Chances are you have likely heard of Chime, a pioneering force in the neobanking world, dedicated to transforming the financial lives of its users through innovation and simplicity.
Founded in 2013 in San Francisco, California, Chime has rapidly grown to serve over 20 million users across the United States and supported by a team of over 1,300 employees.
Chime sets itself apart with its standout feature of early direct deposit, allowing users to access their paychecks up to two days ahead of traditional banks. This unique offering has been particularly beneficial for those living paycheck to paycheck, providing critical financial flexibility.
In this review, we will dive deeper into the key features and benefits of Chime. The company is driven by a clear mission: to provide accessible, fee-free banking solutions that empower people to take control of their financial future.
Overview
Chime’s fee structure is highly appealing. The absence of monthly fees, minimum balance requirements, and overdraft fees makes it an attractive option for cost-conscious consumers.
On the other hand, Chime also emphasizes financial health with its automated savings programs. The Save When You Get Paid feature automatically transfers a percentage of direct deposits into a savings account, while Save When You Spend rounds up purchases to the nearest dollar, transferring the difference to savings. These tools make saving effortless and habitual.
Chime was founded by Chris Britt and Ryan King, driven by the vision of creating a banking experience that prioritizes customer needs and eliminates unnecessary fees. Since its inception in 2013, the company has seen substantial growth, currently serving over 20 million users across the United States and securing a strong position in the fintech industry with significant investments and a high valuation.
In addition, security is a priority at Chime, with robust measures such as real-time transaction alerts, instant card blocking, and two-factor authentication. These features ensure that users can manage their finances with confidence and peace of mind.
While Chime excels in many areas, it does come with a few limitations. It currently does not offer joint accounts, international wire transfers, or traditional bank branches, which might be a drawback for some users. Additionally, cash deposits are facilitated through third-party retailers, which can sometimes incur fees.
Pros and Cons
Pros
- No monthly fees or foreign transaction fees
- More than 60,000 fee-free ATMs
- No minimum balance
- Cashback and paid early options
- Robust in-app security measures
Cons
- No joint or business accounts
- Only 3 main services
- No multi-currency account options
- Response times from customer service can be slow
Account Types
With Chime, you have two options for current accounts:
- Checkings account – free of charge
- Savings account – free of charge
The Checkings account comes with:
- Linked Chime card (which is on the Visa network)
- Get your paycheck up 2 days earlier
- Free account opening and free monthly service
- Free to use 60,000 ATMs within the Chime partner network (and $2.5 to use any other ATM)
- International ATM withdrawals pay a fee
- Up to $500/day ATM withdrawal
- Transaction limit of $2,500 daily
- You get a Chime Visa Debit Card
- Digital card version available
- With SpotMe®, you can get fee-free overdraft up to $200 (with $200 or more in direct deposits each month)
The Savings account comes with:
- 2,00% APY interest on your money
- No monthly fees
- No minimum balance requirements
- Features to set money aside automatically
You will need a Chime Checking Account to open a Chime Savings Account! So, you will get the benefits of both accounts.
The Chime credit builder comes with:
- Comes with a Visa Credit Card
- No minimum security deposit
- No annual fee or interest
- Available without a credit check
- Helps people build credit
However, you must have a Chime Checking account and receive monthly direct deposits of at least $200 to qualify and apply for the Credit Builder card.
Here’s how the card works:
- Move money from your Chime Checking Account to your Credit Builder secured account
- Use up to that amount you moved over to make purchases on the Credit Builder card
- Pay back those purchases on time to start to build credit
How to open an account
Chime’s whole operation is based on convenience. And it really does provide a user-friendly version of digital banking.
Start by downloading the Chime app or applying through the official Chime website. You’ll have to enter some basic information, but it should take less than 2 minutes to set up.
Moreover, you will also be asked to provide the following:
- Be at least 18 years old
- Be a U.S. citizen
- Live in the U.S.
- Having a valid Social Security number
Also, you may be asked a few questions about yourself and the purpose of your account (these questions will not impact your eligibility).
The Chime Card
No matter which account you choose, your Chime card will be a Visa Card which you can use to make purchases around the world wherever Visa is accepted.
Likewise, you can spend in multiple currencies and get automatic money conversion at near the real exchange rate. Making international purchasing faster and easier.
Furthermore, you can match personalyse the card and you can also associate your virtual card with your Apple Pay wallet or Google Pay wallet.
