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Varo Bank Review 2024

Updated February 29, 2024
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At a glance

4.3
Rating: 4.3 stars out of 5
Bankrate Score
Caret Down Icon

Checking

Rating: 4.7 stars out of 5

Savings

Rating: 4.5 stars out of 5

About Bankrate Score

Overview

Varo is best for consumers who want an online alternative to traditional banks, no fees, competitive APYs and digital tools for saving.

Highlights

  • Highly Rated App
  • No Min Balance
  • No Monthly Fees
Sponsored offers
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These are sponsored offers rated highly by us for competitive rates, fees, and minimums.

Bank logo
Member FDIC
Savings Account
4.10
%
APY
APY
Info Icon
As of 10/8/2024
Rating: 4.9 stars out of 5
$0
Min. balance for APY
View offer Arrow Right Icon
Promoted offer:
Bank logo
Member FDIC
Savings Account
4.10
%
APY
APY
Info Icon
As of 10/8/2024
Rating: 4.9 stars out of 5
$0
Min. balance for APY
View offer Arrow Right Icon
Promoted offer: It only takes about 5 minutes to open a fee-free account.
Bank logo
Member FDIC
Savings Account
5.25
%
APY
APY
Info Icon
As of 10/8/2024
$500
Min. balance for APY
View offer Arrow Right Icon
Promoted offer:

Overall

Varo is a digital bank that prides itself on its technology and offers checking and savings accounts with unique online features.

Pros

  • Checkmark Icon

    Varo has no minimum deposit or balance requirements and charges no monthly fees.

  • Checkmark Icon

    The savings account offers a competitive APY.

  • Checkmark Icon

    Varo offers unique tools and features to help customers build their savings.

Cons

  • Cash deposits can only be made through third-party retailers, which may charge a fee.

  • Neither a money market account nor certificates of deposit are available.

CTA We want to know what you think about Varo Bank

We want to know what you think about Varo Bank

Do you have experience with Varo Bank? Let us know your thoughts.

Varo Bank banking products

4.5
/5
Rating: 4.5 stars out of 5
See methodology Compare savings rates
SCORE BREAKDOWN
APY offering:
3.00%
Rating: 4 stars out of 5
4/5
Info Icon
Minimum balance for APY:
$1.00
Rating: 5 stars out of 5
5/5
Info Icon
Monthly service fee:
$0.00
Rating: 5 stars out of 5
5/5
Info Icon
Minimum balance to avoid fee:
$0.00
Rating: 5 stars out of 5
5/5
Info Icon
Access to funds:
Great
Rating: 5 stars out of 5
5/5
Info Icon
FEATURES
Invest Rate Icon
3.00% APY
Info Icon
Savings Icon
$1 minimum balance for APY
Loan Icon
$1 minimum deposit to open

Varo Bank savings overview

Varo offers an FDIC-insured high-yield savings account. You can earn a very competitive yield on the first $5,000 and then a competitive yield on the remainder.

There’s also no minimum opening deposit requirement nor a monthly fee. Varo also offers a much higher APY on savings accounts that meet certain criteria, including at least $1,000 directly deposited each month and a maximum daily balance of $5,000.

Two useful tools for savings come with the account: a Save Your Pay feature and a Save Your Change feature. Save Your Pay automatically takes a percentage that you set from each directly deposited paycheck and transfers it to your savings, while Save Your Change rounds up transactions made from the checking account and transfers the spare change to savings.

A Varo checking account is required to open a Varo savings account.

In February 2024, Varo had a promotion where you can get your tax refund up to five days earlier, according to its website.

Pros

  • Checkmark Icon

    The savings account offers a competitive APY.

  • Checkmark Icon

    There’s no minimum deposit requirement or monthly fee.

  • Checkmark Icon

    Automated tools help customers boost their savings.

  • Checkmark Icon

    People age 18 or older in all 50 states and Washington, D.C. can open an account with Varo.

Cons

  • Varo’s online savings account only offers the highest yield for balances of $5,000 or under.

  • See how rates for this account have changed over time. Interact with the trend lines to view APY by date.

    Varo Bank
    APY
    APY
    Info Icon
    National average APY
    How do we get this data?
    Info Icon
Compare Offer
Sponsored Offer
Info Icon

This is a sponsored offer rated 4 stars or higher for competitive rate, fees, and minimums.

