Chime Bank Review: Everything You Need To Know Before You Open An Account

Chime Bank is an American online-only bank with headquarters in San Francisco, California. Founded in 2013, the bank is a no-frills practical bank that caters to people needing the most basic of banking services — checking and savings accounts.

Though the bank offers only basic checking and savings accounts, it does provide some innovative features with those accounts that might set them apart from other online-only banks. We will be talking about those features in this Chime Bank review.

Overview Of The Features Chime Bank Offers

The banking industry is continuously innovating. Some banks are riding the innovation wave, and others aren’t. Luckily, Chime isn’t one of those institutions stuck in the past and doing banking the old way.

Chime’s innovation and embrace of modern banking might be because they are a young bank founded in the high-tech internet era and also because it caters to a more youthful, tech-savvy customer base.

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Features Chime Bank Offers

• Direct deposit received two days early.
• $0 foreign transaction fees
• No minimum balance requirement
• No monthly fee payment
• $0 required to open an account.
• Innovative mobile app
• Daily balance notifications and instant transaction alerts.
• Mobile check deposit.
• Pay Friends – Instant money transfer.
• Automatic savings.
• Lock your debit card from your mobile phone.
• Automatic savings.
• Free access to 38,000 ATMs nationwide.

Pros And Cons Of Chime Bank

Pros

• No monthly fees
• Get your deposits two days earlier
• No minimum deposits.
• Instant money transfer

Cons

• Abysmal APY of only 0.01%
• No paper checks
• No physical location
• $5000 online check limit.
• $4.95 fee for depositing money.
• Does not allow wire transfers
• $10,000 monthly deposit limit

Chime Bank Free Checking Account

One of the perks of banking with Chime is that you don’t have to pay monthly service fees. All the major banks charge multiple fees for various kinds of services.

For example, Bank of America, Wells Fargo or Chase Bank charge at least $30 in overdraft fees for each overdraft item; Chime doesn’t.

The Chime Bank’s free checking account also comes equipped with a Visa debit card that is accepted anywhere Visa is accepted.

Unlike most banks, Chime does not require a deposit to open an account. Customers can open an account with zero down and then fund it later.

They have a network of over 38,000 MoneyPass ATMs around the country. Customers can use these ATMs free of charge. However, if a customer uses an ATM outside of Chime’s MoneyPass network, a $2.50 fee will be levied for each transaction.

There is a feature on the Chime’s app that tells you the location of the nearest ATM. It uses GPS technology to find the ATMs that are nearest to you. Using this GPS feature in the app helps customers to avoid using non-Chime ATMs.

Chime 2 Days Early Direct Deposit

With most traditional banks, it takes up to two days to receive direct deposit from employers. That’s because banks need time to process the payment. Chime, on the other hand, does not wait two days to deposit your money into your account. Once your employer issues your direct deposit, it hits your Chime bank account right away. Fast direct deposit is a significant selling point for Chime Bank.

How To Deposit Money Into Chime Bank Account

Because Chime does not have physical branches, they’ve devised a few ways for customers to deposit money into their Chime checking account.

1. Customers can deposit money over the counter at a designated retail center. Chime Bank has several locations for “putting money on your card.” Customers can go to a 7Eleven, RiteAid or CVS, hand the cashier their Chime debit card along with the money they want to deposit. The cashier will place the funds in their Chime Account. There is a $4.95 fee for this service, and it has to be paid upfront.
2. Deposit money by using a linked bank account. When you open an account with Chime, you have the option of linking another bank to your chime account. Your connected bank account can be used for transferring money in and out of your Chime account. Chime only allows a maximum of $200 daily transfer and no more than $1000 total transfer during the month.
3. Direct deposit from an employer. One of the most common ways to get money into your Chime bank account is through direct deposit. 
4. Instant transfer from friends. Chime’s mobile app has a feature called Pay Friends. This feature allows customers to instantly transfer money to other Chime account holders at no cost. A customer can have a friend send them money via the app to fund their account.

