Chime Review
8 Things You Need to Know Before Sign Up
Chime is a great alternative to banks (not a real bank) with quick sign ups, fee-free accounts, no credit checks and incredible money management features.
Wondering whether Chime is worth your time? Feel free to skim the relevant sections and make up your mind. But if you’re the sort who does a deep dive before making any decision, we’ve got you covered too.
Full Disclosure: While we aim to show you the good and the bad in every review so you can make the best choice, there may be links contained in this page which are affiliate links (and while not costing you anything) do earn us a commission if you click on them and decide to use the service. In many cases we also get the opportunity to provide you with discounts and offers as part of using the link. Cheers and Thank You!
Read on to know if Chime is the best alternative to banks for you (and when it isn’t).
Pros
1) No fees to hold an account, no debit card fees (even for replacement cards), no foreign transaction fees
2) No credit checks
3) Issues a Visa debit card that’s accepted globally
4) Offers fee-free overdraft for debit card transactions
5) Instant and free Chime-to-Chime money transfers
6) ATM withdrawals are free in the US at more than 24,000 ATMs (MoneyPass and Visa Plus Alliance ATMs). International ATM withdrawals are also free at major bank ATMs.
7) Funds are FDIC protected
8) Cool savings options (save 10% of your salary deposits automatically and round up all transactions to the nearest round dollar to build your savings)
9) Get paid up to 2 days early when you set up direct salary deposits with Chime
10) Pay your bills on time by setting up direct debits
11) Integrate your account with Google Pay, Apple Pay and Samsung Wallet
12) Link an external bank account and get a full summary of your connected account on the Chime app (for supported banks)
13) Can be accessed via the mobile app and their online banking portal
Cons
1) Only available in the US
2) Not a registered bank
3) Out-of-network ATM withdrawals are chargeable in the US and abroad (at $2.50 per transaction)
4) Low savings rate
5) International fund transfers can be costly
6) Doesn’t offer business accounts
7) Doesn’t offer joint accounts
8) Cash deposits to your account via third party partners may be expensivestomer support.
1. What is Chime (Really)?
Chime is a US-based financial services company in partnership with BanCorp and Stride Bank. While Chime doesn’t have a banking license yet, your funds are protected (up to $250,000) by the Federal Deposit Insurance Corporation (FDIC).
Signing up for and holding an account with Chime is free. They also offer a fee-free debit card powered by Visa that’s accepted globally. Chime doesn’t conduct credit checks, which means you can bank with them even if you have a low credit score. They also have innovative savings features that empower you to build up your financial health gradually.
Chime offers fee-free overdrafts and lets you load up your account in a number of ways: direct salary deposits, cash deposits, as well as bank transfers (check out list of supported banks here).
2. Is Chime Right for You? (And When It’s Not)
When Chime is right for you
- You want a low-cost spending account in the US
- You want to transfer money to friends and family without any fee.
- You prefer free online transactions
- You want to get paid earlier than your colleagues
- You prefer automatic saving
When Chime is NOT right for you
- You’re a frequent traveller
- You’re an entrepreneur
- You want condition free overdraft
- You want international money transfer
2.1 Chime is Right for You When
Chime was launched in 2013 and already has a loyal user base of 5 million. Here’s why folks choose to bank with Chime in the US.
You want a low cost spending account in the US
Most traditional checking and savings accounts are pretty expensive to maintain. Besides, you could also be rejected from holding an account with high-street banks if you have a low credit score.
Chime doesn’t conduct credit checks, offers fee-free checking accounts to US citizens, and there’s no minimum balance requirements. You’ll never pay any fees to renew or replace your debit card either. Overdraft options are also available on debit card transactions to eligible members (you must receive $500 in your Chime account every month to qualify for overdrafts).
You want to transfer money to friends and family without any fee
Paying friends and family who use Chime is instant and free. You can also send money to non-Chime folks by simply entering their email or phone numbers in the “Move Money” section of the mobile app. They’ll need to sign up for Chime to access funds though.
You prefer free online transactions
Chime offers an international debit card powered by Visa that can be used to buy stuff online, from both domestic and foreign merchants. Chime doesn’t charge foreign transaction fees.
