Chime’s New “Save When I Get Paid” Feature More Than Triples Members’ Average Monthly Savings
Chime, a new type of bank account that helps members avoid fees and save money automatically, announces “Save When I Get Paid”, which allows members to automatically transfer ten percent of every paycheck to their Savings account. Members can enroll in the program with one tap from the Chime app.
“Our mission at Chime is to help people to live healthy financial lives, and one of the hardest aspects of saving money is getting started,” said Chime co-founder and CEO Chris Britt. “We’re excited to help our members form healthy savings habits through an easy sign up flow so people can save money without thinking about it.”
The program is designed to help members with short-term savings goals such as an emergency fund or major purchases. While personal finance experts typically recommend having an emergency fund equal to three to six months of expenses, most Americans have less than $500 in savings, total.
Using a “pay yourself first” approach, Chime’s new feature automatically sets aside money for savings as soon a paycheck arrives. This new option builds on the success of Chime’s “Save When I Spend” feature, which automatically rounds up members’ Chime card transactions to the nearest dollar and transfers the round up to savings. Chime makes it easy to sign up as part of the new member enrollment process and rewards those who enroll in this program with a 10 percent cash bonus on round ups each week.
Chime launched “Save When I Get Paid,” in beta earlier this year and found that members who enroll in these automated savings programs significantly increase their monthly savings. Those who’ve enrolled in both programs saved 240 percent more per month compared to members not enrolled in any automatic savings program:
- Members not enrolled in Chime’s automatic savings programs saved $113 per month on average.
- Members enrolled in “Save When I Spend” saved $217/month on average compared to those not enrolled (a 92% increase or almost 2x)
- Members enrolled in both “Save When I Spend” and “Save When I Get Paid” saved $382/month on average compared those not enrolled (a 240 percent increase or more than 3x)
Based on beta feedback, Chime plans to introduce new options that allow members to set a specific savings percentage as well as new features to help members achieve both short and long-term savings goals.
To learn more about Chime please visit http://www.chimebank.com.
Chime a new kind of bank account that empowers people to lead healthier financial lives, avoid fees and automate their savings. Founded by financial and tech industry veterans Chris Britt and Ryan King, Chime has created a new approach to banking that doesn’t rely on fees, doesn’t profit from members’ misfortune or mistakes, and helps members get ahead financially. Chime members get a debit card, a Spending Account, a Savings Account, and a powerful app that keeps members in control. The Chime app is available for iPhone and Android devices and has been featured as one of the best new Money Management apps on the App Store. To learn more about Chime visit www.chimebank.com.