Chime allows a maximum deposit of $1000 per day and $10,000 per month. If you expect to make more significant monthly deposits, then Chime may not be the bank for you.

How To Withdraw Money Out Of Chime Bank Account

There’ s no point in having a bank account if you cannot withdraw your money or have access to it. Here’s how you withdraw money from your Chime bank account.

1. Customers can transfer money to their linked bank account. One way to get money out of your Chime bank account is to move it to your connected account. Once it gets to your linked account, you can do whatever you want to do with it. Remember, however, Chime only allows a $200 maximum daily transfer and total transfer of only $1000 during the month.
2. Use the Chime network of ATMs. Chime Bank uses a network of 38,000 MoneyPass ATMs all around the country. Customers are allowed to withdraw a maximum of $500 a day. There is a $2.50 fee for using an ATM outside of the MoneyPass network.
3. Use banks and credit unions. Customers can withdraw a maximum of $500 from their Chime bank account by walking into any bank or credit union and presenting their debit card to a teller. Chime charges a $2.50 fee for each withdrawal.
4. Customers can request cash back at points of sale. Most retailers allow cashback of between $20 to $100. Depending on how much you want, you can get some money from your account by getting cashback over the counter at a retail store.
5. Mail a check. Chime Bank does not give checks to account holders. However, if you need to write a check to someone, Chime has a feature for that. All you have to do is click the “mail a check” button in the Chime mobile app to set things off. Chime is going to ask you for the amount, name, and address of the individual or business you want to send the check to, and they’ll handle the rest for you.

Chime mobile App Innovations

The latest version of the Chime Bank mobile app has some innovative features that customers might find useful. Here they are:

1. Lock your card. If your card gets lost or if you suspect something suspicious going on, you can lock your card. Customers have options to block either international transactions, local transactions, or all transactions — all from within the app.
2. Transaction Alerts. Customers can set up their accounts to receive alerts for every deposit or withdrawal from their Chime bank account. Transaction alerts are useful for early fraud detection or prevention.
3. Balance Alerts. Customers have the option of programming their app to receive a daily balance alert. These alerts are useful for preventing the embarrassment of trying to spend money you don’t have.

Chime Savings Account

Chime checking account comes equipped with a savings counterpart. If you need to put some money aside for future use, Chime savings will be useful in that regard.

Some features come with the savings account that makes it easier to put money aside.

Chime Savings Account Features

The two features below can be beneficial for people with problems saving money.

1. Save When I Get Paid. This feature allows you to put a percentage of your salary towards your savings automatically. You can decide to put 10, 20, or 30% of your earning away, and the app will do it automatically.
2. Round-Ups. This feature rounds up your purchases and saves the difference. For example, if you buy something that cost $7.50, the Chime app rounds the purchase up to $8.00 and keeps the $0.50 in your savings account. Simple.

Who Is Chime Good For?

Chime Bank is for someone who needs essential, bare minimum banking services. That’s because unlike regular brick and mortar banks, Chime Bank has a lot of restrictions.

For example, Chime customers cannot send or receive wire transfers. There’s a restriction on the amounts that can be deposited or withdrawn from a Chime bank account.

Chime bank is also suitable for someone who needs “second chance banking.” If you have a blemished report with the ChexSystems and can’t open a traditional bank account, Chime Bank will give you a second chance.

Is Chime Bank Just A Prepaid Card?

Chime Bank’s banking services are provided by Green Dot, a company that also offers prepaid debit cards. Because of this relationship between the two institutions, it’s easy to assume that Chime Bank is just a prepaid debit card. However, Chime does not brand itself as a prepaid debit card.

Conclusions

Chime Bank is an online-only bank that provides rudimentary banking services. While there are some advantages to having a Chime bank account– like receiving a direct deposit two days early, the disadvantages are more.

For example, customers have to pay $4.95 at designated retail centers to deposit money into their Chime account. There’s also a restriction on the amounts customers can deposit and withdraw.

On the bright side, Chime allows second chance banking and has an innovative app that makes it easy to save money.

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