When people refer to a “Chime card,” they’re likely talking about either:
- The Chime Visa Debit Card (comes with a Chime checking account), or
- The Chime Credit Builder Visa Credit Card.
Chime Visa debit card
Let’s start with the Chime Visa debit card since that’s the card all Chime checking account holders receive.
You’ll get your Chime Visa debit card automatically when you open a Chime checking account. You can access a digital version on your phone right away, and the physical card will be sent through the mail 7-10 days after opening your account.
Once you’ve got your physical Chime debit card, you can use it anywhere that accepts Visa. You can also withdraw money from an ATM with no fees as long as you use one of the 60,000 partner ATMs.
And as with any debit card, the money you spend or withdraw with your Chime Visa debit card will come directly from your checking account.
Chime Visa credit card
The Chime Credit Builder Visa credit card is completely different, with you setting the money for payments aside ahead of time, ensuring you make all your monthly payments.
Responsible credit card use raises your credit score, while irresponsible use damages it. The power of the Chime Credit Builder credit card is that responsibility is integrated into the system, so building credit becomes stress-free!
The Chime Credit Builder Visa credit card works as a traditional credit card, except that you set aside the money for payments ahead of time. The result? Guaranteed on-time payments, which will give your credit score a major boost.
Fees
Chime does not load its customers down with fees like you might find at a traditional bank. For instance, there are no:
- Minimum balance fees
- Monthly fees
- Maintenance fees
- Direct deposit fees
- Overdraft fees
There is, however, one fee to be aware of. Chime assesses a $2.50 ATM withdrawal fee when you withdraw cash at an out-of-network machine. The ATM operator may also charge a third-party fee.
Safety Measures
Chime is a financial technology company, not a bank. But it provides its services through Bancorp and Stride Bank, which are both traditional banks and FDIC-insured. That’s why your money is just as safe in a Chime account as it would be with a standard bank.
Chime accounts are insured up to the standard maximum deposit insurance amount of $250,000 through our partner banks, Stride Bank, N.A. or The Bancorp Bank, N.A., Members FDIC.
In order to ensure your card’s security, Chime offers several protective measures:
- Instant transaction alerts
- Spending limits to avoid unexpected expenses
- Two-factor and fingerprint authentication
- The option to freeze the card instantly
As a result of the fast evolution of new scams, Chime is continually developing new solutions to combat the latest fraud and scam technologies.
Supported Countries
Chime offers its banking services exclusively to customers in the United States, providing a comprehensive suite of financial products designed to cater to the diverse needs of American consumers.
By focusing solely on the U.S. market, Chime ensures that it can provide tailored, high-quality banking solutions that address the specific financial challenges and needs of American users.
Costumer Service
Chime doesn’t have any branches you can walk into to get advice. However, that also means no waiting round in line or taking time out of your day to travel to a branch office. Instead, you can get customer support 24/7 in the Chime app or by emailing the support team. There’s also phone support available 6am to 10pm (CST) Monday to Friday and 7am to 9pm at weekends
Bottom line
In conclusion, Chime has established itself as a leading neobank in the United States, delivering a modern, user-friendly banking experience that prioritizes customer needs and financial well-being. Founded in San Francisco with a mission to eliminate unnecessary fees and make banking accessible to all, Chime has rapidly gained popularity, boasting over 20 million users.
Chime’s automated savings programs, such as Save When You Get Paid and Save When You Spend, make saving money effortless and habitual. These tools help users build their savings without having to think about it, promoting better financial health over time. Security is also a priority, with robust measures like real-time transaction alerts, instant card blocking, and two-factor authentication, ensuring users can manage their finances confidently.
Despite these strengths, Chime does have a few limitations. It does not offer joint accounts, international wire transfers, or physical bank branches, which might be a drawback for some users. Additionally, cash deposits are facilitated through third-party retailers, which can sometimes incur fees.
However, Chime’s focus on innovation, simplicity, and customer-centric features ensures it remains a strong contender in the neobank space. Its dedication to providing a seamless and supportive banking experience is evident, making it a reliable choice for both everyday banking needs and more advanced financial management.
To sum up, whether you’re looking for a fee-free banking option, innovative savings tools, or the convenience of early paycheck access, Chime offers a versatile and empowering financial solution tailored to the needs of the modern American consumer.
