The Hustler's Digest StaffDo you want to know what bank is Chime? This article has all the information that you might want to know about the Chime debit card and everything else.
The modern world is slowly turning towards a new era of transactions. Traditionally, banks have always been the main place to store and exchange money physically, but with technological advancements, these transactions have become virtual.
Online or Mobile banking has become quite common among people. It doesn’t involve physical interaction with money; instead, you pay people online. Since everyone has a smartphone, people find sending and receiving money conveniently through mobile banking apps.
According to a Cornerstone Advisors’ US consumers survey, 14.2 million Americans use their online bank as their primary bank, and the percentage is quickly increasing day after day.
One of the most popular mobile banking apps is Chime. Chime is different from other banking apps. Instead of providing various options and complications, the app offers a simple and user-friendly technology that summarizes your account into three categories: one checking account, one savings account, and one secured credit card.
Chime is one of the leading technologies in terms of monetary transactions. Many people believe Chime is a legit bank having its own mobile banking app, which is wrong.
If you are unsure about what is Chime, what bank is Chime, or need more information before you apply for a Chime credit card, keep reading the article below:
History of banking
Banking goes back a long history of keeping money under temples. The money or coins were usually owned by rich people who used them for foreign goods and other monetary exchanges. Wealthy people used to hide their money under temples; it was kind of like a safe space.
Since the temple had priests and other righteous people, the money stayed safe and was used when a financial emergency came. Later in history, the Roman Empire turned those temples into banking institutions because they realized the importance of storing money.
Gradually, banking advanced to free-market banking for a self-regulated economic system that later developed when the federal became the new government system in many countries. J.P. Morgan & Co. was the company that worked on the U.S banking system. They introduced a trading and investment system by including big companies. After World War I, through Morgan’s help, the U.S. became the center of finances. Slowly, the banking system spread across the world, and now every country has its own banking system that is universal to all countries for monetary exchange.
Today’s banking system holds the heritage of the Roman Empire, Adam Smith’s invisible hand theory, and J.P. Morgan & Co. With the technological advancements, banking also transitioned the new tools in their model to facilitate the account holders in transactions. Now, all the online shopping happens through an online banking system.
With the pandemic, the banking system became more and more virtual to reduce physical interaction. In this post-pandemic era, online banking continues to grow because people realize how cost-effective and less effort it brings to them.
Types of banks
The banking system is more complex than you think. To understand what bank is Chime, you should know the bank types that exist in today’s world and which bank type does Chime fall under.
There are mainly two types of banks:
Traditional banks
Traditional banks are physically built branch offices operated by a headquarters where people visit to get their paychecks or deposit money into their accounts. Moreover, traditional banks have their own ATMs and solely focus on giving face-to-face customer service to the account owners.
Some of the traditional bank examples include Chase, Wells Fargo, and Bank of America. They all follow the brick-and-mortar system to facilitate account owners and profit.
Internet banks
Internet banks are the latest businesses that solely operate online and are not formally established physically. These banks are different from traditional banks. They are focused on online banking and other financial services without a physical branch network.
Internet banks or online-only bank accounts are increasing in popularity day by day. Although the old traditional bank branches haven’t lost their authenticity as people still visit them for transitions, the consumer industry is slowly turning towards depositing checks, checking balance sheets, and even opening bank accounts through the internet.
What is Chime?
Before you ask what bank is Chime, you should know what Chime is.
First and foremost, Chime is not a bank. It is a financial technology firm that partners with banks to make transactions and banking easy for individuals. It is a free and helpful app to assist members with banking services. Chime was founded in 2013 by Chris Britt and Ryan King.
Chime is also a profit-making app because it manages savings accounts for individuals. The app was designed by economic experts to take away financial worries without charging any fees.
Just like how you use a mobile banking app to do transactions, similarly, this app facilitates users by making banking usage even easier. The company partners with local banks “to design member first financial products.”
