Varo Bank Review July 2024: Free checking and savings with a 5.00% APY

Varo also has a feature that allows you to file your federal taxes through its banking app and then receive any return into your Varo bank account up to five days earlier.  

All rates and fees are current as of July 5, 2024, and are subject to change.

Varo Bank

Checking accounts:	Free with no opening deposit minimum
Savings accounts:	up to 5.00% APY

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Pros and Cons

Pros

• Free checking with no minimum balance
• Free savings with up to 5.00% APY
• Easy access to all banking products virtually

Cons

• Only one type of savings account
• No physical branches
• No CDs or retirement accounts

Who is Varo Bank good for?

Varo Bank is an easy and low-cost entry point for anyone trying to save for the first time or build their credit score. It offers a free, no-frills checking account and a savings account with a high APY of 5.00%. Because the bank is online-only, you can sign up for an account within minutes through its mobile app or website. Varo also has a partnership with a network of more than 40,000 ATMs nationwide and roughly 90,000 retail locations where you can make account transactions like deposits.

Who shouldn’t use Varo Bank?

If you are looking for a wide variety of savings options, such as individual retirement accounts (IRAs) or CDs, then you won’t find that at Varo Bank. It only has one savings and one checking product. It also does not have physical branches.

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Varo Bank rates and products

Varo Bank has one savings account with a high yield of up to 5.00% on the first $5,000. While this is the bank’s only interest-yielding account, it is a very competitive rate compared to other high-yield savings accounts. 

The bank also encourages saving money by allowing you to opt into a program where it rounds up any change from a transaction in your checking account to the next dollar, then deposits that difference into your savings account. 

Checking accounts 

Varo Bank has one very simple and free checking account. There’s no monthly maintenance fee or charge to open the account. There’s also no minimum balance requirement or overdraft fee, although you do risk having your account closed if there are negative funds for too long. 

Varo’s basic checking account does not yield interest. But it does allow you to get your paycheck up to two days early by setting up direct deposit with your employer and government payers. It also has a feature where you can get up to 6% cash back on transactions with certain retailers when you use a Varo debit card or one of its credit cards. 

Savings accounts

Varo Bank has one savings account offering a 5.00% APY on amounts up to $5,000. That yield is among some of the best high-yield savings accounts nationwide.  

There is a caveat to getting the 5% yield, however. You must also have a Varo checking account and get at least $1,000 in direct deposits each month. As long as you have a positive balance in both accounts at the end of the month, you will qualify for the 5% APY during the following month.

Any amount that exceeds $5,000 earns a 3% APY. 

Varo Bank savings rates compared to current top rates*

Varo Bank is a great option for earning a high interest on your initial savings amount but there are other competitors to consider:

Other services Varo Bank offers 

• Varo Cash Advance: Customers who are in a financial bind can use Varo Cash Advance to borrow up to $250 initially, then gradually up to $500 if they stay in good standing. You do not have to pay interest if you pay the amount back within the first 30 days.  
• Varo Believe: Varo offers a credit card that is meant to help customers with no credit history or a bad score. The card is based on a dollar amount that you transfer over to the account, which determines your total available balance on the card. Because of this, the card is secured by your committed cash. It doesn’t require an annual fee or credit check, and there is no interest charged.
• Column Tax: Varo has a new feature on its app in which you can file your taxes through Column Tax for free. You can also get any tax refund up to five days earlier by having it deposited directly into your Varo bank account. 
• Early direct deposit: Varo customers can get access to their paycheck up to two days earlier than traditional banks.  
• Zelle: Varo Account holders can send, request, or receive money with Zelle in the Varo app.
• Online banking: Varo is an online-only bank, which means you can only open an account by applying through its mobile phone app or its website by desktop. The bank’s website says you can sign up for an account in “less than two minutes.” You should be able to do most transactions through Varo’s mobile app, such as deposit checks, transfer funds, link accounts, and track your spending. 

The Varo Bank platform and customer support 

Customers who have questions about their Varo account can contact a customer service representative via the Varo app. Varo Bank’s app is available on the Apple App Store and Google Play for Android users. 

The app features a live chat option, email, and a calling feature. Support by chat is available 7 days a week, from 8 a.m. to 4:30 p.m. Mountain Time (MT). You can also reach Varo by sending an email to support@varomoney.com. Support by phone and email is available Monday through Friday, from 8 a.m. to 4:30 p.m. MT as well as on federal holidays from 8 a.m. to 4:30 p.m. MT. Services by phone and email are not available on Thanksgiving, Christmas, and New Year's Day. 

Compare Varo Bank alternatives

Varo Bank	Ally Bank	SoFi
Top savings APY	Top savings APY	Top savings APY
5.00%	4.20%	Up to 4.60%*
Top checking APY	Top checking APY	Top checking APY
None	0.25%	0.50%
Top CD APY	Top CD APY	Top CD APY
N/A	4.50	N/A
Learn more	Learn more	Learn more
View offer at Fiona	View offer at Ally	View offer at SoFi

*SoFi members with Direct Deposit or $5,000 or more in Qualifying Deposits during the 30-Day Evaluation Period can earn 4.60% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. Members without either Direct Deposit or Qualifying Deposits, during the 30-Day Evaluation Period will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Interest rates are variable and subject to change at any time. These rates are current as of 10/24/2023. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.

Is Varo Bank right for you?

Varo Bank is a great option for those who are starting out with their savings or want to build their credit history and score. The bank has simple and free options to create a checking or high-yield savings account online or through the mobile app. 

The bank’s credit card that’s secured by your own cash and its small-dollar cash advance are also good options for people who want to build their credit history without jumping into too much debt.  

Frequently asked questions