Chime Bank is one of the more recent players in the banking industry and just recently passed 12 million customers in early 2021. Chime is technically a technology company that has put together a sleek digital user interface for clients, similar to what Robinhood has done for investing. They partner with another bank to provide all of the services on the back end.
However, despite being a much younger company, their all-digital focus has certainly made a splash in the industry as they are valued at $30 billion and prepping to go public in the near future. So does that mean that they are worthy of your business?
Let’s take a look at the top 3 reasons to bank with Chime.
Chime hangs its hat on two advantages: simple online banking and no fees. As far as their accounts, they only have three options total:
➢ A checking account that comes with no fees and a Visa debit card.
➢ A savings account that offers a very competitive 0.5% APY interest rate.
➢ A credit card with no credit check to apply, no annual fee/interest, and no security deposit required.
This straightforward approach to banking makes it incredibly simple to know what you’re getting. Compare this approach to a major bank like Chase who offers about 8 options just for checking accounts alone.
Additionally, Chime offers overdraft protection of up to $200 with their SpotMe Feature. This means if you accidentally overcharge your account then they won’t charge a fee until you hit $200.
Purely digital banking
If you haven’t visited your bank’s branch in the past year then you might want to consider using Chime as they have taken a digital-only approach to banking. This means that they have no physical locations for you to visit and instead offer you a sleek online experience. Since they have much lower overhead, they are also able to offer a much higher rate of interest on your savings.
Their mobile app is currently ranked #9 in finance on the App Store and has 4.8/5 stars with about 250,000 reviews.
Early access to funds
Another feature that Chime offers is getting your direct deposit up to two days early. If you earn a consistent paycheck that is set up to deposit directly into your account then Chime will front you the money so you can spend it before you actually get paid.
In summary, Chime is taking a much friendlier approach to banking by cutting out the things that people hate like ticky-tack overdraft fees and clunky apps. They want to make banking simple for you and so far have been very successful in doing so.
Looking to learn more about checking accounts? Then you’ll want to learn more from Find a Better Bank. We help connect people with the bank that is right for them. On the site, you can search for your next bank by region, bank size or by your residential zip code. Stop by and find the checking account that’s best for you!