Tag: Technology

 

Pay Friends Just Got Friendlier

Today, we’re excited to announce that you can now use our Pay Friends feature to instantly send money to anyone, even if they’re not a Chime Member! Now it’s even easier to square up the rent with your roomie or split that last round of drinks with your BFF. All you need is their phone number or email address. 

At Chime, we work every day to find more ways to simplify your finances so that you can manage all of your expenses in one place. We hope this new Pay Friends update makes your life a little bit easier by eliminating the hassle of dealing with cash or checks. 

Why Choose Chime Pay Friends vs. Other P2P Payment Apps

Nowadays, splitting the bill is as easy as sending money through your phone. In fact, 49% of millennials and 44% of Gen Xers now prefer digital payments to cash, which has given rise to many very popular peer-to-peer payment apps (P2P). Here at Chime, we’ve processed over 3.2 million Pay Friends transactions to date. That’s approximately $237 million dollars sent back and forth between friends and family; $30 million of those were just in the last month. It probably makes you wonder, what makes Chime’s Pay Friends so different?


The main difference between Pay Friends and other P2P apps is that Pay Friends is connected to your Chime Spending Account so you’ll have instant access to spend it with your Chime Visa® Debit Card. 

Here are 3 reasons to use Pay Friends vs. other P2P apps:

  • Money is deposited into your account instantly for transfers between Chime Members.
  • No need to cash out or wait for days for funds to arrive in your bank account.
  • Chime will never charge you hidden fees to make a mobile P2P transfer or to access the funds from the transfer. Many P2P platforms charge a fee to get your money instantly. Fees can range from a flat fee of .25 cents to 1.5% of the total amount. 
  • If you pay a friend who is not a Chime member already, you are both eligible to receive a $50 referral bonus when they set up and receive a direct deposit of $200 or more within 45 days of opening a Spending Account.* 

How to Start Paying More Friends

  1. Just log in to your Chime app and tap ‘Pay Friends’.
  2. Input your friend’s information or select them from your contacts.
  3. Send them the amount you owe.

Piece of cake, right? 🍰Your friend will receive a message with directions on how to sign up for a Chime Spending Account and claim their cash if they don’t have a Chime Spending Account**.

Who knows, you just might become better friends afterwards.

(Pay Friends Infograph Here – submitted separately see Infographic – Pay Friends)

FOOTER

*In order for both parties (the referred friend and the referring Chime member) to qualify for and receive the $50.00 referral reward, the following conditions must be met: the referred friend must open a new Chime Spending Account using the referring Chime member’s unique referral link after June 1, 2008 and receive a payroll direct deposit of $200.00 or within 45 days from when the Chime Spending Account was opened. The payroll direct deposit of the referred friends must be made by their employer, payroll provider or payer by an ACH deposit.  Bank ACH transfer, Pay Friends transfers, verification or trial deposits from financial institutions, transfers from PayPal or Venmo, mobile check deposits, and cash loads or deposits do not qualify as a payroll direct deposit. Referring Chime member must be part of the $50.00 for Payroll Direct Deposit referral reward campaign in order for both parties to be eligible for the $50.00 referral reward. The referral reward per calendar year (January 1, 2018 – December 31, 2018). Referred friend acknowledges that payment of the referral reward may result in the referring Chime member’s knowledge of you establishing an account with us. Chime reserves the right to cancel or modify the referral reward terms or terminate the member’s eligibility, at any time with or without prior notice.  This offer is neither sponsored nor endorsed by The Bancorp Bank. Credits of $10 or more must be reported on tax form 1099-INT. Each eligible referring Chime member may earn no more than $500.00 in referral rewards per calendar year (January 1, 2018 – December 41, 2018).

**In order to complete the payment, the non-Chime member must apply and be approved for a Chime Spending Account within fourteen (14) days to complete the transfer and access the transferred funds. If the non-Chime member does not apply and get approved for a Chime Spending Account within fourteen (14) days of initiating the payment, then the payment will be cancelled, and the Friend Transfer dollar amount will be returned to the existing Chime member’s Chime Spending Account.

Pay Friends and any transfers made with Pay Friends are subject to the Deposit Account Agreement.

 

Banks and Early Direct Deposit

Early direct deposit proves to be very beneficial and convenient for a lot of employees. Who doesn’t want their money to be available as soon as their employer releases their pay? Many banks support this system since people are now choosing to have their pay directly deposited to their accounts, rather than waiting for their checks to come in. This provides a healthy competition among banks, and it is up to them to show how they compare with one another.

Different options for different people

Because of the direct deposit option, consumers are wise to open bank accounts. Without an account, people would not be able to get their pay early. Opening an account is the first requirement before enjoying this efficient payroll system. Banks, in return, take this as an opportunity to provide direct deposit features.

While early direct deposit is very appealing, there are numerous banks to choose from that provide this offer. Examples of these banks that have a direct deposit feature are Citibank, Bank of America, Wells Fargo, and Chase. These are well-known names and have competitive offers but what they don’t have in common, though, are their own monthly banking fees such as maintenance fees, overdraft fees, minimum balance fees, and foreign transaction fees. These are the things that a consumer needs to consider before opening an account. That being said, it is best for consumers to determine the type of bank account that is suitable for them.

If consumers don’t like the idea of too many fees and don’t have the time to go to an actual bank, they could try opening an online banking account such as Chime. With Chime, consumers:

  1. Don’t have to worry about monthly fees and hidden charges
  2. Can enjoy early direct deposit and;
  3. Save time by not having to visit a bank location to deposit their paychecks.

The Bottom line

Banks are becoming competitive because of the need to respond to consumers’ needs. Early direct deposit provides consumers an easy way to get their pay early without waiting for paychecks to come in the mail. While a lot of banks offer an early direct deposit feature, it all boils down to their banking fees. Surely, some people do have the capacity to pay for these fees, but for those who can’t, there are alternatives to traditional banks like Chime.

No monthly fees, no personal appearance to a bank. Chime is an online banking option that is very convenient and accessible for consumers. Not to mention that people can save money when they have a Chime account. Without the monthly fees, the money they get from their early direct deposit is in their hands, which means more money can be saved for other purposes.

With all of the bank competition, a person should first think carefully about a bank’s services before getting an account. The consumer needs to think about taking care of their finances in the long run, and part of this is determining the best option for keeping their money safe and secure.

