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Chime is one of several fully online banks that have recently gained popularity. They provide appealing personal finance solutions for individuals who prefer to use something other than traditional banks or credit unions.
Unlike conventional financial institutions, Chime operates entirely online and has no physical banking locations. A standout feature of Chime is its commitment to transparency, boasting no hidden fees or minimum balance requirements for personal accounts. However, the question remains: is Chime suitable for small business owners or entrepreneurs looking for business accounts?
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What Is a Chime Bank Account?
Chime is a financial technology company that delivers online-only financial services in partnership with two banks: The Bancorp Bank and Stride Bank. Both banks are FDIC members, ensuring the safety of Chime accounts for personal banking.
Chime’s primary appeal lies in its simplicity, offering just one checking account, one savings account, and one credit card. They pride themselves on providing mobile banking without monthly fees, minimum deposits, or minimum balance requirements.
Chime’s robust mobile app enhances the user experience by enabling mobile check deposits and balance checks. They offer the SpotMe service, which allows for overdrafts up to $200 without incurring fees.
What Are Some Benefits of Chime Checking Accounts?
Chime checking accounts come with a Visa debit card, allowing ATM withdrawals at over 60,000 fee-free locations, including MoneyPass, Allpoint, and Visa Plus ATMs. The Chime app also lets you create and mail paper checks, eliminating the need for a checkbook.
There are no foreign transaction fees when using the debit card abroad, though there are some locations where the card may not be accepted.
What Are Some Benefits of Chime Savings Accounts?
Chime’s savings accounts are a solid pick for those who prefer a hands-off approach to building their savings. They offer two straightforward automated savings programs:
- Save When You Spend: This rounds up your transactions to the nearest dollar, transferring the difference from checking to savings.
- Save When You Get Paid: Here, you can set up a recurring transfer of 10% of your paycheck from checking to savings every payday.
Plus, they offer a competitive 0.50% APY on their high-interest savings account, and the interest you can earn is unlimited.
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What Are Some Other Benefits of Chime for Personal Banking?
Chime offers the Credit Builder Card for those aiming to boost their credit. This Chime Visa card comes with a 0% APR and reports to all three major credit bureaus. It doesn’t require a hard credit check, so your credit score remains unaffected.
You can preload the card with money from your checking account and use it like a regular credit card. It’s a fantastic option for individuals who want to build their credit but might not qualify for a traditional credit card.
What Are Some Cons of Chime for Personal Banking?
Chime account holders often need help with making cash deposits. In-person service is a challenge since Chime doesn’t have physical branches for face-to-face interactions.
There have also been occasional issues with accessing funds and accounts, possibly due to startup growing pains. Despite these challenges, Chime is a great choice for those beginning their financial journey.
Can You Create a Chime Account for Your Business?
Despite Chime’s many advantages for personal banking, they do not provide business checking or savings accounts.
Sole proprietors might consider using Chime for both personal and business banking. However, Nav typically advises keeping business and personal accounts separate, especially for tax reasons.
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Alternative Options to a Chime Business Bank Account
If you’re a small business owner seeking a business bank account that matches Chime’s personal account features, there are several great options available. Here are some top picks:
Bluevine Business Banking focuses on small businesses and is another online-first option with a fast application process. They offer a Bluevine Business Debit Mastercard and support for digital wallets and mobile payment platforms.
Bluevine provides several no-fee benefits, including no monthly fees, no insufficient funds fees, and no minimum balances. You can also earn 1.2% interest on balances if you spend $500 per month on your debit card or receive $2,500 in customer payments. Their Business Checking account provides a 4.25% APY for Premier customers and a 2.0% APY for Bluevine Standard tier customers.
Chase Business Complete Banking, supported by Chase Bank, offers extensive physical locations and ATMs across the U.S. While there are monthly fees, they can be waived with minimum daily balances or purchases on the Chase Ink Business credit card. The mobile app provides notifications and easy account management.
Lili is tailored for sole proprietors and single-member LLCs. It features built-in tools to simplify accounting and tax savings, such as a write-off tracker and tax bucket capability. Lili offers no fees, overdraft coverage, a Visa debit card, and access to a fee-free ATM network.
Frequently Asked Questions
Bottom Line
A business checking account is crucial, but not all financial institutions offer this option. All Chime accounts are personal. Thankfully, there are other options available.
The recommended banking services are online, making them easy to open with minimal requirements. Unlike traditional banks, online banks are more likely to approve checking and savings accounts for those with poor credit histories.
