chime vs Cash App. How Do They Differ? Cash is a money transfer organization that lets you send and receive money with friends and family, set up direct deposits, and link bank accounts.
Compared to Cash App, chime offers the same functions but enables additional banking services like savings and checking accounts and chime Global Money Transfers.
The functionality of the chime and Cash apps is quite similar. This includes chime offers an automated savings option that automatically sends money into your chime Savings account when you hit a specific spending limit – due to chime’s machine learning technology.
chime offers friends and family real-time international remittances in sixteen different currencies as an added convenience.
What features are necessary for an online bank?
Fees & Costs
Online financial institutions are well-known for charging as little as possible or not charging any fees for their checking and savings accounts. (see our chart below for more details).
High interests
Online banks tend to have lower interest rates than standard old-fashioned banks. Still, some online banks manage to offer competitive interest rates on savings accounts and CD rates that are close to brick-and-mortar banks’ interest rates.
Online banks also offer CD rates, savings account rates, and checking account bonuses which can help you earn extra money on your savings or interest earned on checking accounts.
Online Presence
On the other hand, some of the best online banks have unique websites that are both simple to use and accessible at all times.
Customers can use an ATM for free if they are inside the network of the online bank’s ATMs, or they can transfer money from their online bank straight to their other accounts.
Additional Features
Some consumers may find it advantageous to take advantage of online banks’ particular offers frequently. Online banks often offer tools or services that traditional brick-and-mortar banks do not have, which allows them to give a unique service they would not otherwise provide. Compared to traditional banks, internet banks frequently offer reduced interest rates. Online banks can give competitive savings and CD rates that rival institutions.
Online banks also give CD rates, savings account rates, and checking account incentives which can help you make more money on your savings or interest earned on checking accounts.
Mobile App
Retail banks also provide mobile apps that allow you to access your money from your phone, but they are not as dependable as having a specialized mobile app. Even if online banks’ mobile applications are getting more dependable, there are still instances where they fail to deliver on their promises of security and convenience.
Security
FDIC-insured Internet banks are secure and safe but do your homework before committing to one. When using an online bank, you may also set up a password or personal identification number (PIN) that you must enter when taking funds from an ATM.
The FDIC insures online banks just like traditional brick-and-mortar banks are. Online bank security is maintained around the clock by a 24/7 monitoring center that monitors for any risks to online bank accounts and will shut down any threats instantly.
What is Cash App?
Cash App is a peer-to-peer mobile payment app that allows users to send money to anyone with only a phone number or email address. Compared to PayPal, Cash App is far more user-friendly.
Cash App allows you to send money to anyone, even if they do not have Cash App. Request money from friends and relatives or divide meals with a few clicks of the button as an additional option. Cash App is free for personal use and business.
Cash App is an online payment processing solution that allows small and medium-sized companies to take credit cards without needing a traditional merchant account or point-of-sale equipment. It focuses on offering an entire point of sale or payment platform that may be adapted to unique enterprises.
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What is chime?
chime originated when chime’s CEO and Founder, Chris Britt, could not locate a checking account that he liked, and chime was formed. Compared to other financial institutions, chime takes a distinct approach, emphasizing simplicity, financial literacy, and security above the traditional notions of a bank account.
chime provides a novel approach to banking by seeking to educate its customers on how they may manage their money better and save more, which many say is the most significant challenge that financial service firms need to fix.
chime has raised its user base from 100,000 in 2014 to 1 million chime users and is gaining 10,000 members a month.
chime has been able to expand into the market because chime was created based on consumer feedback, 60 percent of chime users are under 35 years old, and chime offers low prices for its banking services.
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The Pros & Cons
Pros & Cons of Cash App
The Pros of chime
No Monthly Fees:
chime’s accounts are not charged a monthly fee. Instead of charging chime users a monthly charge, chime aims to increase financial literacy by providing incentives. On the contrary, chime reimburses its consumers for any costs imposed by chime’s affiliated banks on its users.
FDIC Insured:
The FDIC would protect account holders in the case of chime’s closure. Each depositor at chime is covered by at least $250,000.
No Overdraft Fees:
Overdraft fees are not charged to chime subscribers. Because chime customers may link their checking accounts to a debit card, they can go into overdraft. chime’s policy on overdraft fees states that no fees will be assessed to chime customers.
