Varo offers an FDIC-insured high-yield savings account. As of Jan. 9, the bank was advertising an APY that would be among the highest nationwide. However, in the disclosures, it notes that the APY will be cut in half starting Jan. 12. Still, the reduced APY is competitive. There’s no minimum balance needed to open the account and no monthly fee, making it accessible to anyone searching for a place to stash their savings.
The savings account offers a couple of automated tools to help customers save more:
- The Save Your Pay feature takes a percentage of direct deposits to the banking account and transfers it to the savings account. Customers determine the percentage.
- The Save Your Change feature rounds up transactions to the nearest dollar and moves that amount from the bank account to the savings account.
Customers must also open a preliminary Varo "bank account" in order to open the savings account. Customers can’t deposit money directly into the savings account; instead, they must transfer the funds into the bank account and transfer them into the savings account.
The savings account offers a competitive APY.
There’s no minimum deposit requirement or monthly fee.
Automated tools help customers boost their savings.