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The bottom line: 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.
Compare Varo products Varo Savings Account Varo Bank AccountChevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.
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Editor's Rating A five pointed starA five pointed star
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Annual Percentage Yield (APY) Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.
3.00% to 5.00%Minimum Deposit Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.
Editor's Rating A five pointed starA five pointed star
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Annual Percentage Yield (APY) Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.
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On Varo Bank's website Varo Bank, FDIC Insured| Product | Personal Finance Insider rating (out of 5) |
| Savings | 4.25 |
| Checking | 4 |
| Trustworthiness | 3.5 |
| Total | 4 |
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Fees no monthly service fee Annual Percentage Yield (APY) 3.00% to 5.00% Minimum Opening DepositVaro 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 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 3.00% APY.
Keep in mind you must open a Varo Bank Account before opening a savings account, though.
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Feesno monthly service fee
Annual Percentage Yield (APY) Minimum Opening DepositVaro 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.
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.
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.
Is Varo legit? Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.
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? Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.
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? Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.
Varo doesn't charge any monthly service fees on its savings or checking accounts.
How do I deposit cash into a Varo account? Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.
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? Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.
You can withdraw up to $1,000 from an ATM per day.
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 3.00% APY. You'll also earn 3.00% APY if you don't meet the monthly requirements. Meanwhile, the Ally Savings Account pays 4.20% 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.
For our Varo Bank review, we used our bank account methodology. Each account receives a rating between 0 and 5.
We look at ethics, 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.
Laura Grace Tarpley (she/her) is an expert in mortgage rates, refinance rates, lenders, bank accounts, and borrowing and savings tips for Personal Finance Insider. She worked on Business Insider's "The Road to Home" series, which won a Silver award from the National Associate of Real Estate Editors. She has written about personal finance for over seven years. Before joining the Business Insider team, she was a freelance finance writer for companies like SoFi and The Penny Hoarder, as well as an editor at FluentU.