Unlike other banks, Chime is an innovative and revolutionary technology that has changed and will continue to change the traditional banking system completely worldwide. Note that Chime is not formally established because of the U.S’s complex rules; instead, it partners with other banks to facilitate through their latest technology in banking services.
Currently, Chime is partnered with The Bancorp Bank and Stride Bank, both of which aren’t traded physically. Members belonging to both banks can use Chime for online transactions and money management.
Chime is also known as the neo-bank because it’s part of the fintech industry. The app takes a step forward to revolutionize the banking processes by offering the lowest to no monthly service fees, overdraft fees, minimum balance requirements, and other banking-related fees that traditional banks charge.
How does Chime work?
Chime facilitates as an app offering its users to operate their savings accounts and checking accounts. The users can also link their Chime with Visa as a partnership for debit cards. Chime doesn’t charge any account fees; instead, they earn profit through the transaction fee and Visa card merchants.
The app is one of the fastest ways to access cash, offering many features like automatic saving, round-up to the nearest dollar in debit card, using a savings account to store the rounded amount, and directing a savings account percentage of each paycheck.
If you make a direct deposit through Chime of, for example, $500 or more in a month, you can get fee-free overdrafting of $100.
Chime Checking Account
The Chime checking account is one of the best banking services to help manage your money. It charges no additional monthly account fee; furthermore, you do not need to keep a minimum balance in the account.
Chime uses modern technology tools to facilitate consumers in using their checking accounts. The bank helps in accelerating direct deposits so that you can access them two days early. So, when you make a checking account, you don’t need to wait for two days; instead, you can get the payment on-hand as soon as the employer deposits the money.
Chime offers a special service called SpotMe, where you can access your money without paying any overdraft fee if you receive up to $200 payment every month.
For example, if you receive $400 in your checking account every month, by using the SpotMe service, you can withdraw money of about $20 on debit card purchases without paying any fee. This limit can be changed based on your account’s transaction history with Chime.
Note that the SpotMe service by Chime does not include non-debit transactions.
Chime Savings Account
Savings with Chime is 100% more profitable than any other online bank. With 0.50% APY, Chime Savings Account is well-known as the most user-friendly and profitable for users. There is no monthly fee or minimum amount limit, just like for the Chime Checking account.
A Chime Savings Account takes no cap from the interest you earn, and you are sure to earn profit even if you keep one penny in this account. The no minimum limit feature facilitates users to choose how much they wish to keep in the account.
However, the only condition for opening a Chime Savings Account is to have a Chime Checking Account. You can send your funds from your checking account to savings whenever you want without any fee.
Chime features
Chime offers one of the best features, making it an authentic and relevant app for banking services. Although the services are basic, the features utilize the latest technology to fulfill the banking needs of people.
Some of the features include:
Save When You Spend
Save small but always save; this model is used by Chime for Chime Savings Account users only. The app introduced The Save When You Spend feature, where you can save a little bit of money every time you spend it somewhere. For this, you need to have a Chime debit card to use for buying things, and the round-up is sent to your savings account.
Round-up
As mentioned above, the Round-up feature is automatic that comes with the Save When You Spend feature. So, whenever you buy something through the debit card, the amount is rounded up and sent to the Chime Savings account.
For example, if you bought a purse for $40.50, you will pay the merchant the exact amount through the Chime debit card, then Chime will send the 50 cents to the Chime Savings Account from your Chime Checking Account. Although 50 cents is not a lot, it can add up to some valuable amount earned through profit in the savings account when you do a lot of transactions through the card.
Save When You Get Paid
The Save When You Get Paid program is for those who get direct deposits of more than $500 in their Chime Checking Account.
Through this feature, you can set up a transfer of 10% in your Chime Savings account every time your employer sends you money. Save When You Get Paid saves the individual the worries about money savings because that 10% brings a lot of profit to the account owners.
