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 |
|
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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
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.
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.
Varo doesn't charge any monthly service fees on its savings or checking accounts.
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.
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 3.80% 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.