 

Banks With Free Checking and No Minimum Balance

Bank Fees

It is a fact that banks earn a huge amount of money on fees. A lot of them apply to the checking account and it is one of the most overlooked things in our finances. From opening a checking account, paying monthly maintenance fees and overdraft fees, banks can take more than $350 a year per average household. Some households have reported that after reviewing how much they spend on extra fees they gave away more than $700. Just think of what you could do with that extra money, is it really worth giving it away? With that in mind, it is clear that this is not only stressful but it can be quite a burden, especially for those stuck with stagnant wages and outstanding debt. Aside from the fees mentioned above, there are card replacement fees and ATM fees. There are also penalties for exceeding the daily withdrawal limit on ATMs and additional charges for overdraft if an account has insufficient funds after 5 days. All of these things have to be considered when choosing the correct checking account.

Online advice on how to save money in banking

The real goal is to show how and in what way a person can save some extra cash without paying all of these unwanted fees. The advice offered online is not always good, and it just does not work in real life situations. Many banks offer advice on how to avoid ATM fees and overdraft fees, but be careful. Bank advice is to withdraw money from an ATM less often, withdraw large amounts of cash so it lasts longer, carefully monitor and visit the bank branches to check on your financial status so you avoid overdraft fees and so on… This, in fact, does the trick, but it works only on paper and only a minority of people can do this. For this to work everything must always be constant and if anything unpredictable were to happen, this plan would fall apart and you would still end up paying for fees. Imagine a situation where you have just picked up cash from the ATM for that week and suddenly you realize you forgot about an upcoming event for that weekend. Or if you withdraw your entire paycheck from your checking account at once and then misplace that money somewhere. In this case, you also risk of not maintaining the minimum balance requirements on your account, which would then initiate the monthly service fees. As you can see, it is a constant loop of problems where all of this is certain to cause a lot of headaches for many account holders.

Traditional Banking System

Since the 2008 recession, many things have changed. The economy slowly recovered and the banking system stabilized. The main problem that remains is the traditional way in which the banks operate. The large number of fees, including ATM, that are all connected to the bank account only work in favor of the bank and all the rules created to avoid the fees are complicated and well-designed so the average person will incur additional charges on their checking account. The banks should not be the ones taking our money this way. When you choose a checking or banking account, the bank has plenty of ways to earn money by investing it and turning it to profit, so why all the fees? Easy, answer… More profit. It is on rare occasions we hear the bank has gone broke, especially the large traditional ones. More often is that we read about billions of profit they earn. It is an established fact that the banks earned over $22 billion during the 2016 just from additional banking fees implemented.

Minimum Balance

One way for banks to apply fees is to set a minimum balance requirement for the checking account. This way, if account holders do not meet the minimum required, additional fees like monthly maintenance fee activate. Traditional banks still use fees like this and instead of helping, they are punishing people who do not have the ability to reach their minimum balance. Thankfully, there are new options out on the market that can help us choose an account that has none of the fees we mentioned so far and offer an account with no minimum balance. Online banking is becoming a big thing and it is constantly growing and improving. With mobile banking apps, support, easy to use interface and quality services, new systems are starting to become popular. To go with the tide, traditional banks have also implemented all of the above mentioned, but the thing that remains unchanged are the fees on which these banks so heavily rely on, and very few have a minimum balance requirement for opening a checking account, or off a free checking account with no minimum balance.

Let us compare some of the banks and see what they provide

Options for Wells Fargo Accounts:

Wells Fargo is one of the top 5 largest banks in the US. To open a checking account, you need $25 and there is a monthly maintenance fee of $10. There is a $35 overdraft fee when account has insufficient funds. There are some ways to waive the fees but be careful to read all of the rules on how to do this. One way to waive the monthly checking maintenance fee is the $1500 minimum daily balance and for a student, or someone with debt issues this is not an easy thing to do. There is one positive thing, Wells Fargo gives an option to avoid this fee if you are of age 17-24. The number of ATMs for Wells Fargo is 13,000, but you should always double check if there are ATMs near your home and the places you regularly visit. If this is not the case, you may end up paying an additional withdrawal fee of $3. As for international ATM fee, most of the banks including Wells Fargo have this set to $5 plus 3% from the transaction.

Options for Chase Banking and Checking Accounts:

Chase, one of the Big Four Banks, checking account has a $12 monthly checking maintenance fee and you need a $25 opening deposit. The overdraft fee is $34. With this account, you will have access to 16,000 ATMs connected to Chase checking. When using an ATM that is not from the Chase branch system, the fee is $2.50 and the international ATM is $5 and 3%. Similar to Wells Fargo, Chase offers options to waive the monthly maintenance fee. Consumers can do this by either making a direct deposit of $500 each month, or having a $1500 minimum daily balance, or having a $5000 combined on all your Chase qualifying accounts.

Banking Options for Bank of America:

Bank of America has similar options as Chase. It has 16,000 ATMs, $25 opening deposit and a $12 monthly maintenance fee. The monthly maintenance fee can be waived by making a direct deposit of $250 for each statement cycle, by having a $1500 minimum daily balance or by being a student under 24 years of age enrolled in college. The same as the previously mentioned banks, there is an overdraft fee of $35, a $2.50 ATM fee for using an ATM outside of the branch system and an international ATM fee of $5 and 3%.

Free Bank Account Options for Chime:

Last, we will look at the options for Chime. A Chime account is an online spending account with none of the fees mentioned above. It has no monthly maintenance fee and no minimum balance requirements. With Chime, you also get access to 38,000 fee-free MoneyPass and Visa Plus Alliance ATMs. Chime has a $2.50 ATM fee when not using an ATM machine from its own branch, but this does not occur often. As mentioned above, Chime as many other banks has a great mobile app and search system. This helps find an ATM near you that you can safely use without the fear of getting charge for the service. In addition to this, Chime also has the largest number of ATMs free of fees and spread across the state so wherever you go, you do not need to worry. As for saving money with Chime, the system rounds up the change from every purchase and adds to the savings account, and you can opt for 10% of every paycheck to go to the savings account. We all know that it is a good feeling when we have an additional bundle of cash that we can spend on whatever we please every couple of months.

Banking Account Results

What we see listed above is that all of the traditional, large banks have a $25 opening deposit, $10 or higher monthly maintenance fee, $35 overdraft fee. They all have banking fees for using the ATM outside of its original bank that is either $2 or $3 and an international ATM fee of $5 and 3% of transaction value. As for the number of ATMs, that number is around 15,000. When we compare these stats to the free Chime account, we can see the clear picture. Chime has twice as many ATMs without fees, has no minimum deposit, no monthly maintenance fee, no overdraft fee. The Chime account does have a $2.50 ATM fee but with Chime, there is no international ATM fee. One thing we did not mention in the lists above is the fee for receiving a new card if you happen to lose one. All of the traditional banks have this fee set at $10, sometimes going as high as $25, but Chime issues a new card free of charge. Out of all mentioned above, Chime account is the only option with a checking account that is free. It does not matter if this is the first time you are opening an account or if you are switching to a new account because you were not satisfied. The only thing that is important is to get to know your facts before choosing so you can be certain that you made the best possible choice.