Bank logo
Member FDIC
Savings Account
4.10
%
APY
APY
Info Icon
As of 10/8/2024
Rating: 4.9 stars out of 5
Info Icon
$0
Min balance for APY
Promoted offer:

Customer experience

Varo customers can reach a service representative by phone seven days a week. They’re available from 8 a.m. to 4:30 p.m. Mountain time during the week.

Varo’s app receives high ratings from users on both iOS and Android devices. The app provides all of the account access, tools and features that customers can get through the website. It also gives customers the ability to lock their cards instantly should they be lost or stolen.

About Varo Bank

Founded in 2015, Varo Bank is a digital bank that seeks to provide banking services to those who historically have had difficulty accessing them due to financial inequality. In 2020, Varo became the first fintech company to receive a full-service bank charter from the federal government.

Varo only offers a few deposit products, but they come with plenty of extras, including no monthly fees, minimum balance requirements or transfer fees, early direct deposit, a cash advance feature and top-notch digital tools.

How Varo Bank compares to other banks

Compare different account types offered by Varo Bank. Annual percentage yields (APYs) shown were updated between Oct. 1, 2024 and Oct. 7, 2024.

Selected bank
Varo Bank savings account
Varo Bank Logo
Member FDIC
Bankrate score
Rating: 4.5 stars out of 5
4.5
Info Icon
Most comparable
Barclays Bank savings account
Barclays Bank Logo
Member FDIC
Bankrate score
Rating: 4.9 stars out of 5
4.9
Info Icon
Read review
Search for or select a bank:
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Bankrate score
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Read review
APY
Info Icon
3.00% 4.50%
Minimum balance for APY
$1.00 $0.00
Estimated earnings
Info Icon
$1,500 $2,250
Varo offers an FDIC-insured high-yield savings account. You can earn a very competitive yield on the first $5,000 and then a competitive yield on the remainder. There’s also no minimum opening deposit requirement nor a monthly fee. Varo also offers a much higher APY on savings accounts that meet certain criteria, including at least $1,000 directly deposited each month and a maximum daily balance of $5,000. Two useful tools for savings come with the account: a Save Your Pay feature and a Save Your Change feature. Save Your Pay automatically takes a percentage that you set from each directly deposited paycheck and transfers it to your savings, while Save Your Change rounds up transactions made from the checking account and transfers the spare change to savings. A Varo checking account is required to open a Varo savings account. In February 2024, Varo had a promotion where you can get your tax refund up to five days earlier, according to its website. The Barclays Tiered Savings Account offers a competitive yield for balances over $10,000. You don’t need a minimum deposit to open an account and like at most online banks, you won’t pay a monthly maintenance fee.
  • The savings account offers a competitive APY
  • There’s no minimum deposit requirement or monthly fee
  • Automated tools help customers boost their savings
  • People age 18 or older in all 50 states and Washington, D
  • C
  • can open an account with Varo
  • Barclays allows you to earn a competitive yield on your savings.
  • Barclays’ savings account doesn’t have a monthly service fee.
  • Barclays doesn’t have a minimum opening deposit requirement.
    N/A
  • Varo’s online savings account only offers the highest yield for balances of $5,000 or under
  • You can earn a higher yield at some other online banks.
    N/A
Bankrate does not currently track additional product details for this bank.
APY offering:
4.50%
5/5
Info Icon
Minimum balance for APY:
$0.00
5/5
Info Icon
Monthly service fee:
$0.00
5/5
Info Icon
Minimum balance to avoid fee:
$0.00
5/5
Info Icon
Access to funds:
Good
4/5
Info Icon
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Bankrate does not currently track additional product details for this bank.

Review methodology

With so many financial institutions to choose from, it can be hard to know who to trust. Bankrate’s ever-growing list of bank and credit union reviews is updated regularly. Our editorial team analyzes and reviews each institution across deposit products such as savings accounts, checking accounts, certificates of deposit (CDs) and money market accounts (MMAs). Banks are rated by important factors such as offered interest rates, fees, minimum balance requirements, access to funds and more.

We assign a score to each type of account and its features, weigh them carefully based on importance to account holders and determine an overall score. Read our full review methodology.