Chime: Online-only accounts with minimal fees and a so-so APY

Chime is a financial technology company, not a bank. Banking services provided by The Bancorp Bank, N.A. or Stride Bank, N.A., Members FDIC.

Managing your money can feel overwhelming, especially when dealing with financial challenges such as eliminating debt or building a savings fund all while grappling with irksome banking fees or high credit card interest rates. While brick-and-mortar banks follow the conventional approach, opting for an online-only option like Chime® may be optimal for a streamlined and no-frills banking experience. 

CNBC Select analyzes how Chime works and whether it's worth it for your money.

• What is Chime?
• Chime Checking and Debit card
• Chime High-Yield Savings Account
• Chime Credit Builder
• How it compares
• Bottom line

Chime's is an online-only fintech company that offers banking services provided through Bankcorp Bank, N.A. and Stride Bank, N.A., Members FDIC. Although it offers such services, it does not classify as a bank and it does not have any physical branches present. Among its offerings are the Chime® Checking Account, Chime® High Yield Savings Account, Chime® Credit Builder Card and the Chime Visa® Debit Card*.

Chime markets itself as a (mostly) fee-free option for customers and it largely lives up to that hype. Here are some of the highlights of the Chime Checking Account: 

• No minimum balance requirement or monthly maintenance fees - Many major banks require a minimum balance or charge you a monthly maintenance fee (or both). Chime doesn't, which takes the pressure off of you having to keep a certain amount of money in the account. 
• FDIC-insured - Deposits are insured up to $250,000 through the Bancorp Bank, N.A. or Stride Bank, N.A., Members FDIC.
• No overdraft fees - Chime will simply decline your transaction without charging any fees when you overdraft your account. If you set up direct deposit to your Chime account, you can use Chime's SpotMe service to withdraw up to $200 over your limit. Just keep in mind you'll pay that money back from the next direct deposit to your account.
• Free ATM access - Customers can access over 60,000 in-network ATMs for no fee, which you can locate through the Chime app. However, if you withdraw cash from an out-of-network ATM, you'll pay a $2.50 cash withdrawal fee, plus any out-of-network fees that the ATM charges.

To qualify for the Chime high-yield savings account, you must first open a Chime Checking Account and then enroll in the savings account. Although it offers a 2.00% APY, which is a lower rate than most high-yield savings accounts in the market, it also offers some features to help you automatically save: 

• Round Ups – When using your Chime Debit Card or Credit Builder Card, Chime rounds up the transaction amount to the nearest dollar. The rounded-up amount then gets automatically transferred from your Checking Account or Secured Deposit Account, depending on which card was used for your purchase.    
• Save When I Get Paid – By enabling this feature, Chime automatically transfers 10% of incoming bank transfers or direct deposits over $500 from your Chime Checking Account to your Savings Account.  

Some other benefits include: 

• No monthly fees or minimum balance - Chime doesn't charge any monthly fees or require a minimum balance on the savings account. 
• No limit on outbound savings transfers - Consumers can do an unlimited amount of transfers from their savings account into their checking account, which is rare for many major banks.

Chime also offers a secured credit card — the Chime Credit Builder Visa® Credit Card** — which comes with no annual fees or interest charges and doesn't require a credit check. To qualify for this card, you need to have a Chime Checking Account and one monthly direct deposit of at least $200 into that account. You then move money from your Checking Account into a Chime Credit Builder account. That money serves as your security deposit for the card, and also determines your spending limit (e.g. if you put $500 in your Credit Builder account you have a $500 spending limit).

At the end of each month, you manually pay your card's bill from the money in your Credit Builder account. Chime also has an optional feature called Safer Credit Building, where for every purchase you make with the card, the equivalent amount of money in your Credit Builder account is "held" and automatically applied to your bill at the end of the month. Either way, your on-time payments will help raise your credit score.

Banking with Chime may be promising considering its minimal fee approach which is unlike most accounts in the market. However, if you're looking for a high-yield savings account that can grow money at a faster rate, you could opt for savings accounts with a higher yield and little to no fees. The Marcus by Goldman Sachs High Yield Online Savings account, for example, offers a 4.50% APY, no minimum deposits and easy mobile access.

If you're looking to do all your banking in one place like Chime offers, Ally Bank also offers a checking and savings combo. The Ally Bank Savings Account comes with a 4.35% APY with no monthly fee or minimum balance, while the Ally Bank Spending Account offers a .10% APY for no monthly maintenance fee, no minimum balance or deposit and no overdraft fees. Like Chime, these accounts are online-only but you'll have access to over 43,000 fee-free Allpoint ATMs. Ally also offers up to $10 reimbursement per statement cycle for fees charged at out-of-network.

Chime® offers an extensive selection of banking products, such as its Chime® Checking Account, Chime® High Yield Savings Account and Chime Visa® Debit Card, making it easier to manage your money. Chime also offers perks like unlimited savings withdrawals and unique benefits, such as automated savings programs. However, while Chime may serve as a great starting point, there are other competitive options in the market such as the Ally Bank Savings Account and Ally Bank Spending Account, that offer higher yields for your money.

At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every banking review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of banking products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics. See our methodology for more information on how we choose the best banking.

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*Banking services and debit card provided by The Bancorp Bank N.A. or Stride Bank, N.A., Members FDIC, pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa debit cards are accepted.

**The secured Chime Credit Builder Visa® Credit Card is issued by The Bancorp Bank, N.A. or Stride Bank, N.A., Members FDIC, pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa credit cards are accepted. Please see the back of your card for its issuing bank.