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If you’re looking for a digital bank, you’ve probably considered Chime, which has been the market leader for a few years.However, not all consumers who use digital banks agree that Chime is the best choice. Let’s take a closer look at Chime and some top alternatives to Chime.
- Pros and Cons of Chime
- 10 Best Chime Alternatives
- Compare Alternatives
The Pros and Cons of Chime
Chime Financial, Inc. is a “neobank”, offering a number of financial technology or FinTech services to consumers. Its fee-free digital bank services are actually not provided by Chime itself, but rather by its partners, The Bancorp Bank and Stride Bank, N.A.
👍 Chime’s Advantages for Consumers
Chime offers two different types of account plans for consumers: a checking account and a high-yield savings account. Because these accounts are provided by Chime’s bank partners, account deposits are insured through the FDIC up to $250,000.
Chime accounts offer several attractive benefits, including the ability to receive direct-deposit funds up to two days early. Checking account owners who have also enrolled in direct deposit can incur overdrafts of up to $200 without fees. Account owners also receive a Visa debit card to use with their Chime account without a credit check.
The Chime savings account features an annual percentage yield (APY) of 2.0%, which is competitive with other digital banks’ savings accounts. There is no monthly fee and no minimum required deposit for the savings account. However, only checking account owners can open a Chime savings account.
👎 Drawbacks to Banking With Chime
As is true of most digital banks, Chime doesn’t offer any brick-and-mortar branches for personal service. Additionally, customers can only take advantage of mobile check deposit services if they’ve also enrolled in a direct deposit program through an employer.
Of greater concern is a recent history of customer complaints regarding Chime’s closing of accounts and withholding of funds on deposit. ProPublica investigated the issue and reported on the company’s practices in 2021, noting that over 900 customers had filed complaints with the Consumer Finance Protection Bureau (CFPB).
Other consumers have raised concerns about alleged fraudulent transactions in their Chime accounts, for which the company is said to have offered no assistance. Some complaints indicated that money was taken from accounts in transactions the customers insisted were unauthorized. Chime said its investigations disproved the claims.
Best Online Bank Alternatives to Chime
Now that you know a little more about this bank, let’s take a look at some reputable alternatives to Chime competing in the market today.
- Axos Bank
- Capital One 360
- Discover Bank
- One Finance
👇 Compare Chime alternatives
Ally Bank is one of the leading alternatives to Chime, offering a fairly diverse array of account types, including checking and savings accounts. One of its biggest benefits to checking customers is its lack of monthly fees and minimum balances.
Ally also offers credit cards, personal loans, and investments. Its interest rates for funds on deposit in savings accounts remain consistently among the highest in the industry at 2.75% APY for the high-yield savings account.
Ally’s business services are somewhat limited and it has no business checking account on offer.
It also does not support outgoing wire transfers to international recipients, although customers can receive international transfers. As with most digital banks, it does not provide physical locations and there’s no way to deposit cash.
Some consumers have raised concerns about the length of time Ally takes to clear a deposited check.
Aspiration offers a unique way to bank online for consumers who want to put their money where their conscience is.
Built on a promise that funds on deposit will never be used to finance ecologically damaging industries and businesses, Aspiration also rewards its consumers when they patronize brands that demonstrate social awareness and consciousness with cash back rewards from between 3% and 5% on qualifying purchases made with the Aspiration debit card.
Remarkably, customers can set their own monthly fee for this account through a “Pay What Is Fair” term—even if the customer wants to pay nothing at all. Customers can upgrade to Aspiration Plus accounts for added benefits and a small monthly fee.
Aspiration doesn’t quite have the breadth of account options that some other companies offer, and it doesn’t pay interest on standard saving account deposits.
If you’re committed to environmental causes, Aspiration is an option you’ll want to consider. If you’re not, Aspiration’s support of those interests won’t necessarily add value.
3. Axos Bank
Axos Bank offers a number of different types of accounts and banking products for both consumers and small businesses.
You can choose from several types of no-fee accounts, from the basic, no-frills Essential account to CashBack checking with 1% rewards for signature-based transactions. There are even specialized accounts for specific demographics, such as Golden Checking for customers over 54 years old and First Checking for young teens.
Axos products aren’t without some downsides. For example, many digital banking companies offer increasing interest rates for their CD products over time, whereas Axos maintains its rate no matter what the CD’s term.
You’ll also pay some transaction fees for certain services, including international card payments.
