Chime has a free overdraft protection program called SpotMe. This program allows you to overdraw by up to $20, and your limit may go up to $100 depending on your Chime account history. SpotMe has its pros and cons. On the plus side, it’s free, and you don’t have to link to a savings account for overdraft protection like you do with many banks. But you can only qualify for SpotMe if you receive at least $500 in direct deposits per month. If you don’t enroll in SpotMe, then Chime will simply deny a purchase that would overdraw your account, which could put you in a bind if you’re trying to make a necessary payment.
You’re limited to transferring $200 per day or $1,000 per month from an external bank into your Chime Spending Account, if you initiate a transfer through Chime. If you need to transfer more, initiate the transfer from the external bank account instead.
You can receive your paycheck up to two days early with Chime, which allows you to a) access your money sooner, and b) transfer money into your savings account to start earning interest sooner.
Chime Savings Account review Chime Savings Account
The Chime Savings Account has two main claims to fame: It pays one of the highest APYs in the industry right now, and it makes it easy to automatically save. Chime has two automatic savings options. First, it will round any debit card purchase up to the nearest dollar and put the spare change into your savings account. Second, you can set up a percentage of your paycheck to immediately go into your savings account.
You must have a Chime Spending Account before opening a Chime Savings Account, because the two often work in tandem.
Chime is a banking platform, and your accounts are insured by either Stride Bank, N.A. or The Bancorp Bank for up to $250,000.
Chime has a checking and high-yield savings account, and you must open a checking account to qualify for the savings account. The platform doesn’t offer joint bank accounts.
The Chime mobile app has 4.8 out of 5 stars in the Apple store and 4.6 out of 5 stars in the Google Play store.
You can email Chime customer support 24/7, or call Monday through Saturday, 8:00 a.m. to 8:00 pm. ET. Or call Sundays, 10:00 a.m. to 6:00 p.m. ET.
Is Chime trustworthy?
The Better Business Bureau gives Chime an A+ in trustworthiness. A strong BBB score indicates a company is honest in its advertising, transparent about business operations, and responsive to customer complaints.
Chime doesn’t have any public scandals. Between its great BBB grade and clear history, you may decide you’re comfortable using this banking platform.
How Chime compares
Chime is an online-only banking platform with a robust checking and high-yield savings account. We’ve compared it to two banks that are very different from each other, but both share some key features with Chime.
Chime Simple Wells Fargo Savings APY
0.01% to 0.02% APY
Open an account Open an account Open an account Chime review vs. Simple review As of January 2021, the Simple banking platform is shutting down. Any existing Simple accounts will be transferred to its partner bank, BBVA.
Simple and Chime have a lot of similarities: They both have a checking account and a high-yield account (although Chime’s is technically a savings account while Simple’s is checking), and they pay similar rates.
But Simple has a built-in budgeting tool that gives it a leg up. It puts recurring monthly payments into the “Expenses” section. You can set up automatic savings or enter a target date and amount for Simple to set aside money for a savings goal. Its Safe-to-Spend feature tells you how much you can spend on non-essentials without going over budget.
You can also open a CD with Simple, but not with Chime.
Neither banking platform technically has joint accounts, but Simple does have “shared accounts.” Two people have their own Simple accounts but create shared funds and savings goals.
Simple doesn’t have the option to receive your paycheck two days early like Chime does. But unlike Simple, Chime charges a $2.50 fee when you use an out-of-network ATM. So you’ll probably like Chime if you want to get your paycheck early, but Simple if you plan to use out-of-network ATMs.
Chime review vs. Wells Fargo review
While Chime and Simple are similar at their core, Chime and Wells Fargo are very different. But both have good automatic savings features.
Wells Fargo’s Way2Save Savings Account automatically moves $1 from checking into savings each time you swipe your debit card. It could be a good option if you like automatic savings but also want a more traditional banking experience, including joint accounts and physical branch locations.
So if you want face-to-face banking, joint bank accounts, and the option to open CDs, then Wells Fargo could be a good fit.
But if you value earning a high APY on your savings, then you’ll probably want to go with Chime or another online bank or platform. Like most brick-and-mortar banks, Wells Fargo pays low rates on savings.
Wells Fargo doesn’t allow you to receive your paycheck early like Chime does. The company has a “direct deposit advance” feature, but this is really just a line of credit that comes with hefty fees.
Laura Grace Tarpley is the associate editor of banking and mortgages at Personal Finance Insider, covering mortgages, refinancing, bank accounts, and bank reviews. She is also a Certified Educator in Personal Finance (CEPF). Over her four years of covering personal finance, she has written extensively about ways to save, invest, and navigate loans. Disclosure: This post is brought to you by the Personal Finance Insider team. We occasionally highlight financial products and services that can help you make smarter decisions with your money. We do not give investment advice or encourage you to adopt a certain investment strategy. What you decide to do with your money is up to you. If you take action based on one of our recommendations, we get a small share of the revenue from our commerce partners. This does not influence whether we feature a financial product or service. We operate independently from our advertising sales team.
Read Full Article