Varo is a good option if you're comfortable with online banking, especially if you're searching for checking and savings accounts that do not use ChexSystems to review your past banking history or do a credit check.
The Varo Savings Account also lets you earn a solid interest rate that's much higher than what many traditional and high-yield savings accounts pay — it may be worth considering if you plan to set up direct deposits and meet certain balance requirements. Many of the best high-yield savings accounts let you earn a high rate without meeting specific criteria, though.
Varo Bank Review: Overall Rating
| Product | Personal Finance Insider rating (out of 5) |
| Savings | 4.25 |
| Checking | 4 |
| Trustworthiness | 3.5 |
| Total | 4 |
Varo Bank Pros and Cons
| Pros | Cons |
|
|
Varo Savings Rates
no monthly service fee
2.50% to 5.00%
$0
- High APY
- No monthly service fees
- No minimum opening deposit
- No physical branch locations
- Most open a Varo Checking Account before opening a savings account
- Must meet certain qualifications to earn highest APY
- Only earn highest APY on balances up to $5,000
- Only way to deposit cash is to visit a Green Dot location and pay a fee
- No joint accounts
Varo is a good option if you're comfortable with online banking, especially if you're searching for checking and savings accounts that do not use ChexSystems to review your past banking history or do a credit check. The Varo Savings Account also lets you earn a solid interest rate that's much higher than what many traditional and high-yield savings accounts pay — it may be worth considering if you plan to set up direct deposits and meet certain balance requirements. Many of the best high-yield savings accounts let you earn a high rate without meeting specific criteria, though.
- You must open a Varo Checking Account to qualify for a Varo Savings Account
- To earn the highest APY each month, you must receive $1,000 in direct deposits, maintain a daily balance of $5,000 or under in your Varo Savings Account, AND keep your bank accounts above $0
- Interest compounded daily, paid monthly
- FDIC insured
Varo pays two interest rates. You'll earn 5.00% APY on balances up to $5,000 if you receive at least $1,000 in direct deposits and keep a positive account balance on Savings and Bank Accounts. If you don't meet these requirements or have an account balance over $5,000, you'll earn 2.50% APY.
Keep in mind you must open a Varo Bank Account before opening a savings account, though.
Varo Checking Overview
no monthly service fee
None
$0
- No minimum opening deposit
- No monthly service fees
- No foreign transaction fees
- Get your paycheck up to 2 days early
- No overdraft fees
- Earn cash-back rewards
- No physical branch locations
- $3 out-of-network ATM fee
- No joint accounts
- Only way to deposit cash is to visit a Green Dot location and pay a fee
Varo is a good option if you're comfortable with online banking, especially if you're searching for checking and savings accounts that do not use ChexSystems to review your past banking history or do a credit check. The Varo Savings Account also lets you earn a solid interest rate that's much higher than what many traditional and high-yield savings accounts pay — it may be worth considering if you plan to set up direct deposits and meet certain balance requirements. Many of the best high-yield savings accounts let you earn a high rate without meeting specific criteria, though.
- Access to 55,000+ Allpoint ATMs in the US, Puerto Rico, Mexico, Canada, UK, and Australia
- Earn up to 6% cash back at select retailers; see current cash back offers in the Varo app
- When you receive $5 in cash back, the money is automatically deposited into your account
- If you overdraw by more than $50, there will be no fee — your transaction will just be denied
- FDIC insured
The Varo Bank Account is a well-rounded checking account. If you frequently travel you may like Varo because it doesn't charge foreign transaction fees.
It could also be a good choice if you're searching for special perks, like early direct deposit or cash back — you can earn up to 6% cash back at select retailers when you use a Varo debit card.
About Varo Bank
Varo Bank is an online bank with a checking account and high-yield savings account. You won't need to worry about a credit check or ChexSystems when you open an account at Varo, so it's an excellent online option for second chance banking. If you don't qualify to open an accounts elsewhere, you may be eligible with Varo.
You must open a Varo Bank Account to qualify for a Varo Savings Account. While this may be annoying if you aren't looking to open a checking account, there aren't many cons to opening both. Neither one charges monthly service fees, and you don't need a minimum opening deposit for either.
You can use over 55,000 Allpoint ATMs for free in the US, Puerto Rico, Canada, Mexico, Australia, and the United Kingdom. If you use a non-Allpoint ATM, Varo will charge you $3.
The Varo mobile app has received 4.9 out of 5 stars in the Apple store and 4.7 out of 5 stars in the Google Play store.
