Chime Review – Fee Free Mobile Banking

Chime is banking made awesome. No hidden bank fees, get paid up to two days early, grow your savings automatically and always be in control of your money with our mobile banking app.

Pros & Cons

There are lots of services you’ll need to pay for — but a bank account doesn't have to be one of them.  Yes, not all banks charge account or overdraft fees. 

Think of the overdraft charges you could save yourself per day (some places charge at least $35 a pop, that money adds up).  Luckily, companies like Chime aim to change the way you bank. 

They’re an online-only bank that can keep their costs low by eliminating much of the overhead costs many traditional brick and mortar banks have. 

Chime also has a state of the art mobile app — it’s really easy to transfer money, deposit cash, review your statements and locate an ATM.

You can even conduct bill payments, even on the go. 

What is Chime Bank?

Let’s talk about what Chime Bank is before getting into the details of what a Chime account offers.  The Bancorp Bank — a company that offers banking services for a whole slew of private label banks — white-labels the bank services Chime Bank offers.

The Bancorp Bank is an FDIC institution and has been since July 2000. What this means is that all The Bancorp Bank handles all the legal aspects of running a bank.

What Chime does is it adds in their services — including their apps, debit cards and rewards program — on top of what Bancorp already offers.

So - as the small print you'll find outlines - Chime is not a bank. Instead, it's a financial technology company that adds to the banking services provided by Bancorp.

In this sense Chime is its own separate entity in terms of the features and perks it offers.

Features

Chime is designed to use as your main bank — you’re encouraged to get direct cash deposits into your accounts and rewards you for your spending.

Of course, there’s nothing wrong with using Chime alongside other banks and finding other ways to deposit cash.  It’s also designed for mobile users since most features are available on their app. 

Spending Account

Debit Card

Credit Card

Savings and Micro savings

Cash Back Rewards

Chime also features a cash back rewards program when you use your debit card - something that sets it apart from many other online banks.

If you use it to pay bills to participating retailers and utility companies, you’ll receive the opportunity to redeem for rewards.

Think cash back rewards you’ll normally find with credit cards or savings apps. You’ll find that rewards are frequently updated and are either for a certain category or a specific retailer. 

Split The Bill

Split the Bill is another feature that can be helpful when you’re splitting a payment with other people.  How it works is that you can split utility bills, or other purchases using Chime’s app.

Then it’ll send a text message to your intended recipient with a link for them to pay you back using their own Chime account or via Venmo.

SpotMe

SpotMe is another nifty feature. It’s similar to overdraft protection except you won’t be charged a fee.  Chime will spot you on debit card purchases — up to $100 for eligible account holders.

When you make your next deposit, Chime will apply the overdraft amount to your negative balance.  Once your balance is repaid, you can tip Chime any amount you wish to help pay it forward, though it’s not required.

To qualify for this feature, you’ll need to make at least a total monthly direct deposit of $500 at a minimum to be able to enroll. Upon approval, your limit starts at $20 then up to $100 or more.  

Chime determines your actual limit by various factors, including your account activity and history. To find out, contact customer service representatives for your specific situation. 

Fees

Chime’s list of fee is minimal. You won’t be charged any overdraft, maintenance, foreign transaction and bounced check fees.  Plus, you won’t need to pay ATM fees if you use one of the 24,000+ machines in the MoneyPass network. 

However, you will need to pay $2.50 to use an out of network ATM and 3% of the amount transferred when you add money to your account using a debit card instead of a direct transfer (also known as an external debit charge).  

In other words, it’s pretty much a free account as long as you make sure to use an in-network ATM and conduct bank transfers only. 

There’s also no overdraft fee because this overdraft protection isn’t available, unless you qualify for their SpotMe feature.

That means if you try to withdraw cash or make a purchase that’s higher than your balance amount, your transaction will be denied. 

As for account balance minimums, there are none or either savings or spending accounts. You will face cash back, paper check and transfer limitations. 

Your external bank will have different limitations, so here are Chime’s:

• Green Dot: up to $1,000 every 24 hours
• External debit card (U.S. based): $25 minimum per transaction and up to $200 per day. You’re also only allowed up to three external debit card transfers in total if you don’t participate in direct deposit.
• Outgoing bank transfers: $200 each each day, up to $1,000 each month. 
• Chime Checkbook: Up to $5,00 per check

Chime vs. Competitors

Who Chime Is Best For?

Chime is best for those who want a simple bank to store their cash and one that helps them save on the side as well.

If you’re someone who doesn’t care about visiting a branch to do transactions and are comfortable with using a mobile device to do banking, then give Chime a try. 

It’s also best for single folks who don’t intend on making large transactions, as currently you’re only allowed $5,000 in a single transaction.

However there’s no limit to the amount of checks you can send. Plus, you can’t have joint accounts so you’ll need to look elsewhere if you want one with your partner.  

If you’re also someone looking to do all their banking (including taking out loans), Chime isn’t for you.  Don’t dismiss the bank just yet because you never know what other features and product it’ll expand into.

How to Get Started With Chime

Signing up for a bank account takes less than a few minutes. 

Should You Use Chime Bank?

Chime Bank can be a good option if you’re looking for a simple banking option and hate the thought of paying fees, then it’s worth opening an account.

It will help you with automatic savings and earn rewards every time you use your debit card.  If you’re worried about the technology, know that Chime’s mobile banking app is intuitive and there have been many positive reviews.

Unfortunately, if you’re after the highest account rates, you won’t find that here, though a fraction of a percent here and there might not make much of a difference with smaller balances. 

Also, if you want advanced banking services like CDs, money market accounts, and lending options - you'll need to use a full service bank.

That said, if basic banking services are what you need and you like the idea of growing your credit rating, a Chime bank account is a great thing to have.

Considering you pay little to no fees, at least give Chime Bank a chance.  Who knows, with time Chime could expand to have more features, comparable to the major players.