Varo Bank Review

Varo Bank Varo Savings Account

3.00% APY

The services of Varo Bank are based entirely out of the brand’s mobile apps for Apple and Android devices. Varo has an extraordinary fee schedule that includes no monthly maintenance fees, foreign transaction fees, transfer fees or debit card replacement fees. The bank institutes a no-minimum policy as well, so you can apply to open an account regardless of how much money you can deposit.

High interest rates are a major draw for any bank, and Varo isn’t lacking in that department. The Varo Savings Account comes with an annual percentage yield (APY) of 3.00%. Combine this rate with Varo's minimalist fee schedule, and you'll have a chance to save a pretty significant amount of money. What's more, you can earn up to a 5.00% APY on your first $5,000. Balances that exceed $5,000, will receive the base APY of 3.00%. There's no minimum balance to open a Savings Account or to earn the 3.00% base APY.

You can upgrade to a 5.00% APY if you meet these requirements:

• Make sure your Varo account balances are positive at the end of the month
• Receive total direct deposits of $1,000 or more each qualifying period

You might be wondering how you can take out cash from a mobile-only bank like Varo. To solve this problem, the bank has joined the Allpoint® ATM network which operates about 55,000 fee-free ATMs around the country. If you’re unsure of where you can find an Allpoint ATM, Varo’s app provides an ATM locator. Varo charges a $2.50 out-of-network ATM fee if you use a non-Allpoint® machine. Individual ATM operator fees may apply as well.

As an extra perk, Varo lets customers link all of their bank accounts to the Varo app. This makes for easy financial management, as you’ll be able to view the balances of each of your accounts under a single roof. You can even group together your checking and savings accounts for better insights.

Products Offered

Varo Bank Overview

Varo was founded in 2015 as a mobile-based bank. In turn, it doesn’t operate any bank branches. To use Varo’s services, you must download and log in to your account on the bank’s Apple and Android mobile apps. Varo Bank Accounts are provided by Varo Bank, N.A. Deposits are FDIC-insured up to $250,000 through Varo Bank, N.A., Member FDIC. 

Save more with these rates that beat the National Average

• Savings & MMAs
• CDs

Unfortunately, we are currently unable to find savings account that fit your criteria. Please change your search criteria and try again. Searching for accounts...

As of

Marketing Disclosure

Unfortunately, we are currently unable to find savings account that fit your criteria. Please change your search criteria and try again. Searching for accounts...

As of

Marketing Disclosure

Varo Bank Account

At its core, the Varo Bank Account is basically a checking account. In fact, it’s an extremely low-fee account, as there are no monthly fees, overdraft fees, foreign transaction fees, incoming and outgoing transfer fees and more. Additionally, there are no minimum balances at Varo. So anyone, regardless of their initial deposit, can apply to open an account.

Your Varo Bank Account will come with a Varo Visa® debit card that features an EMV chip for security. If you’re in need of cash, though, Varo has partnered with the Allpoint® ATM network, which owns 55,000 fee-free ATMs throughout the U.S. However, Varo has instituted a $2.50 out-of-network ATM fee. You'll incur this charge, in addition to any ATM operator fees, if you use a non-Allpoint® ATM machine.

Customers can also make cash deposits at retail locations like CVS and 7-Eleven through the Green Dot® Network. Varo Bank doesn't charge a fee, but the merchant may charge a fee of up to $5.95.

Varo offers customers many perks, and early direct deposit is one of the best. When you open a Varo Bank Account and set up the direct deposit of your paychecks to it, you may receive them up to two days ahead of schedule. This could help immensely with budgeting, as you’ll be able to spend your money earlier than normal.

You and a family member or friend can each earn a $30 bonus by using Varo’s referral link at sign-up. The person referred must spend $20 within 30 days of opening their new Bank Account. There is a cap on these bonuses of 5 per calendar year. 

Varo Savings Account

The Varo Savings Account has some great elements that should help you accrue savings fairly quickly. Right off the bat, your APY will stand at a 3.00 % rate, which already places way above the standard savings accounts at traditional banks like Bank of America and Chase. You can also earn an upgrade to a 5.00% APY if you meet all the requirements in the table above. This 5.00% APY is only applicable to balances of up to $5,000. Balances over that amount will receive the base APY of 3.00%.

