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Chime aims to offer a modern, mobile alternative to traditional banking. If you do most of your banking online and want to avoid fees at all costs, Chime might be a great option.
Features like early direct deposit and overdraft protection help cash-strapped customers avoid unnecessary charges. Real-time account notifications and automatic savings features can help users better manage their funds.
Plus, for those with low (or no) credit, Chime’s secured credit builder card reports on-time payments to help boost your score.
This may resonate most with younger, digitally native generations and underbanked groups poorly served by big banks. Consumers who do everything through smartphone apps may appreciate Chime’s mobile-first experience and suite of online money tools. But remember that because it’s online only, you won’t find in-person support.
What is Chime?
Chime is an online-only financial technology company, not a bank, that offers banking products, including a checking and savings account and a credit-building card. Chime’s products are provided through Bancorp Bank and Stride Bank, N.A., members FDIC.
Unlike other bank accounts, Chime doesn’t charge account fees or require you to maintain a minimum balance. You can access your account online anytime and withdraw cash at one of Chime’s 60,000+ in-network ATMs.
You can make deposits or transfers, set up automated savings, and review your spending via Chime’s mobile app.
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Here’s a closer look at Chime’s accounts.
Chime® Checking Account
Chime’s checking account has no monthly maintenance fees or minimum balance required to keep the account open. While you can’t manage your account at a physical branch, you can withdraw or deposit cash for free at more than 60,000 in-network ATMs.
You’ll get overdraft protection of up to $200 with SpotMe® — a free, optional service you can enroll in. To qualify, you must receive $200 or more in qualifying direct deposits to your account each month.
Chime members can access their direct deposit up to two days early, assisting with cash flow between paychecks.
Chime High-Yield Savings Account
It’s always nice to manage your checking and savings in one place.
Chime’s savings account offers a solid 2.00% APY, slightly lower than comparable online high-yield accounts. But it’s still 3X higher than the national average rate — plus, there are no monthly fees, minimum balance requirements, or a minimum deposit to worry about. There’s also no limit on how much interest you can earn.
Chime offers convenient ways to automate savings from your paycheck or checking account. This includes automated savings transfers and a Round Ups feature, which rounds up Chime Visa® Debit Card purchases to the nearest dollar and moves the extra change to your savings account.
Remember that you’ll need a Chime Checking Account to open a savings account.
Secured Chime Credit Builder Visa Credit Card
If you’re working on building your credit score or establishing a credit history, the Chime Credit Builder card is a great place to start.
This is a secured card, so it requires an upfront security deposit that determines your credit limit. This allows those with poor credit or no credit to get approved while building credit responsibly.
There are no annual fees or interest charges to worry about with this card (because it’s secured). Chime also reports your card payments to all three major credit bureaus, helping you establish a positive payment history.
To apply for the Chime Credit Builder card, you must have a Chime checking account with qualifying direct deposits of $200 or more.
Who is Chime best for?
Depending on your banking needs and preferences, Chime could be a great partner to help you maximize your savings or build your credit. Chime is ideal for those:
- Who wants a digital-first experience: Chime’s user-friendly mobile banking app comes with budgeting and savings tools, making it easy to manage your money anywhere, anytime. We think it’s one of the best banks for mobile banking.
- With cash flow needs: Chime’s early direct deposit feature can help those living paycheck to paycheck or who need funds earlier. The lack of monthly fees and overdraft protection can also help.
- With poor credit or no credit history: Chime’s secured card can help you responsibly establish a credit history (or boost your score) through on-time payments. Plus, it’s easy to qualify for.
Is Chime safe?
You can rest easy that your money is safe with Chime. Your bank deposits come with FDIC insurance, up to $250,000 per person, per account, through Chime’s partner banks.
If Chime ever fails, you won’t lose your money as long as your balance isn’t over the limit. If you have any concerns about your account, Chime’s customer service is available by phone or through the app 24/7.
For the most part, banking with Chime is similar to banking with any other financial institution, says Ohan Kayikchyan, certified financial planner and Founder of Ohan The Money Doctor.
It’s worth noting that some customers have complained about fraud issues with Chime’s credit builder card and have had trouble getting their money back after their account was closed. In February 2024, Chime agreed to pay a $2.5 million fine tied to its handling of customer complaints in 2021.
“With all the great benefits and innovation, unfortunately, Chime is known for its practice of closing accounts without any notice or explanation,” says Kayikchyan, “There have also been some instances where customers had difficulty getting back their deposits on time when their accounts were closed.”
Chime fees
There are no monthly fees, minimum balance fees, maintenance fees, direct deposit fees, or overdraft fees (if you have SpotMe).
While Chime advertises its banking services as fee-free, there is still a chance you’ll incur fees with Chime. Specifically, if you use an out-of-network ATM, Chime will charge you a $2.50 processing fee.
The bottom line
If you are looking for a bank that offers products beyond checking, savings, or a secured card, Chime will likely fall short. But for some, less can be more. Chime simplifies banking for those starting their financial journey or needing the essentials.
Once the retailer accepts your cash, the funds will be transferred to your Chime Checking Account. Cash deposit fees may apply if using a retailer other than Walgreens and Duane Reade.
Chime is a financial technology company, not a bank. Banking services and debit cards provided by The Bancorp Bank N.A. or Stride Bank, N.A.; Members FDIC. The secured Credit Builder card issued by Stride Bank, N.A.
Banking services and debit card provided by The Bancorp Bank N.A. or Stride Bank, N.A., Members FDIC, pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa debit cards are accepted.
The secured Chime Credit Builder Visa® Credit Card is issued by The Bancorp Bank, N.A. or Stride Bank, N.A., Members FDIC, pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa credit cards are accepted. Please see the back of your card for its issuing bank.
Opinions expressed are author’s alone, not those of any bank, credit card issuer, or other entity. This content has not been reviewed, approved, or otherwise endorsed by any of the entities included in the post.