Maximizing Your Chime SpotMe: A Guide to Overdrawing up to $200
Nobody likes paying bank fees or losing hard-earned money to unexpected charges. Even though technology makes it easier to manage our finances, our cash flow can still vary, leading to overdrafts. In 2022, American consumers paid over $7.7 billion in overdraft and insufficient fund fees, with banks reporting $11-12 billion in revenue from these charges. This shows that overdraft fees are a significant income source for banks and a financial burden for many households.
Banks can’t automatically charge overdraft fees without prior consent, but it’s crucial to read the fine print. Traditional banks can charge around $35 for an overdraft, which can set you back and potentially harm your credit score. One way to avoid these fees is by using Chime® SpotMe®.
Chime is a financial technology company that charges fewer fees than traditional banks. It partners with regional banks to offer competitive, customer-first products without fees for account service, maintenance, minimum balances, or overdrafts. Chime provides checking and savings accounts, and a Credit Builder account that doesn’t require a credit check and connects to a Visa credit card. Although Chime is digital-only and doesn’t hold customer deposits, it partners with brick-and-mortar institutions and operates a fee-free ATM network. Customers can also make deposits at Walgreens locations. Chime’s partners, like Stride Bank and The Bancorp Bank, offer FDIC protection up to $250,000.
Chime’s SpotMe allows customers to be covered on debit purchases and cash withdrawals that take their account balance into the negative, up to $200. Customers must use the Chime Visa® Debit Card to receive SpotMe coverage. Chime recovers the money from the customer’s next deposit without charging fees for the negative balance. After repaying Chime, customers can leave a tip for the service, which helps keep SpotMe fee-free. Even if customers don’t tip, they remain eligible for the service.
The overdraft protection limit with Chime SpotMe starts at $20 and can go up to $200, depending on factors like account history and activity. Customers can’t request an increase by calling customer service; instead, they can adjust their limit in the Chime app.
Friends and family can temporarily increase a user’s SpotMe limit by sending Boosts, which are $5 online transfers that raise overdraft coverage. Customers can send and receive up to four Boosts per month, but only one Boost per friend per month. Boosts are valid until the first day of the next month.
To activate SpotMe, you need to become a Chime customer. The account setup process takes about two minutes. First, go to Chime’s homepage and click “Sign Up.” Enter your personal information, including your Social Security number, email, and home address. After Chime reviews your information, download the Chime app and log in to your account. Check your mail for your Chime debit card. To enroll in SpotMe, set up direct deposit and receive at least $200. In the Chime app, find your account and routing numbers under settings, then click “Set up direct deposit.” You can either email a direct deposit form to your employer or find your employer in the app if they are supported.