However, the Varo Savings account won’t earn the maximum APY if you hold more than $5,000 in the account, and you’ll pay $2.50 for out-of-network ATMs. See if this bank’s perks are worth using for your banking needs.
Varo Bank only offers two accounts:
- Varo Checking. This low-fee checking account features early direct deposits, no monthly or overdraft fees and a $0 opening deposit. It’s also a second-chance checking option for those with poor credit or a negative ChexSystems report.
- Varo Savings. Earn up to 5% APY with this free savings account, although you must have an existing Varo Bank account to open this savings account.
Varo is a digital bank founded in 2015. It’s the first mobile-only bank to receive an official banking charter from the US government. Although it has one checking and savings account, its banking charter means that it’s on its way to offering a full suite of products for consumers.
Varo stands out from competitors because it doesn’t run credit checks and regularly approves customers with a poor banking history. If you haven’t been able to qualify for a regular bank account, Varo Bank could help you rebuild your banking history.
In terms of accessing your funds, Varo is part of the Allpoint ATM network, giving Varo users free access to 55,000+ ATMs nationwide. See how Varo compares to other banks’ overall and individually for its checking and savings accounts.
- Varo Advance. Eligible customers can receive a cash advance of up to $100 in the Varo Bank app, ideal for times when you need a few extra dollars until your next paycheck. Advances up to $20 are free, and there’s a maximum $5 fee on advances of $21 to $100. Funds must be repaid within 30 days.
- Minimal fees. Varo Bank accounts have minimal fees and low or no opening deposit.
- 55,000+ fee-free ATMs. Use one of the Allpoint ATMs nationwide to access your money without paying a fee. You will pay $2.50 per transaction if you go out of network.
- Daily customer service. You can reach Varo Bank customer support 24 hours a day, seven days a week by phone, email or chat, except for federal holidays.
- Limited product selection. You won’t find any CDs or business accounts at Varo Bank.
- No checks or wire transfers. You can’t write checks or send and receive wire transfers with Varo.
- Minimal fees. Varo Bank doesn’t charge any fees for maintenance, overdrafts, transfers, foreign transactions and card replacements. There’s also a $0 opening deposit.
- Early payday. Receive your paycheck and government benefits up to two days early when you enroll in direct deposits.
- Earn up to 6% cash back. Use your Varo debit or credit card at participating retailers to get up to 6% cash back on your purchase.
- Non-network ATM fees. Although Varo Bank is part of one of the largest ATM networks in the country, you’ll pay $2.50 if you need to use an out-of-network machine.
- No checks. This account doesn’t come with checkwriting privileges, but you can deposit any checks you receive through the app.
- Complicated cash deposits. Varo Bank accepts cash deposits at one of 90,000 Green Dot locations nationwide, but fees may apply.
- No fees. Varo‘s savings account has no fees, so you can put all your money toward your savings goals.
- Two ways to automate savings. Sweep your spare change into savings when you make a purchase or have part of your paycheck moved to savings.
- Checking account required. You’ll need to open a Varo Checking account first before you can open Varo‘s savings account.
- Strict APY rules. The base APY is 2%. But to earn its 5% APY, you’ll need to receive at least $1,000 in monthly direct deposits and keep your account balance below $5,000.
Use this table to see how Varo Bank accounts stack up against the competition.
Varo Bank is an accredited business with the Better Business Bureau (BBB) where it’s earned an A rating for financial stability and swift responses to customer complaints. And customers rate Varo with a 4 out of 5 stars on the BBB site, an unusually high score for a bank.
Customers love how modern Varo Bank is, saying that it’s straightforward to use. They also love that they never have to worry about hidden fees, and they receive paychecks up to two days earlier than they would with other banks.
You’ll find similar stories on Trustpilot, where Varo keeps a 4.0 out of 5-star rating based on over 2,400 customer reviews.
The major complaint is that transfers from an external bank to the Varo account can be slow. Some users report that it takes three to four days for money to reach their account.
Varo Bank provides customer service 24 hours a day, seven days a week. Service is available from 8 a.m. to 4:30 p.m. MTN. You can reach Varo Bank by:
- Phone: 1-877-377-8276
- Email: firstname.lastname@example.org
What Varo Bank lacks in quantity, it makes up for in quality. Both its checking and savings accounts have no monthly fees. Plus, customers are eligible for a cash advance up to $100 when money’s tight.
However, the bank doesn’t offer any CDs or business accounts. You also won’t earn the highest APY with Varo Savings if you keep more than $5,000 in your account. As always, compare other digital bank accounts to find the right one for you.
Varo Bank has a checking and savings account, but it packs a punch with its features. As an account holder, you’ll enjoy no minimum balance, no monthly fees, up to $100 in cash advances that you can order in app, early paychecks and cash back on debit or credit card purchases.