Chime App Review: Fee-Free Banking with Rewarding Savings Features

Chime holds the belief that financial institutions should not profit from their customers’ unfortunate situations. Therefore, their spending account and financial app do not come with any maintenance fees, overdraft fees, or bounced check fees. Additionally, users can access over 24,000 ATMs for free.

But that’s not all. Chime goes a step further by offering a rewards program to encourage savings. With Chime, you can enjoy fee-free banking and reap the benefits of their rewards program.

So, let’s delve into the features that Chime has to offer.

Chime Bank Review

Chime History

In 2013, Chris Britt and Ryan King co-founded the Chime app, which has been in existence for some time now. The company has raised more than $12 million in venture funding. Chime utilizes Bancorp Bank and Stride Bank as its banking partners, which offer private-label banking solutions to several financial services, including Chime and Simple. These banks provide the banking back end, while Chime is responsible for creating and maintaining the front-end brand, presence, and software.

Chime was established with the aim of empowering individuals to make better financial decisions. According to their About Us page, the company’s primary goal is to develop a new type of account that makes it simple for members to manage their finances by eliminating unnecessary fees and providing a service that puts members in charge, assists them in forming healthy habits, and promotes their financial well-being. Managing money is challenging, and traditional banks frequently do not make it any easier. At Chime, they are dedicated to making the challenging aspects of managing money simple, enabling members to get ahead.

Unlike most bank accounts that charge fees, Chime app operates on a different business model that doesn’t rely on fees to generate profit. Instead, Chime earns a small percentage from Visa on transactions made using the Chime card. As members spend more, Chime earns more, and some of those earnings are shared with the members, resulting in more savings the more they use their cards. This creates a mutually beneficial scenario for both parties.

Chime was established to assist individuals in making better financial decisions, such as saving more, and to reward them for doing so. Here’s how Chime accomplishes this:

Signing Up For Chime (Get A $5 Bonus)

If you’re interested in signing up for Chime, it’s a straightforward process. Chime is presently accepting new users, and creating a free spending account is simple. When you sign up via the link provided below, you’ll even receive a $5 bonus!

To get started with Chime, follow these simple steps:

1. Follow the invite link provided to go to Chime and provide your full name, email address, and password.
2. Fill in the rest of the required information.
3. Link your existing checking account or set up a direct deposit to Chime.
4. Once your account is set up, you can let Chime begin working for you.

Chime Spending And Savings Accounts

Chime offers spending and savings accounts to its members. When you sign up for a spending account, you’ll receive a Chime Visa® Debit Card that can be used anywhere credit cards are accepted. The debit card is linked to your Chime spending account, which functions similarly to a checking account (minus the checks, of course).

In addition, Chime also offers a savings account, which is required if you want to participate in their “Automatic Savings” rewards program – a program you’ll definitely want to enroll in (more on that later).

Chime app security and control

Rest assured that your Chime account is FDIC insured up to $250,000 through their banking partner, The Bancorp Bank. Additionally, your account is covered by the Visa Zero Liability policy, which protects you against any unauthorized purchases.

Chime makes it easy to fund your account with direct deposit or transfers. When you sign up, simply provide your Chime routing number and spending account number to your employer or payroll provider, and they’ll set up a direct deposit to automatically fund your account with your paycheck.

Alternatively, you can initiate a transfer from an external bank account to your Chime spending account. If you choose to initiate a transfer from your Chime account, there are limits of $200 daily or $1,000 per month. Therefore, initiating a transfer from your external bank account is likely the preferable option.

Fee Free Account

With Chime app accounts, you can enjoy fee-free banking like never before. Unlike traditional banks in the U.S., Chime charges no maintenance fees, no overdraft fees, and no bounced check fees. Considering that U.S. banks make billions of dollars annually through various fees, this is a welcome relief for many customers. In fact, a recent study found that the average annual fees for a bank account holder in the U.S. was around $290. By not having these fees, Chime gives you a significant advantage.

Last year, Americans paid a staggering $33 billion in overdraft fees. Chime aims to be part of the solution to this problem by eliminating these kinds of fees altogether.

Chime Bank: Fee-Free Banking Chime prides itself on being a fee-free bank. The only fee they charge is a $2.50 out-of-network ATM fee.

Mobile Banking with Chime Chime works well on both desktop and mobile, but the app is optimized for millennials, making it most efficient on smartphones, whether iOS or Android.

The Chime app sends you mobile notifications for daily balance updates and real-time spending alerts. It can also help you locate nearby ATMs and get instant cashback from certain retailers.

If you misplace your Chime debit card, you can temporarily block it on the app.

Automated Savings Program One of the best features of a Chime account is its automatic savings program. Here’s how it works:

Whenever you use your Chime debit card, the app rounds up each transaction to the nearest dollar and transfers the difference to your savings account.

The savings account earns a 2.00% APY1 (variable and subject to change), which is comparable to other leading online savings accounts.

For instance, if you spend $1.55, Chime rounds it up to $2 and saves $0.45 in your savings account.

Additionally, they have a new tool that lets you automatically set aside 10% of your paycheck when it hits your account.

Chime: Boost Your Savings Chime is a unique banking app that can be helpful for many people. I like products that simplify important concepts like saving for the future and make them automatic.

With Chime’s automatic savings program, saving money becomes hassle-free and straightforward. Tools to automate savings when your paycheck arrives are a bonus.

While Chime does have some limitations, such as lower transfer limits and transaction amounts for their checkbook, and no joint accounts, it’s still worth trying out if you can look beyond these limitations.

Best of all, it’s free, and if you sign up through the Bible Money Matters link below, you’ll get a $5 opening deposit!

Advantages and Disadvantages of Chime

ADVANTAGES: No fees for account maintenance, overdrafts, or bounced checks User-friendly mobile application Automated savings program Bonus rewards $5 sign-up bonus

DISADVANTAGES: Does not offer joint accounts Lower limits on transfers and Chime Checkbook transactions