According to research by Viacom Media study, the big four financial institutions ranked among the ten least loved American brands by millennials. This shows that millennials are very cautious of the big banks. This is where Chime comes in. Chime is a bank account pitching itself as being specially designed for the more tech savvy-generation. Millennials, having gone through the severe recession and the 2008 financial crisis, became wary of the big financial institutions that played a significant role in the hard-working world they found themselves in. They grew to trust in the new tech banking compared to their elders.
The modern fintech apps such as Chime are stepping in to offer millennials new wats of banking and saving. This is done without going through the corner bank branch. Being a mobile-only application, Chime allows its clients to save and manage their money while at the same time setting financial goals using their smartphones. Below are some of the benefits that have set Chime aside from the competition.
The San Francisco-based Chime bank account ensures top-notch security as well as luring new users low-fee policies. Its deposits are FDIC-insured by Bankcorp for up to $250,000. It also has a Visa Zero Liability that protects its Chime Debit Visa. The Chime account also has spending, savings, and debit card accounts. Chime’s advantages compete and even surpass those of the brick-and-mortar banks as well as the conventional debit card. Some of these advantages include:
- No fees
- Electronic bill payment with the Chime Checkbook
- Cashback on bill payment and spending
Another benefit is that Chime has an automatic savings feature which rounds up each purchase to the nearest dollar and moves the excess cash to the savings accounts of their users. Besides, Chime adds an extra 10% of the weekly round-ups to the savings account. This is free money combined with your automatic savings.
Chime has a modern application that allows users to transfer money among accounts, set up direct deposit, review recent transactions, and find an ATM. The android version is rated 4.6 out of 5 stars and its IOS version at 4.7 out of 5 stars. The application allows users to turn off their debit cards instantly. It also notifies users when it processes transactions to the accounts. The application also has a payment app feature and Pay Friends enabling users to transfer funds to family and friends with Chime spending accounts. The application lets users import contacts, or one can provide the recipient’s number or email at no cost. Moreover, one can receive daily bank account balance notifications and instant transaction notifications when a debit card is used.
Millennials are always looking for easy ways to save. Chime offers a high-yield, and competitive savings account that is earning 1.0% APY. It has a built-in feature that helps users save. This Round-Up feature rounds up each purchase on the Chime debit card to the nearest dollar and put the difference in the savings account. Also, with every monthly direct deposit of $500 or more, the Save When I Get Paid feature will automatically send 10% of the salary into the savings account. Both of these options are optional.
Other benefits include:
- Faster Pay
- No fees
- Competitive APY
- Free ATMs
- Automatic Savings