Are you wondering whether Chime is a bank account, prepaid card, or credit card?
If you are considering Chime to send and receive money, but wondering what exactly it is, then you have landed on the right page. Here we have explained all you need to know about Chime.
Chime is not a bank account, it is a financial technology company, and The Bancorp Bank or Stride Bank offers its banking services. Chime provides checking and a spending account and provides a prepaid debit card and a credit builder card (different from traditional credit cards).
Confused? Don’t worry, below we have discussed everything about Chime in detail.
So, let’s get started.
Table of Contents
Is Chime a real bank account
No, Chime cannot be called a real bank account as it is a financial technology company. The banking services of Chime are offered by two banks, namely the Bancorp Bank and Stride Bank.
It is only an online-only bank (neo bank) which do not have any physical branches, but its accounts still have FDIC insurance, so it’s a safe place to keep your money.
Is Chime a Prepaid card
No, Chime is not a Prepaid card and not a bank account. It is a financial technology company. Although, Chime provides a checking account and an optional saving account. Also, Chime provides a debit card offered by Visa.
The debit card that Chime offers is a full-fledged debit card connected to a checking account and offered by Visa. It is not like any prepaid card in why you have to load money before using it. Here the money is debited/credited directly from your Chime checking account.
Is Chime a Credit card
No, Chime is not a credit card. It is a fintech company that offers online-only banking services. Chime provides:
- A checking account.
- A saving account.
- A visa debit card.
- A credit builder card (not a traditional credit card).
What is Chime
Founded by Chris Britt (CEO) and Ryan King (CTO) in 2013, Chime is an American financial technology company that provides fee-free mobile banking services provided by The Bancorp Bank or Stride Bank.
It does not work like traditional banks and does not have any physical branches. However, Chime accounts are insured by FDIC up to the standard $250,000, so your money is safe, in case the company goes out of the business.
Chime offers a checking account and an optional saving account with no monthly fee. You can avail of Chime banking services via its mobile app available on both Android and iOS platforms or from its website.
Users who sign up for the checking account also get a visa debit card. It is a standard debit card connected to the checking account and not a prepaid card as some people might think. The Chime debit card can be used anywhere Visa is accepted, and it can also be used to withdraw cash from 60,000+ fee-free in-network ATMs.
What is Chime Spending Account:
Chime’s checking account, aka spending account, is renowned as a fee free account. It doesn’t charge monthly account fees and doesn’t require a minimum balance.
Chime also lets you get your direct deposits up to 2 days early. Once you enable the direct deposit into your Spending Account, you’re eligible and can choose to receive your payment up to two days early, as and when your employer deposits it.
Moreover, if you receive at least $200 each month, you can also enroll for Chime SpotMe feature. The SpoteMe feature allows you to overdraft you up to $200. However, its initial limit is $20 on debit card purchases, and that too without any fee. Once you repay the amount on time and receive direct deposits monthly and have a good account history, Chime can increase your SpotMe overdraft to up to $200.
What is Chime Savings Account
Chime’s high-yield Savings Account doesn’t charge monthly fees or require a minimum balance, and offers an 0.50% APY.
You can earn interest with Chime savings account even when you have just a few pennies in your account.
You won’t require any minimum amount to open a Chime saving accounts, but you must have a Chime Spending Account.
Chime has two optional programs to make saving money easier.
Chime the Save When You Spend : The feature of Chime allows you to save small amounts when you make purchases. Whenever you use your Chime debit card, Chime rounds the transaction up to the nearest dollar and transfers the difference to your Savings Account.
For Example: Let’s say you have spent $49.50 in a store. You will pay the amount to the store, but the Chime will round of this payment to $50 and move the difference $0.50 to your savings account from your checking account. This might not seem a lot, but if you purchase a lot of items, you can see your savings grow.
Chime Save When You Get Paid: This feature allows you to set up a recurring transfer of 10% of your direct deposit paycheck of $500 or more from your Spending Account to your Savings Account each time you get paid.
SEE ALSO: Guide: Chime mobile check deposit
What is Chime credit builder card
The Chime Credit Builder Visa Secured Credit Card is a card that lets you spend money like a debit card at the same time helps you build your credit score as traditional secured credit cards.
Chime Credit Builder Card differs from other cards as it does not charge you an annual fee and does not have any minimum security deposit or credit history check. However, to have a Chime Credit Builder Card, you must have a Chime spending account, and you must have had at least $200 in direct deposits made to the Chime Spending Account within the past 365 days.
If you are wondering how you can get a Chime credit builder card, follow the step-by-step guide below.
What Bank does Chime use
Chime use the Bancorp Bank and Stride Bank.
SEE ALSO: Does Chime Deposit on Weekends
So, that all for now, folks. We hope you were able to understand Chime better after reading this post. For more posts on Chime, you can follow a few related posts below or visit our Chime section.
Ankit Kumar is an Engineer by profession and a blogger by passion. Over the last several years, he has written tons of articles, solving queries on Quora. He also has years of experience in investing in Cryptocurrencies, Funds, and Stocks.