Chime review: Fee-free digital banking, but limited product range and lower APYs

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Chime, a digital-only financial technology company, has emerged as a popular alternative to traditional banks.

For one, Chime offers minimal fees, including no monthly account fees, minimum opening deposit requirements, or overdraft fees. Plus, its second-chance bank account doesn't require a credit check, making it accessible for those with past financial missteps.  But is it the right fit for you? 

While Chime excels in digital banking, it lacks physical branches and offers lower savings rates compared to some competitors. We’ll explore Chime's checking and savings accounts, digital tools, and customer experience. 

About Chime

Chime isn’t a bank — it’s a financial technology company. Founded in 2014, Chime partners with two FDIC-insured banks, The Bancorp Bank, N.A. and Stride Bank, N.A., to provide its banking services and debit cards. This partnership ensures that customers' deposits are safe and secure.

Here are some key things to know about Chime:

• Online-only banking: Chime is a digital-only bank, which means all banking is done online or through the mobile app. There are no physical branches for in-person banking.
• Minimal fees: Chime stands out for its lack of fees, such as monthly maintenance fees, minimum balance requirements, and overdraft fees.
• Second chance banking: Chime offers a unique "second chance" bank account for those with a less-than-perfect financial history. This account doesn't require a credit check to open.
• Mission-driven: Its fee structure and innovative features reflect Chime's mission to empower people to take control of their finances.
• FDIC-insured: Chime accounts are FDIC-insured through its partner banks, providing security for customers' deposits.

Chime accounts

Chime offers a few banking products designed to simplify your financial life. Let's examine Chime's checking account and savings account.

Chime Online Checking Account 

While Chime's checking account doesn't earn interest, it makes up for its lack of fees. You won't pay any monthly fees, and there are no minimum balance requirements. Chime doesn't charge overdraft fees, saving you money if you spend over your balance.

One standout feature of Chime's checking account is "Spot Me." This service allows eligible accountholders to overdraw their account by up to $200 without incurring fees. To qualify, you'll need to set up monthly direct deposits of at least $200 and have a Chime debit card or Credit Builder card. If you overdraw your account, Chime will deduct the amount from your next direct deposit. 

Other perks of Chime's checking account include early direct deposit, mobile check deposit, and access to a large ATM network. You can deposit cash at over 8,000 Walgreens locations or over 75,000 retail locations, including CVS, Walmart, and 7-Eleven. 

Chime High-Yield Savings Account 

Chime's savings account earns a solid 2.00% APY, higher than the national average. However, some online banks offer even higher rates, reaching 5.00% APY or more.

Where Chime's savings account really shines is its automated savings features. With "Save When I Get Paid," you can transfer 10% of your direct deposits over $500 into your savings account. This makes it easy to build your savings without having to think about it.

Chime also offers a "Round Up" feature, which rounds up every purchase made with your Chime debit card or Credit Builder card to the nearest dollar and transfers the difference to your savings account. These small, automatic contributions can add up over time, helping you grow your savings.

Other products Chime offers

Chime also offers a unique "second chance" banking option called the Credit Builder account. This account is meant for individuals who may have had difficulty opening a traditional bank account due to past financial missteps or a lack of credit history.

When you apply for most bank accounts, banks typically use ChexSystems to review your banking history and assess your risk as a customer. However, Chime's account doesn't require a ChexSystems check or any other credit check, making it accessible to a wider range of people.

Chime also offers a secured credit-builder card designed for those building their credit. Chime reports your payment activity to the major credit bureaus, which can help you establish or improve your score. To be eligible for the Credit Builder account, you must have an active Chime checking account with at least $200 in direct deposits within the past 31 days. 

Chime fees

One of Chime’s hallmark features is a noticeable lack of fees. When you open a Chime checking or savings account, you won't pay any of the following fees:

• Overdraft fees
• Monthly maintenance fees
• Non-sufficient funds (NSF) fees
• Stop payment fees
• ATM fees (for in-network ATMs)

This means you can manage your money without worrying about these common charges eating into your balance.

However, there are a couple of situations where you may encounter fees with Chime:

• Out-of-network ATM withdrawals: If you use an ATM outside of Chime's network of over 60,000 fee-free ATMs, you'll pay a $2.50 fee per transaction. The ATM operator may also charge an additional fee.
• Cash deposits: You can deposit cash into your Chime account for free at over 8,000 Walgreens stores. Chime also allows you to deposit cash at certain retail locations, but a fee may apply. 

Chime banking experience

Chime offers a unique banking experience centered around its digital platforms. From account management to customer support, Chime has designed its services with the digitally-savvy consumer in mind.

Online and mobile banking experience  

With Chime, all your banking is done through the website or mobile app. 

The Chime app currently has over 2 million active users and a strong mobile performance score, according to app analytics platform data.ai. PYMENTS, a payments industry data and news organization, ranked Chime the leading provider of personal finance apps for the fifth year in a row.

Users seem to feel the same way — the app boasts 4.8 stars on the App Store and 4.7 stars on Google Play. 