4. Capital One 360
The Capital One 360 Checking account combines the best features of neobanks with some benefits of traditional banks, such as physical branch locations across the U.S., allowing users in-person access to assistance when needed.
This fee-free account comes with no minimum balance requirements.
You can choose between an online-only account or a hybrid form that allows physical access. Many customers appreciate the stability of a more established, long-lived company that’s part of an expansive ATM network.That makes it one of the most popular Chime alternatives on this list.
Capital One’s digital accounts usually do not permit international wires, so if that’s important to you, you’ll want to look elsewhere. Additionally, users are charged fees for certain types of transactions, such as outgoing wire transfers to other U.S. recipients.
Current offers mobile-only checking accounts with features that especially appeal to parents and teenagers.
Customers enjoy low fees overall but be aware that there are some fees that can’t be avoided such as $3 fee + 3% International Transaction fee for cash withdrawals at an International ATM, for instance. Basic checking accounts are no-fee, as well as the premium version, and the popular Teen Banking account.
Current accounts do not offer the opportunity to earn interest on deposited funds. Additionally, if you’re searching for more robust or sophisticated banking solutions with a variety of features and tools, you might find Current products a bit too restrictive and bare-bones.
If you lose your debit card, you’ll have to fork over $5 for the replacement, or $20 for an express fee to get it as soon as possible.
6. Discover Bank
Discover, a major credit card company with over 40 million customers, also offers online banking services.
Its accounts carry no annual fees and extremely competitive interest rates on its money market and savings accounts, up to five times the national average for similar accounts. The company provides an intuitive digital interface with a good user experience (UX).
Discover’s products also extend to personal loans, home equity loans, and several credit cards with varying types of bonuses and rewards offered.
As with many digital banks, Discover Bank does not offer in-person services or brick-and-mortar branch offices. You can also probably find better initial sign-up bonuses from other providers, but if that matters less to you than keeping most or all of your digital banking at one location, you’ll want to give Discover a closer look.
7. One Finance
One Finance offers savings and checking services to consumers featuring a commitment to competitive interest rates for savings accounts and lines of credit through its partnership with Coastal Community Bank. It wraps both savings and checking into a single account that offers a debit card, overdraft protection, early access to direct-deposit funds, and savings benefits such as an APY of 1.00%.
That single account might appeal to many consumers in its simplicity, but it might also strike others as highly limited. And, like other digital banks, it offers no physical branch locations or offices for in-person service.
Quontic bills itself as an “adaptive digital bank” that offers interest on checking accounts with a $100 minimum opening deposit in an attempt to meet the needs of consumers who are underserved or shut out by traditional banking institutions.
It offers a diverse array of checking and savings accounts, as well as mortgage lending services.
Quontic does have some physical locations for mortgage lending services in the U.S.
Although Quontic charges no fees for many of the most common checking and banking services, such as incoming wires, cashier’s checks, money orders, and overdrafts, you will incur fees for a dormant account, stop payments, and other services.
Revolut lets its customers choose from three tiered account levels: Standard, Premium, and Metal. Each account carries its own set of terms, from the no-fee Standard to the $15.39 per month Metal account.
It offers users free transfers to other Revolut customers, early direct deposit access, and a competitive rewards program including cash back for purchases made at partner vendors.
Customers will also appreciate Revolut’s financial tools, including analytics and budgeting aids.
Revolut has no brick-and-mortar locations in the U.S. or elsewhere, and some features are limited to other geographic markets outside U.S. borders. Additionally, in order to access the greater benefits of the premium accounts, customers must pay high monthly fees.
Varo Bank offers no-fee checking accounts through its own banking charter (no partner banks). You can choose from a checking account, a savings account, and cash advances, as well as take advantage of financial planning and credit-building tools to help you reach your money goals faster. Varo products mostly carry no fees.
Varo is a member of a large ATM network, assuring access to cash when and where you need it.
The APY is fairly competitive starting at 2% for customers who receive direct deposits of $1,000 per month or more. Customers can later qualify for an APY of 5% by receiving direct depositstotaling $1,000 or more, and ending the month with a positive balance in both the Varo Bank Account and Savings Account.
On the downside, Varo offers no sign-up bonuses, whereas many competitors do. Like most digital banks, it has no physical locations. And some users may find its account choices somewhat restricted.
