Enough was enough. After my traditional bank charged me hundreds in overdraft and minimum balance fees, I hopped on Google. In minutes, I'd opened an account with my current banking app. Since making the switch, I haven't paid a single overdraft fee -- in four years.
The app is Chime, a vanilla banking app. In fact, it's exactly what comes to mind when you think of a "banking app" -- a clean interface, simple features, and savings and checking accounts.
I switched to Chime for the following reasons:
- Few fees
- Simple to use
- Made for mobile banking
Here's a little more on each point, plus whether Chime lived up to my expectations. (I'm still using the banking app, and I'd recommend it, but yeah, it has downsides.)
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Capital One 360 Performance Savings 
APY 4.25% Rate infoSee Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY)is variable and accurate as of April 11, 2024. Rates are subject to change at any time before or after account opening. Open Account for Capital One 360 Performance Savings OnCapital One'sSecure Website. Member FDIC. | APY 4.25% Rate infoSee Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY)is variable and accurate as of April 11, 2024. Rates are subject to change at any time before or after account opening. | Min. to earn $0 |
American Express® High Yield Savings
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UFB Portfolio Savings Account
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1. Few fees
Chime charges few fees. Since opening a combined checking and savings account, I haven't paid the banking app a single fee. That alone made switching worth it.
Traditional, brick-and-mortar banks typically charge the following fees:
- Monthly maintenance fee (generally $5 to $35)
- Overdraft fee (generally $35)
- Minimum balance fee (generally $5 to $15)
Chime charges none of these. According to its fee schedule, it charges the following:
- $2.50 cash withdrawal fee for withdrawing from an out-of-network ATM
- $2 fee to instantly receive a cash advance (as opposed to waiting 24 hours)
It's uncommon for a banking app to charge so few fees. Between this and the app's simple interface, Chime is one of the best places to bank affordably. (Rival banking apps with few fees include SoFi® and some Capital One accounts.)
2. Simple to use
Opening a Chime account and navigating it is dead simple. You can open a new account in two minutes from your phone.
Here's how to open a combined checking and savings account with Chime:
- Download the Chime app.
- Type your name, email, password, and SSN.
- Set up direct deposits (optional).
You can navigate the interface easily. The home screen shows you checking and savings account balances; tap these to unfold your balance histories. Scroll through the home screen to request a payment advance, send money, track your credit score, and so on.
Tip: Set up savings account auto-contributions. You can do so by navigating to "Account settings" and turning on "Save when I get paid." This will send 10% of each of your direct deposits straight into your Chime savings account.
3. Made for mobile banking
There are banks with apps, and then there are banking apps. Chime is the latter, a mobile-native banking app that feels built for your phone screen.
You can tell it's built for mobile because the interface is accessible. The app opens in seconds, and so does every tab you navigate. The font is large and easily visible (no squinting at PDFs). You can even switch between Light and Dark mode.
One tradeoff here is that you won't find Chime bank branches anywhere. The banking app is online only. Technically, it's not even a bank. It partners with banks to offer banking services and insure your deposits with the Federal Deposit Insurance Corporation (FDIC).
What to expect from switching to Chime
Expect a clean banking app with few fees and an intuitive interface. Things you can do on Chime include:
- View and manage account balances
- Transfer money between internal and linked accounts
- Find the nearest fee-free ATMs
One downside of Chime is you need to open both a checking and savings account. You can't just open one or the other. The savings account lacks a competitive APY, so you may want to open a high-yield savings account with another banking platform, too.
I'm happy I switched because I prefer simplicity and affordability to in-person help. Consider switching to Chime if you pay too many bank fees and want the modern mobile banking experience. It's not perfect, but Chime does the basics well.
FAQs
Checking accounts allow you to manage your day-to-day finances like paying bills, receiving direct deposits, and paying for expenses like dining out. Savings accounts are for storing funds that you don't want to access on a regular basis.
Which is the best reason to have a checking and savings account? ›
Checking accounts allow you to manage your day-to-day finances like paying bills, receiving direct deposits, and paying for expenses like dining out. Savings accounts are for storing funds that you don't want to access on a regular basis.
