Is Chime a Safe Bank?
Chime is a trustworthy financial platform that operates legally in the United States. Besides, it is also insured by the Federal Deposit Insurance Corporation (FDIC) to protect investors’ funds.
The banking sector has evolved, with digital banking alternatives like Chime becoming compelling options for many seeking a convenient banking experience. However, there have been some concerns about the security and reliability of the Chime platform, especially with the rapid rise of online banks. To this end, we discuss the safety measures, regulatory compliances, and security protocols employed by Chime. Therefore, read this article to the latter to find out whether Chime is a secure haven for modern-day online banking.
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Can I trust Chime?
Yes, Chime is a trustworthy financial platform that operates legally in the United States. Besides, it is also insured by the Federal Deposit Insurance Corporation (FDIC) to protect investors’ funds.
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What are the cons of using Chime?
Chime has limited physical branch presence and deposit limitations.
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Is Chime a real bank?
No, Chime isn't a real bank. Chime is a financial technology (FinTech) company that partners with other banks.
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Who owns Chime?
Chime was founded by Chris Britt and Ryan King in 2013. However, the company was launched in April 2014.
Is Chime Legit?
Chime is a financial technology company founded in 2013 with its headquarters in San Francisco, California, United States. However, Chime was officially launched in April 2014 and has become one of the most prominent financial platforms to reckon with.
Chime is a mobile banking app that operates as an alternative to traditional banking, offering fee-free checking, debit card and savings card transactions. The platform is notable for its user-friendly interface, fee-free banking services and innovative approach to enhance a seamless banking experience.
Furthermore, Chime is a legitimate financial technology (fintech) platform that operates within the regulatory framework of different states and federal agencies within the United States, ensuring it adheres to safe and transparent financial practices.
Therefore, Chime’s activities are monitored by agencies like the Consumer Financial Protection Bureau (CFPB), the Department of Justice (DOJ), and the Federal Trade Commission (TFC). Besides, Chime also operates in line with the banking regulations and financial laws in the United States.
Is Chime Legit in My Country?
Chime currently operates in the United States and is available for citizens or legal residents in any of the 50 states in the country. Besides, U.S. citizens or legal residents in the U.S. must be at least 18 years of age to be eligible to operate an account with Chime.
Is Chime a Scam or Safe?
No, Chime isn’t a scam. Chime isn’t a scam because it is a legitimate fintech company regulated by banking laws in the US. Besides, it also partnered with the Federal Deposit Insurance Corporation (FDIC) members like the Bancorp Bank, N.A. (FDIC No. 35444) and Stride Bank, N.A. (FDIC No. 4091), ensuring the protection of investors’ funds.
Furthermore, Chime provides a secure platform for investors by implementing security measures like two-factor authentication (2FA), which protects investors' accounts from unauthorized access. In addition, users’ credit cards are protected using best practices and cyber security framework works like the Payment Card Industry Standard (PCI-DSS), the National Institute of Standards and Technology (NIST), the International Standard for Information Security (ISO 27001), and the Service Organization Control Type 2 (SOC2).
Chime Pros and Cons
We have established Chime as a popular digital banking platform that operates under strict supervision and has innovative features and optimal security measures for a seamless banking experience. However, like any fintech, Chime has a set of merits and drawbacks.
Therefore, let’s look into the pros and cons of Chime for a balanced perspective of the platform:
👍 Chime Pros
• Mobile-Friendly: The Chime mobile app is intuitive and user-friendly, enabling easy mobile check deposits, real-time alerts, account management, etc., offering a seamless bank experience for even a beginner.
• NO Banking Fee: Chime provides fee-free banking services, unlike the mainstream banks that charge customers banking fees like monthly maintenance fees, overdrafts, etc.
• Automatic Savings: Chime’s intuitive saving feature, “Save When You Get Paid”, enhances a healthy saving practice. It automatically allocates a percentage of direct deposit into a savings account.
• Cash back Rewards: Chime offers a reward program where users can earn cash back on certain purchases, adding financial benefits for shopping with the Chime credit card.
👎 Chime Cons
• Limited Physical Branch Presence: Chime, as a financial technology (fintech) bank, operates with a limited physical branch, which could be challenging, especially for customers who prefer face-to-face banking services.
• No joint Account Feature: Chime may not be suitable for corporate bodies, family accounts, etc., because it doesn’t support joint and business accounts.
• Deposit Limitations: Chime imposes $1,000 and $10,000 as daily and monthly deposit limits, respectively. These deposit limits could be inconvenient for users who intend to make a larger deposit.
How can I withdraw money from Chime?
The Chime platform offers users ATM and over-the-counter cash withdrawal methods. Therefore, let’s consider these two methods of how to make cash withdrawals on Chime:
ATM Withdrawal Method:
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Locate an ATM within the Visa Plus Alliance, Allpoint and MoneyPass networks for fee-free withdrawal. All ATM networks within the Visa Plus Alliance, Allpoint, and MoneyPass offer fee-free transactions to Chime ATM holders.
In addition, it is instructive to note that Chime has over 60,000 fee-free ATMs through a partnership with MoneyPass and Visa Plus Alliance for cash withdrawal. Users can locate the nearest ATM on the Cash Map section of the Chime app.
However, users may also make cash withdrawals on any out-of-network ATM, which attracts a $2.50 withdrawal fee (excluding the fee from the third-party ATM) for every cash withdrawal. Finally, $515 is the maximum withdrawal limit for ATM daily withdrawals.
Over-the-counter Withdrawal Method:
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Visit any bank or credit union nearest to you.
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Present your Chime Visa Debit Card to the teller and request a withdrawal.
In addition, cash Withdrawal done over-the-counter also attracts a $2.50 withdrawal fee. Besides, the withdrawal limit via over-the-counter is $515 per day.
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Team that worked on the article
Joshua Francis is a professional Forex trader with 4+ years of experience in the financial industry. He trades the XAU/USD and GBP/JPY pairs. He is also a ghostwriter and author for Indicatorspot and Traders Union, where he puts his intensive research skills and deep knowledge of the financial markets into freelance writing.
Dr. BJ Johnson is a PhD in English Language and an editor with over 15 years of experience. He earned his degree in English Language in the U.S and the UK. In 2020, Dr. Johnson joined the Traders Union team. Since then, he has created over 100 exclusive articles and edited over 300 articles of other authors.
Mirjan Hipolito is a journalist and news editor at Traders Union. She is an expert crypto writer with five years of experience in the financial markets. Her specialties are daily market news, price predictions, and Initial Coin Offerings (ICO).