Chime

Chime, a California-based company of financial technology, collaborates with Stride Bank, N.A., and The Bancorp Bank, N.A. to deliver financial services. The bank's two Chime partners are both FDIC members.

Chime is renowned for providing inexpensive accounts without overdraft or monthly maintenance costs. Chime may not be the greatest alternative for folks with more comprehensive or complex financial demands due to the limited account possibilities.

Chime claims to provide customer care by phone and chat every single day. There are no physical sites for it. All rates and fees are up-to-date as of January 4, 2023, but they could change.

Pros

• Both monthly and overdraft fees are waived.
• More than 60,000 free ATMs.
• With direct deposit, paychecks come up to two days earlier.

Cons

• Only third-party retailers accept cash deposit, which has a fee of up to $4.95.
• Only if you have a direct deposit account set up as well are you eligible for mobile check deposit.

Chime Offers

Checking and savings accounts are the two types of deposit accounts that Chime currently offers. At present time, it does not provide money market or certificate of deposit (CD) accounts. According to Chime, the savings account offers a 2.0% APY, which is nine times the industry standard.

Chime Checking

• APY: O%
• No monthly service charge
• Fee for a minimum balance: 0
• Transactions that exceed your available balance are refused; there is no overdraft fee.
• $2.50 for every withdrawal made outside of your network.
• No replacement fee for debit cards
• No opening deposit is required.

With the Chime debit card, you can access money in your checking account at any of the more than 60,000 in-network, fee-free ATMs. When a customer opens an account, they are given a debit card. However, it is difficult to deposit funds using this account. Deposits must be made via independent retail establishments.

More than 90,000 such retail outlets, including Walgreens, allow fee-free deposits across the nation. There are also merchants where deposits can be made with possible fees levied by the merchant. For a fee, Chime cash deposits can be done at well-known businesses like Rite Aid, Walmart, CVS, and Dollar General.  

Only once the bank gets the money that was transferred to your Chime account via a third party, is it FDIC-insured.

High-yield Savings Account 

• Annual Percentage Yield (APY): 2%
• No monthly service charge
• Fee for a minimum balance: 0
• $2.50 for every withdrawal made outside of your network.
• Minimum opening deposit: $0

Before opening a Chime high-yield savings account, customers must first open a Chime checking account. This account can be funded in several ways, including transfers straight from your Chime checking account and the direct routing of 10% of each direct deposit of $500 or more into your savings account.

With this account, mobile direct deposits are also permitted. You can deposit cash into your Chime savings account at Walgreens without incurring any fees, just like with the Chime checking account. You can pay a charge to deposit cash into your Chime savings at 75,000 retail locations.

Other Services Chime Offers

Chime does provide a Secured Chime Credit Builder Visa® Card for those who are just beginning their credit-building journey, even though its supplementary offerings are limited. There is no annual fee or credit check required to apply for the card. According to Chime, cardholders improve their credit scores by an average of 30 points.

Unlike many other secured credit cards designed to assist people in developing credit, the Credit Builder Visa does not have a minimum security deposit requirement. Instead, the amount you can spend on the card is determined by the funds you transfer each month to it. You need a Chime checking account and qualified direct deposits totaling at least $200 or more to start a credit-builder account.

A "Round Ups" program is also provided by the bank. By giving consumers the option to round up purchases made with Chime's Visa debit card to the closest dollar and transfer the difference from their Chime checking account into their Chime high-yield savings account, the initiative enables users to automatically grow their savings.

Banking Knowledge

What you should know about neo-banks: For customers who prefer online-only banking, neo-banks can be a good choice. They do differ from banks in certain ways:

Customers' money is safe since deposits made with neo-banks are normally FDIC-insured through partner banks, who also typically receive customers' money if a neo-bank shuts.

Accounts with neo-banks frequently feature cheap monthly fees and earn high rates. However, they might also be missing out on typical banking services like in-person support, access to personal or cashier's checks (frequently necessary for sizable purchases like home purchases), or wire transfers. Before opening an account, take these factors into account.

• High evaluations for Chime's mobile app and its reliable features: Chime's mobile app performs admirably in critical areas. Users gave both the iOS and Android versions 4.8 stars out of a possible 5. Additionally, consumers may stay on top of their spending with the help of daily balance updates and real-time transaction alerts. Additionally, you can use the Chime app to stop transactions if your card is lost or stolen.
• Option for a second chance checking: In addition to charging lower costs than most banks, Chime doesn't utilize screening tools to assess whether a client will be prevented from opening a bank account if they previously had one closed. Consequently, if you're looking to begin your financial life, Chime can be a useful banking alternative. For further details from Chime, see below.
• A variety of assistance choices: Callers can reach customer service via phone daily from 3 a.m. to 11 p.m. CST. Additionally, customers can contact customer assistance via Twitter, email, and the customer support tab in the app.
• Involuntary account closure history: Please be aware that certain Chime users have experienced problematic issues with their accounts. Nonprofit reporting outlet ProPublica revealed in July 2021 that Chime clients had their accounts abruptly canceled, leaving them unable to access their money. These reports resemble customer complaints submitted to the Better Business Bureau.

