Chime Vs Marcus In 2023: Which Is Better? [The Truth Exposed]
Are you looking for a digital banking solution that makes managing your finances easier than ever? Regarding online banking, two of the most popular options are Chime and Marcus. Both offer a range of products and services, but which one is better?
In this article, we'll compare Chime Vs Marcus in 2023 to help you decide on the right option. We'll examine their apps, interest rates, fees, and more to determine which online bank wins in 2023.
What Is Chime?
Chime is a financial technology company based in San Francisco, California. Since 2012 they have offered various mobile banking services with the help of leading payment processors The Bancorp Bank and Stride Bank.
Their services include Visa debit cards and credit cards, so customers can make payments anytime, anywhere with their free-of-charge products, even though Chime is not a bank institution.
Customers do not need to worry about physical locations; their banking needs are handled through an app and online bank statements. Chime is an appealing choice for many customers due to its convenience and cost savings compared to a traditional bank.
How To Open Chime Account?
Setting up a Chime account is simple and will take only a few minutes. All you need to do is download the mobile app on your device and fill in the form with your personal information, such as name, address, and phone number.
You must also provide your social security number (SSN) and proof of US citizenship or residency.
Once registered and linked to your bank, you can complete your sign-up process on the official website. You can connect your bank account to transfer money or set up direct deposit.
Is It Free To Open Chime Account?
Registration is entirely free and requires no fees or charges. However, customers must be 18 or older and a citizen of the United States to open an account with Chime.
They will also mail a Chime Debit Card to the address you provided when you registered. So, enjoy fee-free banking with Chime!
What Is Marcus?
Marcus is an online bank owned by Goldman Sachs and part of the Marcus Online Banking Group. It was launched in 2016 as a digital platform offering high-yield savings accounts, CDs, fee-free personal loans, and other investment options.
Their primary goal is to bring transparency and simplicity to banking services while offering competitive rates.
What sets Marcus apart from other banks is its commitment to customer service; a team of financial advisors and industry experts are available to answer any questions you may have.
How To Open Marcus Account?
Opening an account with Marcus is simple and easy. All you need to do is apply online. You will be asked for your email address, phone number, and other personal information, so make sure to have those handy.
Once your application has been accepted, you can begin managing your account online. You can access all of the features and services available.
How Much Do You Need To Open a Marcus Account?
No minimum deposit or credit check is required to open a Marcus account. You can begin saving or investing with whatever amount best fits your goals and financial situation.
Comparing Chime Vs Marcus: Which is Better?
Both products claiming to be the best option available, it can be hard to decide which is better suited for your needs. That's why we’ve put together this in-depth comparison of Chime Vs Marcus—so you can decide which service will give you access to all the tools and features necessary to reach financial success.
In Terms of Accounts:
- Savings Account
Both Chime and Marcus offer a high-yield savings account. The annual percentage yield (APY) provided by both is higher than the average national rate, making them both viable options for those looking to earn more on their money.
Chime offers 2.00% APY on their savings account with no monthly fees or minimum balance requirements. There are no maximums on the amount you earn as interest, and deposits are FDIC-insured up to $250,000.
Chime's savings account offers automatic savings feature that include: Save When I Get Paid, which helps customers save on their paydays, and Round-Ups, which enables you to save by rounding up every purchase to the nearest dollar.
On the contrary, Marcus provides an impressive 3.75% APY on their savings account with no fees or minimum balance required! Further, the Marcus savings account is also FDIC insured, so you don't have to worry about the safety of your money.
Overall, both are winners when it comes to savings accounts. However, Marcus's higher APY makes them the slightly better option.
- Checking Account:
In this area of comparison, Chime wins out easily. With their standard checking account, you can enjoy fee-free banking with no monthly service charge. Plus, enable SpotMe for a free overdraft of up to $200!
Accessing your money is also convenient – more than 60,000 ATMs nationwide allow access without fees! You can get your paycheck up to two days early with direct deposit.
With these features and benefits, please take advantage of all the tools they offer to maximize your banking experience.
On the other hand, Marcus does not currently offer a checking account, so if you're looking for an all-in-one banking experience, Chime may be the better option.
Chime does not offer certificates of deposit. However, Marcus provides three unique types of Certificates of Deposit to assist customers in earning a greater return on their investments without taking the risk associated with stock market trading.
All three require a minimum opening deposit of $500 and provide different terms for each. If you need early access to your funds, then their No Penalty CD is perfect for you as it allows you to withdraw the entire balance after only 7 days from funding.
With High-yield or Rate Bump CDs, though, you can access only the interest earned before the completion of the term - providing an ideal solution if long-term savings are desired.
In Terms Of Mobile Services:
Chime and Marcus both give you access to mobile banking with easy-to-use apps. With Chime, you can access your accounts from anywhere, anytime - from the convenience of your phone.