Through the app, you can:

• Check your account balances and transaction history
• Pay bills and send money to friends and family
• Transfer funds between your Chime accounts
• Deposit checks using mobile check deposit
• Find fee-free ATMs near you
• Lock your debit card if it's lost or stolen

While some users have reported occasional technical issues with the app, such as slow loading times or difficulty navigating to certain features, the overall user experience is positive. Many customers praise Chime's user-friendly interface and convenient features.

Since Chime has no physical branches, the mobile app serves as your main tool for finding fee-free ATMs when you need to withdraw cash. Chime partners with major retailers like Walgreens, CVS, and 7-Eleven to provide over 50,000 fee-free ATMs nationwide.

Customer service 

When it comes to customer support, Chime offers several ways to get help. You can reach Chime's customer service team by phone 24/7, through the mobile app, or by sending a message on social media.

However, customer experiences with Chime's support have been mixed. On Trustpilot, Chime has an average rating of 2.4 out of 5 stars based on over 9,000 reviews. Despite this lower score, 68% of reviewers gave Chime 5 stars. Common complaints include issues with account closures and difficulty resolving disputes.

Chime has also faced some regulatory challenges related to its customer service. In May 2024, the company was fined by the Consumer Financial Protection Bureau (CFPB) for failing to refund customers' money in a timely manner after account closures. The company was also fined in February 2024 for poor response times to customer complaints.

Account Security 

While Chime itself is not a bank, it partners with two FDIC-insured banks (The Bancorp Bank, N.A. and Stride Bank, N.A.) to provide its banking services. This means your funds are protected up to $250,000 per person per account, just like at a traditional bank.

Chime uses encryption and other security measures to protect your personal information. If your debit card is ever lost or stolen, you can use the Chime app to block transactions and prevent fraudulent charges instantly. In the event of suspicious activity, Chime's fraud detection systems will alert you and freeze your account until the issue is resolved. 

How Chime stacks up 

Like many online peers, Chime doesn’t charge monthly account fees or have minimum deposit requirements. However, compared to some competitors, Chime offers a more limited product range and lower APYs. 

Chime vs. Ally Bank

Ally Bank is a popular online bank. Like Chime, Ally doesn't charge monthly maintenance fees or require minimum balances. 

One area where Ally shines is its savings account APY. Ally's savings account offers a 4.20% APY, significantly higher than Chime's. What’s more, Ally's checking account earns interest (up to 0.25% APY), while Chime's does not. 

Ally also offers a wider range of products than Chime, including CDs, investment accounts, and loans. If you're looking for a one-stop shop for all your financial needs, Ally may be a better fit.

Chime vs. SoFi

SoFi is a digital finance company that offers a wide range of products, including checking and savings accounts, investment accounts, and loans. Like Chime, SoFi has no monthly fees or minimum balance requirements for checking and savings accounts.

One area where SoFi stands out is its high APY on both checking and savings accounts. SoFi's savings account offers a 4.60% APY, while its checking account offers 0.50% APY. Keep in mind you must open both accounts together. 

SoFi offers a more complete range of financial products than Chime, including investment accounts, personal loans, student loan refinancing, and mortgages.

Is Chime right for you?

Whether Chime is the right fit for you will depend on your specific banking needs and preferences. Here are some factors to consider.

Chime may be right for you if: 

• You want to avoid common bank fees: If you're tired of paying overdraft fees, monthly maintenance fees, and ATM fees, Chime's fee-free banking model could save you money.
• You're comfortable with online banking: Chime is best suited for consumers comfortable managing their money digitally. 
• You want automated savings tools: Chime's "Save When I Get Paid" and "Round Up" features can help you build your savings automatically, making it easier to reach your financial goals.
• You're looking to build or rebuild credit: Chime's Credit Builder account offers a unique opportunity to establish or improve your credit history without a traditional credit check.

Chime may not be right for you if: 

• You prefer in-person banking: If you value the ability to visit a physical branch and speak with a banker face-to-face, Chime's online-only model may not be the best fit for you.
• You need a full range of banking products: While Chime offers checking and savings accounts, it doesn't provide other services like loans, mortgages, or investment accounts.
• You prioritize high-yield savings: Although Chime's savings account offers a competitive APY, some online banks offer even higher rates. If earning the highest possible yield is your top priority, you may find better options elsewhere.

How we rated this bank

Every bank review we publish has undergone a rigorous editorial process to ensure accuracy and objectivity. Learn more about our methodology here. 

Here are some of the factors that influenced this bank’s overall score: 

The bottom line 

Whether Chime is right for you will depend on your unique financial situation and goals. Chime could be an excellent fit if you value fee-free banking, early paycheck access, and automated savings tools. However, you may want to consider other options if you want in-person banking or a wider range of financial products.

Editorial disclosure: Opinions expressed are author's alone, not those of any bank, credit card issuer, or other entity. This content has not been reviewed, approved, or otherwise endorsed by any of the entities included in the post.