Have you considered the convenience of online banking? A few years ago, I moved to a web-based bank and the benefit has been apparent ever since. Online banking is not only handy but it’s often more cost-effective as well.
Many online banks, unlike physical ones, don’t charge numerous fees. As they don’t have to incur costs such as branch maintenance, employee salaries, and various resources, it enables them to offer customers better rates and conditions.
A new player on the scene is Chime, a digital-only bank that allows its members to manage their finances from anywhere, freeing them from the hassles of in-person banking. A number of people have migrated to Chime’s digital platform for their financial needs.
CHIME OVERVIEW
Established by Ryan King and Chris Britt, Chime aims to provide a user-friendly banking experience that offers members relief and assurance. The platform has been lauded as one of the top new financial apps by Nerd Wallet in 2017.
Chime provides both checking and savings accounts options along with a bank card, with member funds insured by the FDIC. One of the standout features of Chime is its simplicity. It does not charge any monthly or overdraft fees.
There’s no convoluted terminology or hidden conditions to deal with. But how does Chime operate these facilities without charging anything? Simple. Chime’s objective is to help its members prosper without imposing unnecessary fees. Each time you use your Chime debit card, Chime earns a small commission from Visa, paid by the merchant.
Being a mobile banking app, Chime provides members complete control over their finances without reliance on banking personnel.
Chime allows you to choose between a checking and a savings account. Let’s break down some of the features:
SPENDING ACCOUNT
If you wish to use Chime for regular expenditure, this is a good choice. This account offers a free debit card for transactions and lets you access over 38,000+ ATMs without any charges. It also provides daily balance updates and the ability to prevent debit card transactions at any time in case of misplacement or unauthorized charges.
Depositing a check? It’s made easy with Chime’s app, no bank visits needed. Plus, if you set up direct deposit, you can avail of perks like receiving pay up to 2 days earlier. Chime is also compatible with other mobile payment options like Apple Pay and Google Pay. There’s no unexpected fee, apart from a $2.50 out-of-network fee that can be avoided by using the available fee-free ATMs.
SAVINGS ACCOUNT
Looking to boost your savings? The average American has less than $400 in savings, largely due to lack of priority given to savings. It’s also effortful for many to make saving a habit.
Chime’s savings account option aims to solve these issues by offering automated savings so that you’re constantly adding to your savings, effortlessly. You can either save a percentage of your paycheck directly or round up your purchases to save more. This facilitates steady savings without having to put too much thought into it.
PROS AND CONS
Chime gets a nod for its simplicity and transparency. The entire process can be managed from a single app, saving you from waiting on customer service or queuing in a bank. Early direct deposit and access to numerous fee-free ATMs are among the advantages. The automated savings feature is another standout.
However, Chime doesn’t offer interest on savings, which means a possible loss of extra earnings from significant savings. Yet, it is still a viable option for short-term savings and for inculcating a habit of saving money. Other online banks offer better interest rates.
Additionally, Chime doesn’t provide checks, and mobile check deposits might pose an issue for those unaccustomed to it. Luckily, this can be bypassed by setting up direct deposit.
SIGN-UP PROCESS
If the idea of online banking with Chime appeals to you, getting on board is easy and quick. It doesn’t impact your credit score and only requires a few basic details to get you started. You need to be a U.S. resident and over 18 years old.
Haven’t tried online banking yet? Share your thoughts on Chime in the comments below!
