Chime vs Capital One 360: Which is better for online banking?

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Chime and Capital One 360 are both excellent for online banking.

Chime Spending Account and Capital One 360 Checking® both have strong high-yield savings and checking accounts.
Capital One’s savings tools and multiple overdraft protection options give it a leg up over Chime.
Capital One also has CDs, credit cards, and auto loans, while Chime only has a savings and checking account.
Read Insider’s full reviews of Chime and Capital One.

Chime and Capital One 360 are two online banking platforms with excellent checking and high-yield savings accounts. But depending on what you’re looking for, one may be a better fit than the other.

Pros and cons of Chime

ProsConsReceive your paycheck up to 2 days earlyNo foreign transaction feesDeposit cashNo joint accountsNo paper checksYou must open a checking account to be eligible for a savings accountNo CDs, money market accounts, loans, or credit cards

Pros and cons of Capital One 360

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ProsConsBank online or at one of hundreds of branches and Capital One Cafés24/7 live chatReceive your paycheck up to 2 days earlyAlso has CDs, credit cards, auto loans, and business bankingYou may qualify for a $150 sign-up checking account bonusNo foreign transaction feesNo money market account

Savings

Chime Savings AccountCapital One 360 Performance Savings™Chime Savings AccountNo monthly service fees or minimum balanceMust open a Chime Spending Account to qualify for a savings accountRounds your debit card purchases up to the nearest dollar and puts the spare change in savingsCapital One 360 Performance Savings™No monthly service fees or minimum balanceSet separate savings goals and target dates within one account

Winner: Capital One 360

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It’s a close race for the best savings account, but Capital One’s savings goals feature and higher interest rate gives it an advantage over Chime.

Checking

Chime Spending AccountCapital One 360 Checking®Doesn’t pay interestNo monthly fees or minimum balanceReceive paychecks up to 2 days earlyNo overdraft fees for overdrafts up to $200 with SpotMe, if you qualifyNo foreign transaction feesRequest checks to be sent to recipients online$2.50 out-of-network feeDeposit cash for a fee at GreenDot locationsCapital One 360 Checking®No monthly fees or minimum balanceReceive paychecks up to 2 days earlyNo foreign transaction feesSeveral overdraft protection optionsNo out-of-network ATM fee (but it doesn’t reimburse any fees charged by providers)Deposit cash at Capital One ATMs or branchesEarn a $150 bonus if you open the account by 08/17/2021, use the code BONUS150, and complete 2 direct deposits each worth at least $250 within the first 75 days

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Winner: Capital One 360

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Neither online company charges foreign transaction fees, and both may process your paycheck early. But Capital One 360 gives you more than one type of overdraft protection option, doesn’t charge ATM fees, and offers a $150 bonus if you qualify.

CD

Chime doesn’t offer CDs, while Capital One 360 has CD terms up to five years.

Winner: Capital One 360

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Because Chime doesn’t have CDs, Capital One is the clear winner of this category.

Which is more trustworthy?

Capital One and Chime each have a recent controversy.

Capital One paid $80 million after the Office of the Comptroller of the Currency stated that the bank was partially responsible for a 2019 data breach in which a hacker accessed over 100 million credit card applications. The OCC said Capital One’s security was inefficient at the time.

Chime reached a settlement with the California Department of Financial Protection and Innovation for using the URL “Chimebank.com” and the words “bank” and “banking,” even though Chime isn’t licensed to work as a bank. Although Chime is insured through a bank, it’s technically a banking platform, not a bank.

The Better Business Bureau measures companies’ trustworthiness by evaluating responses to customer complaints, honesty in advertising, and transparency about business practices. The BBB gives Capital One an A and Chime a B in trustworthiness. Chime has a B mainly because it hasn’t responded to all of the customer complaints on the BBB website.

Winner: Chime

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Capital One’s data breach probably had a more serious impact on customers than Chime’s use of the word “bank.” However, we are not saying that Capital One is ultimately untrustworthy.

Chime and Capital One 360 are both strong options for online banking. If you’re just looking for a checking and savings account, your decision could come down to which specific features you’re looking for.

Read the original article on Business Insider

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