Varo vs. Chime®: Which Banking Option Is Right for You?

Varo is an FDIC-insured online bank, and Chime is a fintech company with banking partners. Both have one checking and savings option, and neither has any physical branches. When comparing their online banking options side by side, they’re both affordable and accessible accounts, but Varo has great rewards and Chime has more extra features.

Varo vs. Chime: A quick comparison

• Chime terms and conditions

  Chime is a financial technology company, not a bank. Banking services and debit card provided by The Bancorp Bank N.A. or Stride Bank, N.A., Members FDIC.
  ATMs: Out-of-network ATM withdrawal fees may apply except at MoneyPass ATMs in a 7-Eleven, or any Allpoint or Visa Plus Alliance ATM.
  Deposit: Once the retailer accepts your cash, the funds will be transferred to your Chime Checking Account. Cash deposit fees may apply if using a retailer other than Walgreens and Duane Reade.
  Mobile Deposit: Mobile Check Deposit eligibility is determined by Chime in its sole discretion and may be granted based on various factors including, but not limited to, a member's direct deposit enrollment status.
  Chime Savings Account: Chime Checking Account is required to be eligible for a Savings Account.
  APY: The Annual Percentage Yield (“APY”) is variable and may change at any time. The disclosed APY is accurate as of date of publication. No minimum balance required. Must have $0.01 in savings to earn interest.
  Get Paid Early: Early access to direct deposit funds depends on the timing of the submission of the payment file from the payer. We generally make these funds available on the day the payment file is received, which may be up to 2 days earlier than the scheduled payment date.
  Chime Card:: To apply for a Chime Card, Chime® Checking Account is required to apply.
  SpotMe: SpotMe® on Credit is an optional, no interest / no fee overdraft line of credit tied to the Secured Deposit Account available to qualifying members with an active Chime Card Account. To qualify for the SpotMe on Chime Card service, you must receive $200 or more in qualifying direct deposits to your Chime® Checking Account each month and have activated your physical secured Chime Visa® Credit Card or Chime Visa® Debit Card.
  
  Qualifying members will be allowed to overdraw their Secured Deposit Account up to $20, but may later be eligible for a higher limit of up to $200 or more based on Chime account history, direct deposit frequency and amount, spending activity and other risk-based factors. The SpotMe on Chime Card Limit will be displayed within the Chime mobile app and is subject to change at any time, at Chime’s or its banking partners’ discretion. Although Chime does not charge any overdraft fees for SpotMe on Chime Card, there may be out-of-network or third-party fees associated with ATM transactions and fees associated with OTC cash withdrawals. SpotMe on Chime Card won’t cover non-card transactions. SpotMe on Chime Card Terms and Conditions.
  Federal Tax Return Direct Deposit: Chime members may choose to direct deposit their state and/or federal tax refunds with Chime. They may choose to direct deposit no matter what tax preparer they choose. They do not need to file through Chime in order to direct deposit their refund. If a member does direct deposit their federal refund they may receive the refund up to 6 days early. This only applies to federal refunds, not state. When marketing the speed of the tax refund it must always include the following elements: federal tax refund, up to 6 days early, with direct deposit.
  MyPay®: MyPay® is only offered in select states. To be eligible for MyPay, you must receive Qualifying MyPay Direct Deposits to your Chime Checking Account as set forth in the MyPay Agreement. A Qualifying MyPay Direct Deposit is a deposit from an employer, payroll provider, gig economy payer, government benefits payer, or other permitted source of income by Automated Clearing House (“ACH”) or Original Credit Transaction (“OCT”). Your MyPay Credit Limit and Available Advance Amount may change at any time. MyPay is a line of credit and available limits are based on estimated income and risk-based criteria. Eligible members may be offered a $20 - $500 Credit Limit per pay period. Your Credit Limit and Maximum Available Advance will be displayed to you within the Chime app. MyPay is currently only available to eligible Chime members in certain states. Other restrictions may apply. See Bancorp MyPay Agreement or Stride MyPay Agreement for details. To be eligible for MyPay, you must receive Qualifying MyPay Direct Deposits to your Chime Checking Account as set forth in the MyPay Agreement. A Qualifying MyPay Direct Deposit is a deposit from an employer, payroll provider, gig economy payer, government benefits payer, or other permitted source of income by Automated Clearing House (“ACH”) or Original Credit Transaction (“OCT”). Your MyPay Credit Limit and Available Advance Amount may change at any time. MyPay is a line of credit and available limits are based on estimated income and risk-based criteria. Eligible members may be offered a $20 - $500 Credit Limit per pay period. Your Credit Limit and Maximum Available Advance will be displayed to you within the Chime app. MyPay is currently only available to eligible Chime members in certain states. Other restrictions may apply. See Bancorp MyPay Agreement or https://www.chime.com/policies/stride/mypay/ for details.

