Chime® Review [2024]: My Streamlined Experience With No-Monthly-Fee Banking

Chime account basics

What is Chime?

Chime® is an online financial technology platform that offers a mobile-first checking account, savings account, and secured credit card. To offer these products, Chime partners with FDIC-insured banks, including Bancorp Bank, N.A. and Stride Bank, N.A.

As someone who's always on the go, I was intrigued by Chime's promise of hassle-free banking from my smartphone. During my testing period, I found myself appreciating the simplicity of managing my finances without stepping foot in a physical branch. The app's intuitive interface made it easy to track my spending and set up automated savings⁹ <p class="">Round Ups automatically round up debit card purchases to the nearest dollar and transfer the round up from your Chime Checking Account to your savings account.&nbsp;<br></p> ¹⁰ <p>Save When I Get Paid automatically transfers 10% of your direct deposits&nbsp;of $500 or more from your Checking Account into your savings account.</p> .

Who is Chime best for?

Chime's unique features make it particularly well-suited for various people:

• Employees and direct deposit recipients: The combination of early direct deposit and fee-free overdraft protection of up to $200 can be a lifesaver for those with irregular income. Getting paid up to two days early can help you smooth out cash flow between gigs.
• Recent graduates and young professionals: Those just starting their financial journey, can benefit from the Secured Chime Credit Builder Visa^® Credit Card. This secured credit card doesn't require a credit check to apply, making it accessible even without an established credit history.¹¹ <p>The secured Chime Credit Builder Visa® Credit Card is issued by The Bancorp Bank, N.A. or Stride Bank, N.A., pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa credit cards are accepted. Please see the back of your card for its issuing bank.&nbsp; To apply for Credit Builder, you must have an active Chime® Checking Account.</p>
• Budget-conscious users: Chime’s lack of monthly fees and automatic savings features can benefit people who like to budget their income to build toward their goals.
• Customers rebuilding their banking relationship: If you had issues with traditional banks in the past, Chime's second-chance banking approach could offer a fresh start. Chime doesn’t perform a ChexSystems check and has no minimum balance requirements.

Who should skip?

While Chime offers many benefits, it may not be the best fit for:

• Savers with large balances: Chime Checking doesn’t earn interest, while Chime Savings earns 2.00% (as of Sept. 9, 2024) APY, which isn’t a competitive rate. If you have a substantial amount saved up, you might find better returns with a different high-yield savings account. Consider SoFi Checking and Savings, which offers up to 4.00% APY¹² <p>SoFi members with Direct Deposit or $5,000 or more in Qualifying Deposits during the 30-Day Evaluation Period can earn 4.00% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. Members without either Direct Deposit or Qualifying Deposits, during the 30-Day Evaluation Period will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Only SoFi members with direct deposit are eligible for other SoFi Plus benefits. Interest rates are variable and subject to change at any time. These rates are current as of Dec. 3, 2024. There is no minimum balance requirement. Additional information can be found at <a href="http://www.sofi.com/legal/banking-rate-sheet">http://www.sofi.com/legal/banking-rate-sheet</a></p> with direct deposit.
• Those who need specialized banking services: If you need a joint bank account or require services like wire transfers, money orders, or cashier's checks, Chime's limited offering in these areas may be frustrating. I had to use a different bank when I needed to send an international wire transfer.

Here's a closer look at Chime's top banking benefits

Banking with minimal fees

One of Chime's most appealing features is its commitment to minimal fees⁵ <p>There’s no fee for the Chime Savings Account. Cash withdrawal and Third-party fees may apply to Chime Checking Accounts. You must have a Chime Checking Account to open a Chime Savings Account.</p> . During my testing period, I didn’t have to pay monthly maintenance fees or foreign transaction fees and I didn’t have to worry about minimum balance requirements.

The absence of common banking fees allowed me to keep more of my money and focus on my financial goals. For instance, when I traveled abroad, I appreciated not having to worry about foreign transaction fees when using my Chime debit card for purchases.

Early access to direct deposits

Chime's early direct deposit feature can easily improve your cash flow. I found it helpful to receive my paycheck up to two days earlier than I would with traditional banks. This extra time gave me a head start on paying bills and allocating funds for savings or investments.

