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Varo bank account review: Few fees and a high savings APY
No monthly fees or minimum balance requirement, plus a 3.00% to 5.00% savings rate that’s hard to beat.
finder.com’s rating: 4.7 / 5.0
★★★★★
Varo is a digital bank account that doesn’t charge monthly or overdraft fees and gives access to your paycheck up to two days earlier. Its optional savings account also earns up to a 5.00% APY if you qualify, though you’ll need a Varo Bank account first before you can open it. But like most digital banks, to make cash deposits you’ll need to visit a participating retailer, which costs per deposit.
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$0 per month
Fee
Up to 5.00%
APY
$0
Minimum deposit to open
Details
| APY | 5.00% on balances of $0 to $5,000 (with direct deposits of $1,000+) 3.00% on balances of $5,000+ |
|---|---|
| Fee | $0 per month |
| Minimum deposit to open | $0 |
| Intro or bonus offer | Earn $30 bonuses every time a friend signs up for an account and spends at least $20 within 30 days |
| ATMs | 55,000 AllPoint ATMs around the world for free |
| ATM transaction fee | $0 |
| Out-of-network ATM fee | $2.50 |
| Foreign transaction fee | 0% |
| Overdraft fee | $0 |
| Nonsufficient funds fee | $0 |
| Learn more | Apply now |
Review by
Katia Iervasi
katia.iervasi@finder.comKatia Iervasi is a lead writer and spokesperson at NerdWallet and a former editor at Finder, specializing in insurance. Her writing and analysis on life, disability and health insurance has been featured in The Washington Post, Forbes, Yahoo, Entrepreneur, Best Company and FT Advisor. She holds a BA in communication from Australia's Griffith University.
Expert review
Varo is best for those looking for a digital bank that offers speedy direct deposits and doesn’t charge many fees — even for foreign transactions.You can also access your cash from over 55,000 Allpoint ATMs, unlike some online-only banks that don’t offer an ATM network. However, the Allpoint network may not help you as much if you’re traveling abroad since it’s only available in a few countries.
Varo also sets itself apart as the only digital bank that’s FDIC-insured directly rather than through a partner bank. This status means that Varo can offer more products like overdraft protection and early paydays, and it could pave the way for future loans offerings too.However, Varo’s checking account doesn’t come with checkwriting privileges or free cash deposits. To avoid fees when depositing cash, you can top up your account through external transfers, direct deposits or mobile check deposits.
Plus, you can pair your Varo checking account with its Varo Savings account, which offers yields as high as 5.00% APY. But you’ll first need to open the checking account to qualify for its savings account.
If you’re convinced that Varo checking is for you, apply online to get started with Varo.
How to grow your money with Varo Savings
To get the most out of your account, pair your Varo checking with a Varo Savings account, which offers one of the highest APYs around. You can get a 5.00% APY on the first $5,000 in your account, then another 3.00% APY on balances above that. Its base APY of 3.00% is also one of the most competitive we’ve seen, set at 15 times the national average rate for savings accounts.
But to qualify for the highest savings rate, you’ll need at least $1,000 in direct deposits each month. Although you don’t need a minimum balance to maintain the account or earn interest, you must open the Varo Bank account first before you can open its savings account. You’ll also earn interest in whole cents, so you need at least $0.01 in interest before Varo will pay out.
Its checking and savings account work hand-in-hand to make the most out of your savings goals with two features:
- Savings roundup. Using the Save Your Change feature, you can round up each transaction from your linked Varo checking account’s debit card and send the difference to your savings account.
- Automatic savings. Automatically transfer a percentage of your direct deposit from your Varo checking account to your savings account with the Save Your Pay feature.
How much interest you can earn
Assuming that you meet the requirements to gain Varo‘s highest APY on balances of $5,000 or less, see how much you could earn on your savings each year with this account.
| APY | Amount in savings | Interest earned in 12 months |
|---|---|---|
| 5.00% | $1,000 | $51.27 |
| 5.00% | $5,000 | $256.34 |
| 3.00% | $10,000 | $300.41 |
6 benefits of a Varo Checking account
The Varo checking account is connected to an app and comes with a debit card that you can link to digital wallets like Apple Pay, PayPal, Venmo and Zelle. It boasts these benefits:
- Few fees. The bank doesn’t charge monthly, transfer or replacement card fees. If you’re traveling overseas, there are no foreign transaction fees to worry about.
- No minimum opening deposit. Varo aims to make banking accessible to everyone, so it doesn’t require a minimum amount to open or maintain the account.
- Early payday. If you enroll in direct deposit, you could receive your paycheck up to two days early.
- Overdraft protection. Varo blocks any transactions that would overdraw your account, so you’ll never pay overdraft fees.
- Up to 6% cash back. Get cash back for everyday purchases when you use your Varo Visa debit card or Varo Believe credit card at participating retailers.
