Chime is a new age bank that has no physical branches. It operates online only, unlike traditional banks which have both physical and online presence. Chime is not a bank in the traditional sense. Rather, it is a fintech company. Chime offers its services through its mobile application, which is very popular with its users. This branchless “neobank” has more than 12 million customers.

Chime partners with two banks, Bancorp Bank or Stride Bank, NA, to offer its checking and savings accounts. Chime accounts always have FDIC insurance. Therefore, like traditional banks, you can keep money safe with Chime. The company does not charge monthly fees or overdraft fees. Chime has an extensive ATM network and also offers early access to direct deposits.

So while there are factors that make Chime a good bank, there are some drawbacks that make it an inferior alternative to traditional banks. One downside is that depositing cash is difficult and it can get expensive for you to deposit money. Online transfers initiated through Chime are limited to $ 200 per day.

There have also been numerous reports of consumer complaints regarding denied access to their Chime accounts and funds. The company maintains that these issues were caused by Chime’s increased anti-fraud efforts during the COVID-19 pandemic.