3 Reasons I Switched to a Chime Checking and Savings Account (2024)

Enough was enough. After my traditional bank charged me hundreds in overdraft and minimum balance fees, I hopped on Google. In minutes, I'd opened an account with my current banking app. Since making the switch, I haven't paid a single overdraft fee -- in four years.

The app is Chime, a vanilla banking app. In fact, it's exactly what comes to mind when you think of a "banking app" -- a clean interface, simple features, and savings and checking accounts.

I switched to Chime for the following reasons:

  1. Few fees
  2. Simple to use
  3. Made for mobile banking

Here's a little more on each point, plus whether Chime lived up to my expectations. (I'm still using the banking app, and I'd recommend it, but yeah, it has downsides.)

Our Picks for the Best High-Yield Savings Accounts of 2024

Capital One 360 Performance Savings

3 Reasons I Switched to a Chime Checking and Savings Account (1)

APY

4.25%

Rate infoSee Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY)is variable and accurate as of April 11, 2024. Rates are subject to change at any time before or after account opening.

Min. to earn

$0

Open Account for Capital One 360 Performance Savings

OnCapital One'sSecure Website.

Member FDIC.

APY

4.25%

Rate infoSee Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY)is variable and accurate as of April 11, 2024. Rates are subject to change at any time before or after account opening.

Min. to earn

$0

American Express® High Yield Savings

3 Reasons I Switched to a Chime Checking and Savings Account (2)

APY

4.25%

Rate info4.25% annual percentage yield as of August 19, 2024

Min. to earn

$1

Open Account for American Express® High Yield Savings

OnAmerican Express'sSecure Website.

Member FDIC.

APY

4.25%

Rate info4.25% annual percentage yield as of August 19, 2024

Min. to earn

$1

UFB Portfolio Savings Account

3 Reasons I Switched to a Chime Checking and Savings Account (3)

APY

5.15%

Rate infoTo ensure you keep getting the highest rate at UFB, you'll need to keep an eye on their rates. Occasionally, the bank launches new accounts with higher rates. Existing accounts need to contact the bank to request being moved to one of these new accounts.

Min. to earn

$0

Open Account for UFB Portfolio Savings Account

OnUFB'sSecure Website.

Member FDIC.

APY

5.15%

Rate infoTo ensure you keep getting the highest rate at UFB, you'll need to keep an eye on their rates. Occasionally, the bank launches new accounts with higher rates. Existing accounts need to contact the bank to request being moved to one of these new accounts.

Min. to earn

$0

1. Few fees

Chime charges few fees. Since opening a combined checking and savings account, I haven't paid the banking app a single fee. That alone made switching worth it.

Traditional, brick-and-mortar banks typically charge the following fees:

  • Monthly maintenance fee (generally $5 to $35)
  • Overdraft fee (generally $35)
  • Minimum balance fee (generally $5 to $15)

Chime charges none of these. According to its fee schedule, it charges the following:

  • $2.50 cash withdrawal fee for withdrawing from an out-of-network ATM
  • $2 fee to instantly receive a cash advance (as opposed to waiting 24 hours)

It's uncommon for a banking app to charge so few fees. Between this and the app's simple interface, Chime is one of the best places to bank affordably. (Rival banking apps with few fees include SoFi® and some Capital One accounts.)

2. Simple to use

Opening a Chime account and navigating it is dead simple. You can open a new account in two minutes from your phone.

Here's how to open a combined checking and savings account with Chime:

  1. Download the Chime app.
  2. Type your name, email, password, and SSN.
  3. Set up direct deposits (optional).

You can navigate the interface easily. The home screen shows you checking and savings account balances; tap these to unfold your balance histories. Scroll through the home screen to request a payment advance, send money, track your credit score, and so on.

Tip: Set up savings account auto-contributions. You can do so by navigating to "Account settings" and turning on "Save when I get paid." This will send 10% of each of your direct deposits straight into your Chime savings account.

3. Made for mobile banking

There are banks with apps, and then there are banking apps. Chime is the latter, a mobile-native banking app that feels built for your phone screen.

You can tell it's built for mobile because the interface is accessible. The app opens in seconds, and so does every tab you navigate. The font is large and easily visible (no squinting at PDFs). You can even switch between Light and Dark mode.

One tradeoff here is that you won't find Chime bank branches anywhere. The banking app is online only. Technically, it's not even a bank. It partners with banks to offer banking services and insure your deposits with the Federal Deposit Insurance Corporation (FDIC).

What to expect from switching to Chime

Expect a clean banking app with few fees and an intuitive interface. Things you can do on Chime include:

  • View and manage account balances
  • Transfer money between internal and linked accounts
  • Find the nearest fee-free ATMs

One downside of Chime is you need to open both a checking and savings account. You can't just open one or the other. The savings account lacks a competitive APY, so you may want to open a high-yield savings account with another banking platform, too.

