FinTech News
Chime Adds Another Service Tier With More Rewards, Perks
The neobank Chime has rolled out a third service tier to its banking platform.
About Chime Prime:
Less than one year ago, Chime introduced its premium tier called Chime Plus (previously stylized as Chime+). Now, another tier has arrived: Chime Prime.
With Chime Prime, members can earn the highest APY on savings, earn up to 5% back on purchases, and more. For example, qualifying members currently earn 3.75% APY. Prime members also earn 5% back on their choice of one eligible spending category with their Chime Card (capped at a total of $75 back per month). Chime notes that category selections include groceries, gas, monthly bills, restaurants, and travel.
Another perk of Chime Prime is a Priority Pass membership, granting access to more than 1,800 airport lounges. Chime’s Priority Pass offers up to two complimentary visits per year.
Chime customers can upgrade their membership by increasing payroll direct deposits to their Chime account. While Chime Plus requires just $400 per month in direct deposits, customers must receive at least $3,000 per month in qualifying direct deposits to unlock Chime Prime. According to Chime, members will automatically be moved between memberships as they qualify (or don’t qualify) for them.
As for Chime Plus, it now offers 3% APY on savings and 2% back on purchases in the spending category of choice with the Chime Card (capped at $30 per month). All Chime accounts remain fee-free banking, with no monthly fee, overdraft fees, or other expenses.
Chime Prime is now available to select members and will see a full rollout this spring.
My Thoughts:
I happen to have a Chime account and have been directly depositing $400 per month to maintain Chime Plus. A few weeks ago, I did notice that my APY was cut from 3.75% to 3%. At the time, I assumed that was due to Fed rate cuts… but now I’ve learned that it’s so Chime can reserve that upper rate for those with larger deposits. Honestly, I’m kind of annoyed by that — and can imagine that other customers might feel similarly.
On the other hand, the reality is that fee-free banking options like Chime don’t have many routes to profitability. Moreover, Chime is now publicly traded ($CHYM), so the pressure to raise revenue is there. Thus, I can understand why the platform would want to focus more on bringing in and rewarding higher caliber customers. As for me, though, I’ll either be sticking at the Plus level or perhaps moving my savings to another account entirely.
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