What are the benefits of Chime savings account? ›
Chime rates and products
These accounts don't have any balance minimums or monthly fees and come with additional benefits, such as no overdraft fees and early direct deposit for paychecks. However, the checking account does not offer interest and the savings account's APY is only 2%.
Why would someone use Chime bank? ›
Chime® is a financial technology company that caters to customers who want an easy online banking experience with no monthly fees. It offers a checking account, high-yield savings account and secured credit card, all with no monthly fees or no minimum security deposit requirements.
Is Chime considered a checking or savings account? ›
The Chime Checking Account comes with a debit card and has no monthly service fees. You'll need to open a checking account with Chime before you can open a Chime Savings Account and take advantage of Chime's Automatic Savings features.
What are at least 3 benefits of having a checking account? ›
Here are some of the top benefits of a checking account and why opening one can make managing your money easier and less stressful.
- Easy Access With ATM Withdrawals. ...
- Receive Direct Deposits In Your Account. ...
- Digital Payments. ...
- Mobile Banking. ...
- Check Writing. ...
- Earn Interest. ...
- Peace of Mind. ...
- Final Thoughts.
A checking account is for managing your day-to-day finances such as paying bills, making debit card transactions and writing checks. A savings account is for storing funds for emergencies or short-term goals, and the money typically earns a modest amount of interest.
What are the pros and cons of Chime? ›
Show Pros, Cons, and More. The Chime® Checking Account is a good low-fee account — there are no monthly service fees, foreign transaction fees, or overdraft fees. Chime does charge a $2.50 for using an out-of-network ATM, though. Early direct deposit allows you to receive your paycheck up to two days early.
What are the benefits of working at Chime? ›
We offer generous medical, dental, and vision benefits to suit you and your family's needs, as well as family planning, discounted gym memberships, and pet insurance.
How does Chime protect your money? ›
FDIC insurance
Deposits are FDIC-insured up to $250,000 through Chime's bank partners, The Bancorp Bank, N.A. or Stride Bank N.A.; Members FDIC. FDIC insurance protects you against losing insured funds if a bank fails, not against issues like fraud.
Chime is known for its limited-fee accounts (no overdraft fees, monthly fees, or minimum balance requirements) and helpful features.
How is Chime different from other banks? ›
Upsides: No monthly fees and no minimum balance: Chime has no minimum balance requirements to open or maintain the account. Two automated savings programs: It will also round up every purchase on your Chime debit card to the nearest dollar and deposit that difference into your savings account.
Can I withdraw $5000 from Chime? ›
You can withdraw up to $515 a day from your Chime account using an ATM. This $515 and any fees you incur from out-of-network withdrawals count toward the $2,500 daily limit on the Chime card.
What are the benefits of a Chime card? ›
At Chime, we profit with our members, not off of them. Through our banking partners, we offer a Visa® debit card connected to a Chime checking account with no monthly maintenance fees, fee-free overdraft, access to 50,000+ fee-free ATMs, and no minimum balance requirements.
Can I take money out of my Chime savings account? ›
You can't withdraw money directly from your Savings Account. You'll have to first transfer it to your Checking Account by tapping Move Money in your app. When you deposit cash to your Chime Checking Account, it is transferred by a third party to your account.
How to get $200 from Chime? ›
SpotMe is a totally free service for eligible Chime members who overdraft their checking account and is now available for members when they use their Credit Builder card. Once you're eligible, enroll in SpotMe (it's fee-free!), and we've got your back when you overdraft your account by up to $200.
What is the best reason for Jacinta to have a savings account to a checking account? ›
What is the best reason for Jacinta to have a savings account in addition to a checking account? A savings account protects her money from overdraft fees. A savings account insures her money under the FDIC.
Which is the best reason to have a checking and savings account brainly? ›
Final answer:
The best reason to have a checking and savings account is to make it easier to manage and save money.
Is it better to have checking and savings with same bank? ›
However, checking accounts aren't known for paying high interest rates and often don't pay interest at all. When your checking and savings are at the same bank, you can more easily and quickly optimize your interest earning by moving any leftover funds into your high-yield savings account .
What is one reason you might use a checking account instead of a savings account? ›
Checking accounts are better for regular transactions such as purchases, bill payments and ATM withdrawals. They typically earn less interest — or none. Savings accounts are better for storing money. Your funds typically earn more interest.