The early access to funds can be particularly beneficial during months with tight budgets. For example, if an unexpected car repair bill came up, having your paycheck two days early could help you pay for the repairs without resorting to credit card debt or delaying other important payments.

Automatic savings tools

Chime's automatic savings features make it easy to build your savings without much effort. The Round Ups feature, which rounds up your debit card purchases to the nearest dollar and transfers the difference to your savings, can help you grow your savings without even noticing.

Additionally, the automatic savings feature allows you to set aside a percentage of each paycheck. I set it to automatically transfer 10% of each direct deposit to my savings account. Over six months, this effortless saving helped me accumulate a solid sum of money in an emergency fund.

SpotMe overdraft protection

Eligible members who receive access to Chime's SpotMe feature can benefit from fee-free overdraft protection up to $200. This can be handy if you miscalculated a payment and ended up overdrafting your account. While many traditional banks would charge you $35 or more in overdraft fees, Chime doesn’t charge you any fees.

Having this $200 buffer meant I could confidently make my payments and transfers near the end of a pay period without constantly checking my balance.

Secured Chime Credit Builder Visa^® Credit Card

The Secured Chime Credit Builder Visa^® Credit Card is an excellent tool for building your credit. With no credit check required to apply, it's accessible to many who might struggle to qualify for unsecured credit cards.

The Credit Builder card allows you to move money into a secured account, which becomes your spending limit. This method helps prevent overspending but it still enables reporting your payment history to the major credit bureaus. While I didn’t try this card myself, I see how beneficial it can be for someone who is just starting to build their credit or someone who is working on recovering their score.

Drawbacks: Why you may want a different bank

Limited cash deposit options

While Chime allows cash deposits at certain retail locations³ <p>Once the retailer accepts your cash, the funds will be transferred to your selected Chime Account. Barcode and debit card cash deposits land in the Checking Account. Credit Builder card cash deposits first go through your Card Account and then land in your Secured Account. Cash deposit fees may apply if using a retailer other than Walgreens and Duane Reade.</p> , the process can be inconvenient and potentially costly. To deposit cash, I had to drive to a nearby Walgreens and there was a $500 cap on each deposit. I had to go to two different Walgreens locations to deposit $1,000.

This limitation was particularly problematic when I would receive cash payments. The need to make frequent trips to retail locations for deposits, combined with the potential fees, made managing these cash deposits time-consuming and unpleasant. Those who regularly deal with cash transactions will prefer one of the best brick-and-mortar banks like Chase.

No physical branches

Chime's online-only model means there are no physical branches for in-person services. The lack of physical branches became particularly noticeable when I needed to get a cashier's check for a rental deposit.

What would have been a simple visit to a local branch with a traditional bank turned into a multi-day process of transferring funds to another account and then visiting that bank to get the check. This experience made me realize that while online banking is convenient for day-to-day transactions, there are still situations where physical branches provide valuable services.

Lower savings APY

While Chime's High Yield Savings Account offers 2.00% (as of Sept. 9, 2024) APY⁴ <p class="">The Annual Percentage Yield (“APY”) for the Chime Savings Account is variable and may change at any time. The disclosed APY is accurate as of September 20, 2023. No minimum balance required. Must have $0.01 in savings to earn interest.&nbsp;</p> , this rate isn't competitive compared to some other online banks. For comparison, SoFi Checking and Savings offers up to 4.00% APY¹² <p>SoFi members with Direct Deposit or $5,000 or more in Qualifying Deposits during the 30-Day Evaluation Period can earn 4.00% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. Members without either Direct Deposit or Qualifying Deposits, during the 30-Day Evaluation Period will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Only SoFi members with direct deposit are eligible for other SoFi Plus benefits. Interest rates are variable and subject to change at any time. These rates are current as of Dec. 3, 2024. There is no minimum balance requirement. Additional information can be found at <a href="http://www.sofi.com/legal/banking-rate-sheet">http://www.sofi.com/legal/banking-rate-sheet</a></p> with qualifying direct deposit. If maximizing your savings interest is a priority, you might want to look elsewhere.