Varo vs. Chime products

Chime launched in 2014, and Varo became a bank in 2020, so Chime has a bit of a leg up in terms of industry experience. Both online banking options have FDIC insurance coverage on their deposit accounts up to the typical amount of $250,000. However, Varo is an official online bank, while Chime is a fintech with banking partners.

Varo and Chime each have one checking and one savings account. Each also uses the Allpoint ATM network, but Chime also uses the MoneyPass network so it has around 20,000 more fee-free ATMs. And while Chime and Varo are online banking options, they both accept cash deposits at Green Dot retail locations for a $4.95 fee per deposit.

Banking

Chime and Varo’s banking products are very similar.

Both checking accounts have no monthly fees, foreign transaction fees or overdraft fees, and neither requires a minimum opening deposit or balance. Additionally, having a Varo account or a Chime® Checking Account unlocks their respective savings account, both of which also have no monthly fees. However, neither Varo nor Chime supports joint bank accounts.

Varo’s checking account offers perks like early direct deposit and cashback rewards of up to 6% with select brands. Varo also has its Varo Believe credit-building card that offers cash advances up to $500 and reports to all three credit bureaus to build credit history. The optional Varo savings account gets unlocked with the checking account, offering up to 5% APY on your first $5,000, and balances over $5,000 earn 2.5% APY. To earn the 5% rate, you must have a monthly direct deposit of at least $1,000 and end the month with a positive balance.

Similar to Varo, the Chime Checking account also has early direct deposits and an optional savings account with up to 3.5% APY if you have Chime+ (direct deposit of at least $200 per every 34 days). Chime has extra perks like its overdraft service SpotMe®, the Chime Card™ to build credit history and MyPay cash advances. However, to access SpotMe and MyPay, you’ll need monthly direct deposit of at least $200 (Chime+). And without Chime+, your savings APY becomes 1.00%.

Borrowing

Chime and Varo’s borrowing options are similar, each offering a secured credit-building card and cash advances.

Varo’s borrowing options are:

• Varo Advance. With a Varo checking account, you can apply for a cash advance up to $20 to $250 and, over time, may qualify for higher amounts up to $500. Cash advances are deposited into your Varo Bank Account within seconds if you qualify. You must have direct deposits of at least $800 from the current or previous month to qualify. Cash advance fees range from $1.60 to $40, depending on your borrowing amount.
• Varo Believe. Varo’s secured credit-building card with no monthly fees, no APR and no hard credit check. It’s linked to a Varo Believe Secured Account that acts as a security for the secured card, and the amount in that account sets the spending limit. Varo reports to all three credit bureaus.
• Varo line of credit (waitlist). Personal lines of credit between $600 to $2,000 with terms up to 12 months, no late or prepayment penalties and a flat origination fee. However, this product isn’t available at the time of writing, but you can join its waitlist once you have a Varo Bank Account.

Chime’s borrowing options include:

• Cash advances. Offers cash advances of $20 to $500 between paydays. Cash advances are deposited into your Chime checking account, and you may qualify for cash advances if you have direct deposit of at least $200 per month. There are no fees, but instant delivery is $2.
• Chime Card™. Available for Chime Checking Account holders, this credit-building secured card has no APR, monthly fees or hard credit check. You move money from your Chime checking account to the card, so your spending limit is only what you deposit. Chime reports to all three credit bureaus.

Apps, features and more

Chime and Varo are both modern online banking options with lots of bells and whistles.

With Chime+, you can access most of what the fintech has to offer, like SpotMe, early direct deposits, MyPay and a higher savings APY. And a unique feature, Chime offers early delivery of federal tax refunds up to six days in advance and early payday deposits up to two days ahead of schedule if you file with its tax service. Chime also accepts cash deposits at more than 90,000 Green Dot retail locations. With the optional savings account, you can activate Round Ups to round up each debit card purchase to the nearest dollar, and Chime automatically sends the rounded-up amount to your savings.