Visa Zero Liability
Since Chime is partnered with Visa and uses the Visa debit card for transactions, the company follows the Visa Zero Liability. Visa cardholders have this facility from other banks, and Chime also offers this feature. Furthermore, you can use the Visa debit card for shopping since more merchants accept Visa without any extra transaction charges.
Thus, if you want, you can block transactions for the Visa debit card through the Chime app.
Credit Builder
Chime also offers the credit builder feature through the credit card. You need to have a Chime account to earn the credit; otherwise, you cannot profit from this feature.
There is no annual fee or interest fee. The members can keep the least amount because the company does not require any minimum security deposit and no credit check. All in all, you can build credit for free.
So, if you are looking for ways to build credit, Chime can be a good option to consider for a credit card. You can easily transfer funds from your Chime Checking Account to your credit card.
Chime debit card
The Chime debit card is just like any other debit card used for buying and other transactions. This debit card is a partner with Visa, so the user can use this card wherever Visa is accepted.
To have a Chime debit card, one needs to have a Chime Checking Account where all the direct deposits happen. Furthermore, you can only earn profit for your Savings Account if you spend using the Chime debit card.
You can use this card to access your money through more than 60,000 fee-free ATMs. However, if you transact money from an out-of-network ATM, you will be charged $2.50 per transaction. There is no bank book or checkbook offered; you can only use the Chime app and Chime debit card to get your money.
The Bancorp Bank Chime
To answer your question, ‘what bank is Chime?’ There are mainly two banks associated with Chime. One of them is The Bancorp Bank. Chime itself is not a bank; instead, they work with regional banks to facilitate banking services for the account holders.
The Bancorp Bank is an independent bank that has a partnership with Chime. When you make a bank account with The Bancorp Bank, you can use Chime for online transactions from your savings account, current account. You can also use a debit card.
Both companies work together to bring new banking products that can facilitate consumers. The Bancorp Bank account holder can basically have three accounts on Chime: one saving account, one checking account, and one debit card. The app keeps users updated with these accounts through their various features.
Stride Bank Chime
Just like The Bancorp Bank, Stride Bank also partners with Chime for banking services. If you have an account with Stride Bank, you can easily make an account on the Chime app.
There are no hidden fees, only those fees that are traditionally charged by Chime for certain transactions. You can manage your current account, savings account, and debit card using Chime. Whenever a transaction is made, you will receive a notification or alert so that you can keep track of your money exchanges.
How to open a Chime account
Chime is committed to providing the best banking experience up-to-date. Since they are a fintech company, Chime makes sure to keep updating their services with the latest technology.
To open a Chime account, you can follow the below steps:
- Download the Chime app through App Store or Play Store. If you cannot find the app, then visit their official website: chime.com, and download the app from there. You can also make an account through the official website.
- Or, click on member.chime.com/enroll/ and Enter the personal information as asked.
- You will be signed up for an online account.
- After 7-10 days, you will receive a Visa Chime debit card.
- Now you can use the Chime app to sign in and access your account.
What do you need to open a Chime account?
Now that you know what bank is Chime associated with, you might want to open an account to earn profits and benefit from the top-notch banking services.
Before opening a Chime account, you need to keep some personal information. When you fill out the application, they ask for this information, and if one of them is missing, you will not be able to create an account.
Know that the Chime account needs separate signing up even if you are an account holder of any Chime partner banks. Here is what you need to open a Chime account:
- Social Security number
- Valid home address
For application requirements:
- You need to be a U.S. citizen or resident of 50 United States
- You need to be 18 years or older to open an account.
Once you fulfill all the requirements and have official documents, you can easily sign up for a Chime account without any complications.
Chime bank customer service
Chime’s customer service is a top-notch service that is ready to give assistance to members 24/7. They are always on speed dial, and you can ask any questions related to Chime. It is recommended that you contact the company during their working hours to ensure you connect with the human operator and discuss whatever you want to discuss.