To illustrate the difference, let's compare the interest earned on a $10,000 balance over one year at current rates:

Alternatives to Chime

SoFi®

SoFi® offers a compelling alternative to Chime with its Checking and Savings account. Unlike Chime, SoFi provides a high-yield savings rate of up to 4.00% APY¹² <p>SoFi members with Direct Deposit or $5,000 or more in Qualifying Deposits during the 30-Day Evaluation Period can earn 4.00% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. Members without either Direct Deposit or Qualifying Deposits, during the 30-Day Evaluation Period will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Only SoFi members with direct deposit are eligible for other SoFi Plus benefits. Interest rates are variable and subject to change at any time. These rates are current as of Dec. 3, 2024. There is no minimum balance requirement. Additional information can be found at <a href="http://www.sofi.com/legal/banking-rate-sheet">http://www.sofi.com/legal/banking-rate-sheet</a></p> with direct deposit, significantly more than Chime's savings rate. SoFi also offers early paycheck access¹³ <p>Early access to direct deposit funds is based on the timing in which we receive notice of impending payment from the Federal Reserve, which is typically up to two days before the scheduled payment date, but may vary.</p> and no monthly fees¹⁴ <p>We do not charge any account, service or maintenance fees for SoFi Checking and Savings. We do charge a transaction fee to process each outgoing wire transfer. SoFi does not charge a fee for incoming wire transfers, however the sending bank may charge a fee. Our fee policy is subject to change at any time. See the SoFi Checking & Savings Fee Sheet for details at <a href="http://sofi.com/legal/banking-fees/">sofi.com/legal/banking-fees/</a></p> , similar to Chime.

However, SoFi is an online-only bank, so like Chime, it doesn't offer physical branches. SoFi uses the Allpoint ATM network, providing access to over 55,000 fee-free ATMs nationwide.¹⁵ <p>We’ve partnered with Allpoint to provide you with ATM access at any of the 55,000+ ATMs within the Allpoint network. You will not be charged a fee when using an in-network ATM, however, third-party fees incurred when using out-of-network ATMs are not subject to reimbursement. SoFi’s ATM policies are subject to change at our discretion at any time.</p> For those comfortable with digital banking and looking to maximize their savings interest, SoFi could be an excellent choice. SoFi is a Member, FDIC.¹⁶ <p><b>SoFi Bank is a member FDIC and does not provide more than $250,000 of FDIC insurance per legal category of account ownership, as described in the FDIC’s regulations. Any additional FDIC insurance is provided by the SoFi Insured Deposit Program. Deposits may be insured up to $2M through participation in the program. See full terms at <a href="http://sofi.com/banking/fdic/terms">SoFi.com/banking/fdic/terms</a> See list of participating banks at <a href="http://sofi.com/banking/fdic/receivingbanks">SoFi.com/banking/fdic/receivingbanks</a></b></p>

Visit SoFi® or learn more in our SoFi® review.

Chase

Chase offers a more traditional banking experience compared to Chime. With over 4,700 branches and 15,000 ATMs nationwide, Chase provides extensive in-person banking options that Chime lacks. Chase offers a variety of account types, including checking accounts with potential welcome offers, which might appeal to those seeking more diverse banking products.

However, Chase's savings rates are considerably lower than Chime's, with their standard savings account offering just 0.01% (as of 12/10/24) APY. Chase also charges monthly maintenance fees on many accounts, though these can often be waived by meeting certain criteria. For those who value in-person banking and a wide range of financial products, Chase could be a suitable alternative to Chime.

Visit Chase or learn more in our Chase review.

FAQ

Chime review: bottom line

Chime offers a compelling banking platform for those seeking fee-free, mobile-first banking with features like early direct deposit and automatic savings tools. Its intuitive app and SpotMe overdraft protection make day-to-day banking a breeze. Additionally, the Credit Builder card can provide you with an opportunity to improve your credit.

These features, combined with the lack of ChexSystems checks for new accounts, make Chime particularly attractive for individuals looking to rebuild their financial health or establish a fresh banking relationship.

However, the lack of physical branches and limited cash deposit options may feel restrictive. My personal dealbreaker was its uncompetitive savings rates. That’s why I find that while Chime excels in many areas, savers looking for high yields may prefer keeping their balances in one of the best high-yield savings accounts.