You get many features, such as money transfers between external and internal accounts, check deposits, bill payments, and more. With Chime’s “SpotMe” feature, customers can get free overdraft protection up to $200 when they opt-in.
Marcus also offers an easy-to-use and free mobile app. It gives fast and easy mobile access to all your accounts and allows you to check your balance, schedule transfers to and from your external accounts, and make loan payments.
It also provides detailed insights into your spending habits to stay on top of your finances and reach your goals.
The apps are available on both Apple and Android to access your accounts from anywhere. Ultimately, both apps are excellent mobile banking options with no fees or minimums required. When choosing the app that best suits your needs, it comes down to personal preference.
In Terms Of Credit Cards:
Again, Chime has the edge here as they offer a Fee-Free Visa Credit Builder Card with no annual fee or interest. With no minimum security deposit and credit check to apply, this is an ideal option for those looking to build their credit score.
They report to all three credit bureaus so that you can build a good credit score over time with responsible use.
Marcus has recently launched different types of credit cards tailored to meet the needs of their customers. With My GM Rewards Card, GM Business Card, and GM Extended Family Card, you have a wide choice of options depending on your spending habits.
My GM Rewards Card: If you love unlimited earnings, GM vehicles, and other products, this card is for you. Following are some of its major perks:
- You can earn 15,000 bonus points if you spend $1,000 in the first 3 months.
- You can earn 7X points on GM purchases and 4X points for dining out.
- No-Intro purchase APR for the first 12 months.
- With no annual fee or interest charges, this card is surely worth exploring.
GM Business Card: Following are some of its benefits:
- There is no annual fee and an Intro purchase APR of 0% for the first 12 months.
- When you spend $1,000 in your initial 3 months, get $100 in Earnings to redeem at GM
- 1% Earnings on all purchases.
GM Extended Family Card: Its major benefits are as follows:
- $750 in Earnings to redeem at GM when you spend $5,000 in purchases in your initial 5 months.
- 0% Intro purchase APR for first 12 months and variable APR of 18.24%-28.24% after that.
In Terms Of Mortgage and Loans:
Chime does not offer mortgages or loans. Instead, it only offers credit card and overdraft services. On the other hand, Marcus provides several loan products for your home-buying needs.
You can apply for mortgages or cash-out refinance loans with competitive interest rates and no origination fees. They also offer personal loans without any sign-up, prepayment, or late fees.
In Terms Of ATM Networks:
Chime has an extensive network of over 60,000 fee-free ATMs nationwide. With this level of convenience and access to cash, you're sure to find an ATM wherever you are. However, Chime charges you $2.50 as a fee for non-network ATMs.
Unfortunately, Marcus does not offer ATM or debit card access for savings account holders. If you require cash, you can quickly transfer your funds to another bank account using an ACH or wire transfer.
Additionally, if a paper check is needed, it can be requested from Marcus and will be sent via mail promptly. Undoubtedly, Chime provides more convenience in terms of withdrawal options.
In Terms Of Fee Structure:
In this regard, both platforms have neck and neck features. Neither charges any monthly or annual fee; however, Marcus charges a 0.25% investing management fee on the account balance, while Chime has a $2.50 fee for out-of-network ATM withdrawals.
Most significantly, no minimum balance is required to open an account with either platform - the process is entirely free.
In Terms Of Customer Service:
Chime and Marcus have both demonstrated their commitment to customer service by offering a variety of ways for customers to get assistance.
Chime provides 24/7 chat support and a toll-free number, while Marcus offers an online chat service, email, and phone support.
However, if you require help with Personal Loans, Marcuspay, or Business Lending, there are specific hours during the day when support is available.
Both provide timely responses and strive to give the best customer experience possible, but Chime deserves an extra point for their round-the-clock assistance.
In Terms Of Privacy and Security:
Chime and Marcus offer high-security measures to protect their customers’ data and funds. Chime is a Federal Deposit Insurance Corporation (FDIC) member, and all its accounts are FDIC-insured up to $250,000. To ensure their customers' data is secure, Chime's Security team stays on top of the latest technology and security trends.
Additionally, to guarantee compliance with standards set by third-party auditors, they maintain up-to-date certifications in the world of cybersecurity.
With Chime, it is simple to instantly block your Debit or Credit Builder Card if lost or illegitimate transactions are discovered. Stay up-to-date on all of your spending habits with real-time alert notifications.
The Visa Zero Liability policy safeguards Chime Debit Cards, so you're never held responsible for unauthorized dealings. Additionally, two-factor and fingerprint authentication afford an extra layer of security - ensuring that only you can access your account information.
On top of their commitment to upholding the highest data privacy and security standards, Marcus is also an FDIC member. This means funds in Marcus Savings accounts are federally insured up to the legal limit of $250,000 for each customer.
