Chime launched itself onto the market in 2013 as a new online banking system that did away with traditional brick-and-mortar branches. Instead, they offer customers the ability to manage their money and accounts online with their phones. Given that more and more of us are happy to run our lives through our phones, taking care of our finances through an app makes sense. It is easy, simple, convenient, and can help us achieve far better financial health than with a traditional savings account.
But does Chime really help customers achieve more savings? Has it disrupted the market so much that customers are no longer required to enter a bank? Here, we look to answer those questions and look at the safety concerns people have when opening an online account. We also identify whether it is possible to believe all the positive Chime reviews that you read online.
What Is Chime?
But first, what exactly is Chime? Chime is a financial technology company that gives its customers an effective and cost-efficient way to manage their money. The company’s ethos is that they want to ‘profit with our members, not from them’. As a result, customers enjoy accounts with several exciting features, including no hidden fees, no overdraft fees, and no annual fees. For example, the SpotMe feature allows customers to pay for something, even if they do not have enough money in their account. A qualifying customer can therefore access up to a $200 overdraft without incurring any costly fees. Plus, it has a very handy direct deposit option which allows customers to access their paycheck two days in advance should they need it. It is account features, such as this one, that people talk about when they leave a positive Chime review.
Chime’s entire business model is based on the notion that they do not want to rely on customers slipping into overdrafts to collect fees. Or, charge each month for an account and insist on minimum balances – or any other way that banks often put profits before customers.
Get a Chime Credit Card
Chime endeavors to put customers’ financial health at the heart of what it does. It allows customers to build credit with their Chime credit builder cards. The card is a Visa secured credit card that can help increase your credit score.
Increase The Savings In Your Account
Chime also wants customers to grow their money faster. To support this, it offers a savings account with a competitive yield that is comparable to savings accounts offered at other banks. Not only does Chime offer a good interest rate, but it encourages customers to save money regularly and consistently. Through its automatic savings account, every time you make a purchase or pay a bill with your Chime Visa Debit card, Chime will automatically round up the transaction to the nearest dollar and transfer that rounded-up amount from your spending account to your savings account. It goes to show that a little deposit in your savings account can make a big difference.
Can You Trust Chime?
While all that sounds like a good idea, can you really trust Chime? Are all the reviews accurate? Given that Chime does not have a physical bank location that you can go into if you have a problem, are its services trustworthy? How do you know it is not just one big hoax that wants to scam you from your hard-earned money?
Thankfully, Chime is exceptionally trustworthy. Its plethora of 5-star reviews show that it is one of the best online banking systems. The reviews highlight some of Chime’s best account features, including its security. Chime has several high-end security features in place to ensure that every time you log into your account, only legitimate transactions have occurred. Its technology is cloud-based and is the same infrastructure used by top tech companies in the country as well as other financial institutions and government organizations.
Chime Account Notifications To Protect Your Savings
Plus, what’s great about Chime is that some of its features inherently help users to trust the service. The company sends notifications to your phone every time a transaction occurs using your account. It means that you will know instantly if that transaction is one that you have authorized or if it is fraudulent. If it is fraudulent, contacting Chime’s security team is quick and painless. Any funds that have wrongly left your account will be reinstated within 48 hours.
The company also sends daily, morning notifications to your phone with account balance updates. Again, that is a fantastic protective layer to its service. It means that you can quickly identify if your balance is not accurate. If it’s not, you can log into your account immediately to see why that may be. If you find transactions that you have not verified, you can contact Chime to have the issue resolved.
Can You Get Scammed On Chime?
Thanks to the two methods mentioned above, and many other features, it is very difficult to be scammed when using Chime. The company has integrated the strictest of security measures and protocol into its software, so it really is very hard for any fraudulent activity to occur. In fact, the company is dedicated to minimizing fraud within the banking sector as a whole. It does so by participating in an active bug bounty program through HackerOne. This means it carries out regular security tests of its product. Doing so ensures that it is as robust as it can be to ensure the safety of its customers and their accounts.
Is Chime FDIC Insured?
One reason customers can trust Chime is the fact that its banking partners are FDIC-insured, meaning that a customer’s funds are insured up to $250,000 through Bancorp Bank and Stride Bank, N.A. So, in the unlikely event of a bank run or a bank failing, a customer’s accounts (up to the value of $250,000) are protected. That means they will not lose any money saved under $250,000 in your Chime account.
FDIC-insured status importantly means you do not need any other type of insurance for your accounts. You will save money by not needing to purchase deposit insurance to protect your funds. Again, like saving customers’ fees in the form of monthly fees and no overdraft charges, Chime saves its customers yet more money. The FDIC-insured status additionally covers all the accounts that Chime offers. At traditional banks, not every type of account is covered by the FDIC, even if a bank is FDIC insured. However, FDIC insurance covers checking and savings accounts – which are the two accounts provided by Chime.
Is Chime Safe?
Chime is very safe to use. Its software ensures any hackers will find it difficult to hack into a person’s account and steal their identity. Identity theft is a serious issue within the financial industry. Yet, through the strictest of protocols and technology infrastructure, Chime provides a service that is highly secure and designed to minimize the chances of being scammed.
Which means customers can use it safely, knowing that scammers will have a hard time getting through Chimes security features. By freeing them of the troubles of worrying about the security of their money, customers, instead, can zone in on growing their financial wealth through the many features the company offers. Which is part of what makes using Chime an efficient and effective banking experience that is enjoyable.
Is Chime Bank Legit?
So, here’s the big question. Is Chime actually legitimate? The answer is a resounding yes. Plus, Chime is not only legitimate, it is great at what it does. It takes the sting out of financial management. What is left is a growing bank account and comfort knowing that Chime is there to help you at times where you may find yourself a little bit short.
That’s why it provides a fee-free overdraft of up to $200 and the ability to access paychecks 2 days earlier than usual. The company knows that sometimes unforeseen circumstances have reared their ugly head, leaving people with a small deficit. Chime does not want that to ruin a person’s financial future. Instead, it supports them through the hard times as quickly as possible, to help achieve the financial health and stability to which we all aspire.
If you read a positive review online, you can trust the benefits listed. Try Chime yourself to see how this online banking system can help you.