Chime® vs. Cash App: Chime Is Better for Banking

Chime and Cash App are two top fintechs. Chime focuses more on typical banking products, while Cash App is widely known for its peer-to-peer (P2P) money transfer services. At a glance, you’d think these two apps are fields apart, but they share many of the same features, including early direct deposit, cash advances, savings and P2P payments.

Chime vs. Cash App: A quick comparison

• Chime terms and conditions

  Chime is a financial technology company, not a bank. Banking services and debit card provided by The Bancorp Bank N.A. or Stride Bank, N.A., Members FDIC.
  ATMs: Out-of-network ATM withdrawal fees may apply except at MoneyPass ATMs in a 7-Eleven, or any Allpoint or Visa Plus Alliance ATM.
  Deposit: Once the retailer accepts your cash, the funds will be transferred to your Chime Checking Account. Cash deposit fees may apply if using a retailer other than Walgreens and Duane Reade.
  Mobile Deposit: Mobile Check Deposit eligibility is determined by Chime in its sole discretion and may be granted based on various factors including, but not limited to, a member's direct deposit enrollment status.
  Chime Savings Account: Chime Checking Account is required to be eligible for a Savings Account.
  APY: The Annual Percentage Yield (“APY”) is variable and may change at any time. The disclosed APY is accurate as of May 22, 2023. No minimum balance required. Must have $0.01 in savings to earn interest.
  Get Paid Early: Early access to direct deposit funds depends on the timing of the submission of the payment file from the payer. We generally make these funds available on the day the payment file is received, which may be up to 2 days earlier than the scheduled payment date.
  Credit Builder: To apply for Credit Builder, you must have an active Chime® Checking Account.
  SpotMe: Chime SpotMe is an optional, no fee service that requires a single deposit of $200 or more in qualifying direct deposits to the Chime Checking Account each at least once every 34 days. All qualifying members will be allowed to overdraw their account up to $20 on debit card purchases and cash withdrawals initially, but may be later eligible for a higher limit of up to $200 or more based on member’s Chime Account history, direct deposit frequency and amount, spending activity and other risk-based factors. Your limit will be displayed to you within the Chime mobile app. You will receive notice of any changes to your limit. Your limit may change at any time, at Chime’s discretion. Although there are no overdraft fees, there may be out-of-network or third party fees associated with ATM transactions. SpotMe won’t cover non-debit card transactions, including ACH transfers, Pay Anyone transfers, or Chime Checkbook transactions. See Terms and Conditions.

Chime vs. Cash App: Account options

Chime and Cash App are fintechs, not banks. Each has banking partners that can provide FDIC deposit insurance up to the typical insured amount of $250,000. Cash App partners with Wells Fargo Bank, and Chime partners with The Bancorp Bank and Stride Bank.

To have your Cash App balance insured by the FDIC, you need the Cash App Card, which is free and simply requires a Cash App balance. Without the Cash App card, your balance is not covered under FDIC insurance through Cash App’s partner bank.

Banking

Chime and Cash App are online fintechs that offer spending cards, direct deposit up to two days early, savings with decent APYs and P2P payment services.

The Chime® Checking account features many perks, such as early direct deposit, an optional overdraft service SpotMe®, cash advances and a secured credit-building card with no APR. With a Chime checking account, you unlock the optional savings account that earns 2.00% APY. However, to qualify for features like overdraft services, cash advances and the credit-building card, you need direct deposit of at least $200 per month.

Cash App is, first and foremost, a P2P money app. Famous for its quick and easy money transfers to other Cash App users, it charges no fees to send or receive money in the app. Cash App also offers a prepaid debit card linked to your Cash App balance. The card is free to open and maintain and can be used for spending. Cash App also offers a savings pocket that automatically earns 1.5% APY. If you set up direct deposit of at least $300 per month, you can earn 4% APY on savings. Those APYs are much higher than the national average rate for savings accounts of 0.45%, as reported by the FDIC.

Just like Cash App, Chime offers a feature called Pay Anyone, which lets you send money to anyone with a debit card. There are no fees for its P2P services, and users don’t even need a Chime account — a major leg up on popular P2P apps like Cash App and Venmo.

Borrowing

Chime and Cash App both offer short-term borrowing options.

• Cash App Borrow. A limited pilot program, some Cash App users can borrow money with its Cash App Borrow feature. It offers $20 to $200 with a four-week term, costing a 5% flat fee (roughly 60% APR). The requirements to qualify are unclear, and it’s not available to all users or states.
• Chime MyPay. A low-cost cash advance, Chime MyPay is offered to users with direct deposit of at least $200 per month. Advances range from $20 to $500, depending on your eligibility, and your loan term lasts until your next direct deposit, similar to payday loans. This product has limited state availability, with a larger rollout expected in late 2024.

Investing

Chime doesn’t offer any investing services, but Cash App does. Cash App Investing allows you to invest in stocks or crypto with as little as $1. To open an investment account, you must be an adult US resident and provide information such as your Social Security number, address, date of birth and more.

Apps, features and more

Cash App and Chime are both full of features, which we can expect from two modern fintechs.

