Is Chime Like Cash App (2024): Chime vs Cash App

The most commonly asked question these days Is Chime like Cash App? Both Chime and Cash App offer banking services and are safe to use.

However, Chime has a high-yield savings account, while Cash App allows investing in stocks and cryptocurrencies. Chime also offers an FDIC-insured spending account, which is unavailable in Cash App. 

Chime and Cash App are popular digital banks in the United States, with over 80 million users combined.

Chime is a good option if you prefer a traditional bank account experience, while Cash App is more modern and appeals to younger users due to its options to invest in stocks and Bitcoin.

We’ve compared them in this article if you’re trying to choose between them. 

The article will discover Is chime like CashApp, exploring their similarities and differences. It will highlight what sets them apart and what comes to mind when comparing them.

Let’s dive in without any further delay.

Is Chime Like Cash App In a Glance

	Chime	Cash App
Customers	14+ million	70+ million
Banking Licence	No	No
Business Accounts	No	Yes
Joint Accounts	No	No
Overdraft	Yes	Yes
Investing	No	Yes
FDIC Insurance	Yes	Yes up to $250,000

Sign Up Bonus & Reward Program

Chime

• Open a new Chime account using a referral link from a relative or friend.
• Receive a qualifying direct deposit of $200 or more within the first 45 days.
• Earn $100 as a bonus for meeting the referral requirements.
• The person referring you may also receive a $100 sign up  bonus as a reward.

Cash App

• Earn free money on Cash App by referring friends.
• When someone signs up using your referral code, both you and the new user receive a $5 bonus.
• Additionally, for each successful referral (who makes at least a $5 transfer), you can receive a $15 sign up bonus.

Fees And Cost

Chime and Cash App both offer fee-free banking with no monthly or annual fees, no account minimums, and free account opening. However, there are differences in their fee structures. 

Here’s the table with the provided information:

Features	Chime	Cash App
No monthly or annual fees	Yes	Yes
No account minimums	Yes	Yes
Free to open an account	Yes	Yes
No fee when using a bank account or debit card	Yes	Yes
ATM fee	Yes ($2.50)	Yes ($2.50 fee on all ATM withdrawals)
Instant transfers	Yes (1.5%)	Yes (1.5%)
Credit card transfer fee	No	Yes (3%)
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.

Credibility and Security

Chime

• Chime has faced hacking and scamming attempts targeting its systems and customers.
• The company has closed thousands of customer accounts, some due to fraudulent activity.
• Regular customers have experienced difficulties accessing their accounts and funds for extended periods.
• Despite challenges, Chime employs industry-standard security measures to protect customer data.
• Customers are advised to remain cautious to avoid falling victim to scams.

Cash App

• Cash App has its share of issues, including difficulties accessing funds and accounts reported by numerous users.
• Many users have reported ineffective customer service when seeking assistance with account-related problems.
• Similar problems are observed with other mobile payment apps like Venmo and Zelle.
• Unlike traditional banks, Cash App is a fintech company and not a financial institution dedicated to safeguarding customers’ funds.
• Users should be aware of the limitations and risks associated with mobile payment apps when managing their finances.

Saving Account

Chime

• Chime offers a unique feature of savings accounts with an Annual Percentage Yield (APY) of 2.00%, with monthly interest payments.
• You can open a savings account during Chime registration or at a later time, but closing it prevents reopening for 90 days as per federal law.
• Deposits to the savings account can be made by transferring funds from your Chime checking account or through automatic 10% direct deposit transfers.
• Chime allows saving while spending by rounding up purchases to the nearest dollar, with the rounded-up amount deposited into your savings account.

Cash App

• Users need to sign up for the Cash Card, Cash App’s free debit card, to access the savings feature.
• The minimum amount required to open the savings feature is $1.
• There are no monthly maintenance fees associated with the savings feature.
• To earn the 4.50% interest rate, users must receive direct deposits of at least $300 each month.

Business Account

Cash App

• Cash App is the only app that supports businesses among its competitors.
• Customers can pay businesses using $Cashtag, QR code, email, or phone number linked to the account.
• There are no limits for sending or receiving payments for business users.
• However, a 2.75% transaction fee is charged for every payment accepted by businesses.
• Business users can switch between personal and business accounts seamlessly.
• For a more comprehensive business solution, Square Cash is recommended over Cash App.

Chime

• Chime does not offer business checking or savings accounts.
• Sole proprietors may use Chime for personal and business banking needs.
• While Chime offers perks for personal banking services, it lacks options for business accounts.

Investing

Chime

• Chime currently does not offer an investment platform.
• It is uncertain if Chime will introduce investing features in the future.

Cash App

• Cash App allows users to invest in Bitcoin and stocks.
• It offers simplified Bitcoin exchange, enabling users to buy, store, sell, deposit instantly, and withdraw Bitcoin within the app.
• Users can easily trade Bitcoin by selecting the ‘Buy or Sell Bitcoin’ option and choosing ‘Buy’ or ‘Sell.’
• In addition to cryptocurrency trading, Cash App enables users to invest in stocks.
• Users can transfer their investments to brokers for automatic investments.

