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Varo Bank Review: High APY and Modern Banking In One

Refreshed Review Updated Jan. 24, 2023
Kevin Payne
By: Kevin Payne

Our Banking Expert

Many or all of the products here are from our partners that compensate us. It’s how we make money. But our editorial integrity ensures our experts’ opinions aren’t influenced by compensation. Terms may apply to offers listed on this page.

Varo Bank is an online bank with simple account offerings -- a checking account and a high-yield savings account. Along with few fees and access to modern banking conveniences, Varo offers tools to help customers build up savings automatically. Keep reading our full Varo Bank review to find out if this forward-thinking bank is right for you.

Offer image for
Best For: High APYs and modern banking experience

Varo Bank

Rating image, 4.50 out of 5 stars.
Circle with letter I in it. 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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4.50/5
Bottom Line

Varo Bank offers one of the highest APYs among online banks for customers who meet monthly account requirements. The online bank is also home to a fee-free checking account, which is a prerequisite to opening a high-yield savings account.

Pros
  • High savings account APY 
  • No monthly fees 
  • Multiple deposit options
  • FDIC Insurance
Cons
  • No single account option

Varo Bank savings account review

If you're looking for a safe place online to keep an emergency fund, Varo's savings account might be the perfect vehicle.

Varo Savings Account

The Varo Savings Account offers competitive rates to all customers. Those who meet its monthly requirements can earn one of the highest APYs we've seen. With no monthly fees, this online savings account is an excellent fit for almost anyone. Varo Savings Accounts don't have a minimum balance requirement, but you can only earn the highest rate tier on the first $5,000 deposited in your account; you'll earn a somewhat lower rate for every subsequent dollar deposited.

One caveat for anyone who only wants a high-yield savings account: You'll need to pair the Varo Savings Account with the Varo Bank Account checking account.

Compare savings accounts

Check out our list of the best savings accounts to see how the Varo Savings Account compares to other top online banks. We've included some of our top picks below.

Rates as of Jan. 24, 2023
Offer
 
 
 
Account
Rating
Rating image, 4.50 out of 5 stars.
Circle with letter I in it. 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
4.50/5
Rating image, 4.00 out of 5 stars.
Circle with letter I in it. 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
4.00/5
Rating image, 4.00 out of 5 stars.
Circle with letter I in it. 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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4.00/5
APY Up to 5.00% 3.30% 4.05%
Min. to earn APY $1 $100
Next Steps

Alternatives to Varo Bank CD rates

Varo Bank isn't an option for customers looking to open high-yield CDs. Check out some of our top choices for CDs below:

Rates as of Jan. 25, 2023
Lender
Account
1 yr. apy
2 yr. apy
3 yr. apy
4 yr. apy
5 yr. apy
Min. deposit
Early Withdrawal Penalty
Next Steps
Logo for Discover High Yield CD
Member FDIC.
4.15%
4.30%
4.35%
4.35%
4.40%
$2,500
Yes
Logo for Marcus by Goldman Sachs High Yield CD
Member FDIC.
Marcus by Goldman Sachs High Yield CD
4.40%
4.35%
4.00%
4.00%
3.80%
$500
Yes
Logo for CIT Bank CD
Member FDIC.
0.30%
0.40%
0.40%
0.50%
0.50%
$1,000
Yes

Varo Bank checking account review

Varo Bank offers one fee-free checking account: the Varo Bank Account.

Varo Bank Account

The Varo Bank Account is a fee-free checking account that provides a Visa debit card and access to over 55,000 Allpoint® ATMs nationwide. It does not pay interest, but there is no minimum deposit and it connects with several popular payment apps. You'll need to open a Varo Bank Account if you want to open a savings account.

Varo customers who get paid via direct deposit can receive funds up to two days early. This online bank account doesn't come with check-writing privileges.

Compare checking accounts

If Varo's checking account doesn't interest you, take a look at our list of best checking accounts to find an option that fits your banking needs.

Varo Bank's customer service and experience

Varo Bank has received fewer customer complaints than many other national banks, but that may be due to the bank's young age. Launched in 2015, Varo has already established itself as a digital banking leader. Varo maintains an A rating with the Better Business Bureau and 4.3 stars on Trustpilot.

Customers seem to love Varo's mobile app, which has earned a 4.8-star App Store rating and 4.7 stars in Google Play.

Varo Bank's relationship benefits

Beyond the need to open a checking account before you can open a Varo Savings Account, there are no relationship benefits tied to these accounts. That's hardly surprising since the APYs are already extremely competitive and the bank offers only two accounts.

Alternatives to Varo Bank

Ally Bank

If you're looking for an online bank that lets you manage all your money in one place, Ally Bank may be a better fit. It offers a full cache of banking products, including options to earn high APYs without a lot of costly monthly fees. There's even an interest-bearing checking account.

Capital One

Capital One may be best known for its credit cards, but it also provides full-service personal banking. If you want competitive CDs, loans, or retirement accounts, you'll find them at Capital One. And, unlike Varo, its Capital One 360 Checking earns interest.

Is Varo Bank right for you?

Varo Bank should be on your shortlist if:

  • You're looking for basic online savings and checking accounts.
  • You want a high interest rate without monthly fees.
  • You don't care about having access to a checkbook.

RELATED: Want to grow your portfolio? Learn about CD Laddering and see if it's the right strategy for you.

Our Banking Expert