Compare Chime Alternatives
|Bank||Monthly Account Service Fee||Minimum Balance Requirements||Free Debit Card||Overdraft Fees||Get Paid Early||Savings APY||Credit Builder|
|Aspiration||$0-$7.99||$10||Yes||$0||Yes||Up to 3.00%-5.00%||No|
|Capital One 360||$0||$0||Yes||$0||Yes||3.00%||Yes|
|Revolut||$0-$15.39||$0||Yes||$0||Yes||Up to 1.95%||No|
Bank on Digital for Your Financial Needs
If you’re looking for a new bank, digital banks are an increasingly attractive option. Chime and these alternatives to Chime offer many of the same banking services you’d get from a physical bank, often at attractive terms.
A little research and time can help you identify the company that comes closest to fitting your needs.
👉 Consider questions based on common and key features covered above, such as:
- Will you be opening both a checking and a savings account?
- Do you anticipate making or receiving international payments?
- Do you value simplicity over complexity? Would you prefer a single account that meets most of your needs, or a few accounts that, between them, tick all your boxes?
- How important is earning interest to you?
- Do you want to explore other financial tools such as investing or cryptocurrency?
Let your answers to these questions guide your search. Be sure to look up independent reviews for any digital bank, whether it’s Chime or one of these alternatives to Chime, and don’t hesitate to reach out to customer support for your top candidates and ask any remaining questions you may have. Sometimes, a positive customer service experience can tip the scales in favor of a decision.
Examples include Revolut, Wise, and others, which offer an FDIC-insured checking account and debit card. We particularly like Revolut for its fee-free checking account, debit card, good APY, cashback, and crypto trading platform, making it an excellent Chime alternative all around!Is there something better than Chime? ›
Examples include Revolut, Wise, and others, which offer an FDIC-insured checking account and debit card. We particularly like Revolut for its fee-free checking account, debit card, good APY, cashback, and crypto trading platform, making it an excellent Chime alternative all around!What companies are like Chime Solutions? ›
See how Chime compares to similar products. Chime's top competitors include Oxygen, Avant, and NorthOne. Oxygen provides digital banking services. It focuses on meeting the needs of the freelance economy through the oxygen application, where users can manage everyday expen…Is ally better than Chime? ›
Ally has more robust savings tools than Chime, including savings buckets to save for various goals and Surprise Savings to help you save more money. It also offers a higher interest rate right now. On Ally's site. FDIC Insured.Why is Chime closing accounts? ›
Searching for evidence of fraud once suspicious activity is detected. If fraud is found, Chime closes the account and the fraudulently deposited funds are returned to the government.Who is chimes biggest competitor? ›
Best Overall: Ally Bank
This online bank has low fees and an excellent high-yield savings account that pays more than Chime. It also offers a competitive money market account. And unlike Chime, its checking account pays up to 0.25% interest. We also like Ally over Chime® if you want more investing features.
- Varo Bank.
- Ally Bank.
- Axos Bank.
- One Finance.
- Bank5 Connect.
Chime offers no-frills accounts that come with features that simplify money management and savings. In contrast, Varo offers free checking accounts without a minimum account balance. It also offers a high-yield savings account and no banking fees.What banks are partners with Chime? ›
Chime partners with two banks, The Bancorp Bank, N.A. and Stride Bank, to support your account and create an improved member experience. Your Chime account is specifically tied to one of these banks.What money apps work with Chime? ›
- Chime SpotMe.
