The information provided on this website does not, and is not intended to, act as legal, financial or credit advice; instead, it is for general informational purposes only. Information on this website may not be current. This website may contain links to other third-party websites. Such links are only for the convenience of the reader, user or browser; we do not recommend or endorse the contents of any third-party sites. Readers of this website should contact their attorney, accountant or credit counselor to obtain advice with respect to their particular situation. No reader, user, or browser of this site should act or not act on the basis of information on this site. Always seek personal legal, financial or credit advice for your relevant jurisdiction. Only your individual attorney or advisor can provide assurances that the information contained herein – and your interpretation of it – is applicable or appropriate to your particular situation. Use of, and access to, this website or any of the links or resources contained within the site do not create an attorney-client or fiduciary relationship between the reader, user, or browser and website owner, authors, contributors, contributing firms, or their respective employers.
Credit.com receives compensation for the financial products and services advertised on this site if our users apply for and sign up for any of them. Compensation is not a factor in the substantive evaluation of any product.
These days we live in a digital world, so it’s no surprise that much of our banking has moved online. With the rise of digital payment services such as Venmo, Apple Pay and Cash, we have fewer reasons to write personal checks. Quick, digital payments are also becoming common at retail checkout counters.
As digital transactions become the norm, it’s little wonder that online-only financial services like Chime are stepping up to meet a new type of banking customer. In this review, we’ll take a deep dive into Chime’s mobile banking service and explore the pros and cons of the associated Chime app. (Chime is a financial technology company, not a bank. Banking services provided by, and debit card issued by, The Bancorp Bank or Stride Bank, N.A.; Members FDIC.)
Chime follows in the footsteps of long-tenured online banks such as Ally and Charles Schwab‘s banking arm with no brick-and-mortar locations. What makes Chime different, however, is a focus specifically on users with simpler banking needs. The bank’s website, app and marketing materials have a fun, relaxed tone, which may appeal to younger users opening their first bank accounts.
Unlike competitors such as Ally and Schwab, Chime offers just three services: a spending account, a savings account and a Visa debit card. The spending account takes the place of traditional checking accounts and is linked with the provided Visa debit card. This card can then be added as a payment source for digital payment apps and can be used to draw cash from ATMs. Chime is partnered with MoneyPass and the Visa Plus Alliance, so withdrawals from any of these 38,000 ATMs nationwide are free.
Chime’s stated mission is to “help members get ahead by making managing money easy.” Part of this simplicity is achieved by removing nearly all of the typical fees usually associated with banking. There are no annual fees, no minimum balances and no overdraft fees. Chime accomplishes this fee-free model by only taking a percentage of the processing fee charged when the Visa debit card is used.
Simplicity and fee transparency are key selling points for Chime, but these are just two of the appealing features offered by this online bank. Here are a few of the other benefits that could make Chime worth exploring:
As with most online banks, Chime’s iOS and Android app are central to the experience. The app has a simple, clean interface that allows users to easily check balances, deposit checks, set custom notifications and complete digital transactions with a smartphone. The app also helps enhance account security by allowing users to freeze all account transactions at the tap of a button.
The Chime app also has a few handy features that you may not find with competing apps. The Pay Friends feature, for example, allows members to send cash digitally without the need for other apps such as Cash or Venmo. When the time comes to grab some actual paper money, the Chime app even offers a map of all the free ATMs in the area.
Chime Online Bank excels when it comes to simple, low-cost banking, but it does have a few potential drawbacks. Here are a few possible downsides to consider before opening an account with Chime:
Chime is committed to providing a low-cost, user-friendly banking experience for its members. This makes Chime an ideal choice for individuals who prioritize simplicity and value over lots of features. If you’re considering options for your first bank account or just need additional accounts without any bells and whistles, Chime may be a perfect fit. This bank’s feature-rich app could be an ideal option for on-the-go millennials or anyone who likes to keep their financial life simple.
If you’re searching for a bank with lending power, investment vehicles and more traditional options like checks and physical branches, you may want to keep looking. Capital One Bank, for example, provides a full range of banking services online with no fee but also offers retail locations and lending services. American Express also has online banking services that pair nicely with their flagship credit cards.
As a simple, straightforward online bank, Chime offers a mix of useful tools to help its users build financial stability. This bank’s welcoming online presence and sleek, full-featured app could make it an ideal choice for kids and young adults just starting out on their financial journey. Chime’s simple spending and savings accounts also remove the barrier of prohibitive fees, making them a useful tool for parents helping their kids learn about money.
So, if simplicity, transparency and value are top priorities when it comes to banking, it may be worth adding Chime to your list.
March 11, 2021
Personal Finance
March 1, 2021
Personal Finance
February 18, 2021
Personal Finance