Is Chime a Bank?
So, how does Chime work? You may have seen a Chime ad on TV or streaming platforms like YouTube and Peacock. Like many other people who have seen the ad, you might also be wondering what Chime is used for exactly. Chime is actually a Fintech (short for financial technology) company that partners with various banks and financial institutions in order to offer financial services to users through the app it operates on. It is essential to note that Chime is not a bank or financial institution in any way, shape, or form. You can use the Chime app to manage your mobile banking, open a checking or savings account, and obtain access to a branded debit card!5
The most attractive feature of the Chime app is a user’s ability to access fee-free mobile banking, which some traditional institutions do not offer. Since Chime claims to be the #1 most loved banking app, you might be asking yourself, “How does Chime work?”
Keep reading to learn more about how Chime came about and how it works.
How Was Chime Created?
Chime was founded by Ryan King and Chris Britt in 2013. Both founders have years of experience in the financial services sector and know how to navigate the financial world. Chime’s headquarters is now based in San Francisco, and the app has become a leading digital banking platform that has gained significant popularity in recent years.
Chime offers online-only banking services and partners with well-known banks like Stride Bank and Bancorp Bank (Members of the FDIC).
Chime makes its profit by taking a portion of the transaction fees charged to merchants when consumers use the branded debit card. If you are one to do frequent transactions and rarely have to deposit cash, then Chime could be a convenient app for you to utilize. You can, however, deposit cash into your account if you wish, but there will be a fee.
How Does Chime Work?
Here’s some information about how Chime works:
Account Types
Chime offers qualified users the chance to open two types of bank accounts, including a checking account and a high-yield savings account.5
Chime Checking Account
It is safe to say that one of the best things about the Chime checking account is that there are no monthly maintenance charges and no minimum balance requirements. You also get access to funds two days early with direct deposit! When you enroll with the SpotMe service, you can overdraw your Chime account up to $20 on debit card purchases. And there is no fee! SpotMe is an optional, free service that lets you overdraw your Chime Checking Account up to a specified amount (when your account has an active debit card).
Chime High-Yield Savings Account
The Chime High-Yield Savings Account offers a 2.00% APY (annual percentage yield). Opening a Chime Savings Account does not require any minimum deposit, just as using this account does not require any minimum balance requirements. However, it’s important to mention that you must have a Chime Checking Account to get a Chime Savings Account. When these accounts are open, if you want to, you can use “Chime Round Ups” and start saving your money. Using your debit card rounds the transaction up and sends that figure to your savings account.
You can also activate the “Save When I Get Paid” feature, where you can set up a recurring withdrawal from your checking account to your savings account when you get your salary or any other regular funds. However, you can save only 10 percent, and the incoming funds must be at least $500.
How Does Chime Work on the App?
With the Chime app, you can enjoy a seamless mobile banking experience.
The Chime app works like many different mobile banking apps, sending you important transaction and account balance notifications. The best part is that you can disable these notifications in-app for privacy or to avoid being disturbed. The app also allows you to disable international transactions.
Also, you can check your app for your balance to avoid out-of-network fees. Depositing checks is also not a problem; you can do that straight from the Chime app. All you have to do is click “Mobile Deposit” on your app to get started.
Lastly, you can disable your transactions from your Chime app if you misplace your debit card. There is also no charge to get a new debit card, which you can request from your app.
Chime Debit Card
So, how does Chime work?
You get a Chime debit card with both account types. It is a Visa card in Chime colors, so you can use it wherever Visa cards are accepted.
You can also utilize your debit card for online transactions through processes like a Google Pay wallet. Chime offers access to over 50,000 ATMs nationwide, ensuring that it can be easy to find a participating ATM near you.
Can I Get Started with Chime Today?
Chime is a partner of Max Cash®, so if you are interested in learning more about its mobile banking services, click here!5 With its user-friendly features, fee-free structure, and emphasis on financial literacy, Chime has garnered a loyal user base.
Max Cash strives to simplify your life – that includes your online banking experience.5 Mobile banking customers to conduct their financial transactions without visiting a physical branch! So why not check Chime out and learn more about the perks of mobile banking?