WHAT IS THE BEST CHECKING ACCOUNT OPTION?

It is understandable that things are not always black and white. What works for one group of people does not necessarily apply for another group. There are many examples of this. One person that has a high income and may not be burdened by debt and has no problem with choosing a traditional checking account because they can easily reach all of the requirements to have their fees waived. This way, they can even apply for special checking account programs that offer a lot of benefits with a decent interest rate. The problem is, not all of us have $100,000 just laying around and waiting to be placed in a checking account. So, if you are just starting with your financial independence, it is wise to consider a free account that is not full of so many fees and rules. These may end up complicating your balance if you miscalculate. Chime has a lot more pros when compared with other traditional banks and their systems, it erases all of the problems with online checking and banking advice given on saving money and it automatically saves you some extra cash when you make purchases. In conclusion, the best choice for someone searching for a checking account that is free of charges and has no minimum balance is the Chime account.

 

Best free checking accounts of 2019

Checking accounts

Most people use their checking account as a main tool to receive income, pay bills and make purchases. For many, it represents the foundation of personal finances. The checking account has a link to other financial accounts that people use for money transfers. What people tend to forget is the fact that in the beginning, most of the checking accounts were fee-free. However, this changed and today, account holders from almost every large bank face a hefty amount of fees. These fees cover monthly maintenance, overdraft, card replacement, ATM and international ATM transfers and many more. Here, we will cover the details of what makes a free-checking account free and explain how the banks are actually taking our money to give us our money. As strange as it sounds, this is the way banks function and that is why billions of dollars of profit are reported each year by those same banks just from fees alone. This article will research and compare several fee-free checking accounts that might look best and could be a good account option for the upcoming year of 2019.

Advantages of a free checking account

The banking system in the US currently seems to be using the old traditional ways of banking. Burdening the common consumer with unnecessary fees is one of the things banks do to increase their profit. The only way to avoid the fees is if you have thousands of dollars in your account. Because this is not acceptable to many people, there came a need for alternative ways people can use and manage their finances. Monthly maintenance, overdraft and many other fees are becoming outdated as free checking accounts are making their way to the market. These free checking accounts are designed to have zero fees and have no hidden charges or conditions that complicate your financial life. Some of the benefits provided by the traditional banking system are still tempting to people but after reviewing the terms and conditions, one might come to the realization that it is just not worth it. The need for a free checking account is real, and it is only a matter of time until these types of accounts replace the ones burdened with fees. If you are searching for an account that you can use for paying bills, receiving paychecks, transferring money across accounts, withdrawing cash from a large number of fee-free ATMs and receiving cash-back rewards from several thousands of locations without all the fees, then you need to read this article to examine the best available options.

Highest Annual percentage yield (APY)

Before we begin the comparison, it is important to mention APY and what it represents in the world of banking. You earn this interest by having money in your debit account, or in your savings account. It does require a bit of complex math to do the real calculations but the focus should be on one thing. If the APY is bigger, you earn more money. There are people who judge this as a valuable advantage for a bank, but truthfully, for a checking account, this is not very important. A checking account is a core structure for our in and out flow of cash. With it, we pay our expenses, we receive paychecks, so it is not exactly a main tool we would use to increase our financial balance. There are many different savings accounts and options where we can deposit our money and slowly watch it grow. Searching for a checking account that has the highest APY only makes sense if we can keep the balance on that card around $20000 or more. This means only a minority of people should actually pay attention to the highest APY while most should focus on which banks offer accounts with no fees or those with easily avoidable fees.

Bank offers for checking accounts in 2018

Let us look at options from several large US banks that offer for fee-free checking accounts. It is not rare to see that one bank offers two or even more checking accounts, each with unique specifications that a customer would need. Below, in the offers for Citibank and PNC, you can see that these are not completely free checking accounts but there are great benefits for elderly citizens, so take note if you are of age 62 or older and additionally, check on these two banks.

Chase

Based on the latest research from September 2018, Chase Total Checking Account gives customers many benefits. Because of the $12 monthly maintenance fee, it is not exactly free, but Chase Bank does offer ways to avoid this fee. For the bank to waive the fee, the account holder must have monthly direct deposits totaling $500 or more made to this account or keep a minimum daily balance of $1,500 or more in your checking account. One more way to waive this monthly maintenance fee is to keep an average daily balance of $5,000 or more in any combination of qualifying Chase checking, savings and other balances, but this implies that the person already has accounts affiliated with Chase. Pros for Chase are 5000+ physical branches, solid mobile app for banking online and a $200 sign up bonus. As for the ATMs, the 16000 ATMs does not sound bad, however, always check if there are ATMs available near your place of residence. The APY is low and similar to the rest of traditional banks so the chance to earn through interest with this account is not great.

BBVA Compass

The BBVA Compass ClearConnect Free Checking account has a minimum opening deposit of $25. There is no monthly maintenance fee, but to avoid the $3 fee for this service, be sure to opt out the Paper Statements. In addition, with this account you have access to over 55000 AllPoint and BBVA Compass ATMs worldwide so this would be a great choice if you are looking for a checking account with the most fee-free ATMs available.

The BBVA Compass ClearChoice Free Checking account is more suitable for customers who still need access to physical branches. Of course, this means they will be limited to only a portion of states as BBVA Compass has branches in Alabama, Arizona, California, Colorado, Florida, New Mexico and Texas. This account has additional features that all come at a cost but if you choose to opt out, these features of your account will remain with no monthly fee. The number of fee-free ATMs you can use with this account is 12,000 but there is an option for opting to use non-network ATMs free. This comes with a price of $5 per month and returns us to a loop of paying money to get our money. Neither one of these offers any APY rates, so there is no ability to earn interest using the BBVA Compass free checking accounts.

Chime

One of the best free checking accounts available is the Chime account. It is widely popular with the generation that wants to do as much as they using their smartphones. It has great online banking options and easy to use mobile apps. With a Chime account, you actually have a checking account and a savings account. There is access to over 30,000 fee-free ATMs and there are over 30,000 cash-back locations you can use. The pros for Chime are numerous. There is no monthly maintenance fee, no minimum balance requirements, no overdraft fees and no minimum opening deposits. Same as the banks mentioned above, Chime provides a low APY of 0.01% for the saving account but as we mentioned before, this should come secondary when looking for an optimal fee-free checking account. Still, even without earning interest and increasing balance, Chime does have a way to help account holders to save through each purchase by rounding up the remaining cents to a dollar and sending them to a savings account. Additionally, there is a free option to transfer 10% of the paycheck to the savings account each month automatically. One more thing worth of mentioning is the ability to receive your paycheck up to 48 hours earlier.

