What is Chime?
Chime is a financial technology company that offers personal banking services through a user-friendly mobile platform. While it offers banking features similar to traditional banks, it is not a bank. Instead, it partners with FDIC-insured institutions: The Bancorp Bank and Stride Bank. This partnership ensures account holders receive the same level of deposit insurance as they would with a traditional bank.
Chime’s mission is to provide accessible, low-cost, and transparent financial solutions, targeting individuals who prefer online only financial services. The platform especially appeals to younger consumers, gig workers, and those who want to avoid monthly fees, overdraft fees, or minimum balance requirements. A Chime bank account offers numerous benefits.
What banking Services Does Chime offer?
Chime account holders enjoy a suite of services tailored to simplify personal banking and help users manage their money efficiently.
Chime Account
Chime offers a fee-free checking account with no monthly fee and no minimum balance. It allows for direct deposit, mobile check deposits, and ACH payments, making it a convenient central account for day-to-day transactions.
After setting up direct deposit, users can receive their paychecks up to two days in advance. This allows individuals to pay their bills or other expenses ahead of time. Since the account comes with check-writing advantages, users can pay rent, service providers, or anybody else who needs a check. There are no hidden fees, making it an ideal option for consumers seeking a hassle-free banking experience.
Credit Builder
The Credit Builder secured credit card reports to all three major credit bureaus, helping users build credit without the risk of overspending. It’s ideal for Chime customers who want to improve their credit score before applying for business credit or loans.
Chime’s Credit Builder isn’t a loan or a traditional credit card. It’s specifically designed for those who want to build or rebuild their credit.
There’s no annual fee or interest charge. Users load money onto their Credit Builder card by moving it from their Chime account. Then, they use their debit card to spend down that balance, just as they do with a debit card today. Because payments are reported to the big three credit bureaus, on-time payments will improve users’ credit scores.
Chime Visa® Debit Card
Each Chime checking account comes with a Visa debit card. The Chime Visa card is accepted worldwide and can be used for ATM withdrawals, in-store purchases, and online transactions.
SpotMe Overdraft Coverage
Chime’s SpotMe feature allows qualified users to overdraft up to $200 without insufficient funds fees, offering flexibility when managing account balances.
High-Yield Savings Account
Chime offers one of the better savings accounts available from online platforms, with a competitive annual percentage yield and no minimum daily balances. Chime’s high-yield savings account has a 2.00% APY.
There are no monthly service fees or minimum account balances. Users can schedule automatic transfers or round up debit card purchases to save their spare change. This allows consumers to save money without even realizing it.
Second Chance Banking
Chime is an excellent option for those who have had issues with banking in the past. Unlike traditional banks, it does not use ChexSystems to screen applicants.
Chime’s second-chance banking opportunities allow people with negative banking experiences to open accounts. This is incredibly important as it gets people back into the mainstream banking system.
Mobile Banking
Chime’s robust mobile banking app allows for easy account management, mobile payment platform integration, and budgeting tools on the go. Users can view account balances, pay bills, lock or unlock their card, and receive instant notifications for each transaction.
Mobile banking is a core component of Chime’s offerings. The app features a very intuitive and user-friendly interface. This low-friction experience creates a simple, intuitive app anyone can use, regardless of their technology proficiency.
ATMs
Chime offers access to a fee-free ATM network with over 60,000 locations, making it easy for customers to handle cash deposits and withdrawals. Chime users have access to more than 50,000 fee-free ATMs in the U.S.
Consumers can easily locate these ATMs through networks like MoneyPass and Allpoint. This extensive coverage allows users to access cash conveniently. They can withdraw cash without incurring additional fees, whether they reside in the urban core or the metro area.
Does Chime have Business Accounts?
Unfortunately, Chime does not currently offer a Chime business bank account. It focuses exclusively on personal accounts and services that simplify everyday banking for individuals.
That said, certain Chime features still benefit small business owners. For instance, the Credit Builder program can help entrepreneurs strengthen their personal credit scores, which can improve eligibility for small business checking accounts and loans.
Still, having a separate business checking account is essential for proper cash flow management, managing customer payments, and tax preparation.
What are the benefits of Chime banking services?
Chime is widely praised for its transparency, accessibility, and mobile-first convenience. Users benefit from no hidden fees, no overdraft fees, and no minimum balance requirements. The direct deposit feature allows users to receive payments up to two days early, while the mobile app makes managing money intuitive and easy.
Integrating with mobile payment platforms, receiving transaction alerts, and monitoring account balances in real time offer peace of mind. With the Chime savings account, users can automatically round up purchases to boost their savings.
What are the drawbacks of Chime banking services?
Despite its many advantages, Chime has a few drawbacks. The biggest downside is that it doesn’t offer a business bank account, limiting its usefulness for entrepreneurs.
Additionally, because Chime is an online-only financial services provider, it lacks in-person service, which some users may find inconvenient. Cash deposits can also be challenging, as they must be made through partner retailers. Lastly, the platform charges foreign transaction fees and only supports one savings account per user.
Chime Pros & Cons
Pros:
- No monthly fees or overdraft fees.
- Access to a fee-free ATM network.
- Tools to build credit with Credit Builder.
- Early direct deposit.
- Fully mobile banking experience.
Cons:
- No chime business account.
- No in person service.