Chime’s extra features include:

• Chime SpotMe®. An optional overdraft service available to users with direct deposit of at least $200 per month. This service allows you to overdraft your account from $20 to $200, depending on your eligibility. Chime automatically repays itself using your next direct deposit or transfer of funds, whichever comes first. No fees or tips are required.
• Early direct deposit. Get direct deposit up to two days early and federal tax refunds up to six days early.
• Credit Builder card. With a Chime Checking Account and up to $200 in monthly direct deposits, you may qualify for Chime Credit Builder Secured Visa® Credit Card. It’s a secured credit card with no annual fees, APR or hard credit check. The balance in your Chime® checking sets the spending limit, and Chime reports payments to the three major credit bureaus to build credit history.
• Pay Anyone. Chime’s P2P service lets you send money to anyone with a debit card with no fees.
• Round-ups. This optional feature rounds up debit card purchases to the nearest dollar and automatically sends the rounded-up amount to your savings.

Cash App’s extra features include:

• P2P services. Its core feature, Cash App lets you send money, stocks or Bitcoin to other Cash App users.
• Early direct deposit. Like Chime, Cash App offers direct deposit up to two days early.
• File taxes. Cash App lets you file your federal tax returns for free and includes free audit defense and a max refund guarantee.
• Teen account. Ages 13 and up can use Cash App when sponsored by a parent or guardian.
• Boost. Using Cash App Pay or your Cash App Card, you can get discounts on select purchases with Cash App Boost. In the app, you can find discounts at restaurants and merchants. Offers are limited time, and you can browse them in the app and activate them one at a time.

How Chime and Cash App’s fees compare

There are no monthly maintenance fees or opening deposit requirements with Cash App or Chime. Cash App also doesn’t charge overdraft fees, and Chime’s overdraft service, SpotMe, is completely optional.

Cash App and Chime have the same out-of-network ATM fee of $2.50. However, Chime is much more transparent about what ATMs are in-network — Allpoint, MoneyPass and Green Dot retail locations. Cash App states it has “in-network” ATMs but doesn’t list what they are. Cash App says you can use its ATM locator in the app if you have a Cash App prepaid card.

What customers say about Cash App and Chime

Cash App has the highest Better Business Bureau (BBB) rating of A+, and Chime is currently unrated as of June 2024. However, Cash App and Chime aren’t strangers to BBB complaints — Chime has over 8,000, and Cash App has well over 12,000.

Unsurprisingly, most of Cash App’s complaints center around P2P payments and reports of scams. On Reddit, users warn others that you have to be careful to whom you send funds, with many saying if you send money to a scammer, you probably won’t get it back. The overarching message from customers is that as long as you keep your information safe and only send money to people you actually know, it’s a convenient and easy-to-use app. Other Reddit threads also contain success stories of using Cash App to file their taxes and reports of receiving refunds very quickly after filing.

Chime used to have a major issue of closing accounts due to “suspicious activity” — reportedly from a faulty fraudulent alert system. These complaints have significantly slowed down, and it no longer has an alert on its BBB profile. More recent Chime complaints are typical banking grievances, such as issues contacting customer support and failed attempts to resolve fraudulent charges. On Reddit, many customers point out they’ve used Chime for years with no problems. A few say that Chime’s customer support isn’t great, but that’s typical for online banking services.

Final verdict: Chime wins

It’s a close call, but Chime is definitely better suited if you need a more traditional checking and savings platform. Cash App’s banking features make sense for people who already use it regularly or want to use its investing platform. But it’s unclear what Cash App’s ATM network actually includes, while Chime is transparent about using Allpoint and MoneyPass ATMs, and you can deposit cash at Green Dot retail locations.

Chime’s overdraft service SpotMe and cash advances are available to users who meet direct deposit requirements, neither of which require tips or extra fees. Chime also has Pay Anyone, reducing the need for Cash App because you can send money to anyone with a debit card. It also has a credit-building secured card that’s linked to your Chime checking account, which can allow you to build credit history without APR or worries of racking up high-interest debt.

However, Chime’s savings APY is lower than Cash App’s, with Chime only offering 2.00% and Cash App offering up to 4% if you meet deposit requirements. Cash App’s APY is competitive with some of the best high-yield savings accounts. However, Chime doesn’t have any deposit requirements to get that 2.00% rate.

Chime at a glance

Chime has checking, savings, P2P money services, cash advances, a credit-building card and so much more.

Cash App at a glance

It’s great for sending money to friends and family, but it falls a little short compared to Chime and more traditional banking options.

Alternatives to Chime and Cash App

Chime and Cash App don’t have any physical branches, and a few other online banks have more to offer with similar features.

• SoFi®. A top competitor to Chime, SoFi is a fully insured FDIC online bank featuring a top hybrid checking and savings account. The account has no fees, high APYs, and SoFi also has an investing platform and various lending services.
• Varo. An online bank, Varo’s bank account has no monthly or overdraft fees and no opening deposit requirements. It also features an optional savings account with up to 5% APY, and you can earn up to 6% in cashback rewards with debit card purchases.
• PNC. A trailblazer for online hybrid accounts, PNC’s Virtual Wallet® accounts are interest-bearing and let you sort funds for the envelope budgeting method, but you might have to pay a monthly fee.

See how even more bank accounts stack up:

• 10 banks like Chime
• SoFi vs. Chime
• Ally vs. Chime
• Apps like Cash App