Cons: Limited account options: Chime currently offers just a checking and savings account, which may be challenging for consumers who have more extensive needs. Making cash deposits can be challenging: Cash deposits cannot be made at ATMs.Is MoneyLion better than Chime? ›
Which should I choose? Choose Chime if you want basic checking and savings options. Choose MoneyLion if you want access to a free investment account with roundup deposits to grow it faster.Is Chime better than Zelle? ›
Zelle doesn't charge any fees to send or receive money. But if you're using it through your bank, the bank might charge a fee. Again, Chime doesn't charge fees for Pay Anyone transfers. Unlike Chime, Zelle requires both the payer and the recipient to have Zelle accounts to send money.Will Chime decline? ›
Your transactions can decline when you exceed the spending or withdrawal limit on your Chime Checking Account. You can spend up to $2,500 per day using your Chime Visa® Debit Card, and you can withdraw up to $515 at the ATM each day (including any merchant fees or out-of-network fees).Should I keep my Chime account? ›
It doesn't work like a traditional neighborhood bank, but its accounts still have FDIC insurance, so they're safe places to keep your money. Chime has no monthly or overdraft fees, and it lets you round up purchases to the next dollar and save the remainder. But it can be expensive to deposit cash.Is Chime being investigated? ›
From October last year to early November this year, a DFPI spokesperson told Team 10 they received 342 complaints about Chime. The spokesperson confirmed they are “currently investigating Chime's dispute resolution practices.”Which is better bluebird or Chime? ›
Chime has no hidden banking fees that will add up in the long run. It has no minimum balance fees, monthly maintenance fees, foreign transaction fees, and no overdraft fees. It only charges when money is withdrawn from an out-of-network ATM. Bluebird has no monthly fees or inactivity fees.Is Capital One better than Chime? ›
The bottom line: Chime and Capital One 360 both have strong high-yield savings and checking accounts, but Capital One's savings tools and multiple overdraft protection options give it a leg up over Chime. Capital One will also be your go-to option for CDs, because Chime doesn't offer any.What is better Chime or netspend? ›
Both the Chime debit card and Netspend® prepaid card seem to have similar features, but what makes Chime a better choice is it has no banking fees that can rack up in the future, unlike Netspend®. Chime is more affordable and more convenient for those who want to save and grow their money.What is the highest advance you can get from Varo? ›
* You'll first have access to a $20 advance, which is free. Advances over $20 come with one small fee between $4 and $15, depending on the Advance amount. Over time, you may qualify for higher amounts up to $250, based on direct deposit amounts, a history of timely repayments, and other qualifications.
If you've been denied a bank account, it's often because of a negative checking or savings account history report from ChexSystems. Varo does not use reports from ChexSystems when reviewing applications.Which is better current or Varo? ›
Instead of providing a cash advance, Current lets you overdraw up to $200 before charging overdraft fees. Current gives you more space than Varo before charging overdraft fees. Current has a $2.50 out-of-network ATM fee and a $3.50 fee for each transaction where you add cash.How to borrow 200 from Chime? ›
Chime offers a fee-free overdraft service called SpotMe. It lets you overdraw by up to $200 on debit card purchases without charging fees (unlike stupid banks). Nice. Your SpotMe limit starts at $20 and depending on your account activity, history, and other risk factors, it could increase up to $200.Is Stride Bank the same as Chime? ›
US-based Stride Bank has extended its private-label banking services partnership with financial technology company Chime Financial.Can I get a loan with a Chime account? ›
Once you're set up with a Chime checking account, you'll have access to the company's other benefits. You can enroll in SpotMe, apply for a Credit Builder card, or take out an Instant Loan all within the app.How do you get free money on Chime? ›
Open a new Chime account through a referral link provided by a relative or friend, then receive a qualifying direct deposit of $200 or more within the first 45 days, and you'll earn $100. The person referring you to Chime may receive a $100 referral bonus as a reward.What app lets you borrow money without direct deposit? ›
Heart Paydays offers borrowers a streamlined application process when applying for $50 loan instant app no direct deposit alternatives. Applicants can access loans from $100 to $5000 with 3 to 24 months to pay without additional admin!What apps link with Chime? ›
- Chime SpotMe.
Yes, Chime is legit and the best mobile banking app in 2023. Chime offers basic banking services through an easy-to-use mobile app. It has no monthly, annual, or minimum balance fees, high savings rates, free ATM network, and Visa debit card make it the perfect banking solution for mobile banking.Why does Chime have so many issues? ›
Many of the complaints about Chime relate to the same things that spurred the company's growth over the past year: government payments for stimulus aid, PPP, unemployment insurance and tax refunds.
Does Chime Report to the IRS? Yes, Chime does report to the Internal Revenue Service (IRS). All banks and financial institutions are required to report deposits and withdrawals to the IRS–this is done so that the IRS can track and collect taxes on income.What app is Instacash? ›
Instacash℠ is an optional service offered by MoneyLion. Your available Instacash℠ Advance limit will be displayed to you in the MoneyLion mobile app and may change from time to time. Your limit will be based on your direct deposits, account transaction history, and other factors as determined by MoneyLion.How do I get $500 on Dave app? ›
- Open an ExtraCash™ account. Download the Dave app, link your bank to see if you're eligible for an ExtraCash™ advance, and then open an ExtraCash™ account. ...
- Advance up to $500. ...
- Transfer it to any account. ...
- Confirm your settlement. ...
- Settle your balance. ...
- Get ready for more money.
