Chime launches in-app investing with USD $1 minimum

Chime has launched Chime Invest in its app, adding investing to its existing banking and savings offering.

Users can buy US stocks and exchange-traded funds without commission charges or choose an expert-managed portfolio. There are no account minimums, and members can begin investing with as little as USD $1.

The move expands Chime's push beyond spending, saving and credit products as financial technology groups look for more ways to keep customers inside their apps. On average, Chime members use the app five times a day and make more than 50 transactions a month.

Access barriers

Chime is targeting consumers who have not invested before or have found it difficult to start. It cited data showing that about 40% of Americans report owning no stock, leaving a large part of the population outside one of the main routes to long-term wealth accumulation.

The company also pointed to survey findings that identified limited time, competing demands on household money and the cost of professional advice as key reasons some consumers stay out of the market. Chime said the new service is designed to address those barriers by placing investing in the same app members already use for everyday money management.

"The hardest part of investing is often getting started and sticking with it," said Chris Britt, Chief Executive Officer and Co-founder of Chime.

"Millions of people already trust Chime with their money every day. By bringing investing into the app they already know and love, we're making it easier to turn saving into investing and investing into long-term wealth," Britt said.

Two options

Chime Invest offers two routes within a single account structure: a managed portfolio for users who want investment decisions handled for them, and a self-directed option for customers who prefer to choose individual securities themselves.

The managed portfolio service is built around diversified portfolios tailored to a member's goals and risk profile. Atomic Invest, which Chime identified as a registered investment adviser, manages those portfolios.

Fees vary by membership tier. Managed portfolios carry no management fees for Chime Prime members, a 0.10% annual management fee for Chime Plus members and a 0.25% fee for other Chime members.

The self-directed option gives users access to a broad range of US stocks and ETFs without commission charges. SIPC protects securities in members' investment accounts up to USD $500,000.

Broader strategy

The launch highlights a wider trend among consumer finance apps, many of which are trying to combine payments, savings, borrowing and investing in one place. For Chime, adding investing extends a model built around low-fee banking services offered in partnership with regulated banks.

Members' account balances are held at The Bancorp Bank and Stride Bank, both FDIC-insured institutions. Chime describes itself as a financial technology company rather than a bank.

Its broader product set includes early access to pay through direct deposit, fee-free overdraft for eligible members, savings accounts and credit-building products. Eligible members can also earn cash back through its card offering while continuing to build credit.

The investing product sits alongside those services as Chime looks to deepen customer relationships and increase engagement within its app rather than sending users to separate platforms for different financial needs. General access to Chime Invest will roll out to members over the coming weeks.

Alongside the investing launch, members can also access high-yield savings with rates of up to 3.75% APY, depending on membership status. Managed portfolios have no account balance minimums, and both self-directed and managed investing are housed within the same app experience.

Members can start with as little as USD $1.