So far, Chime has at least 12 million customers, significantly outpacing traditional banks like Wells Fargo. Some customers have both accounts; one may offer services that the other does not.
Chime offers basic banking services approved by some of the most recognized institutions in the country.
The difference between Chime and Wells Fargo
To understand the difference between the two options, you must know both banks thoroughly. By getting to know them separately, you can better see the purpose of each and choose the right one for your needs.
Chime
Chime is a financial technology company that partners with Stride Bank and Bancorp Bank to offer customers quality financial services with the required security. When you partner with an established bank, you will have FDIC deposit protection for up to $250,000.
You can do all transactions easily through its mobile application, and you acquire a Visa debit card with which you will not have a monthly account or hidden fees for some transactions or applications.
In addition, you have the option of direct payment, with which you can receive the money up to two days before the estimated date. These payments can be overdrawn without additional charges, and ATM withdrawals are free when you make them at any of the 60,000 associated ATMs.
Among the options, you can access a savings account with a competitive APY; it offers better benefits than other banking entities. To have an account, you must make a low opening deposit.
Wells Fargo
It has been available since 1852, which explains why it is the fourth largest in the United States in total assets. The main difference is that it is a company with which you can get loans, CDs, credit cards, and many other options.
They also have commercial financing options and retirement or business investment alternatives. For savings accounts, the deposit is $25, and if you want to earn more interest, you should deposit a little more. Likewise, all of their accounts have a monthly maintenance fee.
When to choose Chime?
As mentioned before, Chime has at least 12 million users. It is the best alternative if you want an account to manage completely online. It is a special option for users with bad credit because there are no reviews to approve your accounts.
If you want to save enough money by freeing yourself from hidden fees on transactions or procedures, this is the account you should have. Chime’s design is geared for comfortable users doing all transactions through their cell phone or computer without the need to go to a fixed branch.
Despite having few financial services, it is an excellent opportunity for those with bad credit or no credit. They offer the creation of a free credit card to start building your score and improve it if necessary.
What are the advantages and disadvantages of using this bank
All banking institutions have multiple benefits and drawbacks that make some users decide whether or not to use their services. Each institution has its terms and conditions as well as different features.
Advantages
- No monthly account maintenance fees
- No minimum opening balance
- It has an APY of 0.50% on savings
- You can use your card abroad without paying commissions
- Allows you to make check deposits from your mobile application
- Receive payments up to two days in advance through direct deposit
- You can find more than 60,000 ATMs throughout the country
Disadvantages
- You must pay a $2.50 fee if you use an out-of-network ATM
- You don’t have as many financial services options
- The options for making cash deposits are not as extensive
When should I use Wells Fargo?
To start, if you are one of those who prefer to go to the bank branch to apply for products or solve problems, Wells Fargo is your best choice because it has thousands of branches distributed in different areas of the country.
It is a bank with which you can have the complete services of a bank; it has both banking and investment benefits. You can make your investments from their online page in simple steps.
Wells Fargo is the right choice for people looking for a recognized bank with all the necessary services to make all the procedures in the same place. Despite its interest rates, you can be sure you won’t need anything else.
Advantages and disadvantages of choosing this option
Being one of the most traditional banks, you can expect many benefits, but certain drawbacks generate discomfort with many of its services. To take a closer look, here are some of the benefits and disadvantages:
Advantages
- You can find more than 13,000 ATMs for your transactions
- You can waive fees
- There are many branches in different parts of the country
- It has a convenient and secure mobile application
- It has a wide selection of services
Disadvantages
- It has a monthly maintenance fee of $5.25
- The overdraft fee is $35, which they can charge up to three times daily
- APY on savings is only 0.01%
Similarities between Chime and Wells Fargo
Both institutions are very popular with users, which sparks interest in new people to discover how they may be similar. The mobile apps of both companies are the best in the market.
They have a simple and easy-to-learn environment, which explains the amount of positive feedback found on both. In addition, both share the advantage that there are many ATMs in different parts of the country where you can go to withdraw money.
Both help you with your FICO score. With Wells Fargo, you can easily know your credit status, and with Chime, you can improve it by acquiring your credit card. Although they have few similarities, both can offer you excellent financial benefits.
To choose the right one, we recommend you be clear about what you are looking for in a financial company. You would rather not be surprised after you open your account.