PNC

The PNC Standard Checking account has a $7 monthly service fee, but if you can meet a certain requirement, you avoid this fee. These requirements include making a $500 amount in direct deposits per statement year, or has a $500 average monthly balance on the standard checking account; or if they are of age 62 or older. The overdraft fee is similar as other banks $36 and there is an option for overdraft protection but this feature comes at a price. When opening the standard account, there is a $25 dollars deposit. With this account, you have access to around 9000 ATMs from the PNC network that are fee-free so be sure to check if you live in a place where you can easily find an ATM machine connected to your bank.

Citibank

Citibank gives people an option to open a basic banking package called Simple Checking. This account has a $12 monthly service fee and there are three options to avoid it. To waive this fee, make one qualifying direct deposit and one qualifying bill payment per statement period, or maintain a $1500 combined average monthly balance in eligible linked accounts. The final option is to fulfill the 62+ age requirement. There is an overdraft fee of $34, but there is a $10 per month charge option to activate the overdraft protection system. Citibank has a large amount of ATMs all across the US and with close to 35,000 ATMs, there should be no problem in finding one.

Bank Checking Comparison

Chase Total Checking Account

Monthly service fee: $12 (none if you fulfill one of the needed requirements)

Overdraft fee: $34 (Chase will not charge this insufficient funds fee if the account balance at the end of the business day is overdrawn by $5 or less, and the overdraft fee can be avoided if the account holder makes a deposit or transfers funds to cover the overdraft before the business day ends)

Mobile app: iOS & android (rated good)

Minimum opening deposit: $25

Earn interest (APY): 0.01%

Access to ATMs: 16000 ATMs and 5000+ physical branches

The BBVA Compass ClearConnect Free Checking

Monthly service fee: none

Overdraft fee: $38 (there are overdraft safety measures but these all come at a price)

Mobile app: iOS & android (rated solid)

Minimum opening deposit: $25

Earn interest (APY): none

Access to ATMs: No ATM fees at 55,000 AllPoint and BBVA Compass ATMs worldwide

The BBVA Compass ClearChoice Free Checking

Monthly service fee: none

Overdraft fee: $38 (there are overdraft safety measures but these all come at a price)

Mobile app: iOS & android (rated solid)

Minimum opening deposit: $25

Earn interest (APY): none

Access to ATMs: 12000 BBVA Compass fee free ATMs (available option for $5 per month to use non-network ATMs)

Chime Account

Monthly service fee: none

Overdraft fee: none

Mobile app: iOS & android (rated excellent)

Minimum opening deposit: none

Earn interest (APY): 0.01%

Access to ATMs: 30,000 fee free ATMs (interesting to note that Chime will not charge for using an ATM out of its network, but there is chance the ATM service provider will)

PNC Standard Checking

Monthly service fee: $7 (waived if account holder meets one of the requirements)

Overdraft fee: $36 (price account holders can activate overdraft protection)

Mobile app: iOS & android (excellent for iOS, average for android)

Minimum opening deposit: $25

Earn interest: 0.01%

Access to ATMs: 9000 ATMs from PNC fee-free network

Citibank Simple Checking

Monthly service fee: $12 (waived if account holder meets one of the requirements)

Overdraft fee: $34 (option available to activate overdraft protection for $10 per month)

Mobile app: iOS & android (rated very good)

Minimum opening deposit: none

Earn interest: 0.01%

Access to ATMs: 3500 ATMs from the Citibank network (as mentioned above, special perks for elderly citizens ages 62 or older – no ATM fees for non-network transactions)

No Monthly Fee Results

From this, we can see that for the year 2018, there is a clear difference between traditional banks and their alternatives. More online banking accounts are becoming available and Chime is one of them. From the beginning, Chime stands out as an account with zero fees and no hidden charges. Compared to many others where you must meet loads of requirements, there are options that do not force us to calculate until our head starts to hurt. As time goes by, more and more free checking accounts will become available and in the future even traditional banks will have to turn to completely free checking accounts. For now, however, they are slowly starting to catch up to the new and improved banking systems. Among the online banking accounts, new options are appearing and will need to be researched further. For Chime, it is clear it has solidified a strong position in the world of online banking with no fees, which will continue into the next year where the Chime account will definitely remain in the top 10 free checking accounts.

Free Checking Comparison

For the comparison and choosing of the best option for a free checking account for the following year, we used several services that the banks provide for their checking accounts. We did however mention that some banks have special no banking fee offers for citizens that are age 62 or older but there are many more we did not mention. Bank offer these specific accounts that apply and provide benefits only for a selected group that do not represent the majority. Certain banks offer great bonuses and higher APY for local residents of a specific state or part of the state. Others offer possibilities to waive all fees for military veterans. Some even offer special treatments for those enlisted in certain colleges or have sport scholarships. To include all of these would complicate things and make the research impractical. It is already hard enough to determine which option is actually best for each individual, but with this comparison above, we can observe the pros and cons of alternative banking options compared to the traditional ones.

CHECKING ACCOUNTS CONCLUSION

Even though we are in an era of vast technological breakthroughs, there is still a large window for banking expansion and improvement. The banking system should be working for the people and not using tricks and hidden fees to take money from a person that chose it. Better options are arising, new financial systems are appearing and people are not limited to pick one out of only five existing national banks. Truth is, we can never be completely certain if we make a good choice, but if we do our research, we can lessen the damage. Always make sure you know what your priorities are and choose your account according to that. Pick the best bank account that suits you and always plan ahead. It is not the worst thing if you are not satisfied with your initial choice, the worst thing is not trying to correct the mistake. Just be careful not to switch to a new bank too soon as some of the large traditional banks like PNC still have a $25 fee for closing their account before the first 180 days from opening. Good luck!

 

How To Get Paid Two Days Early Than Others

Doesn’t everybody get tired of waiting for days for their paychecks? Or getting frustrated when they are late paying the bills because of delayed paychecks? If so, how do the words ‘get paid up to 2 days faster’ sound?!

It’s safe to say that most employees don’t like the feeling of waiting too long for their hard-earned money to come in. Sometimes paychecks are even lost in the mail or stolen. It only adds to their waiting time if the employer has to replace the paycheck, adding to frustration. So how could hardworking employees avoid this? Get paid fast and early, that’s how.