Varo has many of the same things Chime has, except the SpotMe feature. You can earn up to 6% cash back with your debit card from select brands, including Nike, Macy’s and Petsmart. Varo also has an automatic savings round-up option called Save Your Change, early direct deposit, cash advances and a credit-building card. And just like Chime, Varo accepts cash deposits at Green Dot locations for a fee.

What Varo has over Chime is its savings account APY. Varo’s 5% rate is much higher than Chime’s 1.00% APY, but to get Varo’s highest rate, you must direct deposit at least $1,000 per month, and the 5% rate is only applied to your first $5,000.

How Varo and Chime’s fees compare

Going with Varo or Chime means you can get a checking and savings account with no monthly maintenance fees, balance requirements, overdraft fees or foreign transaction fees.

Chime has a $2.50 out-of-network cash withdrawal fee, which is lower than Varo’s $3.50.

Varo charges a fee for cash advances between $1.60 and $40, but they’re delivered instantly. Chime doesn’t charge any fees for its cash advances, but if you don’t want to wait up to two days, you’ll shell out $2 for instant delivery.

What customers say about Varo and Chime

Varo holds an A- rating with the Better Business Bureau (BBB), and Chime has a B- rating at the time of writing. Chime has nearly four times as many BBB complaints as Varo has, with Chime customers logging complaints over 7,800 in the last few years.

Most of Chime’s complaints are due to accounts being closed unexpectedly, lags in customer support and struggles to resolve fraudulent charges. On Reddit, it’s a mixed bag, with many customers saying they’ve been with Chime for years with no issues, and others commonly say that Chime’s customer support is poor. Many Redditors call out the Chime Card™, saying they’ve seen marked increases in their credit rating.

For Varo, many of its complaints are typical bank complaints, with reports of deposits or withdrawals taking a while to process or failed attempts to get refunds for fraudulent charges. On Reddit, Varo’s reputation is pretty great. Most customers say they’ve had their accounts for years with no issues or complaints, and any issues that have cropped up have been resolved quickly. Others also note that Varo is one of the few online banking options that’s a full-fledged FDIC-insured online bank instead of a fintech company like Chime, which gives customers more peace of mind (though Chime’s deposit accounts are still FDIC-insured).

Final verdict: Chime wins

At the end of the day, Chime is a slightly better option if you want to access the extra perks like SpotMe, cash advances and a credit-builder card.

Varo requires a high deposit of at least $800 per month to access cash advances, which also have a fee. Chime only requires $200 in monthly direct deposits to access fee-free cash advances and SpotMe. Chime has early direct deposit, early federal tax refund deposits and savings round-ups, and it has more fee-free ATMs than Varo, with a smaller out-of-network ATM fee.

But if you want a higher savings APY and cashback rewards, Varo is the better option. It’s 5% APY on your first $5,000 is higher than Chime’s 1.00% APY for its savings account. And Varo’s 6% cashback rewards are hard to beat (even though it has limits). However, keep in mind that to get Varo’s 5% APY, you need direct deposit of at least $1,000 per month, whereas Chime’s highest APY of up to 1.00% requires just $200 in monthly direct deposits.

Both Chime and Varo have a credit-building secured card if you have their respective checking accounts and meet requirements, but they’re also not your only options for no-interest cards that build credit.

Chime at a glance

Varo at a glance

Alternatives to Varo and Chime

Chime and Varo often top our list of the best online banks, but they’re not without fault. Chime and Varo don’t have investing options, CDs or physical branches, and they also lack variety in terms of checking and savings account options.

• SoFi®. A top competitor to Chime and Varo, SoFi is an FDIC-insured online bank with its hybrid checking and savings account with no monthly fees. SoFi also has an investing platform, unlike Varo or Chime, and it has personal loans, student financing and interest-bearing checking. Plus members or those who meet deposit requirements can also earn up to 3.30% APY on savings.
• Mine. A fintech like Chime, Fizz offers a secured card that’s backed by your external bank account. The Fizz card has no APR or hard credit check, and it reports to all three credit bureaus to build credit history.
• Chase. If you prefer in-person banking and more variety in checking options, consider Chase. It has a large variety of checking, savings, borrowing, investing and credit card options. It also has over 4,700 branch locations across the US.