Contact customer service either over the phone or in-app chat Monday through Friday from 8 a.m. to 4: 30 p.m. MT. Weekend support is also available through in-app chat from 8 a.m. to 4:30 p.m. MT.
Varo doesn't offer joint accounts. Your deposits are insured by the FDIC insured for up to $250,000.
Is Varo Trustworthy?
Varo has received an A- rating from the Better Business Bureau. The highest possible grade is an A+ but Varo has an A- due to the high volume of customer complaints on the BBB website.
Varo hasn't been involved in any recent public settlements. However, Varo reported a $236.5 million net loss in 2022 and has faced concerns about its profitability.
Varo is an FDIC-insured financial institution. If it were to shut down, up to $250,000 would be protected by FDIC insurance in an individual bank account.
Varo Bank FAQs
Is Varo legit?
Yes, Varo is a legitimate bank. Varo bank accounts are federally insured by the FDIC for up to $250,000 per depositor, per account type.
Is Varo a good bank?
Varo could be a good option if you are looking for a bank account with minimal fees and low minimum opening deposits. If you've struggled to open a bank, Varo also has some of the best second chance bank accounts. If you're specifically searching for a money market account or CD, or the best high-yield savings account rates, you might find better options at other online banks.
Does Varo charge a monthly fee?
Varo doesn't charge any monthly service fees on its savings or checking accounts.
How do I deposit cash into a Varo account?
Varo doesn't have any branches. If you'd like to deposit cash into your account, you'll have to find a Green Dot location. You also might need to pay a fee of up to $4.95.
What is the Varo ATM withdrawal limit?
You can withdraw up to $1,000 from an ATM per day.
How Varo Compares
Varo vs. Chime
Varo and Chime® have a lot of similarities. Both require you to open a checking account before opening a savings account. Neither has minimum opening deposits or monthly bank maintenance fees or require a credit check. Both offer early direct deposits, and neither charges foreign transaction fees. Neither offers joint accounts.
That said, Varo is the better option overall. The Varo Bank Account has a cash-back debit card. At select retailers, you may earn up to 6% cash back when you use a Varo debit card. You also may prefer Varo if you'd like a more competitive savings account rate.
Varo vs. Ally
Varo and Ally both have free checking and savings accounts with zero monthly service fees and $0 minimum opening deposits. However, one notable distinction between the two banks is they have different requirements for earning interest on savings accounts.
The Varo Savings Account pays 5.00% APY balances up to $5,000, but you'll need to meet certain monthly requirements. For balances over $5,000, you'll earn 2.50% APY. You'll also earn 2.50% APY if you don't meet the monthly requirements. Meanwhile, the Ally Savings Account pays 3.60% APY regardless of your account balance; it also doesn't have any requirements for earning interest.
Also, consider which types of bank accounts you'd like to get. Ally has a money market account and CDs, while Varo doesn't. Ally also allows you to open individual and joint accounts, while Varo only offers individual accounts.
Why You Should Trust Us: How We Reviewed Varo
For our Varo Bank review, we used our bank account methodology. Each account receives a rating between one and five stars.
We look at ethics, security, miscellaneous features, customer service, and the mobile app when rating each bank account. Other factors considered depend on which type of account we're reviewing. For example, we evaluate interest rates for savings accounts and overdraft protection options for checking accounts.
We use a weighted average to get our star rating, which means we weigh certain features, like interest rates and fees, at a higher weight percentage than others. We understand that these areas can more heavily impact a person's overall banking experience.
Chime® Disclosures:
Chime is a financial technology company, not a bank. Banking services provided by The Bancorp Bank, N.A. or Stride Bank, N.A., Members FDIC.
Out-of-network ATM withdrawal fees may apply except at MoneyPass ATMs in a 7-Eleven, or any Allpoint or Visa Plus Alliance ATM.
Early Pay: Early access to direct deposit funds depends on the timing of the submission of the payment file from the payer. We generally make these funds available on the day the payment file is received, which may be up to 2 days earlier than the scheduled payment date.
The Annual Percentage Yield ("APY") for the Chime Savings Account is variable and may change at any time. The disclosed APY is effective as of September 20, 2023. No minimum balance required. Must have $0.01 in savings to earn interest.
Round Up: Round Ups automatically round up debit card purchases to the nearest dollar and transfer the round up from your Chime Checking Account to your savings account.