You want to get paid earlier than your colleagues
Setting up a direct deposit for your salary with Chime means you get paid up to 2 days earlier than your colleagues. Chime processes your salary instantly instead of holding it like your average high street bank. Getting paid early means you have a head start on your finances – get those bills off your mind, set aside money for savings, and spend the rest as you wish.
You prefer automatic saving
If you’ve struggled to build your savings, you’ll appreciate Chime’s innovative savings features. Chime lets you automatically put away 10% of your salary and rounds up all transactions to the nearest dollar to build your savings pool.
2.2 When Chime is Not Right For You
While Chime has a bunch of great features, here’s why Chime may not be right for you.
You’re a frequent traveler
While the Chime Visa card is accepted globally and you can make free ATM withdrawals for free at Visa and major bank ATMs, out of network fees apply ($2.50 per transaction). This means travelling with the Chime in relatively off-the-grid places in the US and abroad may leave you stranded.
You’re an entrepreneur
Currently Chime doesn’t offer business accounts. So if you’re looking for a digital bank that helps you track invoices, manage bulk payouts, and pay overseas employees, Chime isn’t for you.
You want condition free overdraft
Chime offers fee-free overdraft with a caveat.
Chime overdraft options are only applicable to debit card transactions (ATM withdrawals, ACH transfers, and Chime-to-Chime transfers are not covered) up to $20 if you receive at least $500 in your account every month. Chime may choose to increase this limit to $100 based on your Chime Account history, direct deposit history and amount, spending activity and other risk-based factors.
You can see whether you’re eligible and your overdraft limit in the Chime mobile app.
You want International money transfer
Chime is not transparent about their international fund transfer options, which makes us think these could actually end up being expensive. If you want to save big on international transfers, you should check out Wise.
3. How to Sign Up and Tips to Use Chime
3.1 Signing up for Chime
Chime only offers its spending accounts to US citizens who are over 18 (permanent residents of the 50 US states and the District of Columbia).
You can sign up for Chime by downloading their iOs or Android app or by registering on their home page. These are not instant spending accounts, by the way – you need to apply on the mobile app or on their website by submitting your national id and address proof. But since Chime doesn’t conduct credit checks, the acceptance process goes fairly quickly.
Chime doesn’t share your personal information but they do need these documents to help the government fight terrorism funding and money-laundering activities (all financial intuitions in the US are required to comply with this criteria of checks and balances by Federal Law).
3.2 Depositing money into your chime Account
3.2.1 Direct deposits
According to Chime, the easiest way to fund your account is through direct salary deposits from your employer. You can set up direct deposits with them by simply sharing your Chime routing and account numbers found in the “Move Money” and “Settings” section of the app.
3.2.2 Bank Transfer Initiated from Chime App or Website
You can also link an external bank to your Chime spending account and transfer money from there. Supported banks can be linked from the “Link a Bank” section under “Settings” in the mobile app. Once linked, you can transfer a maximum of $200 per day and up to $1,000 per month.
Currently, Chime supports the following banks: Chase, Bank of America, Wells Fargo, Citi, US Bank, USAA, Fidelity, PNC Bank, Capital One 360, TD Bank, SunTrust, Navy Federal & Charles Schwab.
3.2.3 Bank Transfer Initiated from an External Account
You can also send money to Chime from an unlinked external bank account. Simply go to the bank’s mobile app or online portal, enter your Chime account details, and transfer the desired amount. These external bank transfers are the fastest way to move money to your Chime account.
3.2.4 Mobile Check Deposit
If you’ve set up direct debits in your Chime account, you can also fund your account with the mobile check deposit feature. This is also an easy and fast way to fund your account.
3.2.5 Cash deposit
You can fund your Chime account with cash deposits at Green Dot outlets too. You can ask the cashier to simply load up your debit card with the specific amount, but remember some funding limits apply: you can add $1000 for every 24-h rolling period and up to $10,000 per month.
While Chime doesn’t charge you for cash deposits, Green Dot may charge a convenience fee per transaction.
