Have you thought about how convenient online banking can be? A few years back, I switched to a web-based bank, and it’s been a game-changer ever since. Online banking is not only super handy but usually cheaper too.
Unlike traditional banks, many online banks don’t hit you with tons of fees. Since they save on costs like branch upkeep and employee salaries, they can give you better rates and fewer fees.
Take Chime, for example. It’s a digital-only bank that lets you handle your finances from anywhere, without the hassle of going to a branch. A lot of people are switching over to Chime for their banking needs.
Chime was started by Ryan King and Chris Britt to make banking simple and stress-free. It’s even been named one of the best new financial apps by Nerd Wallet in 2017. Chime offers both checking and savings accounts, all insured by the FDIC. What sets Chime apart is that it doesn’t charge monthly or overdraft fees.
You might wonder how Chime can offer all this without any fees. It’s simple: every time you use your Chime debit card, they earn a small commission from Visa. It’s a win-win because you save money while Chime makes a profit from the merchants.
Chime, as a mobile banking app, gives you full control over your finances without needing to talk to bank staff. You can choose between a checking and a savings account. Here’s what they offer:
Spending Account
If you want an account for day-to-day expenses, this is a good choice. You get a free debit card and access to over 38,000 ATMs with no fees. You’ll get daily balance updates and can block your card anytime if it’s lost or stolen.
Need to deposit a check? Just use the Chime app, no bank visits required. If you set up direct deposit, you might even get paid up to two days early. Plus, Chime works with Apple Pay and Google Pay. The only fee to watch for is a $2.50 out-of-network ATM fee, which you can dodge by using the fee-free ATMs.
Savings Account
Want to save more? Most Americans have less than $400 stashed away, usually because saving isn’t a priority. Chime’s savings account helps by automating your savings so you keep adding to your account without thinking about it. You can save a percentage of your paycheck or round up your purchases to save the difference. It’s an effortless way to build your savings.
Pros and Cons
Chime is great for simplicity and transparency. You manage everything through one app, avoiding the need to visit a branch or call customer service. The early direct deposit and access to a network of fee-free ATMs are big perks. The automated savings feature is another plus.
However, Chime doesn’t pay interest on savings, so you might miss out on extra earnings if you have a lot saved up. It’s a good option for short-term savings or building a saving habit. Other online banks might offer better interest rates.
Chime doesn’t offer checks, and mobile check deposits might be tricky if you’re not used to them. But, setting up direct deposit can make this a non-issue.
Sign-Up Process
If Chime sounds right for you, signing up is quick and easy. It won’t affect your credit score and you just need a few basic details. You must be a U.S. resident and over 18 years old.
Haven’t tried online banking yet? What do you think about Chime? Let us know in the comments below!