Banks are financial institutions that help people deposit money, give loans, and operate various services. Chime and Chase are two of the most innovative and successful banks in the United States. Chime vs Chase is a competition between traditional banking and digital banking.
Chime and Chase Bank are two entities in the financial industry. One focuses on online banking but also in-branch services. So, depending upon your financial needs and banking styles, maybe only one may be perfect for you.
JPMorgan Chase NA Bank owns Chase Bank. They were established in 1799 in New York, NY. Chase is known worldwide. Chime was established in 2013 as a mobile banking app.
Chime is a financial technology company and not a bank. The Bancorp Bank provides the actual banking services they provide. Chime is best for Millennials and Generation Z as they offer easy access to transfer money to and from Chime, no minimum, monthly, or overdraft fees, and allows you to get paid up to 2 days early.
Similarities of Chime and Chase
So why even compare Chime vs Chase if Chime has so many popular services? Both Chime and Chase are FDIC insured. Chase is digitalized but has access to traditional banking services.
When deciding between Chime vs Chase bank, a key question may be whether I can take my money out at any time. Both banks offer a feature for sending money to friends and family.
Chime offers a service under their Pay Anyone tab, which allows you to search for your friend’s name, their Chime Name, or if your friend is not a part of the Chime family, you can enter their email or phone number.
Chase uses a company called Zelle. It is a familiar term used to intertwine with Chase QuickPay. However, Zelle is an independent company used by many major banks worldwide.
Differences between Chime vs Chase Bank
One of the first major differences between Chime vs Chase Bank is that Chase Bank is a real bank providing personalized banking services. Their financial services span through more than just personal banking, as well as auto and mortgage services, credit cards, small business loans, investment advice, and payment processing services.
In addition, you will find Chase is an international bank with physical branch locations. Chime, on the other hand, is totally digital.
Chime vs Chase Bank Fees
Chime does not have a physical branch location, which is probably why this bank has no fees. In addition, Chime offers a background-free checking account.
This means there are no monthly fees and no hidden fees. You can just have the account open and not worry about anything from monthly deposits to a minimum account balance.
Chase Bank does not offer a totally free checking or savings account. What they do to offset this is a variety of ways to waive their fees. To waive fees with Chase, options vary from maintaining a minimum daily balance to having particular types of monthly deposits.
Who is Chime Best For?
Chime is best for the simplistic person. Chime avoids the prerequisites and offers a totally free checking account if you have little to no credit history or bad credit. You need no prequalifying offers, and you can sign up online through their app.
Do you often ” borrow money” from yourself as you drive past the bank and ATMs? Chime is also best for those looking to save money but who have a hard time keeping their money in the bank!
Without having a physical bank readily available to access, saving money is a great method if you are using Chime – out of sight, out of mind.
| Pros | Cons |
|---|---|
| Free accounts with simple lineup | The company offers online support only, not face-to-face service. |
| Competitive Savings APY | Some services are not fee-free - you may pay for depositing cash or for ATM withdrawals. |
| Savings tools are available to help improve your savings habits. | Some services have limits, such as spending limits on withdrawals and purchases. |
| Early receipt of direct deposit payments has a positive impact on one's ability to plan, budget, and save. | There are no multi-currency account options available. Fees for using your card overseas may be higher than in the United States. |
Who is Chase Best For?
Chase Bank is for those who need various banking methods and services. Chase is a traditional bank, so you will have access to personal loans, mortgage loans, credit cards, and investment tools such as CDs and Money Market accounts. So, if you need everything to be a one-stop-shop, Chase is for you.
| PROS | CONS |
|---|---|
| Avoidable monthly fees | Only a 0.01% interest rate is offered on savings accounts |
| There are thousands of physical branches | Low CD rates |
| Cashback rewards | $2.50 fee at non-Chase ATMs |
| Opening new accounts can earn you bonuses | Overdraft fees are high |
| A wide range of financial services are offered |
Overdraft Protection of Chime vs Chase
Chime will spot you up to $200 with their SpotMe fee-free overdraft protection. This is their way of providing you with overdraft protection with no fees.
To be eligible to use SpotMe, you must have a qualifying direct deposit of $200 or more each month. Upon opening your account, you are only allowed up to $20 on debit or cash withdrawals, and it may be eligible for up to $200 at a later time, given other criteria.
Chase has a variety of overdraft practices, so it is best to sit down with a representative and speak about which may work best for you. However, under their standard debit card coverage, they charge a $34 insufficient funds fee per item once your account is withdrawn by more than $50.
This is a service you must opt-in for. Their standard overdraft practice will cover checks, recurring debit card purchases, and automatic monthly payments. It will not, however, cover your daily debit card transactions.
How to Open a Chime Account
You can open your Chime Account in under 5 minutes. The major requirements are:
- be 18 years or older
- be a US Citizen or resident of the United States
- have a valid home address
- have a Social Security Number
You simply go to member.chime.com/enroll and complete the online enrollment form. There are no branches to mail in. Chime will send their Chime Visa Debit Card and arrive within ten business days.
How to Open a Chase Bank Account
Chase allows you a variety of methods to open an account from their website, the mobile app, or stop at a local branch. However, many of their accounts require some deposit upfront or soon after opening. So it really depends on the account that will suit your needs.
They also have sign-up bonus offers, such as $100 for a new Chase customer opening a Chase Secure Banking account with qualifying transactions, on the plus side of things. The major requirements to open a Chase Bank account are:
- Social Security Number
- A valid state ID or driver’s license
- Have a valid home address
Notice that we did not mention needing to be a US Citizen or resident of the United States to open a Chase account. However, if you remember earlier, Chase Bank is worldwide, so you can input your Country of Citizenship, identify if you have a Green Card or not, and possibly must answer additional questions to know what tax forms you might have to fill out.
Chase also has a variety of children’s and student accounts, such as First Banking, High School Checking, and College Checking. So, you may not need to be 18 to open these accounts. However, minors will require a parent or guardian to open the account on their behalf.
Chime vs Chase Bank – Which really is Best?
So how does one decide if Chime vs Chase Bank is best for them? To sum it all up, if you are looking for a simplistic account with little to no fees, Chime is best for you. However, Chase Bank is best if you need traditional banking services with all the bells and whistles.
Chime and Chase Bank FAQs
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