Have you ever considered how convenient online banking can be? A few years ago, I switched to an online bank, and it’s been a game-changer. Not only is online banking super handy, but it’s often cheaper too.
Unlike traditional banks, many online banks don’t pile on the fees. Since they save on costs like maintaining branches and paying staff salaries, they can offer better rates and terms to their customers.
Enter Chime, a digital-only bank that lets you handle your finances from anywhere, eliminating the need for in-person visits. Many people have made the switch to Chime for their banking needs.
### CHIME OVERVIEW
Created by Ryan King and Chris Britt, Chime aims to deliver a straightforward banking experience that makes users feel at ease. In 2017, Nerd Wallet named Chime one of the top new financial apps.
Chime offers both checking and savings accounts, along with a bank card. Member funds are insured by the FDIC. One notable feature of Chime is its sheer simplicity—no monthly fees or overdraft fees.
There are no complicated terms or hidden conditions. But you might wonder how Chime can offer these services for free. It’s simple. Chime’s goal is to help its members succeed without burdening them with fees. Each time you use your Chime debit card, Chime earns a small commission from Visa, paid by the merchant.
As a mobile banking app, Chime gives you full control of your finances without needing to interact with bank staff.
### SPENDING ACCOUNT
If you’re thinking of using Chime for everyday spending, their spending account is a great option. It comes with a free debit card for transactions and gives you access to over 38,000 ATMs at no charge. You also get daily balance updates and can easily block your debit card anytime it’s lost or there are unauthorized charges.
Depositing a check is straightforward with the Chime app—no need to visit a bank. Plus, with direct deposit, you can get your paycheck up to two days early. Chime also works with mobile payment options like Apple Pay and Google Pay. The only fee you might encounter is a $2.50 out-of-network ATM fee, which can be avoided by using fee-free ATMs.
### SAVINGS ACCOUNT
Looking to grow your savings? Many Americans have less than $400 in savings, often because saving isn’t a priority or habit. Chime’s savings account addresses this by offering automated savings, making it easy to keep adding to your savings without much effort. You can save a percentage of your paycheck directly or round up your purchases to save more. This helps make saving automatic and simple.
### PROS AND CONS
Chime shines for its simplicity and transparency. The entire banking process can be managed from one app, saving you time from customer service calls or bank lines. Early direct deposit and access to numerous fee-free ATMs are significant perks. The automated savings feature is also a major plus.
However, Chime doesn’t offer interest on savings, which means you miss out on potential extra earnings from your savings. It’s still a great option for short-term savings and developing a habit of saving money, although other online banks might offer better interest rates.
Also, Chime doesn’t provide checks, and mobile check deposits might be tricky for some. However, this can be mitigated by setting up direct deposit.
### SIGN-UP PROCESS
Interested in online banking with Chime? Signing up is quick and straightforward. It doesn’t affect your credit score and requires just a few basic details. You need to be a U.S. resident and over 18 years old.
Haven’t tried online banking yet? What are your thoughts on Chime? Let us know in the comments below!