- High-yield savings earns competitive APY.
- Very few fees.
- Cash deposits available through third-party merchants and Allpoint ATMs.
- No in-branch banking.
- Limited suite of banking products.
- Must meet certain conditions to receive the highest yield.
Varo bank basics
- Checking account: Varo Online Bank Account.
- Savings account: Varo Savings Account.
- Other accounts: Varo Believe Credit-Builder Card
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The information for the Varo Believe Credit-Builder Card has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer.
, Quick Cash Advance. - Bank branches or online only: Online only.
Annual percentage yields (APYs) and account details are accurate as of Dec. 8, 2023.
About Varo Bank
Varo Bank is an online-only bank that offers checking, savings, a secured credit card and cash advance loans.
In addition to the more traditional banking products, Varo also offers services aimed at people with limited funds, such as the Quick Cash Advance feature that will instantly loan up to $500 when needed. Moreover, its secured credit card has no interest and no annual fees, making it an option for someone who is looking to build their credit.
Varo Savings Account
Varo Savings is the bank’s only savings product. You can earn a yield from 3.00% APY to start, then qualify to earn 5.00% APY on balances up to $5,000 the next month after receiving qualifying direct deposit(s) totaling at least $1,000 and ending the month with a positive balance in both the Varo Bank Account and Savings Account (balances over $5,000 earn 3.00% APY). Account holders can earn the higher APY on the first $5,000 in savings with what the bank calls the Elevated Savings Program (ESP), but you have to meet two conditions to do so:
- You must have a Varo checking account (which they simply call a bank account) that has a balance in it, even if it’s just $1, at the end of the Qualifying Period.
- Either your Bank Account or Savings Account must have received at least $1,000 in qualifying direct deposits during the prior Qualifying Period.
Customers who don’t meet these requirements will earn the lower APY. You’ll also earn the lower APY on any balances greater than $5,000.
There are no monthly fees and no minimum balance requirements. It also comes with two automated savings tools, Save Your Change and Save Your Pay, to help you grow your savings on autopilot.
Save Your Change will round up the transactions from your Varo checking account and move the change from checking to savings. With Save Your Pay, you’ll designate a percentage of any deposit made to your Varo checking account to automatically be transferred to your savings.
Varo Bank Account
Varo’s Online Bank Account is the bank’s version of a checking account. It has no minimum deposit requirement and very few fees. The only fees you’ll pay are for out-of-network ATM transactions, over-the-counter cash withdrawals and cash deposits via third-party transfer services. Varo uses the Allpoint ATM network, which gives you access to more than 40,000 free ATMs nationwide.
While the Varo Online Bank Account doesn’t earn interest, it comes with a Visa debit card and has a number of convenient checking features. For example, you can get paid up to two days early with direct deposit and use Zelle to send and receive money.
Varo doesn’t offer overdraft protection per se, but for those who qualify it does offer what they call Quick Cash Advance which lets you instantly borrow up to $500 if you need a boost in your checking or savings account. The tool costs between $1.60 and $40, depending on how much you need, and you need to repay the advance within 30 days.
This isn’t an automatic feature, you’ll need to qualify.
First, you need a Varo Bank account and a minimum of $800 in direct deposits in the current or previous month. You’ll then be qualified for between $20 and $250, you’ll see the amount you qualify for on the app.
Over time, you may qualify for higher limits, up to $500, based on your account balances, advance repayment history, direct deposit history and other factors.
Other product
Varo Believe Credit-Builder Card
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The information for the Varo Believe Credit-Builder Card has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer.
. Varo’s secured credit card has no interest and no annual fees. There’s no credit check to apply, either, and you get to set your own credit limit based on the amount of your security deposit.
How Varo Bank stacks up
Varo Bank vs. CIT Bank
Varo Bank and CIT Bank are both online-only banks, but CIT has a broader range of banking products. While Varo and CIT each offer one checking account, CIT has three savings accounts, a money market account and certificates of deposit (CDs). Varo’s and CIT’s savings accounts are comparable, each earning a highly competitive APY. However, the CIT Bank Savings Connect require a minimum deposit of $100.
When it comes to checking, the CIT Bank eChecking requires a $100 minimum opening deposit. It’s not quite a high-yield checking account, but it offers 0.10% APY on balances under $25,000 and 0.25% APY on balances of $25,000 or greater. CIT reimburses up to $30 per month in out-of-network ATM fees, but you can’t write checks from your CIT eChecking account.
Varo Bank vs. Ally Bank
Ally Bank is one of the largest online-only banks in the country. Ally offers checking, savings, CDs, money market accounts, credit cards, loans and investment products.
Like Varo, Ally’s checking account has very few fees. But it earns modest interest and offers an overdraft protection service. The Ally Bank Savings Account earns a competitive interest rate across all balance tiers. And similar to Varo’s Save Your Change tool, Ally can automate your savings with its Round Ups tool.
Varo Bank vs. First Internet Bank
First Internet Bank is an online bank with more products and services than Varo. The bank offers checking, savings, money market accounts, CDs, IRAs, HSAs, kids’ bank accounts, loans and business banking services.
When it comes to savings account interest rates, Varo comes out on top. The First Internet Bank Free Savings account only earns 0.80% APY. It requires a $25 opening deposit but has no monthly maintenance fee.
First Internet Bank offers two checking accounts: a free checking account and an interest-bearing checking account. The First Internet Bank Free Checking has a $25 initial deposit requirement. The First Internet Bank Interest Checking has a $100 opening deposit requirement and a $10 monthly fee, but earns 0.50% APY.
First Internet Bank also reimburses up to $10 per month in ATM fees.
Frequently asked questions (FAQs)
Yes, Varo is an online bank insured by the Federal Deposit Insurance Corporation (FDIC #59190). It offers checking, savings, a secured credit card and cash advances.
Varo Bank is an online-only bank, so it doesn’t have any retail branch locations. Its headquarters are in San Francisco, California.
Yes, Varo has Zelle. You can access Zelle through the Varo mobile app to send and receive money without paying fees.
Varo Bank is insured by the FDIC. FDIC insurance protects deposits of up to $250,000 per account ownership category. Varo also offers Visa Zero Liability, encryption and instant card-locking via its mobile app.
Colin Walsh founded Varo Bank in 2015 and became the first neobank to receive a national bank charter. Varo’s notable investors include Lone Pine Capital, Declaration Partners, Eldridge, Warburg Pincus and The Rise Fund.
