Varo Bank Review June 2024: Simple and free with 5.00% APY savings and cashback checking

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Varo Bank Review June 2024: Simple and free with 5.00% APY savings and cashback checking

Varo Bank is an online bank with simple and low-cost banking products meant to help consumers save and grow their credit score. The virtual bank has one free checking account and a high-interest savings account, which offers a competitive annual percentage yield (APY) of up to 5%. Although it does not have other savings products, such as certificates of deposit (CDs), it does have credit cards and small-dollar loans aimed at helping borrowers who have limited credit history. 

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 April 24, 2024, and are subject to change.

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 [email protected]. 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 logo
Ally Bank
SoFi logo
SoFi
Top savings APY Top savings APY Top savings APY
5.00% 4.20% 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 View offer View offer

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

Is Varo Bank safe?

Varo offers deposit insurance through the Federal Deposit Insurance Corp. (FDIC) in amounts of up to $250,000 per account in the event of bank failure. You can also get protection against unauthorized charges with the Varo debit card through the Visa Zero Liability coverage.

How do I withdraw or deposit money in a Varo Bank account?

There are several ways to withdraw or deposit money in your online bank account with Varo. The bank provides access to more than 40,000 ATMs in the U.S. for free through the Allpoint ATMs network. You can also deposit cash into your account at roughly 90,000 retail locations that Varo Bank has partnered with through a service called Green Dot Reload. However, there is a retail service fee of up to $5.95 for Green Dot cash deposits. 

Is Varo Bank an actual bank?

Yes, Varo Bank is an online-only bank that offers FDIC deposit insurance for amounts up to $250,000 per account in the event there is a failure. 

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