3.2.6 Chime Visa Debit Card
After your Chime account is approved, they send your personalized Visa debit card in the mail within 1 business day. The card should reach you within a week, but if you don’t see it in your mail after 10 days get in touch with Chime support via the app.
You can activate the card directly via the app and block it on the app as well if you lose it.
3.3 Sending and Receiving Money
3.3.1 Sending
You can send money easily to friends and family with the PayFriends feature in Chime. Navigate to the “Move Money” section, and enter the recipient’s Chime nickname, amount, and phone number or email address to initiate the transaction.
You can also send money to non-Chime users by entering their email address or phone number in the “Move Money” section of the app. These guys will need to sign up for Chime to access their funds.
However, please keep in mind the following:
- You can only transfer up to $2000 per month
- Transactions once initiated can’t be reversed
3.3.2 Receiving
Chime members can send you money instantly with PayFriends. Share your account number and routing details with non-Chime members to receive money from external sources.
4. How Much Does it Cost to Use Chime?
| Product | Fees/Details |
|---|---|
| Account Fee | Free (Checking and savings) |
| Annual Percentage Yeild (APY) | 0.50% |
| ATM | Free across 38,000+ fee-free MoneyPass® and Visa Plus Alliance ATMs (both in the US and abroad) |
| Deposit fee | Zero |
| Transactions | Domestic free, International wire transfers not allowed |
| Overdraft | Free up to $200 with SpotMe service |
| Card Type | Visa |
4.1 Other Chime Features
Overall, moving money with Chime is pretty fast:
- Chime-to-Chime transfers are instant and free
- Chime sends your salary to your account as soon as they receive it from your employer’s bank (up to 2 days earlier)
- Transfers from unlinked bank accounts (initiated by your or your friends/family) are usually processed within 3 business days
- Fund transfers initiated by you within the Chime app or on the website via your linked external bank account are processed within 5 business days
- Cash deposits via Green Dot reflect in your account within a couple of hours if the transaction was successful at the outlet
5. What do Chime Customers Say (Including Negative Reviews)?
Chime is rated 4.5/5 on Trustpilot with over 5000 reviews, which is considered “Excellent.”
But it’s also worth looking at the negative reviews as they can help you avoid potential pitfalls and to decide whether Chime is actually right for YOU. After going through hundreds of user reviews, we’ve highlighted the top issues people have faced on Chime:
The Good
Chime’s customers like
- The easy-to-use app
- Quick sign up process
- Overall stellar service
- Quick and free money transfer
Here’s an actual Trustpilot review from a happy customer:
“Never knew online banking could be this easy! Love the updates keeping me informed of each transaction. Signup was straight forward direct and to the point. My only regret is not signing up earlier.”
The Bad
- Expensive fees for cash deposits
Cash deposits turned out to be expensive for many people. So we suggest you look at other options to fund your account, such as salary deposits, bank transfers or mobile check deposits.
- Early pay is inconsistent
Chime failed to make good on their “get paid early” claim for some users.
Since this feature is at the forefront of Chime’s offerings, they should look into improving it ASAP. (Although this could also be due to delays at the employer’s end).
- Poor customer support
Many users were frustrated by Chime’s chatbot and customer service.
This is a growing concern with most digital banks as they don’t have physical branches and keep costs low with a remote customer service team. However, if Chime needs to get ahead of its competition, cultivate loyalty among existing users, and
onboard new users, it should definitely improve its customer support.
6. Is Chime Safe?
Chime uses two-factor authentication, 128-bit AES encryption, access control and secure processes to keep your personal information and money safe. Most importantly, your funds are protected by the FDIC up to $250,000.
Other than that, Chime sends you instant notifications after every transaction to keep you in the know. Plus, Chime debit cards are protected by the Visa Zero Liability Policy so you can shop worry-free pretty much anywhere online.
Verdict
If you want to dip your toes into digital banking or looking for a low cost, savings-focused spending account in the US, Chime is a great option for you. The best part is they do make good on their promise of “no-fee” banking.
However, Chime may not be for you if you’re a frequent traveller or an entrepreneur looking for a digital bank for your business.