When searching for the right bank, we first look for a bank with ‘no monthly charges/maintenance fees,’ and ‘zero overdraft fees.’
According to a recent study, the average customer pays nearly $34 for an overdraft, $2.28 in ATM Fee, and $5.00 in monthly fees. This is the nuisance Chime bank aims to eliminate.
Chime is a mobile-only banking app, FDIC-insured with no monthly fees and no minimum deposit. Though withdrawing cash from an out network ATM can cost you a $2 fee excluding the ATM charge, opening an account with Chime will get you a checking account (Chime calls it a spending account), a debit card and a savings account. And with direct deposit set up, you can expect your paycheck up to 3 days early.
Designed for banking with a smartphone instead of at a brick-and-mortar location, Chime is advertised as a bank for Millennials.
Pros
Chime offers several features we like:
- No Fees: There are no monthly maintenance or overdraft fees.
- Automatic Savings: As noted above, Chime offers ways to automate savings. These features can help customers built an emergency fund or save for a specific goal.
- Faster Pay: Chime says you can get access to your pay up to two days earlier.
- No Overdraft Line of Credit: Chime doesn’t charge an overdraft fee because it doesn’t permit you to overdraft your account. If you lack the funds to cover a charge, Chime will decline it. Some might describe this as a disadvantage, but we list it here because it can help customers control spending.
- Split the Bill: Chime makes it easy to split the bill with friends and family on a night out.
- Mobile App: Chime’s mobile app has been well received, based on the iPhone and Android reviews we evaluated.
- Free ATMs: Chime offers over 38,000 fee-free ATM locations.
Cons
Nothing in life is perfect, and Chime is no exception:
- No Joint Accounts: Banking with Chime is not ideal for those wanting a joint account. It doesn’t offer them.
- Cash Deposits Take Work: Since Chime is an online-only bank, putting cash into your Chime account is an ordeal. You’ll need to go to a Green Dot cash deposit location, which may charge a fee of up to $4.95 to deposit cash.
- Out-of-Network ATM Fees: Although you will have access to over 38,000 MoneyPass ATMs, Chime charges $2.50 per transaction through an out-of-network ATM. There is also a three percent external debit charge (when you load your account via debit instead of a direct transfer).
- No Personal Checks: If you need to send a check, Chime will send one for you, though you are limited to $5,000 per payment and $10,000 in a calendar month. Also, your account must be open for at least 30 days before you can use this feature.
- Low-Interest Rates: Chime’s savings account offers a very low-interest rate. Chime’s current rate is an APY of only 0.01%.
And another great PRO to banking with Chime is that you and your friends can earn $50 for every friend or family you invite to Chime. Head over to Chime’s website for more details.