There are real banks like Chime operating online in 50 states that may also have a limited number of branches.
The reason we emphasize “real banks” is that Chime is not a bank, it’s a financial technology company (fintech) offering banking services.
Unfortunately, Chime is known to have an extraordinary amount of customer complaints and frequent penalties when compared with licensed banks that are much larger than Chime.
Chime’s latest penalties include:
One major benefit real banks offer is accountability. Licensed banks are subject to strict regulatory scrutiny and consumer protection laws. This adds a layer of security and accountability when customers require intervention to solve issues.
SoFi Checking/Savings - $325 Welcome Bonus
SoFi Bank offers a $25 bonus by opening a new account and funding with at least $10. Set-up direct deposit to increase to up to $300.
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Quontic Bank is a digital bank operating in 50 states. The high-yield checking earns 1.10% APY and the app is well-rated for both iOS and Android.
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Perks Checking - Earn 50 cents per swipe
Primis Bank merges the backing of an FDIC institution with the brains of a tech company. The digital bank offers a checking account that earns .50 cents for every debit card swipe (except ATM transactions).
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OneUnited Checking - No Credit Check Loan
OneUnited customers have access to a cash advance feature up to $1,000 without a credit check and a no-credit score required secured credit card.
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Axos Bank is a digital bank operating in 50 states with a wide range of products and a cash back checking account that rewards you.
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One major benefit Chime offers is a no-credit check secured visa card that helps customers build credit without requiring a security deposit.
Licensed banks that offer secured credit cards will more than likely require a credit check and minimum security deposit.
The security deposit acts as collateral and determines your credit limit, minimizing the bank’s risk if the cardholder fails to make payments.
While you won’t find many licensed banks offering secured cards without the security deposit, OneUnited Bank does offer a no-credit score required secured credit card called the UNITY Visa® secured credit card. The security deposit can range from $300 to $10,000.
1. Convenience: Online-only banks allow you to manage your finances from anywhere, anytime. No need to visit branches or adhere to traditional banking hours.
2. Lower Fees: Online-only banks have less overhead than traditional institutions, often passing those savings on to customers through lower fees or eliminated fees altogether.
3. Higher Interest Rates: The reduced costs of online banking also mean they can offer better interest rates on savings accounts and sometimes even checking accounts.
4. Innovative Technology: Online banks often invest heavily in user-friendly apps and websites, making it easy to track spending, set budgets, automate savings, and more.
5. Customer-Focused Service: Many online banks pride themselves on excellent customer support, accessible through phone, chat, or email. Lacking physical branches, they tend to excel in these other support areas.
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