Insta-Cash is a personal line of credit that you can draw upon whenever you need extra funds. Similar to a loan, customers apply and are approved for Insta-Cash and the amount of available line of credit.Does Chime actually build credit? ›
Chime Can Help Build Credit History, but It's Not for Everyone. Chime reports account activity to all three credit bureaus. Cardholders looking to build better credit can establish on-time payment behavior and lengthen their credit history. (Note that late payments can still negatively affect a credit score.)Why did Zelle stop accepting Chime? ›
Why doesn't Chime have Zelle? Chime is a neobank challenging traditional banks and doesn't support Zelle money transfers. Zelle was developed by big banks to compete with digital banks like Chime, Cash App, and Venmo.Does Chime have buckets? ›
Each goal has its own “bucket” and you prioritize which buckets you want to fill first. Once one bucket (or group of buckets) is full, you move on to the next that's most important to you.Do people still use Chime? ›
Chime is a US fintech (financial technology) company founded in 2013. It is growing rapidly with more than 12 million customers as of 2021. It does not have its own banking license but provides its app-based services via FDIC-insured bank partners.How many complaints does Chime have? ›
Since 2020, more than 3,500 complaints have been filed about San Francisco-based Chime Financial Inc. with the federal Consumer Financial Protection Bureau about closed accounts, unauthorized charges or other issues.Will Chime refund stolen money? ›
Does Chime Reimburse Stolen Money? According to one of their help articles, all disputes are investigated immediately. During the investigation, Chime sends a chargeback request to the merchant. This is a way to ask the merchant nicely to give the money back while the investigation is pending.
Please keep in mind that once your account is closed, you will no longer be able to access it.How much money does the average person have in their checking account? ›
Here is the median and average checking account balances in the US, for Americans who have checking accounts: Median: $2,900. Average (Mean): $9,132.How much money can you keep in your Chime account? ›
You can deposit up to 3 per day $1,000.00 per load; $1,000.00 per day; $10,000.00 per calendar month (subject to any retailer imposed limits).Has Chime ever been sued? ›
Past lawsuits include failing to refund unauthorized charges, unreasonable blocks or holds, hidden fees, excessive charges, deposit issues, account errors, and/or transaction problems etc. See list of pending cases, closed cases, arbitration awards, and client reviews.What is the Chime bank warning? ›
Chime has an extensive scam warning page on its site, showing the warning signs of a Chime impersonator who may target you. It says to be suspicious of any text, call, or email claiming to be from Chime, and says Chime will never contact you to ask for your Social Security Number or Chime account number.Is there a class action lawsuit against Chime? ›
Chime was subject to a lawsuit in 2020 which they settled in 2021. In this lawsuit the company agreed to pay 1.5 million dollars to resolve allegations stemming from 2019 that a major service disruption caused Financial damages for users.Why is Chime not a good bank? ›
Downsides: Fees for cash deposits and out-of-network ATM usage: Chime charges $2.50 per transaction at out-of-network ATMs, and the only way to deposit cash is at cash deposit partner locations (including retail stores such as 7-Eleven and Walmart).Which bank is better Chime or current? ›
The Chime credit card does not have interest rates or annual fees. If you prefer using a debit card, Current is the better choice for rewards. Their debit card provides rewards, and you won't have to worry about falling deep into credit card debt. However, Chime makes more sense if you prefer using a credit card.Is Chime better then Wells Fargo? ›
Based on the analysis, we have found that Chime offers a way better User Experience than Wells Fargo when it comes to opening an account. More specifically the UX score Chime receives is -135/1000, very low to the -931/1000 that Wells Fargo receives.Is Chime worth having? ›
Overall, the Chime Credit Builder card is worth considering if you're a Chime customer looking to turn over a new financial leaf or establish a credit history. Just make sure you have some extra cash, or you won't be able to use the card.
Which should I choose? Choose Chime if you want basic checking and savings options. Choose MoneyLion if you want access to a free investment account with roundup deposits to grow it faster.Is credit Karma or Chime better? ›
You'll earn a higher interest rate with Credit Karma or Capital One, though. Chime and Capital One both let you deposit cash, while Credit Karma Money does not. Chime and Capital One also do not charge foreign transaction fees, making them good options for travelers.Is simple better than Chime? ›
Simple Bank: Rates. Chime beats out Simple in terms of interest rates. In fact, the bank has a 1.00% APY on its savings account, which fits into the upper echelon of the market.What bank should I put for Chime? ›
Chime Bank Details
Chime is not a bank. Therefore, The Bancorp Bank, N.A. or Stride Bank, N.A. will provide banking services for your Chime account.