Banking can be complicated. Even the most simple bank accounts are often riddled with fine print, hidden fees, and complex terms like APY, NSF, liquidity, and mobile banking UX.
The average American pays on average $329* per year in bank fees. If you’re part of that statistic, then you may be interested in Chime.
What is Chime and How Does it Work?
- No hidden bank fees (including no overdrafts!)
- Early payday – you can get your paycheck up to 2 days early through direct deposit
- Automatic savings tools
- 38,000+ fee-free ATMs
- A Chime Visa® Debit Card with instant transaction notifications & ability to block the card when needed via the app
Their mission revolves around protecting their customers by giving them peace of mind and never profiting from customers’ misfortune or mistakes (hence, no hidden fees).
They also have a highly rated mobile app with over 15,000+ five-stars reviews. The app is so user-friendly you’ll never have to desperately google “where’s my savings account?!” again. With it, you can easily track your daily transactions, balance, and savings.
Chime also offers mobile payments. Need to split the brunch bill? Send money for free to your friends through Chime even if they don’t have the app!
With no monthly fees, no minimum balance requirement, no overdraft fees, and no foreign transaction fees, Chime makes a compelling case to switch over.
Get Your Paycheck Up to 2 Days Early
One of Chime’s most loved features is that you can get your paycheck up to 2 days* early. All you need to do is set up a direct deposit with Chime. That’s two more days to think about how you want to spend, save, or pay bills with your hard-earned money. If you’re one of the 78% of workers in the U.S. living paycheck-to-paycheck those extra days provide a little extra peace of mind so you can use your money better.
Never Overdraft Again
Avoid the embarrassment of being at the checkout and realizing you don’t have enough money to swipe on your debit card. Instead of putting your item(s) back, Chime’s SpotMe feature will lend you up to $100* when you need it so you can continue with your purchase.
This prevents you from getting overdrafted and saves you the high fees as well.
When your account has enough money, Chime will then automatically debit what they spotted you, to make it a simple and hands-off process.
With this feature, you’ll never get overdrafted and you’ll be covered up to $100* when you need it!
Grow Your Savings Automatically
If you aren’t great at saving money but know you need to get your act together, Chime makes that easy too. They have two automatic savings tools that allow you to be smart with your money with minimal effort.
- Save when you spend: This feature rounds up each debit card transaction to the nearest dollar and automatically deposits to your savings account. The spare change adds up!
- Automatic Transfer: If you opt-in, they can automatically take 10% of every paycheck and deposit it directly into your savings account after you set up a direct deposit.
How Chime Makes Money
Traditional banks make money by charging their customers overdraft fees, out-of-network ATM fees, monthly maintenance fees, transfer fees, and account maintenance fees. This can add up to $329 per year* in fees alone!
Chime doesn’t profit off of your money in the way of fees, instead, they make money from Visa®. They do this by collecting an interchange fee from merchants, which occurs when you use your Chime Visa® Debit Card. A portion of this fee gets paid to Chime, and those interchange fees add up and enable Chime to run smoothly without needing to charge their customers.
Can You Trust Chime?
Yes, Chime is FDIC insured up to $250,000.
Chime also has 128-bit AES encryption, access control, and security processes to ensure your money is always safe. They will send a text whenever your debit card is used to ensure there is no fraudulent spending. Debit cards are also protected by Visa’s Zero Liability Policy, which states that you won’t be held responsible for unauthorized charges made on your account.
You’ll also have the ability to block your card and order a replacement debit card from within the Chime app too.
Is Chime the Right Bank Account for You?
If you’re sick of hidden bank fees and complicated processes to open and close accounts, you should consider signing up with Chime for free.
Their easy and automatic savings tools also benefit anyone that not great at saving. Plus, getting paid up to 2 days earlier puts you ahead too!
Signing up for an account takes only two minutes and has zero impact on your credit score, so it’s risk-free. Stop spending on unnecessary bank fees and start getting paid early!
See also: Money Saving Apps for the New Year
*15,000 five star reviews & 128-bit AES encryption source: https://www.chimebank.com/online-banking/
*$329 in fees source: https://www.chimebank.com/2017/04/26/you-will-be-shocked-when-you-see-how-much-americans-pay-in-bank-fees/
*SpotMe limits start at $20 and can be increased to $100 or more based on factors like Chime account activity or history
**Early access to direct deposit funds depends on the timing of payer’s submission of deposits. We generally post such deposits on the day they are received which may be up to 2 days earlier than the payer’s scheduled payment date.