Review
Updated
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.
Varo Bank
Rating image, 4.50 out of 5 stars.
4.50/5
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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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
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.
| Account | APY | Promotion | Next Steps |
|---|---|---|---|
Rating image, 4.50 out of 5 stars.
4.50/5
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 |
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, 4.50 out of 5 stars.
4.50/5
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 |
5.00% APY for balances of $5,000 or more
Rate info
5.00% 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, 4.50 out of 5 stars.
4.50/5
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 |
5.26%
Min. to earn: $1
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N/A
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Varo Bank savings account
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.
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 May 10, 2024
| Bank & CD Offer | APY | Term | Min. Deposit | Next Steps |
|---|---|---|---|---|
Member FDIC.
| APY: 4.70% | Term: 1 Year | Min. Deposit: $2,500 | |
| APY: 5.05% | Term: 1 Year | Min. Deposit: $1 | |
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| APY: 5.15% | Term: 9 Months | Min. Deposit: $1 | |
Member FDIC.
| APY: 4.75% | Term: 1 Year | Min. Deposit: $500 |
Varo Bank checking account
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.
Our bank and credit union methodology
Our methodology for scoring banks and credit unions revolves around evaluating key aspects such as annual percentage yield (APY), brand reputation, fees and minimum requirements, and additional perks.
These criteria are weighted differently across various account types, ensuring a comprehensive assessment that reflects the competitive landscape and economic conditions.
We strictly feature products that offer federal insurance and high customer satisfaction, keeping our recommendations unbiased by advertiser influence. This robust evaluation process helps us generate balanced, reliable best-of lists that guide consumers to top financial products.
Learn more about how The Motley Fool Ascent rates bank accounts.
Our Banking Expert
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.
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