Is Chime a National Bank?

Is Chime a national bank? Chime is the leading online banking company that doesn’t work like traditional banks, but this doesn’t mean you won’t have all the benefits a traditional bank would give you. In fact, you just won’t have to lose your precious time waiting in lines.

Chime isn’t a national bank. However, it acts like every other traditional bank. All the accounts have FDIC insurance which makes them a safe place to keep and save your money. Although the process of depositing money can be a bit expensive, you count on no overdraft and monthly fees.

Chime app on a smartphone

Explore everything about this innovative online banking technology and have the best possible experience.

Is Chime a National Bank?

Founded in 2013, Chime ensures its customers’ peace of mind and increased financial access. This is extremely important because digital banking is the future. But you also need to know that Chime isn’t a national bank. In fact, Chime isn’t even a bank but a financial technology company that wants to improve this new type of digital banking account and help members with win-win solutions.

So, in other words, money management will be secure and simple. Besides not being a national bank, be aware that it is also not a Bancorp Bank. There are agreements with Bancorp and Stride in order to provide reliable banking services. After all, Chime’s mission is to extend these services by creating digital assets for companies.

Is Online Banking a Good Idea?

Digital banking nowadays still opens many questions, but it also represents a strong option when you’re looking to open a second account. Most people have trouble getting used to the banking relationship without physical branch locations.

However, with the COVID-19 outbreak, everything changed, and nowadays, more and more people are looking for a reliable online banking solution. So, besides figuring out when direct deposit hits, make sure you learn all the features this company will provide you with.

However, as already mentioned, many still struggle with trusting an online banking solution, especially those who have been working with face-to-face meetings. Online banking today has developed some amazing features, and around 200 million Americans use this technology because it’s a stress and hassle-free experience. As expected, these banking solutions are extremely popular among younger consumers who grew up in the internet age.

No Fees for Chime Checking Accounts

One of the best things about Chime services is the absence of a minimum balance. So, once you figure out what a Chime card is, research all the requested fees you’ll have to deal with. While other free checking accounts do require some additional fees, the only fee you’ll have to pay with this platform is the one that can occur when you use out-of-network ATMs.

Considering that in 2019 traditional institutions charged around $10 billion for overdraft fees, not having nearly as many fees surely is an appealing deal. There’s also an exponential increase in digital purchases and the development of the digital economy. Since there’s no need to continue accepting the traditional banking practice, Chime is doing everything to increase its user number.

A person holding a smartphone

What You’ll Get With Chime?

Chime has over 12 million customers who aren’t dealing with banking fees and enjoy effortless cash deposits and fast-adding money. It offers excellent savings accounts, checking accounts, and Visa services through its partner banks. There is also the Chime SpotMe feature, which is a great solution for people who are short on funds. If you agree to the terms of use, Chime will advance up to $200.

Additionally, the fact that customers can improve or establish their credit rating is quite appealing. In the table below, check other pros but also some cons Chime has.

No monthly and overdraft feesCan get cash deposit only with third-party retailers
Paychecks arrive two days earlyMobile check deposit is possible only with a direct deposit
60,000-plus free ATMs
Direct deposit
Automatic savings growth

Check Some Chime’s Background Information

As we already explained, Chime isn’t technically a bank. It’s actually a fintech (financial technology) company where you have a possibility for a mobile deposit and the opportunity to load on your account. Founded as quite a simple idea of online financial mechanisms, nowadays, it has evolved into one of the leading online banking solutions. And why shouldn’t it? It’s developed to help people understand and handle these services more efficiently and have the best of it.

Why Chime’s Digital Account Is Great for You

Chime members will have numerous benefits, from being able to transfer money from one account to another to the possibility of getting cash back at more than 40,000 retails across the US. Here’s why having an account is an excellent idea:

  • If you need the basic individual services but have little to no credit history,
  • If you prefer managing your day-to-day financial transactions via a smartphone,
  • If your account balance drops below $100,
  • If you want to set up a direct deposit with the employer,
  • If you wish to spend your paycheck a few days earlier than usual,
  • If you require some help building up your savings account,
  • If you want to avoid banking fees.

When Is Chime Not for You?

Of course, besides all the benefits Chime offers, there are some things to count on when deciding whether this practice really is for you. So, no matter if Chime loans suit you and you like the time it takes for a check to deposit, this platform isn’t for you if you:

  • Need a place with a high value on face-to-face customer service and physical branch offices,
  • Don’t need a trustworthy checking account, but only the savings one,
  • Are looking for reliable advice on wealth management.

Have Financial Peace of Mind With Chime

Chime was created by high-qualified professionals to build innovative online bank accounts that will help all members have their financial peace of mind. After all, everyone deserves it, and Chime is doing everything to make managing the money as seamless as possible.