Chime has received a great deal of good press recently. But is that good press to be believed? Are the Chime reviews singing the banking and technology company’s praises really telling the whole story? Here, we play the part of a reviewer and look at all the reasons we can confidently answer “yes”. Chime is as good as the reviews claim. We’ll do so by answering some frequently asked questions about Chime and its services.
What is a Chime account?
First, though, it is beneficial to go over exactly what Chime is and the services it offers. In short, Chime offers digital personal finance services to people, wherever they are. There is no need to access their services through a physical location or even a desktop computer. The idea behind Chime was to create an alternative to traditional banks. As a result, customers can expect no monthly fees, no overdraft fees, early access to direct deposits, and access to a large ATM network.
Their hope is to make financial peace of mind a reality for everyone. Managing money through Chime is easy, simple, and effective. The company ensures that it puts its customers first. So, unlike banks of old who once profited from selling products to customers, Chime wants to improve customers’ lives. That’s why there are no fees and why they allow customers to access a paycheck two days early with direct deposit features. Perhaps most importantly, Chime helps customers save automatically, helping them grow their wealth. Users can set up their account with a direct deposit so that part of their paycheck goes directly into their savings account. Plus Chime helps its users build credit with their Chime Credit Builder Card. Carrying no annual fee and requiring no credit check, it’s a great way to start building credit in a secure and easy manner.
Is Chime FDIC insured?
While Chime itself is not FDIC insured, its partner banks are, which is great news as it makes it far more secure to use than some other online banking competitors. Being FDIC insured means that Chime’s customer’s funds are insured up to $250,000 through the Bancorp Bank, or Stride Bank, N.A. That’s crucial to know since it means that all your cash will be protected up to $250,000 in your savings account in the unlikely event that there is a run on the banks.
FDIC-insured status is vital for a financial institution to have as a customer. It means that you do not have to purchase deposit insurance in addition to any fees that a bank may charge you (though Chime has no monthly fees for its accounts). It is also vital as it means that should your bank fail, the FDIC can protect you. The insurance amount is for each account ownership category you have at the insured bank. The FDIC covers traditional bank deposit accounts, including checking and savings accounts – two account types that Chime offers its customers. It may sound like a lot of money that the FDIC has to cover, but since it was established in 1933, no depositor has lost any money at FDIC-insured banks.
Is Chime safe?
Thanks to its state-of-the-art security features and its bank partners being FDIC-insured, Chime can be considered safe. Those that use the mobile app to stay on top of their financial affairs often proclaim that due to its ease of access, they can quickly see if anything has happened on their account, and it is far quicker than with a traditional bank, plus chime user’s can also block their card from the app, meaning it will no longer be useable.
Safe and quick withdraws from your Chime savings account
And with Chime, you can receive direct deposits and can also provide the ability to make pre-authorized withdrawals and ACH transfers. While it also offers free transactions as a standard – as well as free person-to-person transfers – it also integrates with Apple Pay, Google Pay, and Samsung Pay. These also have the highest security features to ensure that it is safe to make financial transactions. Finally, Chime has teamed up with several ATM providers so that customers can safely withdraw money from more than 60,000 fee-free locations at everyday stores like Walgreens, CVS, and 7Eleven.
So, just because it does not have the traditional brick and mortar outlets does not make it less safe than a bank with a branch. In fact, since it does not have a complicated array of products, it is arguably better to use thanks to a more simplified business model. There are no certificates of deposits or money market accounts offered at Chime. Instead, it provides debit cards, credit cards, a spending account, and a savings account. The savings account offers a competitive rate compared to the rest of the market. Plus, it encourages saving through many features that allow for automated and regular savings. Those savings are safe thanks to its partners being FDIC -insured.
Is Chime bank legit?
Chime Bank is absolutely a legitimate service. Its services are based around using phones to manage money through its app – but that does not make it any less legitimate than another bank where you can only access your money at a physical branch. Plus, it does not charge any hidden fees, For example, there are no overdraft fees – in fact, customers can spend up to $200 on a debit card even if they do not have the funds to back it up. Chime will cover the money spent on the card and not charge you any overdraft fees for the privilege. Plus, there is no minimum balance required and no monthly fees. Typically, those two fees cut into a customer’s account balance, but you will be able to save more money without them. Perhaps most important of all, the company does not charge any foreign transaction fees. That is an incredibly unique offering since foreign transactions are typically where banks make a lot of money. But Chime puts users first, and, as review, after review says, they will do everything they can to help you avoid loans and save more money.
Can you get scammed on Chime?
It is hard to get scammed on Chime. The reason why is because Chime alerts you whenever you make a transaction with your account. That’s key to keeping fraud to a minimum. It means that you are notified whenever money is used from your account – so you will know if money was spent that wasn’t verified. You are always in the know about what is going in and out of your account. Plus, with daily balance alerts, you can keep track of how much money you have in your account – again a great way to know whether any fraudulent activity has unexpectedly occurred.
Security measures for your Chime savings account
However, that fraudulent activity will be highly unlikely to happen given how seriously Chime takes its security. Given that it is an online app, there is an assumption made by many that such apps are more prone to identity theft.
However, that is not the case with Chime since it uses secure processes to ensure that your information is protected. Its procedures mean that any unauthorized use is prevented. And, should you find yourself, victim, to an identity theft scheme, the bank is quick to react. Such thefts can occur at even traditional banks, so it is not just a challenge for online financial service companies. How companies respond to identity theft is the key. If you report that money was stolen from your Chime account, it will be reimbursed by the bank in no time at all. Often under 48 hours.
Can you trust Chime?
Chime can be trusted. While it can be tough to believe all the five-star reviews the company has received, it really can provide its customers with the best banking experience.
Chime can be a great option if you have had issues in the past with your credit history. This innovative company looks past the history of a customer and considers all applications for a bank account on a case-by-case basis. It does not immediately write off potential customers simply because they have had difficulty managing their finances previously. That is one reason Chime started – it wanted to empower customers to build financial wealth, health, and resilience.
Finally, having FDIC-insured partner banks is key to establishing trust with customers. As its partner banks are FDIC-insured, customers can be sure that their accounts, up to $250,000 in value, are covered should there be a reason for the bank to fail.
Chime reviews – In summary
It can be so easy to dismiss a 5-star review after a 5-star Chime review. It often makes a product seem too good to be true. However, in the case of Chime, the stars, comments, and reviews are true. The company has a stellar product with effective, streamlined, and efficient technology at its heart. It makes staying on top of your financial affairs easy so that finally reaching financial independence is achievable. Even for those who have, in the past, had money problems.
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