What To Know About Setting Up A Chime Account

Chime is a financial technology which provides online financial services to its customers. The best part of this technology is Chime offers banking services and a credit card to its customers. All you need to set up a Chime account is a proof of eligibility.

What is required to open a Chime account, my dear reader?

It does not cost anything to open a Chime bank account; however, the requirements to open a Chime bank accounts are the following below:

• You have to be 18 years or older.
• You must not have an already existing account. You can only have one account on Chime.
• You must have a legal form of identification. Your driver’s license can suffice.
• You must have a social security number.
• In addition, be a citizen of the United States of America.
• A legitimate postal or mailing address is needed to set up a Chime account.

Without the above, you cannot make a Chime account. This is because Chime has to verify you meet all the above requirements to maintain an account with them. It is a way of weeding out customers with potential money laundering or fraud plans.

How To Set Up Chime Account Instantly

A Chime account set up is easy and simple. There are two ways you can go about it. Firstly, you can either download the Chime app and follow the instruction to apply for an account. Or, you can set up a account online with Chime on its official website.

Whereas Chime offers checking and savings accounts, the two do not come automatically. You can become a Chime member by opening a checking account, then you have the option to add a savings account later.

Here is how you create a chime account online.

• Go to Chime website.
• Click on Sign Up to open a chime checking account.
• Enter your first and last name plus your email address. Then, click on Next.
• Enter your date of birth and click Next.
• On the next page, you will be asked to enter your phone number. It is used for protect your account through verifications. Click next after that.
• You will be asked on the verification code sent on your phone number. After you are verified, enter Next.
• Enter your home or mailing address. This includes your street name, apt number, zip code, city and state names. Click on Next to continue.
• Type the password you would like to use to access your account.
• On the next page, enter your social number number. Do not worry, Chime says its data transmission is encrypted.
• The next few pages will ask for your personal income details which you can volunteer. Then, click on terms and conditions agreement and submit the application.

After submitting your application, it will be reviewed. If you are eligible for a Chime account, it will be approved. Chime does not approve everyone, unless they meet the requirements I wrote earlier.

Why Would I Be Denied A Chime Account?

You will be denied a Chime account, when you do not meet the previously mentioned requirements. To reiterate again, you will not be allowed to set up a Chime account, when you:

• are not a U.S citizen
• are under the age of 18 years old.
• have no social security number.
• are not living in a permanent home address.

Chime, like every other financial services out there, are trying to prevent money laundering and fraud. Therefore, it has to make sure its members are operating within the legal framework of Federal, state and local financial laws. So, be sure to make sure you have all the requirements prior to setting up Chime.

How Does Chime Savings Account Work?

As previously mentioned, you will need a Chime checking account to add Chime savings account. Besides, the savings account is built in such a way you will get the following benefits:

• ability to set aside a portion of your paycheck for savings. Chime lets you do 10% or more of your paycheck.
• 2% annual percentage yield.
• 1.98% monthly interest pay on savings.
• ability to earn more interest with increased savings.
• there is no minimum balance, no limit on interest and no monthly fees.

What I meant by no limit on interest, is Chime savings account has a variable interest payment. It depends on the amount of your savings. Therefore, there is room to earn more interest with a huge savings balance every month. While on this subject, Chime reserves the right to change its interest rate.

Is A Chime Savings Account Worth It?

Compared to traditional saving interest rates, the Chime savings account is worth it. Chime savings account pays a 2% annual percentage yield. Also, it has a monthly interest rate of 1.98% on your savings. The national average for traditional banks is about 0.46% on their savings accounts.

Do you think Chime has better rates than traditional banks, good reader?

Although this seems like a great offer, I feel like Chime lags behind these 7 Best High Interest Savings Accounts. There are other online banking services out there who pay up to 4.45% interest on their high yield saving accounts. So, I sincerely think Chime could have either match these or done better.

How Chime Is different From Other Banks

Chime is different from other banks because it is a financial technology which offers banking services through two banking partners. As a result, it is easy to deposit money into Chime quickly. Despite this, Chime comes with its own benefits and downsides.

Here are other pros and cons of Chime bank account, as compared to a traditional bank and an online bank.

What Is the Downside Of Chime?

Chime does not have brick and mortar locations like traditional banks. So, everything has to be online including the customer services. Does that mean it is an online bank?

I really cannot considered it to be an online bank. This is because its banking services are provided by The Bancorp Bank or Stride Bank. These two banks are in partnership with the financial technology company. Do not let that fret you though.

All money with Chime is FDIC insured through its banking partners: the Bancorp Bank, N.A. or Stride Bank, N.A. In case of Chime bankruptcy, your money is insured up to $250,000. Chime is on par with other banks in this aspect.

Here are other complaints against Chime:

• It does not give loans.
• There are fees each time you use out of network ATMs, but this is a similar issue with some traditional banks. You have free access to 60,000 ATMs though.
• There are some limits on some financial transactions.
• You have to be eligible for overdraft protection. Not all Chime members get overdraft protection.
• There is no interest on money in its checking account.

These are the disadvantages of Chime to consider before you open an account. If you could live with these, by all means go ahead and create a Chime account. Having said that, here is why opening a Chime account is convenient.

What Are the Benefits Of Chime?

Chime has a 24 hours and 7 days a week customer service. This balances out the lack of physical location. In today’s world of online banking services, it really makes a difference.

In addition, here is a list of the advantages of setting up Chime:

• You have access to a reloadable chime card. You can load a Chime card in these six best places.
• There is a competitive interest rate on its saving account compared to traditional banks.
• No minimum deposit required on Chime accounts.
• There is an early deposit for checks. You can deposit a check on Chime app and receive the funds almost immediately.
• It makes financial transactions between other financial technology easy and fast. For example, you can send money from Cashapp to Chime instantly.
• Setting up Chime direct deposit is easy.

These are the pros to consider before opening a Chime account. It will have you decide whether the services offered by Chime will meet your financial needs. At least, this is the kind of research I usually do each time I open a bank account. I hope my article helped.