Chime is an online banking platform without any physical branches that offers Chime SpotMe feature, automatic savings, direct deposit, spending accounts, a mobile app and security key features.
It provides exceptional service to their customers, as a result of which they got 650k reviews and 4.5 ratings in Play Store. Chime mobile banking reviews are positive and convincing to use for financial statements.
In this article, we will talk about the Chime SpotMe feature.
Overview
Chime Mobile Banking offers fee free feature known as SpotMe, where a user who has an active debit card can overdraw their checking account by up to a certain limit.
SpotMe feature has a limit range that starts from $20 up to $200, depending on the user’s account usage, history and other risk factors.
That offer is only eligible for active and loyal users. SpotMe feature helps users take emergency funds, avoiding overdraft fees. Here we will highlight the Chime fee free overdraft policy or SpotMe policy:
How does SpotMe Chime work as a Policy ?
Maximum commercial types of banks offer financial support with a percent charge for overdrafts. But, Chime plays the opposite role; this virtual bank allows eligible customers to overdraw their bank balance without including any Chime bank fees. When expenditures exceed a certain limit, an overdraft occurs.
Eligibility: Chime does not allow every customer to use the SpotMe feature recklessly on any occasion or in any situation. Eligibility depends on various aspects, including account activity, transactions, deposit history and withdrawal history. Chime rates each customer’s account one by one to approve SpotMe feature. Also, users have to deposit or receive at least 500 dollars per month.
Withdrawal Limit: SpotMe feature has some overdraw limits based on the user’s current behavior, such as recent transactions, deposit amounts, receiving amount, etc. After a user gets eligibility for SpotMe feature, the beginning overdraft could be up to $20. And overdraw amount could go up to 200 dollars when users use chime card for a while and deposit or load a sufficient amount of money.
Time Limit: There is no time limit or specific period for returning SpotMe Overdraft money to Chime Bank app. Your next deposit will automatically apply it to your negative balance and your loan will be considered a payoff. The process will complete smoothly without any overdraft fees or extra charges.
Uses of SpotMe
When you are eligible for Chime SpotMe feature, there will be a question in your mind: Can I spend overdraw money anywhere?
The answer is yes; you can spend these dollars like your deposit balance. Chime allows users to spend SpotMe overdraft money on debit card purchases, credit card purchases, cash-back transactions and ATM withdrawals. It has set some specific restrictions on the SpotMe feature.
Chime Bank does not allow users to transfer overdraft money to anyone, like friends or family members and does not allow direct debits, like automatic bill payments, from their checking account.
You cannot transfer your overdraft money to your savings account or apps like Venmo or Cash App. You also cannot do Chime Checkbook transactions.
Benefits of Chime SpotMe Feature
Financial issues are a common problem for people who want to carry their carrier, family, business etc. In emergency situations like sudden acid, car repairs, home repairs, medical bills etc, the spotme feature could be the best option to overcome the problem. And you do not need to pay any types of overdraft fees or interest.
SpotMe feature could be your best backup plan for unexpected troubles.
Tips for Using Chime’s Fee-Free Overdraft Policy Responsibly
Though fee-free overdraft policy can reduce your pressure, using this feature unconsciously is not a good idea for any user. User should be more aware about using the overdraft feature multiple times.
It will be good for you if you avoid overdrafts and manage their finances in order to minimize your expenses. You should learn financial management and take advantage of the resources or tools provided by Chime Bank to become financially stable.
Conclusion
To conclude, the fee-free overdraft also known as spotme, is one of Chime’s most beneficial features provided to their trusted and loyal users who have been using this online bank for a long time.
In any emergency or unexpected situation, it could be your favorite choice to take advantage of the SpotMe feature in order to solve your problems. But unnecessary overdraft can cause financial health issues for you.
So, you should not take advantage of this feature without any serious issues. You should learn cash management or use strategies to maintain your finances.