SpotMe® on Debit is an optional, no fee overdraft service attached to your Chime Checking Account. To qualify for the SpotMe on Debit service, you must receive $200 or more in qualifying direct deposits to your Chime Checking Account each month and have activated your physical Chime Visa® Debit Card or secured Chime Credit Builder Visa® Credit Card. Qualifying members will be allowed to overdraw their Chime Checking Account for up to $20 on debit card purchases and cash withdrawals initially but may later be eligible for a higher limit of up to $200 or more based on Chime Account history, direct deposit frequency and amount, spending activity and other risk-based factors. The SpotMe on Debit limit will be displayed within the Chime mobile app and is subject to change at any time, at Chime's sole discretion. Although Chime does not charge any overdraft fees for SpotMe on Debit, there may be out-of-network or third-party fees associated with ATM transactions. SpotMe on Debit will not cover any non-debit card transactions, including ACH transfers, Pay Anyone transfers, or Chime Checkbook transactions. SpotMe on Debit Terms and Conditions.
Money added to Credit Builder will be held in a secured account as collateral for your Credit Builder Visa card, which means you can spend up to this amount on your card. This is money you can use to pay off your charges at the end of every month.
The secured Chime Credit Builder Visa® Credit Card is issued by The Bancorp Bank, N.A. or Stride Bank, N.A., Members FDIC, pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa credit cards are accepted. Please see the back of your card for its issuing bank.
On-time payment history may have a positive impact on your credit score. Late payment may negatively impact your credit score. Chime will report your activities to Transunion®, Experian®, and Equifax®. Impact on your credit may vary, as Credit scores are independently determined by credit bureaus based on a number of factors including the financial decisions you make with other financial services organizations.
Qualifying Direct Deposit: The qualifying direct deposit must be from your employer, payroll provider, gig economy payer, or benefits payer by Automated Clearing House (ACH) deposit OR Original Credit Transaction (OCT). Bank ACH transfers, Pay Anyone transfers, verification or trial deposits from financial institutions, peer to peer transfers from services such as PayPal, Cash App, or Venmo, mobile check deposits, cash loads or deposits, one-time direct deposits, such as tax refunds and other similar transactions, and any deposit to which Chime deems to not be a qualifying direct deposit are not qualifying direct deposits.
Save When You Get Paid: Save When I Get Paid automatically transfers 10% of your direct deposits of $500 or more from your Checking Account into your savings account.
Once the retailer accepts your cash, the funds will be transferred to your selected Chime Account. Barcode and debit card cash deposits land in the Checking Account. Credit Builder card cash deposits first go through your Card Account and then land in your Secured Account. Cash deposit fees may apply if using a retailer other than Walgreens and Duane Reade.
Tax e-file services provided by April Tax Solutions Inc. ("april") or Column Tax, Inc. ("Column Tax"). These tax filing offers are not endorsed or offered by our partners, The Bancorp Bank, N.A. or Stride Bank, N.A.
Maximum refund guarantee is provided by april or Column Tax. If you use april's service to prepare and file your return and you find an error in the tax preparation that entitles you to a larger refund (or smaller liability), you may use their service to amend that return at no additional charge. To qualify, the larger refund or smaller tax liability must not be due to differences or inaccuracies in data supplied by you, your choice not to claim a deduction or credit, positions taken on your return that are contrary to law, or changes in federal or state tax laws. See here for details. If you use Column Tax's service, Column Tax will reimburse you for up to $250 if you are able to pay less federal or state income tax or receive a larger federal or state income tax return by using another tax return preparation provider. Eligibility requirements apply. See terms for details.
If the april tax preparation software makes a mathematical error that results in your payment of a penalty and/or interest to the IRS that you would otherwise not have been required to pay, april will reimburse you up to a maximum of $10,000. See april terms for details. If interest and/or a penalty is imposed by the IRS as a result of a computational error by Column Tax, you may be entitled to up to $10,000 reimbursement by Column Tax. See Column Tax terms for details.
There are no fees required to use this product. Chime does not require you to deposit your refund into your Chime Account to qualify for free tax filing. Certain costs may be incurred if you decide to obtain other optional financial products offered in relation to your tax filing. The Internal Revenue Service (IRS) may impose penalties or other charges depending on your personal tax situation. If the april tax preparation software makes a mathematical error that results in your payment of a penalty and/or interest to the IRS that you would otherwise not have been required to pay, april will reimburse you up to a maximum of $10,000. See april terms for details. If interest and/or a penalty is imposed by the IRS as a result of a computational error by Column Tax, you may be entitled to up to $10,000 reimbursement by Column Tax. See Column Tax terms for details.
Chime does not guarantee timing of refund. Six day refund estimate is based on 2023 tax year filing data. Refund timing estimates are dependent upon timing of complete tax return submission and when the IRS submits your refund.
