Chime Review: High Savings and Strong Credit Building

Innovative checking and savings accounts are available from Chime® with nearly no fees. Additionally, it provides uncommon benefits like automatic savings tools, free cash deposits at specific locations, and the choice to get your direct deposit funds up to two days earlier. Oh, and for individuals attempting to establish or repair their credit, there is now an industry-leading secured credit card. To find out more about what Chime has to offer, read our whole review.

An explanation of Chime’s operation

There are checking and savings accounts available through Chime, but there is no way to start a separate account. Prior to choosing to start a savings account, members must first open a checking account. This is ideal for those who want both types of accounts with a single bank.

Chime Savings Account

The Main Advantages of Chime Savings Account

The Biggest Advantages

The Chime Savings Account offers an APY of 1.50%: which is comparable to some of the greatest savings account rates we’ve observed. You may accelerate the growth of your savings with the assistance of Chime’s automated savings tools.

No fees and no minimum balance requirements: No matter how much money you deposit when opening a Chime Savings Account, you won’t be charged a monthly maintenance fee.

Chime’s Savings Accounts are FDIC insured: much like its Spending Account is. Your money would be covered up to $250,000 in the unlikely event that Chime closes its doors.

What Could be Done Better

Could be Easier to open: Before starting a savings account with Chime, you must first open a checking account. That might not be the best option for individuals who only care about the savings account, but it’s not a particularly difficult obstacle to overcome.

No Direct Deposit: There are no direct deposit options available through Chime for the savings account. The money must first be deposited into your checking account before being moved to your savings account. The transfer occurs quickly, but there is still one more hoop to clear.

Chime Checking Account

The Main Advantages of a Chime Checking Account

2-day Advance on Direct Deposits: Chime guarantees to release the funds from your direct transfer as soon as the other party makes the deposit. Before releasing this cash, some banks keep them for up to two days.

Automated Savings Tools: Chime Checking Account users can benefit from the account’s integrated savings features. These enable you to round up every purchase to the next dollar and save the change, or to automatically transfer a portion of each paycheck to your savings account. You can choose to participate or not at any time in both.

Mobile apps that are easy to use: Chime’s mobile applications for iOS and Android devices have garnered positive reviews. They enable you to remotely enable or disable your debit card as well as examine your balance, transfer money, pay bills, remotely deposit checks, find nearby ATMs, and discover your balance.

A Countrywide Network of fee-free ATMs: ATMs are available to Chime users in more than 60,000 retail locations thanks to partnerships with the MoneyPass® and Allpoint ATM networks. Check your Chime mobile app to see which one is the closest to you. Additionally, it permits free cash deposits at Walgreens stores.

Send checks online:  Customers who have had their checking accounts for at least 30 days can submit checks through their online account using Chime’s Checkbook function. The $5,000 per check and $10,000 monthly restrictions are the maximums, but for the majority of people, these amounts should be adequate.

No foreign transaction fees: Using your Chime debit card abroad won’t cost you more because it has no international transaction fees.

FDIC Insured: Chime Checking Accounts are guaranteed by the FDIC up to a maximum of $250,000.

What Could Be Done Better

When a consumer uses an ATM that is not part of the MoneyPass® or Allpoint networks, Chime costs them $2.50. One of the few banks that levies its own out-of-network ATM fee; additional fees may apply if the ATM owner levies additional fees.

The Chime Credit Builder

The business offers a secured credit card called the Secured Chime Credit Builder Visa Credit Card that will help you rebuild your credit or start over. What you should know about it is as follows.

• No charges are made: One of the few secured credit cards that don’t charge an annual fee to users is the Chime Credit Builder.
  APR does not exist: Prior to making purchases, you must fund your Credit Builder account. You won’t ever have to be concerned about interest fees because Chime uses the funds in your account to pay your bill at the end of each month.
• There is no APR; but, before making purchases, you must make a deposit into your Credit Builder account. You won’t ever have to be concerned about interest fees because Chime uses the funds in your account to pay your bill at the end of each month.
• No credit check is conducted: Chime doesn’t look at your credit report, so you can apply and be authorized for a Chime Credit Builder account even if you have no credit history or a terrible credit management history in the past.
• There is no required minimum security deposit with Chime, unlike most secured credit cards. The amount you deposit determines your credit limit, so you may not be able to charge much to the card if you don’t put a lot of money in.

Overall, if you’re a Chime user trying to develop credit or turn over a new financial leaf, the Chime Credit Builder card is something to think about. Make sure you have enough additional cash; otherwise, the card won’t work.

When is Chime Right for you?

Consider using Chime for these reasons:

• You feel at ease managing your finances online.
• You need a place where you can handle both your checking and savings needs.
• You are cautious about fees.
• You are looking for a high savings account APY and believe that automated savings tools would be beneficial.
• You need to get immediate access to your direct deposit money.

Terms and Conditions

• The Annual Percentage Yield (“APY”) for the Chime Savings Account is variable and may change at any time. The disclosed APY is effective as of August 25th, 2022. No minimum balance required. Must have $0.01 in savings to earn interest.
• Save When I Get Paid automatically transfers 10% of your direct deposits of $500 or more from your Checking Account into your savings account.
• *Early access to direct deposit funds depends on the timing of the submission of the payment file from the payer. We generally make these funds available on the day the payment file is received, which may be up to 2 days earlier than the scheduled payment date.
• 2 Out-of-network ATM withdrawal fees may apply except at MoneyPass ATMs in a 7-Eleven, or any Allpoint or Visa Plus Alliance ATM.
• 1 Round-Ups automatically round up debit card purchases to the nearest dollar and transfer the round-up from your Chime Checking Account to your savings account.
• 3 To apply for Credit Builder, you must have received a single qualifying direct deposit of $200 or more to your Checking Account. The qualifying direct deposit must be from your employer, payroll provider, gig economy payer, or benefits payer by Automated Clearing House (ACH) deposit OR Original Credit Transaction (OCT). Bank ACH transfers, Pay Anyone transfers, verification or trial deposits from financial institutions, peer-to-peer transfers from services such as PayPal, Cash App, or Venmo, mobile check deposits, cash loads or deposits, one-time direct deposits, such as tax refunds and other similar transactions, and any deposit to which Chime deems to not be a qualifying direct deposit are not qualifying direct deposits. Money added to Credit Builder will be held in a secured account as collateral for your Credit Builder Visa card, which means you can spend up to this amount on your card. This is money you can use to pay off your charges at the end of every month.

Final Reflections

Chime won’t satisfy your expectations if you need a joint account, a physical branch, or a loan.

However, Chime is one of the greatest options you’ll find if you’re unbanked, unable to create an account with a traditional bank, or simply want to bank with a no-fee, mobile-optimized internet organization.

Note: Chime is a financial technology company, not a bank. Banking services provided by, and debit card issued by, The Bancorp Bank or Stride Bank, N.A.; Members FDIC. Chime FAQs.