Do you have a “free” checking or savings account at one of the big banks? If you’re a financial boy scout or girl scout, the account is truly free to you. But someone who is a financial wreck is subsidizing you. If you’ve ever overdrafted on your account, the $35 per day overdraft charge proves just how “free” your account really is.
Big banks collect big money from overdraft fees, account minimum fees, and bounced check fees. All these fees make it even more difficult to break out from the paycheck to paycheck trap that ensnares so many young people.
But not every bank abides by this philosophy. Chime, a mobile forward, deposit and savings institution is making money management and savings easier. This is how they’re doing it. Plus, see why we think Chime is one of the best online banks.
Quick Summary
- A mobile-app based bank that is user friendly
- As fee-free as you can get with a checking account
- Get your direct deposit up to 2 days early
Chime Bank Details | |
|---|---|
Product Name | Chime |
Min Opening Deposit | $0 |
Min Balance Requirement | $0 |
Monthly Fees | $0 |
APY | 1.00% APY |
ATM Access | 24,000 Free ATMs |
Account Type | Checking And Savings |
Promotions | None |
Mobile Forward
Like many internet banks, Chime keeps their costs low by investing heavily in technology and eliminating brick and mortar outlets. However, they’ve also had the foresight to focus on their mobile platform. Recently, they’ve been featured by Apple as one of the top money management apps.
The app makes it incredibly easy to set up direct deposit, to transfer money among your accounts, find an ATM and review your recent transactions.
The app is responsive, intuitive, and it has the information you need. You can see recent transactions, account balances, how to find an ATM, and your linked account balances. It’s easy to pay a bill or transfer money right in the app.
They recently added in mobile check deposit, which I think is a huge win!
Easy to use interface
Easy to set up direct deposit
Fee Free
Chime’s fee schedule is 4 lines long. There are no maintenance fees, overdraft fees, foreign transaction fees, bounced check fees. You can even use MoneyPass to have access to more 24,000 ATMs for free.
You will pay $2.50 to use an out of network ATM and a 3% external debit charge (when you load your account via debit instead of a direct transfer). That’s it.
Chime is as close to a Fee Free account as you can get. They take pride in aligning their business profits with their members needs. If you join Chime, you can expect transparency and a bank account with no fine print.
Make Saving Simple (and Rewarding)
In addition to keeping the fees out of banking, Chime allows you to set up an automatic savings program. They launched a high yield savings account that currently pays 1.00% APY.
The bank rounds up each transaction to the nearest dollar, and sets the money into a savings account. They also add a 10% reward to the money you set aside- up to $500 per year. The savings account yields a paltry .01%, but the rewards and automation more than make up for it.
In addition to the Round-Up program, Chime Members now have the opportunity to also enroll in "Save When I Get Paid," which automatically directs 10% of every paycheck into our Member's savings account.
If you’re struggling to save for a rainy day, a behavioral tool like Chime Automatic Savings can be a perfect solution. You can always access the money or transfer it back to your spending account, but mentally separating it is an easy solution to a savings problem.
But Will it Meet My Needs?
If you have straightforward banking needs, Chime is an excellent bank for you. It’s fee free. It’s got a built in savings tool. You can spend money with a visa debit card, pay bills via the mobile Chime Checkbook.
The beauty of Chime is in its simplicity. However, the simplicity has some drawbacks.
The Chime Checkbook only allows $5000 in a single transaction but otherwise, there is no limit to how many checks you can send per day. Lump sum expenses like a rental deposit (first, last and security deposit) typically requires a big check, and $5000 might not cut it.
Also, Chime is not set up for joint account holders. If you and your spouse want to share a checking account, Chime isn’t a good option right now.
I’m excited to see how Chime will grow and transform in the coming years. Their commitment to fee free banking represents a needed change in the marketplace. Hopefully, Chime will come up with even more ways to expand their product to people who need it.
Chime Bank FAQ
Here are some common questions about Chime:
What is Chime?
Chime is a mobile-first app-based bank that has a free checking account and more features - all on your phone.