Direct deposit is a solution to cut the waiting time for a paycheck. These are some of the reasons why a direct deposit is better than a regular paycheck:

  1. It is faster. Once the employer deposits the pay of the employees, it will be electronically transferred immediately to their bank accounts.
  2. It is convenient. Employees who choose to use this method do not need to wait for their paychecks to come in the mail, then get in line at the bank to deposit it. With early direct deposit, the money is already cleared and ready to withdraw.
  3. It is accessible and efficient. People can access and control their accounts with the use of their mobile banking apps whenever and wherever they are.
  4. It is safe. People do not have to worry about paychecks getting lost. Every transaction is electronically-generated.
  5. It’s basically free with many bank accounts.

Everyone should be reminded that to take advantage  of the direct deposit feature, one should have a bank account. Before opening an account, the consumer should also think about the different banking fees. Major banks impose different rates for these fees. For those consumers who do not have extra money to pay for them, they could just open an account with Chime, an online banking account. Chime does not charge monthly fees and there are no hidden charges, so it’s a great alternative to traditional banks.

How does direct deposit work exactly?

When the Federal Reserve accepts the payroll submitted by the employer, it notifies the banks regarding employee salary. It is then up to the banks whether to release it earlier or exactly on payday. Most major banks wait for the actual payday but Chime is one of the fastest banking accounts, making the deposit of pay up to 2 days faster.

This is possible because of Chime’s Early Direct Deposit feature. If a payday falls on a Friday, employees with a Chime account usually receive their pay on Wednesday.  Account holders can make saving more money possible with the Automatic Savings program which allows users to automatically transfer 10% of their paycheck to their savings account every time they get paid.

Consumers should seriously consider receiving pay through direct deposit. Overall, it is convenient, safe, and fast; especially for Chime account holders who get paid faster with their account than others who bank elsewhere.

 

Is an iPhone Worth Going into Debt?

An iPhone is a common purchase for people all over the world. Around 223 million Americans have a smartphone, and 43% (around 96 million) have an iPhone, according to Statista. The fall 2018 iPhone lineup includes a flagship iPhone XS Max with a top $1,449 price tag. That is a ton of money for a phone! But a recent study found that a large percentage of Americans would happily go into debt for a new iPhone. Do you think an iPhone is worth going into debt for? Let’s take a look at the hard numbers to decide.

The cost of an annual new iPhone

Apple fanatics line up every time a new iPhone comes out to get the latest and greatest from their favorite phone manufacturer. Many consumers are excited about the new iPhone XR with a $749 price tag, giving it a better price point for the average consumer. If you were to buy one of these every fall for ten years, you would pay $7,490 for phones in a decade.

If you were to invest that $749 every year at a 5% rate of return, you would have about $10,000 at the end of ten years. The full opportunity cost of a new iPhone is a lot bigger than the price tag. That is why it is important to keep in mind that a phone can last more than 12 months. Your phone should last at least two years. I’m getting ready to upgrade my 35-month-old Android phone (which cost a lot less than an iPhone) when it turns 3 next month. (My phone is the same age as my oldest child!)

Who would go into debt for a phone?

Just to be clear for iPeople out there: both in the US and worldwide, Android phones are more popular and generally more affordable. You don’t have to buy a $1,000 phone. You certainly should not buy an expensive phone on a credit card. If buying a new phone would put you into debt (or greater debt), you have more important things to spend your money on.

In its 2018 Credit Score survey, WalletHub asked a lot of questions about phones. For someone who lives a relatively thrifty lifestyle, I was shocked to see how many people think it is worthwhile to go into a debt for an iPhone. Nearly 28 million people say an iPhone is worth going into debt. 5x more millennials felt this way than Baby Boomers.

Even more shocking, 19% would rather have an unlimited data phone plan than an excellent credit score and 44% of millennials think their phone has a bigger impact on their life than their credit score. It looks like millennials have a lot to learn about credit and money!

Good credit and well-managed finances make a smartphone more affordable. But in no way is one particular model of phone a need. Don’t worry about keeping up with the Joneses, friends, or Kardashians. Just focus on costs, features, and needs. That should lead you to make the right financial decision when it comes time to replace your mini pocket computer that also makes phone calls.

Make smart money choices with an iPhone and beyond

Whether you are in the market for a new smartphone or something else, let your budget be your guide. Your personal finances are too important to let any one purchase or want, particularly a luxury or a vice, dictate how you spend.

On the flip side, many people can afford an iPhone within their means without worry. If that sounds like you, and you would rather have an iPhone, you can certainly buy one. Just don’t put this type of purchase on a credit card unless you can pay it off in full before your next statement is due. If you put a $1,000 purchase on a credit card with 20% interest and pay $50 per month toward the debt, you’ll pay $226 in interest, about 25% of the cost of the phone, in interest expense.

The moral of the story: focus on your budget and long-term goals first. Phones are not as important as your financial well being.


This article originally appeared on Due.com.

 

10 Years After the Financial Crisis – How Fintech Is Helping

“Too big to fail.” If reading that brings a little bit of red to your eyes, you’re not alone.

Though originally popularized in the 1980s during the bailout of Continental Illinois National Bank, this phrase once again became common parlance during the 2008 financial crisis. According to the Federal Reserve Bank of Cleveland, this saying became synonymous with the unwillingness of regulators to close a large troubled bank because they believed the short-term costs of a bank failure were too high.

So, it’s no surprise that nearly half (49 percent) of Americans still have negative associations with the term “too big to fail,” according to a recent Chime survey. The generations who had the strongest negative connotations included boomers (55 percent), many of whom lost their retirement savings in 2008, and millennials (50 percent), who graduated to a nonexistent job market.

In the decade since that phrase was splashed across newspapers and discussed at every dinner table, the United States has slowly clawed its way back from the financial crisis. This brings up the question: Has anything really changed?

How banks are doing

Following the Great Recession, the American people bailed out banks, investors, and shareholders. The Federal Reserve slashed interest rates and pumped trillions of dollars into the American economy.

Ten years later, the same big banks are still at the top of the game: JP Morgan, Bank of America, Wells Fargo, Citibank, and US Bank. Across the U.S., banks had record profits of $56 billion in the first quarter of 2018. Although CEOs earn less than before, they’re still killing it. The stock market has sustained one of its longest bull runs in history, with the S&P 500 growing more than 300 percent since the crisis.

“This is not an industry that has examined itself and remade itself in the wake of the crisis,” stated Phil Angelides, chairman of the Financial Crisis Inquiry Commission, in The Wall Street Journal.

