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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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Varo Savings
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 | Minimum Deposit |
---|---|---|
Varo Savings | Up to 5.00% | $0 |
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.
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.
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:
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:
FDIC insured: Just like a traditional bank, Varo includes FDIC insurance. Your funds are protected, up to $250,000 per depositor, per institution.
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.
Varo doesn't have physical branch locations, but it still gives you options for depositing and withdrawing funds online.
You can deposit money to your Varo Savings account using one of these methods:
Withdrawal options for your Varo Savings account include:
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.
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.
At The Motley Fool Ascent, we rate savings accounts on a five-star scale (1 = poor, 5 = best). We evaluate all savings accounts across four main criteria: annual percentage yield (APY), brand and reputation, fees and minimum requirements, and perks that really make a difference -- think ATM access, linked checking accounts, or even branch access.
Our scores are weighted as:
Learn more about how The Motley Fool Ascent rates bank accounts.
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.
Yes, Varo Bank is a legitimate FDIC-insured, online bank. Deposits at Varo Bank are insured up to $250,000 per depositor.
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