Is Chime Free?
Chime is about as fee-free as you can get in a checking account. There are no monthly maintenance fees, overdraft fees, or foreign transaction fees.
Does Chime offer free ATMs?
Chime has a network of over 24,000 fee-free ATMs.
Does Chime have a debit card?
Yes, you get a debit card with your Chime account.
Chime Review
- Commissions & Fees - 100
- Customer Service - 90
- Ease Of Use - 90
- Products & Services - 80
- Specialty Services - 65
Overall
Summary
Chime is a mobile first bank that offers almost fee free checking, as well as some great products and services for banking customers.
Robert Farrington is America’s Millennial Money Expert® and America’s Student Loan Debt Expert™, and the founder of The College Investor, a personal finance site dedicated to helping millennials escape student loan debt to start investing and building wealth for the future. You can learn more about him here and here.
He regularly writes about investing, student loan debt, and general personal finance topics geared towards anyone wanting to earn more, get out of debt, and start building wealth for the future.
He has been quoted in major publications including the New York Times, Washington Post, Fox, ABC, NBC, and more. He is also a regular contributor to Forbes.
Corey Robinson says
Chime also doesn’t have a live person to talk to either. Big help if possible.
Tia says
Hey, Chime has a customer service center. However, if you’re on Eastern Standard time there’s a little 3wait because they’re on Central Standard Time.
Michael A Goyone says
Yes, they have a live person. Thats what i did first before I moved my direct deposit here.
And I do get my pay ahead of time.
Jerry Haden says
Yes they do
Joshua Deschenes says
I understand chime banking has free checking and savings and all that but does it help with like personal loans and all that so you can build the credit score cuz that’s very important to me
Robert Farrington says
No, Chime doesn’t offer personal loans. You might look at a tool like Dave.
Mary says
Yes they do
Jeff says
How does there over draft work? Do they pull fees out of your next direct deposit?
Chonce Maddox says
Here’s what I found from their site in terms of overdrafts:
“Chime does not offer overdraft protection, but we are looking into options for our direct deposit members. If you do not have sufficient funds on your Chime account, any attempted debit card transaction will be declined. The exception to this is if a merchant forces a transaction through, you leave a tip at a restaurant or salon that exceeds your account balance, or if you go to a gas station and pay at the pump.”
Denise Smith says
Although, chime is a fee-free bank and you receive early direct deposits, their customer service is horrible! I’ve been a customer for about 6 months. I found out on Monday, while trying to purchase food for my family at walmart, that my card and funds were blocked due to an unauthorized charge I have no knowledge of. It’s going on day three of this so-called investigation and no one is able to give me any answers. All of my funds are tied up in this investigation and I have no way to access it. I am one disgruntled customer and I don’t recommend this bank to anyone. It’s still much for them to learn about serving others.
Trent says
This is the exact comment i was looking for. Thank you very much because i almost went with this company. Without doing my research first.
Steve says
This happens with every bank… I just did 2 test calls to customer service and although the response time was long (5-9 minutes), I was able to speak to a live person.
Tia says
Plus they are on Central Standard time
Kerri Collins says
Denise Smith, I totally concur with your comment. Customer service department at Chime, is awful. First, off they don’t speak English very well which, in turn makes it difficult to communicate on both ends. I connected my external bank to my Chime bank and I made a transfer between banks and it nearly took 5 business days to post to my account. If you want to deposit funds into your Chime account you have to go to a store who, carries “Green Dot”, pay for the green dot card (1.95) a minimum of 20.00 and then it takes up to 2 hrs. to post to your checking account. They claim that you receive your paycheck 2 days earlier, I never received mine 2 days earlier ever. So, if your thinking of banking with Chime and you want to spend money depositing money into your own account, speak to people you cant understand then by all means sign up with Chime.
Yolanda says
I joined them and I get my check two days early and I love it.
EyanuJ says
Going through the same situation now. Definitely would not recommend them to anyone!