I'm happy I switched because I prefer simplicity and affordability to in-person help. Consider switching to Chime if you pay too many bank fees and want the modern mobile banking experience. It's not perfect, but Chime does the basics well.

3 Reasons I Switched to a Chime Checking and Savings Account (2024)

FAQs

Why should I switch to Chime? ›

Chime is known for offering an easy online banking experience with low-cost accounts that do not include overdraft fees or monthly maintenance fees. However, Chime's rates are lower than many online banks, its available account options are limited, and it does not have any physical locations.

What are the benefits of having a Chime account? ›

With Chime, you can receive direct deposits up to two days early, earn savings interest, send payments and build credit. Chime doesn't charge monthly fees, and it offers fee-free overdraft up to $200 to eligible customers.

Is Chime a good bank for savings? ›

Yes, Chime is a legitimate online banking platform. Its partner banks are Stride Bank, N.A. and The Bancorp Bank, which provide FDIC insurance on up to $250,000 in your Chime accounts.

Why would I have a Chime account? ›

Your account can receive direct deposits and it supports pre-authorized withdrawals and interbank transfers through the Automated Clearing House (ACH) Network. Chime gives you: A Chime Visa® Debit Card. An FDIC-insured deposit account that can be managed entirely from your smartphone.

Why do people choose Chime? ›

Chime hangs its hat on two advantages: simple online banking and no fees. As far as their accounts, they only have three options total: ➢ A checking account that comes with no fees and a Visa debit card. ➢ A savings account that offers a very competitive 0.5% APY interest rate.

What makes Chime bank unique? ›

Chime® is a financial technology company that believes basic banking services should be helpful, easy, and free. Together with our bank partners, we offer better banking products and services by addressing the fundamental misalignment in the industry between what's good for banks and what's good for consumers.

What does Chime help with? ›

Consistent use of Credit Builder can help you build credit and, with on-time payments, increase the length of your credit history over time. We report to the major credit bureaus – TransUnion®, Experian®, and Equifax®.

What does Chime give you? ›

Chime is a financial technology company that offers checking and savings accounts and a credit card through our banking partners, The Bancorp Bank, N.A. or Stride Bank, N.A., Members FDIC. Chime's mission is to make banking services easy to use and understand – and accessible to everyone.

Do you get free money from Chime? ›

You can earn a $100 welcome bonus if you have a family member or friend who can make the introduction, and that person can collect a similar referral bonus. Chime is a financial technology company, not a bank. Banking services provided by The Bancorp Bank, N.A. or Stride Bank, N.A., Members FDIC.

What is the downside of Chime? ›

Downsides: Fees for cash deposits and out-of-network ATM usage: Chime charges $2.50 per transaction at out-of-network ATMs, and the only way to deposit cash is at cash deposit partner locations. Cash deposits at Duane Reade and Walgreens are free, but other retailers may charge a fee.

Is there a monthly fee for Chime? ›

Chime has no minimum balance, monthly fees, or overdraft fees. We don't believe in profiting from our members' misfortune.

Is there a limit on Chime pay anyone? ›

There is no limit to the number of transactions for Pay Anyone.

What are the benefits of Chime account? ›

No monthly fees. No foreign transaction fees. 50,000+ fee-free ATMs6 at stores you love, like Walgreens®, CVS®, 7-Eleven®, and Circle K. Out-of-network fees apply.

Can I withdraw $1000 from Chime? ›

You can withdraw up to $515 a day from your Chime account using an ATM. This $515 and any fees you incur from out-of-network withdrawals count toward the $2,500 daily limit on the Chime card.

Does Chime give you 200 dollars? ›

SpotMe is available to Chime members who have activated their Chime Visa® Debit Card or Credit Builder card and receive a qualifying direct deposit of $200 or more a month. Once you've enrolled in SpotMe, we've got your back when you overdraft your checking account by up to $200.

Does Chime actually help? ›

Chime Can Help Build Credit History, but It's Not for Everyone. Chime reports account activity to all three credit bureaus. Cardholders looking to build better credit can establish on-time payment behavior and lengthen their credit history. (Note that late payments can still negatively affect a credit score.)

Do you really get money from Chime? ›

Chime's MyPay is a line of credit that lets you get up to $500 before payday.^ There are no mandatory fees, no credit checks, and no interest* to get money when you need it. With MyPay, just log into your Chime app, see how much is available to you, and then choose how much you want to access.

Should I use Chime or current? ›

The Chime credit card does not have interest rates, maintenance fees or annual fees. If you prefer using a debit card, Current is the better choice for rewards. Their debit card provides rewards, and you won't have to worry about falling deep into credit card debt.

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