What Does Chime Offer?

With only two account options available, Chime keeps its service options basic.

• Checking Account Savings Account (with debit card access)
• A high-yield Savings Account

A high-yield savings account is the only savings option provided by Chime. The savings rate offered by Chime's savings account is 2.00% APY, which is respectable but still less than the finest high-yield savings accounts available.

Checking Account

A Visa debit card for Chime's checking account is offered without charge. Although it doesn't come with standard check-writing rights, you may still use the Chime checkbook tool to generate checks. Simply select the checkbook option to pay bills, and Chime will send a check on your behalf.

Checks normally arrive in three to nine business days. You may send an unlimited number of checks each day. Only checks that are mailed to recipients in all 50 states and the District of Columbia are eligible for this feature. More than 60,000 ATMs in the US accept debit cards without charging a fee for use. Additionally, there are no fees associated with using your Chime debit card abroad.

Unfortunately, using your debit card at an ATM that is not part of your network may result in a fee per transaction. The daily ATM withdrawal cap is $515 for 2 transactions.

Chime provides SpotMe, an overdraft protection solution that enables qualified clients to prevent overdraft fees on their spending accounts, to battle overdraft penalties. Customers who receive monthly direct deposits totaling at least $200 are eligible for SpotMe. Chime determines your eligibility based on the total of your direct deposits over the preceding 34 days. Chime uses your subsequent deposit to cover the overdraft amount rather than assessing a fee.

Chime Customer Service

Chime has embraced mobile banking, as shown through its iOS and Android mobile apps. Customers can use the app to:

• Look at accounts
• Depositing checks digitally
• Transfer funds to other Chime users
• If your card is lost or stolen, freeze it.
• Pay your bills.
• Transfer money among accounts
• Obtain transaction alerts

When you need assistance, Chime's customer care is accessible in several ways. Customers can contact Chime via phone at +1-844-244-6363 or by email at support@chime.com in addition to login into the mobile app, 24 hours a day, seven days a week.

Chime works with Bancorp Bank or Stride Bank, N.A. to offer financial services. Your deposits are protected by the federal government up to a maximum of $250,000 because both banks are covered by the Federal Deposit Insurance Corporation (FDIC).

To Sum Up

Chime makes creating an account simple. Simply visit Chime's website or download its mobile app to get going. You must create an online account and input some basic personal data. Opening a Chime account does not include a credit check.

Account holders must be older than 18 to open an account. To open a Chime account, you must be a citizen or legal resident of the United States.

Contact Notebanks if you have any more questions.

FAQs

Is Chime Legit?

You won't lose your money if Chime or either of the FDIC-insured banks that it collaborates with to provide online-only financial services go out of business.

Chime Uses Which Bank?

Chime collaborates with Stride Bank and Bancorp Bank to provide its services to customers.

What Is the Chime Card?

A Chime checking account is required to use the Chime card, which is a Visa debit card. The account does not charge a monthly fee.

Where Can My Chime Card Be Loaded?

Direct deposit, mobile check deposit, and electronic transfer from another bank account are all ways to fund your Chime account. Additionally, you can top up your account with cash at third-party stores like Walgreens, Walmart, and 7-Eleven. Walgreens doesn't charge for cash deposits, although other third-party providers do.

How Do I Withdraw Cash From My Chime Account?

A MoneyPass ATM in a 7-Eleven or any Allpoint or Visa Plus Alliance ATM allows free cash withdrawals. (Non-network ATMs have a $2.50 transaction fee.) A $2.50 transaction fee will apply if you use your debit card to request a withdrawal at any bank or credit union. For further details from Chime, see below.

Is Chime FDIC Insured?

Through its partner banks, Stride Bank, N.A. (FDIC No. 4091), or The Bancorp Bank, all Chime accounts are FDIC insured up to the normal amount of $250,000 per depositor, for each ownership category, in the event of a bank failure. (FDIC No. 35444).

What Happens if My Chime Debit Card Is Stolen or Used for an Unlawful Purchase?

Chime debit cards are covered by Visa's Zero Liability Policy, so even if your card information is stolen, you won't be held liable for any purchases.

What Steps Are Necessary to Create a Chime Account?

You must be a citizen or resident of the United States, and submit your Social Security number, and home address. At least 18 years of age is required.

Why Am I Unable to Create a Chime Account?

It's possible that Chime cannot validate your personal information if you are unable to register a Chime account online. Rather than a problem with your eligibility for an account, this can be a problem with Chime's information verification mechanism