime does, particularly the fact that it has a few cons to mention. So, let’s dive into the pros and cons of Chime.
Pros Of Chime Bank
- No overdraft fees: while most traditional financial institution charge at least $30 for overdraft fees, online banking companies like Chime don’t require such an amount from their customers when their Chime account verifies for receiving $200 or more in a month as direct deposits.
- No minimum balance fees: Chime is good at delivering simple banking options free from minimum balance fees, along with no monthly fees.
- Instant deposit checks through mobile phones: No matter where customers can easily check their accounts in any adverse condition via the mobile app after ensuring it is connected to the internet.
- No foreign transaction fees: While conventional banks tend to earn a few bucks as foreign transaction fees, Chime allows its account holders to engage in foreign transactions at no cost.
- Extensive fee-free ATM network: Through MoneyPass ATMs Visa Plus or Allpoint Alliance ATMs, Chime customers can have access to nearly 60,000 ATMs across the United States.
- Easy and early access to direct deposit: it’s always a good deal to get hold of your cash as soon as possible and that is the exact feature made available by Chime as they offer early access to direct deposit to their customers.
Cons Of Chime Bank
- Hurdle in making cash deposits: Exclusively with Chime’s CD partners, cash deposits can be made at 75,000 retail locations. But they may specifically charge an additional fee for this service.
- Average savings rate: Although Chime’s annual percentage yield (APY) of 2% is considered higher when compared to the traditional banks, it is still relatively lower than what is offered by other online banks.
- Out-of-network ATM charges: For each out-of-network ATM transaction, the Chime customers will have to pay a particular amount in fees.
- Chime offers limited services: when a customer is in need of a full-service bank, then Chime might seem insufficient as it doesn’t offer services like lensing options, money market accounts, and certificates of deposit.
Who Should Opt For Chime Bank?
It can be stated without a hunch that Chime is a good fit for anyone who is in search of simple banking services with no further maintenance charges and foreign transaction fees.
Chime also enables its customers to enhance their savings as it displays balance and bank statements to keep a count of how much is left in each individual account.
In addition to it, people who have to make frequent foreign transactions can also choose Chime, as they can fulfill their requirements with no additional charges.
What Does Chime Have To Offer?
Chime has made financial dealings easier for its customers by simply providing two account choices- nothing more, nothing less.
- Checking Account
- Savings Account
Chime Checking Account
The Chime Checking Account operates with zero minimum balance requirements and a $0 maintenance charge. It further comes with a complementary Visa debit card. But unlike any lead bank, Chine doesn’t offer check-writing privileges, but the account holder can rely on Chime’s checkbook feature to get things done.
By paying bills through its checkbook option, they will deliver checks on your behalf, usually arriving in five to seven business days. But what is more important is that recipients in all 50 states and the District of Columbia can send any number of checks in a day, making it stress-free and uncomplicated.
In addition to it, Chime account holders can use their debit cards across 60,000 ATMs in the US for free. Furthermore, they can also use their Chime debit card internationally with no foreign transaction fees.
However, ATM withdrawals cannot exceed the limit of $515 per day, plus there would be charges when the card is used at out-of-network ATMs.
Moreover, Chime offers an overdraft protection service, SpotMe, to combat the overdraft fees, which enables users to avoid the OD fees. However, its eligibility criteria are cross-checked by keeping an eye on the direct deposit of the previous 34 days.
Savings Account
A high-yield service account is the one and only savings option offered by Chime. As aforementioned, Chime has a savings rate of 2% APY, which can be both considered good and average at the same time.
Chime’s savings rate is quite reliable when compared to the least savings rate provided by a full-service bank, whereas it is not impressive when checked with the high-yield savings accounts prevailing in the online financial community.
In order to help customers reach their savings goals faster, Chime has opened two automatic savings programs that are optional.
- Save when you get paid: with this option, a particular percentage of every direct deposit worth $500 or more will be automatically moved to the customer’s savings account.
- Save while you spend: with every purchase transaction made with the Chime Visa Card, the bill amount will be rounded up to the next dollar, and that particular amount is further transferred to the savings account. For example, let’s say you spend $45.50 at the grocery store by using the Chime debit card. After the payment is done, the remaining 50 cents will be automatically transferred to your Chime Savings account and that way, you can save little by little every time you make a purchase with its debit card.
Highlights Of Chime Savings Account
- No cap on the interest
- No minimum balance required
- No minimum deposit is required to open a Chime account
- No monthly fees
Other Account Services
Without a credit check, Chime makes it possible to get a Secured Chime Credit Card that is solely offered to build credit, with no annual fee, no interest, and no upfront security deposit.
Also, you are free to decide how much is your credit limit, as it can be extended up to your capacity. To get access to this incredible feature, you must already have a Chime Checking account.
How Does The Chime Credit Card Work?
- Transfer money from the Checking account to the credit account.
- Use the transferred amount to make purchases (you must at least have $200 as direct deposit).
- Payback the credits before the due date to build credit.
How To Open A Bank Account In Chime?
While opening a bank account, the first and foremost thing to figure out is what kind of account you want; a savings account, or checking account, or both.
Chime Savings account is less active than the latter as it is more focused on building up money with time whereas a Checking account can be used for making transactions with different kidneys of transactions such as, can use it when you go shopping, at ATMs, to get gas, to pay bills and almost for everything.
However, it isn’t necessary that you should choose this or that, as needs vary with each customer. But if you are looking to open both a Checking account and a Savings account, then you must consider certain key factors before going for it.
And the first thing is that you must make sure that you are getting dimed or nickeled. And since we are talking about Chime, the remaining part is relatively safe.
So, once you are ready to open a Chime account, you can set aside your worries and sign up in less than a couple of minutes.
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Step 1: Download the Chime App
Chime provides an online bank website and a proper mobile-banking app. The application can be downloaded either from Google Play or from Apple App Store.
Once you are there, you can either create a Chime Checking account or a Chime Savings account.
Step 2: Apply for a Checking Account or Savings Account
To create a Chime Checking account, you will need to enter the following information with the app.
- Your full name (both first name and second name)
- Social Security Number
- An existing email and a password
Such details are initially asked to avoid money laundering and fraud by helping Chime verify your identity. Once Chime is all done reviewing the given data, you’re in. However, the application is only available to US citizens or permanent residents since Chime is an American financial technology company.
Step 3: Create a direct deposit with Chime
Setting up a direct deposit is quite easy with Chime as all you are required to do is to enter account details on your direct deposit form and link your employer ID with the Chime routing.
You can find options to provide such information either under Settings or in the Move Money section of the mobile app. In case, you are not willing to carry forward your existing bank account, then you are free to create another Chime account afresh.
Although creating an account can be done without a hassle, you should make sure you are at least, before the authorities take legal actions for using financial services that are not allowed for your age.
Chime Bank Customer Service
Chime is one of the best mobile bank apps that is made available on Android and iOS. Through the Chime mobile app, customers can;
- Pay bills
- Receive notifications on each transaction
- Transfer funds internationally at no cost
- Deposit checks electronically
- View accounts
- Check Balance
- Freeze the card if lost
- Send money to other Chime user
But when you face trouble while using the app, trying to operate some of the aforesaid features, you can take advantage of the 24/7 Chimke customer service. You can either email them (support@chime.com) or call them directly.
Moreover, you can sigh with relief as Chime is partnered with Stride Bank, NA, and Bancorp Bank, which are both insured by FDIC (Federal Deposit Insurance Corporation), indicating that your money is also insured, but only up to $250,000.
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