As Chime prepares for its IPO, the digital bank is introducing new incentives to attract and retain customers. It will offer a 3.75% APY to users who agree to have their paychecks directly deposited into Chime savings or checking accounts. Standard users not opting for direct deposit will still receive a competitive 2% APY.

For context, the national average savings account yield is just 0.61%, according to recent Bankrate data.

Madhu Muthukumar, Chime’s Chief Product Officer, indicated that this move is designed to increase customer engagement. Last summer, Chime had 7 million customers and generated $1.5 billion in annualized revenue, according to Forbes. The company has not shared updated figures.

Chime filed confidential paperwork for its IPO in December. It was valued at $25 billion in 2021 and has raised a total of $2.65 billion from investors like Sequoia, SoftBank, and Tiger Global.

To qualify for the higher APY, customers must join Chime+, a free premium membership requiring direct deposit of paychecks.

Founded in 2012, Chime targets everyday Americans and boasts no overdraft, maintenance, or minimum balance fees. Muthukumar said, “These are people who you would find in your community... This is your neighbor.”

Additional new features include a redesigned app, cashback offers, dedicated customer support, and instant loans.

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