You can call Chime’s customer service by phone from 3 a.m. to 11 p.m. CST at +1 (844) 244-6363. If you prefer discussing through texts, you can click on the customer support tab in the app. You can also email them at support@chime.com or tag them on Twitter: @Chime.
Chime reviews
Chime is used by thousands of people in the U.S because of its easy access and user-friendliness. On the App Store, it is rated 4.8 of 5 stars, and on android, it is rated 4.6 out of 5 in the Play Store. The app is updated more often and takes into account every complaint sent by the customers. Chime aims to maintain its reputation in the internet banking industry as a top-rated app.
Now that your question about ‘what bank is Chime?’ is answered, you might want to make a Chime account. There are some pros and cons that you need to consider before you download the app and sign up.
Pros
Here are some pros of having a Chime account:
No monthly fees, no overdraft fees
The biggest advantage of having a Chime account is the No monthly fees, no overdraft fees model. Unlike other banking apps or websites, you don’t need to pay any fee as long as you have a monthly transfer of more than $200. You don’t pay any withdrawal charges if they are under $20.
Many ATMs
Chime is not just a banking services app; rather, you can use it for money transactions using the Visa debit card. There are more than 60,000 fee-free ATMs in local areas, so you don’t have to worry about physical money.
This means you can withdraw cash by using the Chime debit card without any fee because of so many ATMs available in the country.
Early paycheck
You can now get your paycheck two days prior with direct deposit. This is a good advantage because you save yourself the time to wait for payday when you can get it two days early.
This is very advantageous for people who need money urgently.
Very competitive savings APY
If you make a Chime Savings account, you earn a lot of savings APY. According to the app, you can earn 0.50% APY through the account, which is a high-yield interest rate. You might not find this much interest rate in any traditional banks.
Saving habits
Chime offers automated savings tools, which are quite effective for saving up money. Many members have felt their saving habits improve, i.e., they spend money at a moderate level and save up more.
They start to understand the importance of saving even a penny that can slowly turn into one dollar.
Cons
Here are the cons of making an account on Chime:
No physical branches
Chime solely operates online through the banking app or website. They have no physical branches present in the country. Even if you need to contact Chime, you do it through the phone or customer support tab on the app.
People who like going to physical branches don’t prefer making an account on Chime.
Expensive cash deposit
People who earn by cash do not prefer Chime as their main banking app. Although the company gives individuals the option to deposit their cash, that can only be done through the cash deposit partners. Since there are no physical branches, the cash deposit partners charge a high fee to deposit cash in the Chime account.
There is no fixed amount mentioned, and it depends on how much money you are depositing.
Average APY
Although the APY offered is more than the traditional banks, it is still average compared to other online banks or neobanks available. Some people do not consider Chime as their first choice because of this reason.
Fee charge for out-of-network ATMs
If you are at a place where there are no Chime’s in-network ATMs, you can withdraw using other ATMs, but you will be charged $2.50 for the transaction. However, Chime provides fee-free transactions on its debit card only through in-network ATMs.
Unless you go to some novice location, you will definitely find an in-network ATM, but still, the non-network ATM transaction is too much.
Fewer services
Chime’s banking services are only limited to online transactions and other simple banking. If you are the type who wants a bank with certificates of deposit (CDs) and money market accounts, then you should consider other options.
As mentioned on their official website, Chime aims to facilitate members in money management by providing automated tools. For more banking services, try other online banking apps or traditional banks.
No joint accounts
With Chime, you cannot make joint accounts. People who usually prefer having joint accounts don’t make a Chime account because of the lack of options. Chime only provides basic online banking services.
Final words
We hope that after reading this article, you have the answer to what bank is Chime. You should be aware that Chime is not a bank but a banking app that facilitates banks through their automated services.
If you are one of those people who struggle to keep up with their bank account details, Chime is a good option to consider. You need to make a Chime Checking Account and Chime Savings Account separately to receive all the notifications and benefit from the features.
Many people have found their spending habits and savings to be highly effective through Chime. Download the Chime app and sign up for your own Chime account today!
