How to Navigate Online Banking with Chime Bank

Have you ever thought about how convenient online banking can be? I switched to an online bank a few years ago, and it’s been great ever since. Online banking isn’t just convenient—it’s often cheaper, too.

Unlike traditional banks, many online banks don’t charge a lot of fees. Because they don’t have expenses like maintaining branches or paying a large staff, they can offer customers better rates and terms.

One popular online bank is Chime. It’s a digital-only bank that lets you handle your finances from anywhere, eliminating the need for in-person visits. Many people have switched to Chime to manage their money.

Chime was started by Ryan King and Chris Britt, with the goal of making banking easier and more reassuring for members. In 2017, it was recognized as one of the top new financial apps by Nerd Wallet.

Chime offers both checking and savings accounts, along with a bank card, and your money is insured by the FDIC. What makes Chime stand out is its simplicity—no monthly or overdraft fees, and no confusing terms.

Chime makes its money by earning a small commission from Visa every time you use your debit card, which is paid by the merchant. This lets them avoid charging unnecessary fees.

As a mobile banking app, Chime gives you full control over your finances without needing to interact with bank staff. You can choose between a checking account and a savings account. Here’s what they offer:

Spending Account: This is ideal for everyday expenses. You get a free debit card and access to over 38,000 ATMs with no fees. You can also get daily balance updates and block your card if it’s lost. Depositing checks is easy with the app, and direct deposit lets you get paid up to two days early. Chime works with Apple Pay and Google Pay, and there’s no surprise fees except a $2.50 fee if you use out-of-network ATMs, which you can avoid by sticking to fee-free ones.

Savings Account: If you’re trying to save more, Chime’s savings account can help. Many people have less than $400 in savings, often because they don’t prioritize it or find it hard to make saving a habit. Chime offers automatic savings features, like saving a portion of your paycheck or rounding up purchases. This helps you save regularly without much effort.

Pros and Cons: Chime is praised for its simplicity and transparency. With everything managed through one app, you don’t have to wait on customer service or stand in lines. Perks include early direct deposits and access to many fee-free ATMs, along with an automatic savings feature.

However, Chime doesn’t pay interest on savings, which could mean missing out on extra earnings if you have significant savings. It’s still a good option for short-term savings and building a saving habit. Other online banks might offer better interest rates.

Chime doesn’t issue checks, and some might find the mobile check deposits challenging if they’re not used to them. But, you can get around this by using direct deposit.

Signing up with Chime is quick and easy. It doesn’t affect your credit score and only requires a few basic details to get started. You need to be a U.S. resident and at least 18 years old.

Haven’t tried online banking yet? What do you think about Chime? Share your thoughts!