There are two additional ways to take advantage of Varo’s savings benefits. First, you can choose to round up every transaction to the nearest dollar and have that money deposited into your savings account with “Save Your Change.” Moreover, “Save Your Pay” lets you preselect a percentage of each paycheck to be added to your savings balance.

Those looking to start saving for the first time don’t need to worry about minimum balances with the Varo Savings Account. Everything you save will stay in your savings account too, as Varo has no monthly fees.

Where Can I Find Varo Bank?

Varo is completely mobile-centric, so there are no physical locations to visit. Rather than frequent a branch to take out cash, Varo allows its customers fee-free access to the Allpoint® ATM network that's 55,000 machines strong. You can even stop by a bank or credit union with your Varo debit card and request an over-the-counter withdrawal.

What Can You Do Online With Varo Bank?

Varo Bank’s entire suite of banking services is only available through its Apple and Android mobile apps. Between the two app stores, customers have rated Varo’s app at a very solid 4.7 stars out of 5. These platforms give you the ability to check both your transaction history and account balances 24/7. You can sign up for automatic balance and transaction notifications as well.

Depositing money into your account is as easy as taking a picture of your check via Varo’s mobile check deposit feature. The bank also offers free money transfers to and from your Varo accounts. If you want to see all of your bank account balances in a single place, Varo lets you connect external accounts within its app.

How Do I Access My Money?

Every Varo Bank customer is handed a Varo Visa® debit card that can be used exactly like a credit card. Varo will supply you with a PIN code so you can safely use your card for any type of purchase. If you so desire, these debit cards can be added to Apple Pay™, Google Pay™ and Samsung Pay™ virtual wallets. Should you lose your Varo Visa®, don’t fret, as you can lock it from the app and Varo will replace your card free of charge.

Allpoint®’s extensive network of 55,000 ATMs lets Varo customers get their hands on cash whenever they need it, for free. The ATM locator in Varo’s mobile app will help you find machines in your area. You can request paper checks right through your app as well. Simply enter the recipient’s name and address and it’ll arrive in the next three to nine business days.

How Can I Save More Money With a Varo Bank Account?

Mobile banks often have strong savings rates due to their low costs of operation, and Varo is no exception. The bank offers a top-tier 3.00% savings APY that doesn't require many hoops to jump through, though you can earn a 5.00% rate after meeting a handful of requirements. Beyond this, you can structure your account to automatically save money for you with Varo’s Save Your Pay and Save Your Change features.

Even responsible banking customers can run into the occasional fee. However, Varo offers no monthly fees, no foreign transaction fees, no overdraft fees and more. In fact, one of the only times you may encounter a fee is when you deposit cash at a Green Dot® retail location, such as CVS or Walgreens. In this scenario, a fee of up to $5.95 could be charged, not by Varo, but by a third-party like Green Dot®. The benefits of this system are clear, as it essentially ensures that your money will stay in your pocket for good.

What’s the Process For Opening an Account With Varo Bank?

To apply for an account with Varo, download the Apple or Android version of its mobile app. You don’t have to transfer funds into your account immediately, but if you want to use it soon after opening, you’ll have to. Money transfers from outside financial institutions can be initiated either via the external source or through Varo’s app directly. The bank states on its website that transfers typically take between one and four business days.

What’s the Catch?

The biggest, and most obvious, drawback of Varo Bank is its mobile-only nature. Further contributing to Varo’s nontraditional approach is the inherent absence of certificates of deposit (CDs), individual retirement accounts (IRAs) and money market accounts (MMAs). This level of account choice and management is altogether not for everyone, and it likely crosses Varo off of many people’s lists. But if you can stomach this branchless style of doing things, Varo offers major benefits.

Bottom Line

Varo Bank is a monthly fee- and minimum-less bank that has competitive APYs for its savings account, along with an upgradeable rate. The bank boasts multiple ways to save even more automatically through its “Save Your Change” and “Save Your Pay” perks. The Varo Bank Account is the perfect checking account pairing for this solid savings environment, with its expansive no-fee ATM network, free debit card and highly rated Apple and Android mobile apps. So if you’re on the prowl for a new bank, there’s virtually no reason not to check out Varo.

For more details on Varo's offer, click here.