Varo bank account review

Our verdict

Our verdict

Varo is an FDIC-insured digital bank account with no monthly fees, no opening deposit required, no overdraft fees, early payday access and Zelle integration for peer-to-peer payments. This account also unlocks Varo's optional savings account, which earns up to a 5% APY when you meet direct deposit and balance requirements. Varo also doesn't charge any foreign transaction fees on its debit card, so globetrotters can enjoy that perk. There are also cashback rewards, up to 6% with select brands. But like most digital banks, you'll need to visit a participating retailer to make cash deposits, which will cost you per deposit.

Best for: Anyone in need of a free, rewards digital checking account.

Pros

• $0 monthly fees and no opening deposit
• Unlocks savings account with up to 5% APY
• 0% foreign transaction fee
• 6% cash back with select brands

Cons

• No physical locations
• $4.95 to $5.95 fee for cash deposits
• No wire transfers
• No joint accounts

4.8

★★★★★

Finder rating

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APY

Up to 5.00%

Fee

$0 per month

Minimum deposit to open

$0

Who is the Varo bank account best for?

Varo is a digital bank account for nearly anyone — it’s a free, low-maintenance bank account with no opening deposit requirement. And with the lack of foreign transaction fees on its Varo Visa debit card, frequent travelers can spend with less stress internationally.

It’s also best for anyone looking for a high-yield account. While Varo checking doesn’t earn any interest, opening this account unlocks Varo‘s optional savings account, which earns up to 5% APY, making it one of the best high-yield savings accounts.

What we like about the Varo bank account

Varo sets itself apart as one of the the only digital banks that’s FDIC-insured directly rather than through a partner bank. This status means that Varo can offer more types of banking products compared to other digital banks.

While lacking physical locations, Varo has all the typical features of a modern bank. It’s integrated with Zelle so you can perform peer-to-peer payments, features online banking and its own companion app, and you can get your paycheck up to two days early.

With a Varo account, you may also qualify for a cash advances from $20 to $250 to help with unexpected events, or just when you need to borrow some extra cash. The fee for the advances depends on the amount, from $1.60 to $20. There’s no interest rate, no required tip and you can choose a repayment time (up to 30 days). The maximum you can borrow with Varo’s advances depends on your account history, balance, direct deposit history and more. It’s nice option to have for those tight times when you just need a little extra cash. Varo also works with many other cash advance apps if you want other options.

Unlocks high APY savings account

A Varo bank account qualifies you for Varo‘s savings account, which boasts a high 5% APY on balances up to $5,000. For balances over $5,000, you’ll earn 3% APY — still higher than the national average, which currently sits at 0.46%, as reported by the FDIC. The highest rate is for the lowest balance, so those just starting a savings account benefit most.

To qualify for the 5% to 3% rate, you have to set up direct deposit and deposit at least $1,000 per month and maintain a positive balance. Compared to other top high-yield savings accounts, this rate is among the best and has simple requirements to qualify.

Up to 6% cash back with top brands

Cashback rewards are something we typically see with credit cards, but Varo‘s bank account offers them too. And it’s actual cash back — not points — that’s automatically deposited into your account once you reach $5 in rewards.

Some brands you can earn up to 6% cash back with include:

Where Varo bank account falls short

Like most online banks, Varo‘s biggest downfall is the lack of branch access and in-person support. But compared to other online banks, such as American Express, which offers 24/7 phone support, Varo‘s customer support is limited.

Varo offers in-app chat support between 8 a.m. to 4:30 p.m. MT and weekday phone support at 1-877-377-8276 (1-877-377-VARO). Most issues will need to be resolved through chat support, as the customer phone line is limited to issues logging in with the Varo app, filing a dispute or activating your digital wallet.

And unfortunately, Varo doesn’t offer joint bank accounts, perform wire transfers or accept ATM deposits. You’re limited to depositing cash at Green Dot ATM locations, but it’ll cost $4.95 to $5.95 per deposit.

Varo bank account fees and access

Type of fee	Fee details
Monthly service	$0
Opening deposit	$0
ATMs	Domestic: $0 with Allpoint, $2.50 out-of-network International: $0
Debit card fees	Cash withdrawals: $0 with Allpoint, out-of-network fees may apply Foreign transactions: 0%, though currency conversion fee may apply Card replacement: $0
Overdraft or nonsufficient funds	$0
Wire transfers	Doesn’t allow wire transfers
Other fees	Paper statements: N/A Account closure: $0

Compare Varo to other top bank accounts

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• Savings
• Checking

Customer experience

Varo Money is accredited with the Better Business Bureau (BBB) and holds a solid A rating. Unlike most other banks and fintechs, Varo has pretty good reviews on its BBB profile, holding a 3.86-star rating out of over 400 customer reviews — most banks hold a 1-star rating. Varo also holds a similar rating on Trustpilot, with most reviews being 5 stars. Customers are happy with the free checking and savings accounts, cashback rewards, knowledge and friendly representatives and early direct deposit. There were many reviews of customers citing they’ve been banking with Varo for years with no issues.

Similar to most online banks, the majority of negative reviews stem from poor communication or issues contacting customer service. However, this is common among fintechs due to their lack of in-person support and limited phone hours.