That’s despite Dodd-Frank, a 2010 bill that aimed to protect consumers by placing more controls on banks, including their lending requirements. While the bill did result in increased accountability and oversight, the current administration has begun to roll back some of its provisions. Even if the remainder of the consumer protections stay intact, the WSJ points out that many of the regulators have backgrounds in the very industry they’re supposed to be monitoring.

In other words, banks are doing well, executives and stocks are flying high…but how about the American people?

How Americans are doing

Every year since 2013, the Federal Reserve Board has asked 12,000 adults about their financial lives for the Survey of Household Economics and Decisionmaking (SHED).

According to the 2017 report, only 7 percent of adults say it’s “difficult to get by financially” —  about half the number who said so in 2013. And nearly three-quarters say they’re either “living comfortably” (33 percent) or “doing okay” (40 percent).

Although things have improved, that doesn’t mean everything is OK. Here’s a deeper look at the numbers.

Unemployment and income

Unemployment has dropped to 3.9 percent, lower than it was before the recession. Even the “real” unemployment rate — which includes people who’ve stopped looking for work and people working part-time because they haven’t found full-time opportunities — is only 7.4 percent.

Not counted in that percentage, though, are the people who aren’t looking for work because they can’t find childcare, are addicted to opiates, or are turned off by low wages. Of the Americans who are employed, more than one-fifth (23.3 percent) are in jobs where the median wages fall below the federal poverty line, reports the WSJ. Nearly 40 percent of adults, according to SHED, have family incomes of less than $40,000. Overall, the WSJ says median household income has only risen 5.3 percent since 2008.

Chime’s survey underscores this: 54 percent of Americans are living paycheck-to-paycheck.

More people, SHED learned, are working on the side, too: 31 percent of adults engaged in gig work in 2017, up from 28 percent in 2016.

Wealth and inequality

Chime’s survey asked people how the recession had affected their financial habits. This is what we found:

  • 72 percent became more inclined to save money
  • 62 percent feel their savings are “in a better place” compared to 10 years ago

Despite these promising signs, the wealth gap continues to grow. One report by the Federal Reserve Bank of St. Louis went so far as to say millennials may become a “lost generation” for wealth accumulation.

“Wealth in 2016 of the median family headed by someone born in the 1980s remained 34 percent below the level we predicted based on the experience of earlier generations at the same age,” stated the report.

Those with exposure to the stock market — just half of the American population — have bounded ahead, while everyone else has been left behind. In the New York Times, Nelson D. Schwartz reports the “proportion of family income from wages” has fallen from 70 percent to just under 61 percent. The rest, he says, is largely from investments.

“The people who possess tradable assets, especially stocks, have enjoyed a recovery that Americans dependent on savings or income from their weekly paycheck have yet to see,” wrote Schwartz in the New York Times. “Ten years after the financial crisis, getting ahead by going to work every day seems quaint, akin to using the phone book to find a number or renting a video at Blockbuster.”

When the recession hit, Americans lost $16 trillion in net worth. Today, the wealth of the median American household is still 34 percent lower than it was in 2007, according to the New York Times. Why? Because for families without large investments, their wealth was wrapped up in home value.

Housing

Although housing prices have fully recovered — with the average house price 1 percent higher than the peak in 2006 — there aren’t as many homeowners as there were before the recession.

In what The Penny Hoarder calls “The American Nightmare,” 9 million people lost their homes during the housing crash. According to CNN, the overall homeownership rate dropped from 69.4 percent in 2004 to 63.1 percent in 2016. And, of the Americans who rent, nearly half of them are cost-burdened, according to Harvard University. This means they spend more than 30 percent of their income on rent.

Debt and savings

Debt also remains a common struggle. In fact, Chime’s survey found that 65 percent of Americans have some sort of debt, with 40 percent carrying more than $10,000 and 14 percent carrying more than $50,000.

Here are some staggering stats:

  • Student debt, in particular, has crippled millennials. Today’s students graduate with nearly $40,000 of loans, according to Student Loan Hero.
  • When faced with an unexpected expense of $400, 40 percent of adults can’t pay for it, reports SHED. While that figure has decreased from 50 percent in 2013, it still isn’t good.
  • Twenty percent of Americans are behind on their debt payments, according to SHED; a slight increase from 18 percent in 2015.

In addition, SHED found 22 percent of adults expected to forgo payment on some of their bills in November or December 2017 — mostly credit cards. (That may be why 64 percent of the people we surveyed prefer debit cards over credit cards.)

When it comes to retirement, the picture is also bleak. SHED reports less than two-fifths of non-retired adults think their retirement savings are on track. One-fourth have no retirement savings or pension whatsoever.

The rise of fintech

Though the traditional financial industry may not have learned much from the Great Recession, entrepreneurs did.

They immediately saw a need for a new breed of financial businesses. They realized banking and financial services should no longer be exclusive, confusing and predatorial. Instead, entrepreneurs thought financial institutions should be helpful, transparent and free.

So, in the years after the crash, fintech companies started sprouting up left and right.

While the streak of new companies began to slow in 2015 — perhaps, Deloitte posits, because other technologies like bots and blockchain have attracted entrepreneurs — investments into fintech are still robust.

In 2017, according to SHED:

  • 62 percent of adults auto-paid some bills
  • 52 percent received electronic account alerts
  • 46 percent used automatic saving

And, when it comes to mobile banking, those customers are more satisfied. Fifty-nine percent of the millennials we surveyed would recommend their online or mobile bank to a friend. Of those who used national banks, only 22 percent would do the same.

How fintech is helping

Although the financial crisis has had a lasting impact on Americans, it’s also created a landscape in which fintech can thrive.

So, if there’s been one benefit of the Great Recession, it’s the growth of new financial companies that value transparency and put consumers first.

New fintech startups are indeed helping today’s consumers close tomorrow’s wealth gap. For example, Chime offers comprehensive, modern banking with zero fees. With services like Early Direct Deposit, you can avoid predatory payday lenders. And, with automatic savings features, you can build your emergency fund without thinking about it.

In other words: we’ve got your back as you achieve your financial goals.

 

10 Apps to Keep Your Budget on Track

Do you have a love/hate relationship with budgeting?

On one hand, budgeting can be your ticket out of the vicious paycheck-to-paycheck cycle. But on the other hand, budgeting…well…sucks, for the most part.

Here’s the good thing: It doesn’t have to be this way. There are more budget styles than there are Myers-Briggs personality types — enough to suit everyone, no matter what your style. And since we’re in an increasingly digital world and you probably already have your phone on you all the time, why not find an app that can help you?

Here are 10 apps you can try that will help keep you on point with your budget.

