Buying a home is a major financial decision that requires careful planning and budgeting. Financial technology (Fintech) company such as Chime and Ally can help first home buyers save money and stay on track with their homeownership goals.
In this blog post, I’ll share the benefits of using Fintech companies instead of traditional banks for new home buyers.
Contents:
What are Fintech companies
Fintech companies use technology to provide financial services primarily using mobile apps. Most of these banks are online only and do not have physical locations. They offer services such as online banking, mobile payments, automatic investment platforms, and digital currencies, among others.
Automatic Savings
One of the biggest challenges for new home buyers is saving for a down payment. According to the National Association of Realtors (NAR), the median down payment on a home in the United States was $31,000 in the first quarter of 2021.
Chime’s automatic saving feature can help. When you use your Chime debit card, the app rounds up your purchases to the nearest dollar and deposits the difference into a savings account.
For example, if you buy a coffee for $3.50, Chime will round up to $4.00 and deposit the $0.50 into your savings account. This may not seem like much, but it can add up over time. One Chime customer saved over $1,000 in just six months using this feature. [1]
Budgeting tools
When you’re saving for a down payment to buy a home, it’s important to manage your expenses.
Fintech budgeting tools can help. App such as Chime and Ally categorizes your transactions, sends spending alerts, and provides customizable budgeting goals. With these tools, you can make informed financial decisions and stay on track with your homeownership goals. [2]
Early Direct Deposit
Early Direct Deposit Timing is important when you’re buying a home. Early direct deposit allows you to access your pay check up to two days earlier than with a traditional bank. This can give you more flexibility and allow you to meet important deadlines, such as making an offer on a home. [3]
Mobile Check Deposits
Depositing checks can be a hassle, especially when you’re on the go. Mobile check deposit feature allows you to deposit checks using your smartphone. All you need is your smartphone camera. With this feature, you can deposit checks anytime, anywhere. [4]
No overdraft fees
Overdraft fees can add up quickly and eat into your home buying budget. Chime doesn’t charge overdraft fees. If you don’t have sufficient funds in your account to cover a transaction, the transaction will simply be declined. This can help you avoid costly fees and keep more of your money in your pocket. [5]
Fintech banks are a powerful financial tool for new home buyers. With automatic saving, high interest savings, budgeting tools, early direct deposit, mobile check deposit, and no overdraft fees, homeownership can save money and stay on track with their goals.
How to Sign Up: To sign up for Chime, visit https://www.chime.com/sign-up. Follow the prompts to create an account and get started.
Disclaimer: This blog post may contain affiliate links.
References:
[1] Chime. (2022). Automatic Saving. Retrieved from https://www.chime.com/savings/automatic-saving [2] Chime. (2022). Budgeting Tools. Retrieved from https://www.chime.com/budgeting [3] Chime. (2022). Early Direct Deposit. Retrieved from https://www.chime.com/bank/early-direct-deposit
