Chime SpotMe Overdraft: How Does It Compare With Traditional Overdraft Protection?

You can save some serious cash using chime SpotMe overdraft.

Chime SpotMe is an overdraft alternative that covers you for free if you’re overdrawn up to $100. Considering that overspending on a latte can cost you an overdraft fee of $34 to $36 with many banks, you might want to learn more about SpotMe — especially if your account is occasionally overdrawn. Here’s everything you need to know about Chime SpotMe overdraft coverage.

This guide to Chime SpotMe covers the following topics:

Who Is Eligible for SpotMe?

If you have a bank account with Chime, there aren’t too many hoops to jump through to be eligible for SpotMe. Once you start receiving direct deposits of $500 or more per month, you’re eligible.

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How Does SpotMe Work on Chime?

Chime will send you a notification inviting you to enroll through the Chime app for SpotMe once the bank sees you’re receiving at least $500 per month in direct deposits. The overdraft coverage limit starts at $20, although it can be increased up to $100.

After you’re enrolled, any debit card purchases for more than your current bank balance will trigger SpotMe to kick in and cover the amount (within the limit). Chime will automatically deduct what you owe the bank the next time you receive a deposit.

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Can You Overdraft Chime Without SpotMe?

If you don’t enroll for SpotMe, any debit card transactions that exceed your bank balance will be declined.

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Is There a Fee for Using Chime SpotMe Overdraft?

Chime makes banking simple by not charging fees — not even for the Chime SpotMe overdraft feature. You can leave Chime a tip to pay it forward, however, if you’re pleased with the feature.

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How Many Times Can You Overdraft With Chime?

Chime doesn’t set a number to how many times you can overdraft. The bank uses a total dollar amount limit instead. For example, if your SpotMe limit is $20 per month, you can overdraft 10 times if each debit purchase was $2.

You can monitor your limit through the mobile app to keep an eye on your SpotMe availability. Any transactions above your remaining limit will be declined.

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How Do You Increase SpotMe on Chime?

Your overdraft limit may be increased from $20 up to $100, based on your direct deposit history and the amount you receive, your spending and according to Chime, other “risk-based” factors.

The process is automatic. Chime states that your limit can’t be manually adjusted by contacting member services. If your limit is increased, you’ll receive a notification, as well as see the new amount through the Chime mobile app.

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What Can Chime SpotMe Overdraft Be Used For?

Chime SpotMe comes in handy when you’re in a pinch. Imagine being at a coffee shop for a business meeting or interview, and your card declines when you offer to pay for coffee for yourself and your guest. Or worse, getting hit with a $35 overdraft fee because you overdrew your bank account for a $10 coffee purchase.

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With this in mind, Chime SpotMe overdraft doesn’t work for everything — only for debit card overdrafts. If you don’t have the funds to cover part of your rent payment amount, SpotMe won’t help. Or if you need to withdrawal $20 and only have $10 in your account, SpotMe won’t kick in either. Here’s what SpotMe is not for:

As mentioned, SpotMe only covers debit card purchases. If you’d like the layer of protection SpotMe offers, try paying your bills with your debit card, which works anywhere Visa is accepted.

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What’s the Difference Between Chime SpotMe and Overdraft Protection?

Chime’s SpotMe service is similar to overdraft protection. You’ll need to opt-in for overdraft protection and Chime SpotMe. Here’s how the two overdraft services compare:

Chime SpotMe vs. Overdraft Protection
Compare Chime SpotMe Overdraft Overdraft Protection
Fees No fee
  • As high as $38
  • Possible fees of up to $12 to transfer coverage amount
  • Possible annual fee of up to $50 to maintain open overdraft line of credit
Overdraft amount $20 to $100 monthly overdraft coverage amount Overdraft protection as high as $10,000
Number of overdrafts allowed Unlimited free overdrafts (as long as you remain within the monthly limit amount) Up to 7 overdraft fees or $259 per day
Second linked account required No Yes (unless you opt for overdraft line of credit)
Credit check required No No (unless you opt for overdraft line of credit)
Types of overdrafts allowed Debit card only Any checking account transaction exceeding your balance
Repayment On the next deposit received, with no additional fees ASAP — or additional amount up to $35 may apply every five business days if account remains overdrawn.

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Rates and fees are subject to change. Information on accounts is accurate as of April 29, 2020.

This content is not provided by Chime. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by Chime.

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About the Author

Cynthia Bowman

Cynthia Paez Bowman is a personal finance writer with degrees from American University in international business and journalism. Besides writing about personal finance, she writes about real estate, interior design and architecture. Her work has been featured in MSN, Brex, Freshome, MyMove, Emirates’ Open Skies magazine and more.

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Chime SpotMe Overdraft: How Does It Compare With Traditional Overdraft Protection?
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