- Limited cash deposit options.
- Foreign transaction fees.
- Only one Chime savings account.
What are the best alternatives for Business Bank Accounts?
While Chime doesn’t offer a business bank account, small business owners can still access top-tier business banking solutions. The following platforms offer digital-first business checking accounts with features rivaling or exceeding traditional banks.
Here are some highly recommended banking services for business purposes.
Bluevine Business Checking
The Bluevine business checking account is a standout option for small business owners looking to manage their cash flow without incurring typical banking fees. Bluevine Business Checking allows account holders to earn 1.50% interest on balances up to $250,000.
It offers no monthly fees, no minimum balance requirements, and unlimited transactions. Users can earn interest on their account balance—a rare perk for business checking accounts. Bluevine also features a tax bucket capability to simplify planning for tax season.
Business owners can batch pay bills, send domestic wires at no extra cost, and deposit cash at thousands of Green Dot locations. Its mobile and online platforms are intuitive, offering easy access to account balances, spending insights, and integration with accounting tools like QuickBooks, making it one of the best options for bluevine business banking.
Novo Business Checking
Built for freelancers and small business owners, Novo provides a seamless online only financial services experience. It has no hidden fees, monthly fees, or minimum balance requirements. The account supports unlimited fee-free transactions and refunds all ATM withdrawals.
Novo excels with integrations to platforms like Shopify, Stripe, and QuickBooks, streamlining financial management, customer payments, and accounting. The app is fast, user-friendly, and often allows users to get started in just a few minutes. Additionally, Novo offers international payment support via third-party providers, making it a viable solution for businesses with global operations.
Lili
Lili is designed for freelancers and sole proprietors who need a no-fuss small business checking solution. With no monthly fees, hidden fees, or minimum balance requirements, Lili makes it easy to manage your business finances. Features include real-time alerts, automatic expense tracking, early payment access, and built-in tax tools like a write-off tracker and automatic tax savings.
The intuitive mobile app links to accounting software, helping users simplify accounting and generate detailed financial reports come tax season. Lili also offers access to an extensive ATM network, supporting better cash flow management for solo business owners.
Axos Bank Basic Business Checking
Axos offers a business checking account with no monthly fees, minimum balance requirement, or minimum opening deposit. The account includes up to 200 free monthly items and unlimited domestic ACH payments, making it ideal for businesses with regular transactions.
Business owners enjoy unlimited ATM fee reimbursements, a strong online banking interface, and integration with popular accounting tools. With excellent customer service accessible via phone or website chat, Axos provides a full-service experience that bridges the gap between fully online banks and traditional banking institutions.
Mercury
Mercury is built with startups and tech-driven companies in mind. The account has zero monthly fees, no minimum balance requirements, and supports multi-currency accounts for global businesses. Users can issue virtual debit cards, conduct international payments, and hold funds in multiple currencies.
Mercury’s dashboard is clean and modern, with built-in tools to manage spending, pay vendors, and automate wire transfers. It integrates smoothly with accounting platforms and offers real-time visibility into your account balances and transactions. Mercury is an ideal digital-first banking partner for businesses focused on international growth and financial management.
Frequently Asked Questions
Here are the most common questions about Chime business accounts.
Do I need a separate Business Bank Account?
Yes, having a separate business bank account is essential for keeping your personal and business finances separate. It simplifies accounting, ensures accurate tax reporting, and is often required for securing business loans.
A dedicated business checking account enhances professionalism and builds trust with vendors, clients, and financial institutions. A dedicated business account also makes business transactions easier to manage. The IRS requires a business bank account to deduct business expenses when filing taxes.
What should I look for in a Business Bank Account?
When choosing a business bank account, consider the following:
- Low or no monthly fees
- No minimum balance requirements
- Easy access to cash deposits
- Integration with accounting and financial management tools
- A strong fee-free atm network
- Support for unlimited transactions
Also, look for features such as mobile banking, customer service access, and the ability to manage account balances from anywhere.
Will Chime offer Business Accounts in the future?
No, Chime currently has no plans to launch a Chime business account. The company remains focused on enhancing its personal banking products. However, not all financial institutions are the same; many online banks, credit unions, and Chase Bank offer excellent business checking account options.
NBKC offers a free business checking account with no minimum deposit and unlimited fee-free transactions. Nearside’s business checking account has no monthly fees and offers a welcome bonus on the first deposit.
LendingClub Business Checking allows fee-free cash deposits at MoneyPass ATMs. LendingClub Tailored Checking has unlimited ATM surcharge rebates for third-party fees. Bluevine Business Checking offers an interest rate of 1.5% on balances up to $250,000.
Does Chime Have Business Accounts? – Final Thoughts
While Chime offers innovative tools for personal financial growth, it falls short for those needing a business bank account. Its features, such as Credit Builder, mobile banking, and no hidden fees, make it a strong personal option. However, small business owners should seek dedicated platforms for their business banking needs.
Thankfully, there’s no shortage of reliable alternatives. Whether it’s Bluevine, Novo, Lili, Axos, or Mercury, each offers tailored solutions to support your financial journey. By choosing the right business checking account, you can simplify accounting, manage customer payments, and grow your small business with confidence.
Contact us if you have more questions about business banking or want to apply for a small business loan. Our alternative financing experts can help you find the best funding options for your business goals.