Mint

This popular app was one of the first big budgeting apps on the scene and it’s still one of the gold standards. What makes it such a top contender is that it automatically updates your budget every day. It even automatically categorizes each purchase, so all you have to do is log in and see your up-to-date budget with a quick glance.

For people who have a hard time remembering to enter in their purchases (or just don’t want to deal with the hassle), this is a very powerful feature.

YNAB

YNAB (You Need A Budget) is another revolutionary budgeting tool. It exists as a stand alone computer-based budgeting program but you can access everything through its app as well.

YNAB is more than just a budgeting program. It operates on a budgeting philosophy: “Give Every Dollar a Job” (i.e., zero-sum budgeting) and “Age Your Money” (i.e. live on last month’s income). With these two rules, you’ll never run out of money to pay your bills, and you’ll keep yourself insulated from living in the paycheck-to-paycheck zone. YNAB is also a more hands-on budgeting program, and is definitely an effective choice for type-A personalities.

Honeyfi

If you’re in a committed relationship, you and your significant other have likely disagreed about money at some point. In fact. according to a recent survey by Dave Ramsey, 41% of couples who are in debt fight about money, so you’re definitely not alone.

One solution is to be more open about your spending, and find a way to be more accountable. This is what Honeyfi proposes to do. It’s an app that both you and your significant other download. You can both then view your spending through the automatically-updated platform. You can even tag items, or comment on them with questions for your spouse.

Clarity Money

If you’ve ever wanted a personal butler to help you with your finances, try Clarity Money. This app doesn’t really track your budget per se, but it does track your spending patterns and lets you know how you’re doing.

It also provides customized recommendations based on your personal money situation, such as financial products that may benefit you, recurring subscriptions you can cancel (they’ll even cancel them for you if you want), automatic savings plans, credit score updates, and more. It’s a great way to get a holistic view of your entire financial picture, and to see what you can be doing better.

Qapital

Do you find it hard to save money? If so, then Qapital can help. This app lets you set up savings rules with IFTT (If This, Then That) technology so that you can find creative ways to save.

For example, you can set it so that every time you buy something, the purchase is rounded up and the difference saved. You can even set up custom rules using your location (reward yourself for going to the gym?), Twitter (save money every time a certain someone tweets), or even when you cross things off your to-do list.

PocketGuard

If you normally get stymied by all of the math and numbers that go into most budgets, PocketGuard may be good option for you. This app guides you through a set up series and then analyzes your spending in select categories automatically.

The strength of PocketGuard is that it doesn’t require you to obsess and fret about how close you are to each budget category cap and how far along you are in the month, like with most budgeting apps. Instead, PocketGuard will automatically calculate how much disposable money you have to spend after taking account money you need to set aside for bills and necessary items.

And, the simple “In My Pocket” number lets you know at a glance whether you really can afford to buy that item that catches your eye.

Prism

Keeping track of all of your bills and paying them on time is one of the responsibilities of being a grown up (womp womp). Not paying your bills on time can have serious consequences beyond just paying late fees. It will harm your credit score as well, which means you can end up paying a lot more when you need to take out a loan.

This is where Prism comes into play. This app keeps track of your bills and due dates for you. It sends you automatic reminders when bills are due, and you can even pay your bills right through the app itself.

Mvelopes

Mvelopes is another crowd favorite for best budgeting app. This app uses a digital version of the “envelope budgeting system,” a fancy name for divvying up all of your monthly income between each budget category and using only cash in designated “envelopes” to pay for your expenses.

The app itself might be worth it on its own for you, but the real strength of this program is that you can hire a real live financial expert to check in with your budgeting. This expert can coach you once a month or once a quarter (for a fee, of course). But if you can’t seem to do it alone, this may be just be the breakthrough you need to get your budget on track.

Fudget

If the more complex budgeting apps still have you scared of your budget, try Fudget. This is the simplest budgeting app of all. There’s no recurring budget to keep track of.  You simply make a list of your income for a given period (quarterly, monthly, biweekly, weekly, whatever) and track the expenses you have for that time period.

When you’re done making your list, the app tells you how much money you have left to spend. ‘Nuff said.

Chime

Did you know that Chime has an app too? You can easily check your bank account details on-the-go.

There are a host of other budget-friendly features as well. You can find the nearest free ATM, turn your debit card on or off (helpful when you know you’ll be passing through an expensive part of town), set up automatic savings, split dinner bills with friends and family, track your spending, and more.

Try Out More Than One Budgeting App

We’ve shown you 10 apps here that will help keep your budget in check. You probably already mentally circled one or two that may interest you, and this is a good thing.

We recommend downloading and trying out at least a few of these apps. After all, you won’t know whether you like it until you try it, and the best budgeting app is the one you will actually stick with.

 

How To Manage Your Money With Chime’s Mobile Banking App

Let’s face it — managing your money isn’t something that you’re taught in school (but learning about isosceles triangles sure came in handy.) Yet, learning how to manage finances is key to proper adulting.

Indeed, the best way to manage money can seem like a process of trial and error. But here’s a secret: using the right tools can make it much easier. That’s right. There are financial tools out there that can help you learn how to manage money and simplify the whole process.

Where should you start? With your bank. You may not realize it but your bank account is part of the foundation of your financial life. If your bank isn’t helping you manage your money, you can feel lost at sea. But with the right bank account app? You can get on the path of financial freedom and be the boss of your money.

Perhaps the best example of this is with Chime Bank. So, let’s dive in and find out how the Chime bank account app can help you manage your money.

1. Take control of your financial life

It’s time to take control of your financial life and make money moves that will benefit you now and in the future. Unfortunately, traditional banks make going to the bank seem like a pain. You may not like going to in-person branches, waiting in lines and dealing with tellers that treat you like a number. And, while traditional banks may have online banking apps, many of them are clunky and not very user-friendly.

When it comes to online banking apps, you’ll want to look for one that’s flexible, convenient and accessible. It’s also important that the app is intuitive and just makes sense. Chime’s online banking app fits the bill. It’s easy to use and works with your lifestyle so you can take control of your financial life.

Some other perks: you can cash checks on the go and easily transfer money from your Spending Account to your Savings Account. Plus, if you’re out to dinner and need to pay back a friend, you can easily transfer money to that friend using the Chime banking app.

Chime can help you stay on top of your financial life and make managing your money easier and convenient. No more bank visits, frustrating online apps or confusing websites. Chime has one of the best mobile banking apps, giving you the power to take charge of your money.

2. Know where your money is going

Wondering how to manage money? The first step is knowing where your money is going. But tracking can be tedious. Using the Chime bank account app, you know where you stand with your money at all times and where your cash is going.