See how even more bank accounts stack up:

• 10 banks like Chime
• 9 banks like Varo
• 8 banks like SoFi
• SoFi vs. Chime
• Ally vs. Chime

• SoFi terms and conditions

  New and existing Checking and Savings members who have not previously enrolled in Direct Deposit with SoFi are eligible to earn a cash bonus of either $50 (with at least $1,000 total Eligible Direct Deposits received during the Direct Deposit Bonus Period) OR $300 (with at least $5,000 total Eligible Direct Deposits received during the Direct Deposit Bonus Period). Cash bonus will be based on the total amount of Eligible Direct Deposit. If you have satisfied the Eligible Direct Deposit requirements but have not receiveda cash bonus in your Checking account, please contact us at 855-456-7634 with the details of your Eligible Direct Deposit. Direct Deposit Promotion begins on 12/7/2023 and will be available through 12/31/2026. Full terms at sofi.com/banking. SoFi Checking and Savings is offered through SoFi Bank, N.A., Member FDIC.
  
  SoFi members with Eligible Direct Deposit can earn 3.30% annual percentage yield (APY) on savings balances (including Vaults)and 0.50% APY on checking balances. There is no minimum Eligible Direct Deposit amount required to qualify for the 3.30% APY for savings (including Vaults). Members without Eligible Direct Deposit will earn 1.00% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Interest rates are variable and subject to change at any time. These rates are current as of 12/23/25. There is no minimum balance requirement. Fees may reduce earnings. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.
  
  Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 12/23/25. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet
  
  We do not charge any account, service or maintenance fees for SoFi Checking and Savings. We do charge a transaction fee to process each outgoing wire transfer. SoFi does not charge a fee for incoming wire transfers, however the sending bank may charge a fee. Our fee policy is subject to change at any time. See the SoFi Bank Fee Sheet for details at sofi.com/legal/banking-fees/.
  
  SoFi Bank is a member FDIC and does not provide more than $250,000 of FDIC insurance per depositor per legal category of account ownership, as described in the FDIC’s regulations. Any additional FDIC insurance is provided by the SoFi Insured Deposit Program. Deposits may be insured up to $3M through participation in the program. See full terms at SoFi.com/banking/fdic/sidpterms. See list of participating banks at SoFi.com/banking/fdic/participatingbanks.
  
  We’ve partnered with Allpoint to provide you with ATM access at any of the 55,000+ ATMs within the Allpoint network. You will not be charged a fee when using an in-network ATM, however, third-party fees may be incurred when using out-of-network ATMs. SoFi’s ATM policies are subject to change at our discretion at any time.
  
  Early access to direct deposit funds is based on the timing in which we receive notice of impending payment from the Federal Reserve, which is typically up to two days before the scheduled payment date, but may vary.
  
  Overdraft Coverage is a feature automatically offered to SoFi Checking and Savings account holders who receive at least $1,000 or more in Eligible Direct Deposits within a rolling 31 calendar day period on a recurring basis. Eligible Direct Deposit is defined on the SoFi Bank Rate Sheet, available at https://www.sofi.com/legal/banking-rate-sheet. Members enrolled in Overdraft Coverage may be covered for up to $50 in negative balances on SoFi Bank debit card purchases only. Overdraft Coverage does not apply to P2P transfers, bill payments, checks, or other non-debit card transactions. Members with a prior history of unpaid negative balances are not eligible for Overdraft Coverage. Eligibility for Overdraft Coverage is determined by SoFi Bank in its sole discretion. Members can check their enrollment status, if eligible, at any time by logging into their account through the SoFi app or on the SoFi website.
  
  Earn up to 4.00% Annual Percentage Yield (APY) on SoFi Savings with a 0.70% APY Boost (added to the 3.30% APY as of 12/23/25) for up to 6 months. Open a new SoFi Checking and Savings account and pay the $10 SoFi Plus subscription every 30 days OR receive eligible direct deposits OR qualifying deposits of $5,000 every 31 days by 3/30/2026. Rates variable, subject to change. Terms apply at sofi.com/banking#2. SoFi Bank, N.A. Member FDIC.