- Optional high-yield savings account. Once you open your Varo Bank account, you can apply for Varo Savings. The savings account offers a 3.00% APY, though you can qualify for a savings rate up to 5.00% on the first $5,000.
3 potential drawbacks
- No checks or wire transfers. Varo doesn’t offer checkwriting privileges or support wire transfers. However, Varo does offer support for Zelle, which can help you move money between accounts.
- Complicated cash deposits. You can’t mail cash to Varo or make deposits at a bank branch because there aren’t physical branches. Instead, you have to deposit cash at a Green Dot retailer for a fee of up to $5.95.
- Long phone support process. You’ll have to give your Social Security number, and go through its automated system to vet the reason for your call before getting to a live representative. Because phone support asks for personal information, it’s difficult to reach customer service if you’re not a customer.
Varo Bank’s ATM network and fees
You can use your Varo debit card for free at over 55,000 Allpoint network ATMs located in US retailers like Walgreens, Target, Kroger and CVS. However, if you travel internationally, you’ll only find in-network ATMs in these countries: United Kingdom, Canada, Puerto Rico, Australia, and Mexico.
Varo charges $2.50 per withdrawal if you use an out-of-network ATM — plus any ATM operator fees.Varo Bank reviews and complaints
Varo Bank is accredited with the Better Business Bureau (BBB) and holds an A rating with the organization for closing customer complaints. Varo has closed over 1,600 BBB complaints in the last three years, a higher number than many digital banks that receive a few hundred complaints.Varo receives high customer ratings overall. Out of over 2,400 reviews on Trustpilot, the bank sees a rating of 3.8 out of 5 stars. Positive reviewers enjoy the bank’s features, including getting direct deposits up to two days early and cash advances. However, multiple reviewers on Trustpilot and Reddit have complained about their accounts getting closed unexpectedly, difficulty getting funds returned from closed accounts or fraudulent charges and long customer service wait times.Compare Varo Bank to other savings and checking accounts
Compare features from other checking accounts, such as their interest rates, minimum opening deposits and ATM networks. Then, select Compare to see up to four options side by side.
Snag up to a 5.00% APY if you get qualifying direct deposits, plus automated savings tools. But you must open a Varo Bank account first.
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A digital account with a $0 monthly fee, access to 55,000+ free Allpoint ATMs and no minimum balance required. This account gives you access to an optional savings account with yields as high as 5.00% APY.
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How to deposit and withdraw my money
You can move money around with your Varo account in a variety of ways.
Deposits
Top up your checking account by:
- Direct deposit. Deposit a portion of your paycheck, government-issued benefits and other regular payments (like insurance refunds or Airbnb income) into your checking account.
- Checks. You can deposit checks directly through the app by endorsing the check and snapping a photo.
- Cash deposits. Submit a cash deposit at GreenDot retailers across the US, including participating 7-Eleven, Kroger, Kmart, Rite Aid, CVS, Walgreens and Walmart stores. However, you could pay up to $4.95 per deposit.
- Electronic transfers. Transfer money from an external bank account via an ACH transfer.
- Digital wallets. Top up your checking account with funds from digital wallets like Venmo, PayPal, Zelle and Cash App.
Withdrawals
You can take money out of your account, but understand the limitations and withdrawal limits ahead of time.
- Debit card. There’s a $2,500 daily limit for purchases made with the Varo debit card.
- ATM withdrawals. Dip your card in any AllPoint ATM to access your funds.
- In-person cash withdrawals. You can withdraw up to $1,000 per day in cash at participating retailers, but you’ll pay a fee for the transaction. Some Green Dot locations may require their own limits on how much and how often you can deposit money.
- Online transfers. Transfer money to your Varo Savings or external bank accounts to keep your funds flowing where you need them. There’s a limit of $5,000 per transfer and $10,000 per month for transfers to an external account.
How to contact Varo customer service
Varo‘s customer service team is available seven days a week.- Use the Varo Bank app to chat with a live representative by navigating to the Help and Support section.
- Call 1-877-377-8276 from Monday to Friday and federal holidays, 8 a.m. to 4:30 p.m. MT except on Thanksgiving, Christmas and New Year’s Day. You’ll need to provide your account number before reaching a customer service agent.
- Send a message to support@varomoney.com.
- The customer service team is active on Twitter through its handle @VaroMoney and Facebook, so feel free to ask questions there.
Checking account ratings
★★★★★ — Excellent
★★★★★ — Good
★★★★★ — Average
★★★★★ — Subpar
★★★★★ — Poor
We analyze top checking accounts and rate them one to five stars based on factors that are most important to you. These factors include: monthly fees, the ease at which monthly fees can be waived, the breadth of ATM access, ATM and overdraft fees, and customer service.
