Chime vs Cash App: Which is right for you? These digital banking services are generating buzz, but what sets them apart?
Chime offers a traditional banking experience, with features like high-yield savings accounts and FDIC-insured spending accounts. On the other hand, the Cash App is more modern, allowing users to invest in stocks and cryptocurrencies like Bitcoin.
For those who prefer simplicity and a simple interface, Chime might be the way to go. But if you’re looking for more investment opportunities and a more modern interface, Cash App could be your pick.
Both are safe options, having a combined user base of over 80 million. So, when deciding between Chime and Cash App, it ultimately comes down to your personal preferences and financial goals.
Still unsure? Dive into our detailed comparison article Chime vs Cash App to explore the similarities and differences further. Whether you lean towards Chime’s reliability or Cash App’s versatility, there’s something for everyone in the world of digital banking.
Is Chime Like Cash App
| 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 in Chime vs Cash App
Chime
- Join Chime through a referral link from a friend or family member.
- Deposit $200 or more in direct deposits within the first 45 days.
- Get a $100 bonus for meeting the referral conditions.
- Your referrer may also receive a $100 signup bonus.
Cash App
- Refer friends to the Cash App to earn free money.
- Both you and the new user get a $5 bonus when they sign up with your referral code.
- Receive a $15 signup bonus for each successful referral who makes a $5 transfer.
So, in Chime vs Cash App, both offer rewards for joining and referring friends, benefiting both parties.
Fees And Cost
No monthly or annual fees, no account minimums, and free account opening are all features of Chime vs Cash App. 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 Comparison of Chime & Cash App
Chime
- Despite employing industry-standard security measures, Chime has faced hacking and scamming attempts.
- Regular customers have had trouble accessing their accounts due to these security issues.
Cash App
- Cash App has had its share of issues, including difficulties accessing funds and ineffective customer service.
- Users should be aware of the limitations and risks associated with mobile payment apps when managing their finances.
Chime vs Cash App Saving Account Comparison
Chime
- Chime offers a savings account with a 2.00% APY, allowing you to save while spending through rounding up purchases.
- You can open a savings account during registration or later, but closing it means you can’t reopen for 90 days.
- Deposits can be made from your Chime checking account or through automatic 10% direct deposit transfers.
Cash App
- Users need to sign up for the Cash Card to access the savings feature.
- There are no monthly maintenance fees associated with the savings feature.
- To earn a 4.50% interest rate, users must receive direct deposits of at least $300 each month.
Here is a comparison of Chime vs Cash App saving accounts.
Business Account Comparison of Cime vs Cash App
Cash App
- Cash App stands out as the only app supporting businesses among its competitors.
- Customers can conveniently pay businesses using various methods like $Cashtag, QR code, email, or linked phone number.
- There are no limits on sending or receiving payments for business users, but a 2.75% transaction fee applies to payments accepted by businesses.
- Business users can seamlessly switch between personal and business accounts.
- For a more comprehensive business solution, Square Cash is recommended over Cash App.
Chime
- Chime doesn’t offer business checking or savings accounts.
- Sole proprietors can use Chime for both personal and business banking needs.
- While Chime provides perks for personal banking, it lacks options for business accounts.
Investing Options of Chime & Cash App
Chime
- Chime currently doesn’t have an investment platform.
- It’s uncertain whether Chime will introduce investing features in the future.
Cash App
- Cash App allows users to invest in both Bitcoin and stocks.
- It offers a simplified Bitcoin exchange, making it easy to buy, store, sell, deposit, and withdraw Bitcoin within the app.
- Users can easily trade Bitcoin by selecting the appropriate option.
- Additionally, the Cash App enables users to invest in stocks and transfer their investments to brokers for automatic investments.
This is how Chime vs Cash App differ in investment options.
Credit Cards Comparison in Chime vs Cash App
Chime
- 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 emphasizes being a financial technology company rather than a bank.
Cash App
- Provides a free Visa debit card known as the Cash Card for making purchases from the Cash App balance.
- The Cash Card is compatible with Google Pay, Apple Pay, and Samsung Pay, eliminating the need for 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, simplifying the tax filing process.
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 |
Chime vs Cash App Comparison of 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’s 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).
Sure, here’s a simplified version:
What is Chime?
Chime, founded in 2013, aims to make banking easier without charging unnecessary fees. Their mobile app helps users track balances and manage credit cards. They don’t have monthly or overdraft fees, appealing to younger users. With over 14 million customers and a value of $25 billion, Chime is backed by investors like Crosslink Capital and Cathay Innovation.
What is Cash App?
Cash App, launched in 2013 as Square Cash and now part of Block, Inc., lets people easily send money through their phones. It expanded to help businesses too. Users can create unique usernames for transactions. Cash App also allows buying and selling Bitcoin. With over 24 million users in 2019 and approaching 100 million in 2022, it’s popular for seamless money transfers and cryptocurrency trading.
Chime and Cash App Alternatives
Venmo: A peer-to-peer payment app owned by PayPal, allowing users to send and receive money easily. Through Venmo promotions, you can enjoy all the perks of it.
PayPal: A widely used online payment system facilitating transactions between individuals and businesses.
Zelle: A digital payments network partnered with many major banks for fast and secure money transfers. The introduction of Zelle sign-up bonus promotions marks another significant milestone in Zelle’s ongoing journey.
Revolut: A digital banking app offering various financial services, including currency exchange, budgeting tools, and more.
TransferWise (Wise): A platform for international money transfers at competitive exchange rates with low fees.
SoFi Money: An all-in-one finance app offering banking, investing, Sofi sign-up bonus, and lending services.
Robinhood: Robinhood promotions offer commission-free stock trading, popular for its user-friendly interface and investment options. Closing a Robinhood account is remarkably straightforward within the app.
Varo Money: A mobile banking app offering no-fee checking and high-yield savings accounts in Varo bank promotions.
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
When comparing Chime and Cash App, both offer unique features catering to different financial needs.
Chime focuses on simplifying banking with no hidden fees and innovative savings options, appealing to those looking for straightforward banking solutions.
On the other hand, Cash App provides convenient peer-to-peer money transfers and robust cryptocurrency trading capabilities, making it a preferred choice for those interested in digital currency.
Ultimately, the choice between Chime and Cash App depends on individual preferences and financial goals.
FAQ
Is Chime or Cash App safer to use?
Both Chime and Cash App prioritize security measures to protect users’ financial information. However, it’s essential to remain vigilant and follow best practices to avoid falling victim to scams or fraud.
Can I use Chime or Cash App for business transactions?
While Cash App supports businesses with features like $Cashtag and seamless money transfers, Chime primarily focuses on personal banking services. Users looking for business-specific features may find Cash App more suitable for their needs.
Does Chime or Cash App offer investment options?
Cash App stands out with its investment features, allowing users to trade Bitcoin and stocks directly within the app. Chime, on the other hand, currently does not offer investment platforms, but this could change in the future as the company expands its services.