Kim A says
This happened to me as well! Worst customer service, ever. There is no way to access your money if something like this happens!
Elizabeth says
Just pray you never have any problems. Four day waits for email support. 20 min waits on the phone. And when you do get a hold of someone either way, they either don’t know what to do and need to you call back, tell you it’s not their fault and hang up, or recognize that something is going on, but refuse to tell you what that something is and give you no solution.
And if you don’t use direct deposit, do not use this card. I’ve had an account with chime for a while and never had a problem, I loved my account in fact, until I switched to a job at a small business that writes paper checks.To deposit your check you have to: a. cash the check and then use a green dot to load it which can be expensive b. use a mobile app that charges you 5% of the check or you have to wait 8-10 business days to avoid the fee or c. use the worthless mobile deposit function which may or may not accept your check depending on how chime is feeling that day, then get the run-around on why the check was not accepted.
Bradley Taylor says
I have been a customer of chime since they started. It’s nice if all goes well, have an authorized charge, need to talk to someone knowledge or have an issue logging into your account, GOOD LUCK. I just can’t see myself putting money somewhere that I have no one to talk to in person. Nobody that can fix an issue. And my money is just out there….somewhere. Oh, and you can only email with real problems. Then good luck with that.
titi says
Best bank ever.!!!
NaNa says
Does the card charge $1 every time you use it like the account now or netspend card
Robert Farrington says
No fees to use the card.
Myeka says
They lack any ability to be able to provide customer services to their bankers, any time that I have had a problem with my account they not only refuse to help me and problem solve. In order to get any progress on my problems, I have to get aggravated and rude. I have experienced a number of times I have needed to contact merchant services and they will not help you no matter what! They go by a bankers book for dummies and will only provide you with 3 steps they are able to take, their problem-solving sucks! Right now I am waiting on a dispute for $100 so I can cancel my account. You would be a fool to bank with these people. I know I made a fool out of myself. I would give 0 stars but thats not an option
EyanuJ says
Just joined Chime. Some unauthorized charges have been appearing in my acct. Chime is giving me the run around about getting my money by telling me to submit a form send it back blah blah blah. I DONT HAVE TIME FOR CHIME TO PLAY WITH MY MONEY! Dont say I didnt warn ya
Frances says
Trying to activate my card and the app keeps sending me to the sign up page. I have already signed up about a week and a half ago. And it keeps telling me they are having technical difficulties to try again later. So is there another way to activate my card?
Robert Farrington says
Give them a call?
Debra says
I just sign up for a card. If the people on this site is having problems with chime. I think I will Cancel my card. Cancel my card. I don’t need know problems. With my money or paying bills. Thinks and no thinks
Tiffany says
Has anyone used this card to rent a car? I just don’t want them to hassle me thinking its a prepaid debit card.
Robert Farrington says
You should never use a debit card to rent a car (even with the logo). Look at getting a card that rewards travel, as they also have rental car insurance coverage: https://www.thecollegeinvestor.com/20418/best-credit-cards-maximize-travel-rewards/
Brandi says
Were you able to use your card for the rental?
Marcia says
My debit card number was stolen. I called to get a new card. Was told it would be 3-5 business days until it would arrive. It has been that long so called and they had said that I was told wrong and it wouldn’t arrive until July 5th (10 business days) or at the latest July 10th (14 business days). They do not send cards out in that time length. After talking to three different customer service representatives, was told sorry but there is no way that you will have access to your money unless you have a Venmo account and card, we send you a check which takes 10 days, another checking account that can link with Chime, or a friend who also has Chime and will pull your money out from an atm if you send it to their account. I have none of these. They will not transfer to my PayPal, which I have a card for or help me in any way. After being on the phone with them for over 2 hours all they could say was “sorry we have no other options for you. We cannot help you in any way. You have no other options, but to wait for your card.” That is three whole paychecks and I have bills to pay and children to feed and gas to get in my car, so I can make it to work. I got absolutely no help or sympathy from them at all other them acknowledging that I was screwed on getting my money.