Review
Updated
Fact Checked
Eric McWhinnie
The Varo Savings account offers one of the highest APYs we've found, with no account fees or balance minimums. However, the stellar APY only applies if you have less than $5,000 in savings and can qualify for the account's highest APY tier. Read our in-depth Varo Savings account review to learn more about the account and whether it is right for you.
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Ratings Methodology
Rates as
of Apr 25, 2024
Varo Savings
Member FDIC.
Rating image, 3.00 out of 5 stars.
3.00/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Rating image, 3.00 out of 5 stars.
3.00/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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= Best
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= Excellent
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APY
Up to 5.00%
Rate info
Start earning 3.00% Savings APY, then qualify to earn 5.00% APY on your balance up to $5,000.00 for the following month by meeting these two requirements in the current month: 1) Receive qualifying direct deposit(s) totaling $1,000 or more; and 2) End the month with a positive balance in both your Varo Bank Account and Savings Account. You’ll continue to earn 3.00% APY on any additional balance above $5,000.00.
Min. To Earn APY
N/A
- High savings account APY
- No monthly fees
- Multiple deposit options
- FDIC insurance
- Automatic savings tools
- No single account option
High-yield savings account comparison
We recommend comparing high-yield savings account options to ensure the account you're selecting is the best fit for you. To make your search easier, here's a short list of standout accounts.
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| Account | APY | Promotion | Next Steps |
|---|---|---|---|
Rating image, 4.75 out of 5 stars.
4.75/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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= Excellent
= Good
= Fair = Poor |
up to 4.60%
Rate info
You can earn the maximum APY by having Direct Deposit (no minimum amount required) or by making $5,000 or more in Qualifying Deposits every 30 days. See SoFi Checking and Savings rate sheet at: https://www.sofi.com/legal/banking-rate-sheet.
Min. to earn: $0
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New customers can earn up to a $300 bonus with qualifying direct deposits!
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Rating image, 4.75 out of 5 stars.
4.75/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
5.05% APY for balances of $5,000 or more
Rate info
5.05% APY for balances of $5,000 or more; otherwise, 0.25% APY
Min. to earn: $100 to open account, $5,000 for max APY
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N/A
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Rating image, 4.00 out of 5 stars.
4.00/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
4.35%
Min. to earn: $0
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New customers can earn a $200 bonus with a minimum $25,000 qualifying deposit. Terms apply.
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Varo Savings interest rate
| Account | APY | Minimum Deposit |
|---|---|---|
| Varo Savings | Up to 5.00% | $0 |
Data source: Varo.
The APY at Varo is tiered -- you'll earn a very competitive rate on your first $5,000 if you meet the requirements (more on those below). But the APY on balances above $5,000 isn't anything to write home about. If you've got a lot of cash saved, look to other banks for a better deal.
Full Varo Savings account review
There are many reasons to love the Varo Savings account, but it's not for everyone. Here are the reasons you might want to open a Varo Savings account -- and some reasons it might not be the best fit.
Top perks
Up to 5.00% APY: A savings account with Varo comes with two interest tiers. You'll earn the max APY on the first $5,000 in your account when qualifying conditions are met, then a lower APY on every dollar above that. If conditions aren't met, you'll earn the lower APY regardless of how much you've saved. As far as what those conditions are, you have to satisfy two things:
- You need to have at least $1,000 in direct deposits each month.
- Your balance must be equal to or above $0 at the end of each month.
No fees or balance requirements: The Varo Savings account has no monthly maintenance fees, overdraft fees, or minimum balance requirements.
Automated savings: Varo offers two tools to automate your savings:
- Save Your Pay allows you to automatically transfer a percentage of your Varo Bank account direct deposits to savings.
- Save Your Change rounds all your transactions up to the next dollar and transfers the change to your savings account.
FDIC insured: Just like a traditional bank, Varo includes FDIC insurance. Your funds are protected, up to $250,000 per depositor, per institution.
What could be improved
No single account option: You can't open just a savings account. You must first open a Varo Bank account, then pair it with a Varo Savings account.
Low APY for balances above $5,000: The lower APY earned on deposits above $5,000 is nothing to write home about. If you have a large amount of savings, you'll likely earn more by depositing it in one of today's top-paying savings accounts.
How to access your money
Varo doesn't have physical branch locations, but it still gives you options for depositing and withdrawing funds online.
Deposit options
You can deposit money to your Varo Savings account using one of these methods:
- Mobile transfer
- Online transfer
- Mobile check deposit
- Direct deposit
- In person at Green Dot Network locations
Withdrawal options
Withdrawal options for your Varo Savings account include:
- Mobile transfer
- Online transfer
If you want to withdraw cash from your Varo Savings account, you'll first need to transfer the funds to an external bank account or your Varo Bank account. Then you can withdraw cash at an ATM or bank branch.
The Varo Savings account is right for you if:
You have $5,000 in savings and want to avoid account fees and minimum balance requirements. It's also great if you're trying to get in the habit of saving money, as Varo offers numerous tools and ways to save a little extra each month.
If Varo isn't right for you, check out our full list of the Best High-Yield Savings Accounts.
Keep reading about Varo
Our savings account methodology
At The Ascent, a Motley Fool Service, we rate savings accounts on a five-star scale (1 = poor, 5 = best). Our criteria? We dive deep into factors like APY, account minimums and fees, along with features that really make a difference -- think ATM access, linked checking accounts, or even branch access. We blend this with an evaluation of brand reputation and customer satisfaction to ensure you're getting the best. Our aim is to maintain a balanced best-of list featuring top-scoring products from reputable brands offering competitive APYs and standout features.
FAQs
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That depends on how much you plan to keep in your account. The Varo Savings APY is competitive for the first $5,000 you have deposited. Beyond that amount, the APY falls well below what other savings accounts are offering now.
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Yes, Varo Bank is a legitimate FDIC-insured, online bank. Deposits at Varo Bank are insured up to $250,000 per depositor.
Our Banking Experts
Kevin Payne is a freelance writer and family travel and budget enthusiast behind FamilyMoneyAdventure.com. His work has been featured in Forbes Advisor, Credible, CreditCards.com, Bankrate, SlickDeals, Finance Buzz, Student Loan Planner, and more. Kevin lives in Cleveland, Ohio with his wife and four teenagers.
Steven is a personal finance writer covering topics from mortgages to credit cards to market news. He has written for The Motley Fool Canada, Ramsey Solutions, Nerdwallet, Clever Real Estate, and other major outlets. Steven launched his writing career at the age of four with his first book, "Revenge of the Bad Guys." He currently lives in Portland, Oregon.
Fact Checked
Eric McWhinnie
Eric McWhinnie has been writing and editing digital content since 2010. He specializes in personal finance and investing. He also holds a bachelor’s degree in Finance.
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