Chime, the San Francisco-based mobile banking fintech, said it has signed up more than 5 million customers for an FDIC-insured account and said that its SpotMe overdraft protection feature is expanding after completing a beta period during the summer.
The SpotMe overdraft feature allows customers with direct deposit the ability to overdraw up to $100 in debit card coverage without incurring overdraft fees. The amount of coverage depends on several factors, including the account history of individual customers. Customers must have direct deposits of at least $500 to qualify.
After launching earlier this summer, Chime has made SpotMe available to about 500,000 customers so far and is adding more. So far, the service has saved customers more than $200 million in overdraft fees.
“Bank overdraft and monthly fees are a huge tax on American consumers,” Chris Britt, co-founder and CEO at Chime, said in a company release. “SpotMe is designed to alleviate this unnecessary pain and is another step in making banking in America free, easy and helpful.”
Overdraft coverage is taken out of the account on the following direct deposit made with the bank.
Cover image courtesy of Chime.