You can get instant transaction alerts when you use your debit card. Not only that, but Chime sends you daily updates on your bank account balance.

So there will be no “OH MY GOSH how did my bank account balance get so low?!” moments. You won’t be left in the dark.

3. Avoid hidden fees

Benjamin Franklin said “Beware of little expenses. A small leak will sink a great ship.”

Perhaps the most annoying little expense is a hidden fee that you didn’t know about. This includes monthly maintenance fees from traditional banks — like, aren’t they supposed to maintain your account anyway regardless of how much is in your account? Isn’t that a bank’s job?

But at traditional banks, fees are everywhere. From monthly maintenance fees to overdraft fees, to ATM fees and foreign transaction fees. All of those fees can add up and cost you. In fact, the average household in the U.S. pays an astonishing $329 in bank fees every year.

When you’re trying to get your money right, you need to keep all the coins you can. Keep in mind: you’re the one trying to pay down your student loans, get out of credit card debt and save for that trip to Aruba you’ve been dreaming about.

With Chime online mobile banking, you can ditch fees forever. Seriously. No fees. No surprises. You can take that money and put it toward debt, savings, or something fun just for yourself. All of that money adds up and can make a difference.

4. Make the most out of payday

What’s your favorite day? When asked that question, most people would say “payday.” There’s something exhilarating and calming about knowing that money is hitting your bank account. It’s your reward for your hard work and a job well done. And, it also helps you pay your bills.

Imagine if you could get paid two days before payday. How exciting would that be? What could that do for your cash flow, your ability to pay bills faster and save more money? At Chime, we know the benefit of getting paid early. This is why we’ve created Early Direct Deposit. When you sign up for this option, you can get paid up to two days before your payday.

Your funds won’t be held hostage and you won’t have to deal with pesky physical checks. Getting your money early can help you take action on your financial goals.

Pay bills. Save money. Spend on the stuff that matters to you most. All without waiting for the money that you earned. Sounds like a win, right?

5. Supercharge your savings

You want to save for a rainy day. Save for your future. Save for your friend’s wedding next summer. Save for a ticket to Burning Man. It can all seem so overwhelming if you’re trying to figure out how to manage finances.

Using Chime’s online mobile banking app, you can save easily and effortlessly for everything you want. We have a Save When You Spend feature which rounds up your transactions to the nearest dollar and transfers that money from your Spending Account to your Savings Account.

So, if you go out for coffee and get a cappuccino for $3.75, that figure will be rounded up to $4 and twenty five cents will be transferred to your Savings Account. While that may not seem like a lot, your collective transactions add up and you’ll save a good chunk of change before you know it.

On top of that, you can automatically save 10 percent of each paycheck with Chime. This way, when you get paid, you know you’re already saving money without extra work on your part. Boom. Savings just got easier. Your goals just got closer.

6. Protect your hard-earned dough

If you lose your debit card it can be quite scary. After all, your card links straight to your checking account and this is where your money is housed. So, what can you do if you lose your debit card or it gets into the wrong hands?

Instead of waiting in a long line to talk to a customer service rep and answer a million questions, you can use the Chime app and put a halt to your transactions immediately. Simply open your Chime bank account app and block transactions on your debit card. This will prevent any new transactions or withdrawals from your account.

Additionally, Chime has a Zero Liability policy so you won’t be held responsible for any unauthorized charges. In an environment ripe for data breaches and identity theft, being protected is crucial. We take an extra security measure and require two-factor authentication and also have fingerprint authentication.

Final word

Ready to finally learn how to manage your money? A bank account like Chime can help you both manage your money and reach your financial goals.

Life is more than just paying bills and working. With one of the best mobile banking apps on the market, Chime aims to make managing your money simple and even, well, fun. Isn’t it time you lived a less stressful life?

 

Here’s Why You Should Switch to Online Banking

When it comes to banking, individuals often default to what they know best. And that’s traditional banking. Unfortunately for them, they’re likely going to face a lifetime of long lines and hidden fees. Well…it’s not that bad but there are surely better solutions. Thanks to online banking you can now do all your banking without ever leaving the comfort of your own home.

If that’s not convincing enough, here are a few other reasons why you should make the switch to online banking.

Convenience

The bottom line is that it’s much easier to access your online bank than a traditional one. When you use a traditional bank you need to adhere to their business hours in order to access your funds and accounts.

If you work full-time then it’s often difficult to carve time out of your day to make a trip. Not only that, once you’re at the bank you often need to wait in a long line before you’re even able to speak to the clerk. I don’t know about you but waiting in lines at the bank can be grueling.

With online banking, you can easily access all your accounts online. No lines no hassle.

Lower Fees

Compared to online banking, traditional banks have much higher operating expenses. Those extra expenses mean more fees pushed onto the consumer. In this case, that’s you.

With online banking, you can avoid many of those fees since there’s much less overhead.

Quick and Easy Deposits

The majority of traditional banks will let you deposit checks through an ATM. With online banks, you can easily deposit checks through their mobile application. Simply snap a picture, sign the back, and voila your money is in your account!

In addition, the majority of online banks offer access to a huge network of ATMs so if you’re ever in need of some cash you’re still in luck!

Higher Yields

This goes back to the fact that online banks have much fewer expenses than traditional ones. Because of this online banks can offer higher rates on savings accounts.

When looking for a new bank make sure you always calculate your potential earnings on CDs and savings accounts. Many individuals make the mistake of jumping ship before doing the math. Is it really worth switching your accounts for an extra $50 a year? When making the switch always comparison shop to make sure you’re getting the best deal.

Simple Money Management

One of the best perks of online banking is the ability to easily access and manage your money. Paying bills and other related tasks have never been more simple.

Most online banks offer the ability to check accounts, pay bills, transfer funds, and send money all from a single dashboard.

Pro tip: Look for an online bank that gives you automated savings options. For example, you can set up automatic transfers from your checking to savings account each month. Some platforms allow you to automatically round up your debit card purchases and deposit that amount to your savings. This way you’ll always be putting money away. Remember, every bit counts.

Final Thoughts

It’s no secret that we’re moving towards a completely digital economy. One solution at the forefront of this is online banking. If you’re still relying on a traditional bank then you should definitely look to make the switch today. You won’t regret it.

Banking Services provided by The Bancorp Bank, Member FDIC. The Chime Visa® Debit Card is issued by The Bancorp Bank pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa debit cards are accepted. Chime and The Bancorp Bank, neither endorse nor guarantee any of the information, recommendations, optional programs, products, or services advertised, offered by, or made available through the external website ("Products and Services") and disclaim any liability for any failure of the Products and Services.