Varo Bank Review 2023: Checking and Savings Accounts

Varo, founded in 2015, is one of the many online banking platforms available to today’s bankers who are ready to give up the brick-and-mortar shops.

Like other online-only banks, Varo offers savings and checking accounts with low fees and high interest-earning rates, making it an attractive alternative to traditional banks. Unlike most competitors, the company also owns and operates its own regulated bank, Varo Bank, N.A., rather than partnering with a backing bank.

The bank doesn’t offer small business banking, traditional credit cards, loans or investing. So it’s not a great fit if you’re looking for a comprehensive financial institution. But its simplicity, sleek design and straightforward perks make it a perfect fit for a simple personal bank account.

Our Varo Bank review gives you everything you need to know about the bank’s options to decide whether it’s the right place for your money.

Varo Accounts

Varo’s checking or spending account is called the Varo Bank Account. It’s the first stop if you want to be a Varo member and access any of its financial products. You have access to the savings account once you open the checking.

Varo Savings Account

Best for Automated High-Yield Savings

Key Features

• Must open Varo bank account first
• Automated savings tools
• No minimum opening deposit

The Varo Savings Account doesn’t have to be flashy to sell itself: An APY up to 5.00% and easy-to-set-up automated saving give savers everything they need. That’s all with no monthly fees. If you open a Varo Bank Account, you also get access to its Savings Account, a high-yield account with automated saving features connected to your Varo Bank Account.

Varo Savings Account

APY

At least 3.00% and up to 5.00%

Monthly fee

None

ATM access

More than 55,000 Allpoint ATMs worldwide

Minimum amount to open

$0.01

Minimum balance required

None

More Information About Varo Savings Account

You can open the account with no minimum balance to obtain 3.00% APY. Your rate will skyrocket to 5.00% APY for balances of $5,000 or less for any month you meet these requirements:

• Direct deposits of $1,000 or more.
• Positive Bank Account and Savings Account balances at the end of the month.
• Additional balances above $5,000 will earn Varo’s base 3.00% APY.

Varo also offers two automatic savings tools to help you build a cushion without thinking about it:

Save Your Pay lets you automatically save a percentage of each direct deposit you receive.

Save Your Change is Varo’s round-up program, which rounds each transaction you make to the nearest dollar and transfers the change to your Savings Account.

Other Varo Products

When you become a Varo customer by opening a bank account, you also get access to these benefits.

Perks

Through the Perks program, you can earn cash back for shopping with program partners when you pay with your Varo debit card or credit card.

Perks deals are limited to select merchants, and you’ll see which deals are available through the Varo app. The amount you can earn varies, but Perks deals are available at up to 6% cash back.

Rewards are automatically deposited into your Bank Account when the amount reaches $5.

Advance

In lieu of overdraft protection, Varo helps you stretch to your next paycheck with Varo Advance. Through the program, you can request up to $100 through the app when you need it for a purchase and get an instant cash advance to your Bank Account.

You can qualify after being a Varo customer in good standing for at least 30 days, and you’ll have to have at least $1,000 in direct deposits within the past 31 days.

Cash advance amounts and fees are:

• $20: $0 fee
• $50: $3 fee
• $75: $4 fee
• $100: $5 fee

There’s no interest for the advance, and you repay it with an automatic payment from your Bank Account within the app within 30 days. Once you repay an advance, you can be eligible for another.

Believe

Varo Believe is a credit builder credit card available only to Varo Bank customers.

The secured credit card comes with no minimum security deposit, no annual fee and no interest. When you open the card, you’ll get a Varo Believe account that works like a debit account. You’ll deposit any amount you want into the account, and that becomes your card’s credit limit.

Use your card like any other credit card wherever Visa is accepted, and repay your balance by the due date to build a credit history that Varo reports to credit bureaus.

The money in your Varo Believe accounts secures your card against missed payments, but that doesn’t let you off the hook. Late payments could be reflected on your credit report and lose you the ability to use the card.

To qualify for a Varo Believe account, you have to have:

• At least two direct deposits of at least $500 in the past 90 days.
• An active Varo Bank Account without a negative balance or an overdue Varo Advance.

You have to apply for the card even after you meet these requirements, but applying doesn’t affect your credit score like applying for another credit card could.

Varo Bank Fees

Like most online bank accounts, Varo cuts fees wherever possible. You pay no monthly maintenance fee (with no balance requirements), no overdraft fees, no foreign transaction fees, no fees to transfer between accounts and no fees at Allpoint ATMs.

You can withdraw or deposit cash into your Varo Bank Account at Green Dot locations. Withdrawals are free, but you’ll pay a $2.50 fee for deposits plus any Green Dot fees, which can be $4.95 each for both withdrawals and deposits. You’ll also pay a $2.50 fee for a withdrawal at an out-of-network ATM (in addition to any fee the ATM’s owner charges).

Varo Customer Experience

Although online-only banks do, by definition, lack the convenience of physical locations, Varo offers a live, U.S.-based customer service hotline. You can also send an email or chat on the app if you’d rather avoid the phone.

Varo’s customer service is available via chat, phone or email.

Chat: Via chat feature in the Varo app
Phone: 1-800-377-8276 Monday through Friday, 10 a.m. to 6:30 p.m. ET
Email: [email protected]

Varo Bank also works with Zelle^® for money transfers to folks who user other banks. However, Varo does get a bit of a ding compared to brick-and-mortar institutions for its lack of free cash deposits.

And while its network of ATMs offers good U.S. coverage, in-network international ATMs are limited to only these countries:

• Canada
• The United Kingdom
• Puerto Rico
• Mexico
• Australia

Varo’s app enjoys high ratings from both Apple and Android users: 4.7 stars on the Google Play store, with more than 40,000 reviews, and 4.7 stars on the App Store with more than 14,000 reviews.

The app gives you an easy bird’s-eye view of your bank account and plays well with Google and Apple Pay. Varo’s app also features a Perks tab where you can find deals and services from Varo partners, and even jobs that could help you earn and save money.

Pros and Cons of Varo

Varo Bank is a convenient and low-cost alternative to a major, sticks-and-bricks bank that may charge a rash of fees in return for their services. However, it’s not the right alternative for everyone. Our pros and cons might help you decide if Varo is the right bank for you.

Frequently Asked Questions (FAQs) About Varo

Here are our answers to commonly asked questions about banking with Varo.

Dana Sitar (@danasitar) has been writing and editing since 2011, covering personal finance, careers and digital media. Information from former Penny Hoarder contributor Jamie Cattanach is included in this report.

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