They also use multi-factor authentication and SSL encryption for data protection and 24/7 surveillance of potential unauthorized access attempts. Knowing all these measures guarantee you a secure experience with Marcus.
Pros And Cons Of Chime:
- No minimum balance is required to open an account
- Access to over 60,000 fee-free ATMs nationwide
- Fee-free overdraft
- Free access to Chime's Visa Debit Card
- Two days early access to paychecks
- Offers a Fee-Free Visa Credit Builder Card with no annual fee or interest
- Around-the-clock customer service
- FDIC insured
- Top-notch security measures
- Charges a $2.50 fee for out-of-network ATM withdrawals
- Offers no loan products
- No CD option
- No investment options
- No joint accounts
Pros And Cons Of Marcus:
- Open an account with no minimum balance required
- Offers several loan products for home-buying needs
- Robust security features such as encryption, two-factor authentication, account alerts, fraud monitoring, and more
- Offers joint account feature
- Investing options available
- Variety of CD options for different terms
- Online customer service, email, and phone support
- No ATM or debit card access
- Charges a 0.25% investing management fee on account balance
- No Checking accounts
- Opening CD requires a minimum of $500
Which Banking Institute Is Most Reliable: Chime Vs Marcus?
With so many banking institutes, it can be difficult to determine which is the most reliable. If you’re struggling to decide between Chime and Marcus, look no further: both banks offer secure financial services with excellent customer service ratings - making them some of the top contenders for a dependable bank account.
Each of them wins in specific categories, so it ultimately comes down to meeting your needs.
Regarding convenience, Chime offers a comprehensive suite of features like no minimum balance requirement, fee-free overdraft, access to over 60,000 ATMs nationwide, two days early paychecks, and a Fee-Free Visa Credit Builder Card with no annual fee or interest.
In comparison, Marcus is a great option for those looking for loan products; a joint account feature, several investing and CD options, plus online customer support.
Concerning security and safety, both banks provide the same level of assurance with FDIC insurance of up to $250,000 per customer, along with multi-factor authentication.
Ultimately, both banks are a safe bet for your finances. So if you’re looking for a reliable banking institute that meets your individual needs, look no further than Chime or Marcus!
FAQs: Chime Vs Marcus
Is Chime or Marcus better?
Both Chime and Marcus offer excellent services that cater to different customers’ requirements. Ultimately, deciding which platform is better depends on your needs and preferences. Consider the most important features to you and choose the bank that meets your criteria.
How Do I Withdraw Money With Marcus?
Unfortunately, Marcus does not offer a debit card or ATM services, so if you want to access your funds, you must transfer them into an external bank account.
Luckily this process is simple, and there are several options: ACH transfers, wire transfers, or even mobile check deposits!
Is Marcus By Goldman Sachs Worth it?
Marcus by Goldman Sachs is an excellent option for those looking for various fee-free loan products and a great selection of CDs and investing options. Moreover, the bank is FDIC insured and provides top-notch security measures.
Why Is Chime The Best?
Chime Banking is an exceptional platform as it offers a comprehensive suite of features with no fees or minimum balance requirements. Furthermore, Chime provides two-day early paychecks, access to over 60,000 ATMs nationwide, and fraud monitoring.
Is Chime a Real Bank?
Chime is not a bank but a financial technology company that offers banking services provided by The Bancorp Bank, N.A., and Stride Bank, N.A., Members FDIC. This means that Chime is not responsible for your money, but the banks are FDIC insured and have been in operation for years.
Is Marcus a P2P Lender?
Peer-to-peer lenders are not banks but platforms that match borrowers and lenders. Marcus does not offer peer-to-peer lending but provides loans that Goldman Sachs Bank USA produces.
What Is Marcus Insights?
Marcus Insights is a free money management tool offered by Goldman Sachs to help you organize and optimize your finances. It allows you to connect external accounts to the app, track your spending by category and gain personalized insights into your financial situation.
Is Marcus Insights Free?
Yes, Marcus Insights is completely free to use. There are no fees associated with signing up or using the app. So if you're looking for an easy-to-use and powerful money management tool, Marcus Insights may be just what you need!
Here we conclude our blog post on Chime Vs Marcus, two of the top banking options in the industry. This has provided a comprehensive overview of both platforms, making it easier to make the best decision.
In 2023, your financial goals could be handled with either platform. However, each offers different products and features, so it is up to you to decide which one would best suit your needs.
With their respective strengths in free banking services, loan products, trustworthy security measures, and helpful money management tools, Marcus by Goldman Sachs and Chime Banking are excellent options for anyone looking for a reliable banking platform.
With so many features, there is no reason why you should not consider these two options! So check them out and start getting the most out of your money today.