Do you remember the last time you went into a bank? Can’t remember? This is a clear indication that mobile banking is taking over. Chime has been at the center stage of mobile banking and is revolutionizing the entire banking system. Backed up by Bancorp Bank and insured by FDCI, Chime is offering savings, debit cards, and checking accounts fee-free. If you’re already annoyed by the recurring nominal bank fees, then Chime is your way out. However, before jumping into this wagon, you must familiarize yourself with the fine print. This article looks at Chime bank account in detail so you can make an informed decision.
So, what is Chime?
Most people are already fed up with the conventional banks. Banking ought to be something you can access anytime, but the linked fee and other conditions that go with banking are less than desirable. This is where Chime comes in with better services that are more customer-friendly. Chime is a mobile or online-friendly bank that provides you with an alternative to the conventional banking methods. If you’re tired of paying the high fees or dealing with the overdrafts, this is your ideal banking method. Chime is easy to use and convenient for everyone.
How it Works
Chime has a comfortable layout where everyone signing up will access the spending or checking account, a debit card, and a savings account. Every amount that one deposit in their account goes directly to the checking account. You can easily access this money to handle your daily expenses using your debit card. Besides, you can also use your debit card online as a standard checking account for sending money or writing paper checks. You can transfer the amount in your checking account to your savings account, and from there, you can decide either to set up external transfer accounts free of charge or to keep it there.
SpotMe is a feature that allows you to make debit card purchases, which might overdraw your account without any overdraft expenses. Chime will be able to “spot” you when you need the extra cushion to cover your purchase costs. SpotMe is free to use, but you have the option to leave tips. To qualify for this feature, you’ll have to receive $500 or more in direct deposits within the previous month. The limit works based on your account usage and history. Unlike other banks, this feature will allow you to overdraft up to a hundred dollars without any fee. It is important to note that SpotMe will only cover your debit card and not your credit purchases.
Anytime you use your debit card to buy something, Chime will automatically round the change up to the nearest dollar and then deposit the difference in your savings account. For instance, if you buy at a grocery store for $54.26, Chime will charge your debit card $55, and the extra $0.74 2ill be automatically sent into your savings account. This is done for every purchase that you make.
High Yield Interest Rate of 0.01%
Unlike the conventional banks that are paying an APY of over 1%, Chime only pays a 0.01% APY. The savings account does not earn you the yearly interest rates so that you can move your money to an external account anytime. The interest earned can then be transferred back into your savings account.
Checkbook + Automatic Savings Feature
For all Chime members, they can have direct deposits placed in their checking accounts. From here, you can opt to set up an automatic savings option that will allow 10% of your direct deposit to be sent into your savings account automatically. This is done for all direct deposits over $500. The checkbook, on the other hand, will allow you to submit paper checks free of charge.
You can access your money with over 38,000 free ATMs through the Visa Plus Alliance and MoneyPass ATM networks. Even if you use an out of network ATM, you will only be charged a $2,50 fee which is way better compared to conventional banks.
Automatic Deposits with No Foreign Transaction Fees
This is one of the main features that attract most people to Chime. You can use this feature as an automatic deposit for your paycheck, making it possible to get your paychecks early. There are also no foreign transaction fees if you travel abroad, making you rest easy.
Therefore, if you look at all the advantages that come with Chime, you’ll see that it’s a fantastic offer, especially if you need a fee-free checking account and a fee-free debit card. It is also an ideal alternative to anyone who cannot use a cashback credit back to make regular purchases. For those in need of online checking accounts, Chime has everyone covered.