No Foreign Transaction Fees:
Using chime, you do not have to pay any international transaction fees whenever you make a payment in a currency that is not US Dollars or local to the place where you are making the payment.
Free Spam Protection:
To safeguard its customers from financial service providers stealing money from chime, chime provides free spam protection for text messages, phone calls, and e-mails.
The Cons of chime
No Personal Touch:
There is a lack of a human touch at chime, which is a fraud. Although chime’s online banking technology is outstanding, there is no in-person customer support. chime customers would have to schedule a phone contact with a company representative to discuss their subscription. There is a customer support phone number on the chime website; however, it is not always open.
Limited Services:
chime only offers a small selection of services. chime’s website does not allow for scheduling future payments; thus, any planned payments must be performed manually.
ATM Charges:
Fees will be incurred if you use an ATM outside of chime or any other currency that is not US Dollars to withdraw money.
Spending Limits:
chime users are limited to how much money they can spend per month.
Who are the chime and Cash App customers?
chime and Cash App’s target market is anyone with a bank account looking for an alternative banking option. Both applications are aimed toward a specific demographic:
- Many people are dissatisfied with traditional bank branches.
- People seeking a 100% free banking service
- People who like to oversee all of their finances from one location
Let us compare both the banks:
| Features | CHIME | CASH APP |
|---|---|---|
| FEES FOR INSTANT TRANSFERS | $0 | 1.5% |
| MONTHLY LIMIT | $2,000 | $1,000 |
| FDIC INSURED | Yes, our shared banks are FDIC members. | No |
| TRANSFER TIME TO YOUR BANK (FREE) | Instant for existing account holders | 1-3 business days. |
FDIC Insured:
The Federal Deposit Insurance Corporation (FDIC) insures chime accounts like traditional brick-and-mortar banking institutions. The Federal Deposit Insurance Corporation (FDIC) guarantees that your money is safe, secure, and insured. On the other hand, the FDIC does not cover Cash App accounts, making it a little riskier for its users.
ATM Network:
chime or Cash App are good options for internet banking because they have little or no monthly costs. Even while chime offers more ATMs, it is the best option if you often use ATMs.
Spending Limit:
If you do not mind keeping track of your spending, Cash App is an excellent option. chime has a $2,000 spending cap, but there is no guarantee that your account will be suspended if you exceed that amount.
Standard transfer time:
As far as internet banks go, chime is the fastest since money may be moved between accounts in as little as twenty-four hours.
Special promotions:
“chime plus” is a unique campaign that includes additional services, including a free credit score and unlimited ATM reimbursements. If you are looking for an app that does not charge ATM fees, Cash App is the best option.
Mobile app:
Because chime does not have a mobile app, you cannot access your accounts or manage your money from any location other than a computer at this time. If you want an online bank with a powerful mobile app, go no further than Cash App.
Security:
A 24-hour security monitoring center can block off any chime and Cash Apps threats. In contrast to chime accounts, which are protected by the Federal Deposit Insurance Corporation (FDIC), Cash App users face a higher risk level.
The Bottom Line – Our Opinion
These two online banks, chime, and Cash do not charge monthly account fees. While both apps charge nominal fees for utilizing an ATM outside their network, chime has more ATMs to select from than the other.
Traditional brick-and-mortar bank customers can use either app, but they should thoroughly investigate both before joining.
With minimal or no monthly costs and a slew of free features, both chime and Cash App are excellent choices for online banking.
Because chime is FDIC-insured, the investment is safe and secure, giving it an advantage. As a result of this feature, customers are more likely to choose chime.
Frequently asked questions
What happens if I get a money transfer but do not have access to Cash App??
Even without it, you will be able to get your money back. To receive your deposit, you must input your bank account or debit card details after receiving a notification from the app by text or email.
How long does it take for a bank deposit to be made using Cash App?
It depends on the method you select:
- Standard. 1 to 3 business days
- Instant. Instantly with a fee
For those prepared to pay the cost, utilize Instant transfers.
How much money can I send with chime and Cash accounts?
- When dealing with significant sums of money, it is essential to be aware of the chime and Cash App transfer restrictions.
- The weekly transfer limit for Cash App is $7,500.
- Transfers are limited to a maximum of $2,500 a day per chime. Withdrawal is also unrestricted.