Credit Cards

Chime

• Offers the Secured Chime Credit Builder Visa® Credit Card to help users build credit.
• Cardholders must make a deposit to set a credit limit and can then make everyday purchases.
• Chime is a financial technology company, not a bank.

Cash App

• Provides a free Visa debit card known as the Cash Card for making purchases from the Cash App balance.
• Compatible with Google Pay, Apple Pay, and Samsung Pay, eliminating the need to link to non-cash debit cards or bank accounts.
• Offers Cash App Boosts, a reward program providing discounts for debit card purchases at eligible retailers.
• Recently acquired Credit Karma Tax to offer free federal and state tax filing, providing a fast and easy way to file taxes.

Pros & Cons

Pros

Chime	Cash App
No minimum balance requirement	No monthly fees
No monthly fees	No transaction fees
2.00% APY	No foreign exchange fees
No foreign transaction fees	Free tax returns
Mobile check deposits	Free debit card
Paycheck up to 2-days early	Stock trading
	Bitcoin trading

Cons

Chime	Cash App
Limited services	Spending limits
Limited cash deposit locations	Bitcoin fees
$2.50 out-of-network charge for ATMs not affiliated with Chime	Withdrawal limits
	Limited functionality
	Favorite tool for scammers

Customer Reviews

Chime

• Chime has a 3.2-star rating out of 5 on Trustpilot.
• 74% of 8,100 reviewers rated it as excellent, while 13% gave it a bad rating.
• Chime’s rating is higher than classic banks like BofA (1.4), Chase (1.3), Capital One (1.2), and Wells Fargo (1.2).
• However, it is lower than MoneyLion (4.7), Current (3.8), and Varo (3.8).

Cash App

• Cash App has a 1.2-star rating out of 5 on Trustpilot.
• Only 3% of 3,500 reviewers rated it as excellent, while 93% gave it a bad rating.
• Cash App’s rating is similar to traditional banks like BofA (1.4), Chase (1.3), Capital One (1.2), and Wells Fargo (1.2).

All About Chime

Chime, founded in 2013 by Chris Britt and Ryan King, aimed to revolutionize banking without profiting from customers’ financial struggles. Launched in 2014 during the rise of digital banking, it offered an app for easy balance tracking, dispute resolution, and credit card management.

Chime eliminated monthly and overdraft fees, catering to young adults and millennials. Acquiring Pinch in 2018, Chime valued at $25 billion, serves 14 million users, prioritizing their financial well-being.

Key investors include Crosslink Capital, Cathay Innovation, Aspect Ventures, and Menlo Ventures.

All About Cash App

Cash App, formerly Square Cash, is a peer-to-peer mobile payments app launched in 2013 by Square, Inc. (now Block, Inc.). Initially designed for individuals to send money via mobile phones, it expanded to serve businesses in 2015. 

Users can utilize a $Cashtag, a unique username, for transactions. Cash App introduced Bitcoin trading in January 2018, attracting over 24 million active users by 2019. With rapid growth, it nears 100 million users in 2022.

The app caters to individuals, business owners, and organizations, offering seamless money transfers and cryptocurrency trading.

Alternatives to Chime and Cash App

Here are some alternatives to Chime and Cash App:

• Venmo: A peer-to-peer payment app owned by PayPal, offering Venmo sign-up bonus, and allowing users to send and receive money easily. Users can also access complimentary funds by utilizing Venmo’s promotional codes and referral programs.
• PayPal: A widely used online payment system facilitating transactions between individuals and businesses. Welcome its new users with a Paypal sign up bonus by using the Paypal referral code.
• Zelle: A digital payments network partnered with many major banks for fast and secure money transfers. The Zelle sign-up bonus is another cool feature of this money transfer app we’ve discussed in our detailed Zelle review.
• Revolut: A digital banking app offering various financial services, including currency exchange, budgeting tools, and a Revolut sign up bonus along with a Revoult referral bonus.
• TransferWise (Wise): A platform for international money transfers at competitive exchange rates with low fees. It’s now offering a Wise sign-up bonus by using a Wise referral code.
• SoFi Money: An all-in-one finance app offering banking, investing, and lending services.
• Robinhood: Among Robinhood alternatives, it offers a commission-free stock trading app popular for its user-friendly interface and investment options. Robinhood sign up bonus and its referral bonus is another milestone for Robinhood.
• Varo Money: A mobile banking app offering Varo sign-up bonus, no-fee checking, and high-yield savings accounts.
• Acorns: A micro-investing app that rounds up purchases and invests the spare change in diversified portfolios.
• Simple: An online bank providing budgeting tools, fee-free accounts, and a user-friendly interface.

Conclusion

Both Chime and Cash App offer convenient ways to manage money through mobile apps, but they have some key differences.

Chime focuses on providing banking services like savings accounts and credit building, while Cash App emphasizes peer-to-peer payments and investing in stocks and Bitcoin.

Is Chime like Cash App, it depends on your financial needs and preferences, you may find one app more suitable than the other.

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