In this comparison, we’ll break down the basics of Varo versus Chime, including what each company offers and how they compare.
October 20, 2026
Varo and Chime are both mobile-first, fee-free banking apps built for customers who want to avoid the minimum balances and overdraft fees common at traditional banks. The main difference is that Varo is a nationally chartered bank, while Chime is a financial technology company whose accounts are held at partner banks.
In this comparison, we’ll break down the basics of Varo versus Chime, including what each company offers, what customer service options are available, and how their mobile apps compare.
Feature | Varo | Chime |
Structure | Nationally chartered bank | Fintech company; banking provided through partner banks |
Branches | None (online only) | None (online only) |
ATM network | 40,000+ fee-free ATMs | 47,000+ fee-free ATMs |
BBB rating | A+ (not accredited) | A+ (accredited) |
Standout feature | Cash back on debit purchases from a directly chartered bank | SpotMe fee-free overdraft coverage |
Best for | Customers who want cash back on debit card purchases from a directly chartered bank | Customers who want fee-free overdraft coverage |
Varo Bank made history in 2020 as the first consumer fintech to receive a national bank charter directly from the Office of the Comptroller of the Currency (OCC), making it a bank in its own right rather than a fintech partnered with one. It offers checking accounts and savings accounts, along with a secured credit-builder card, all built around a no-monthly-fee model.
Varo's standout feature is cash back on debit card purchases at a wide range of participating merchants, paired with early access to direct deposits and automatic savings tools that round up debit card purchases and move a percentage of each direct deposit into savings.
For a customer who wants the reassurance of banking with a directly chartered institution while earning some money back on everyday purchases, Varo covers both bases.
Chime is a financial technology company, not a bank. Its checking and savings accounts are held at partner banks (The Bancorp Bank and Stride Bank), which provide the FDIC insurance behind Chime-branded accounts. It has grown into one of the most widely used fintech banking apps in the U.S., built around a focus on fee-free, mobile-first banking without the added complexity of loans or investing products.
Chime's standout feature is SpotMe, which offers free overdraft coverage up to a set limit for eligible members. It’s one of the company’s most popular features and a genuine safety net for anyone who occasionally spends slightly more than their balance.
Combined with early access to direct deposits, Chime has built its entire product around eliminating the two things people find most frustrating about traditional banking: fees and waiting for your paycheck to clear.
Chime's SpotMe gives eligible members fee-free overdraft coverage that can reach $200 or more, which is an advantage for anyone who occasionally spends more than their balance. To qualify, members need at least $200 in qualifying direct deposits each month. Varo doesn't allow overdrafts and charges no overdraft fees. Instead, eligible customers can request a Varo Advance, a small-dollar line of credit with a flat fee based on the amount borrowed. Limits typically start at $20 to $250 and can grow to up to $500 over time with qualifying direct deposits, subject to approval.
Both companies offer cash back at participating merchants. Varo's cash back applies to purchases made with the Varo debit card or Varo Believe secured credit card, while Chime offers merchant deals through Chime Deals, plus 2% or 5% cash back on eligible Chime Card purchases for Chime Plus and Prime members. If avoiding overdraft stress is your top concern, Chime has the edge. If you'd rather earn cash back on everyday debit card spending without a membership tier, Varo may be the stronger pick.
Feature | Varo | Chime |
Monthly fee | $0 | $0 |
Minimum opening deposit | $0 | $0 |
Overdraft coverage | No overdrafts or overdraft fees; eligible customers can request a Varo Advance (fee-based, up to $500 with qualifying deposits) | Fee-free SpotMe overdraft coverage for eligible members ($200+ in monthly direct deposits required) |
Savings rate | 5.00% | 3.75% |
The two apps rate closely in our review, with Varo slightly ahead on the App Store and Chime slightly ahead on the Google Play Store. Both are built for simplicity, with early direct deposit and automatic savings tools as core features, and neither app tries to layer on the kind of loans-and-investing complexity you'd find in a broader financial app.
Feature | Varo | Chime |
Google Play rating | 4.5 | 4.7 |
Apple App Store rating | 4.9 | 4.8 |
Average app score | 4.7 | 4.75 |
Budgeting tools | Yes | Yes |
Both companies offer phone, email, and chat support. Chime offers 24/7 phone and live chat customer service. Varo offers live in-app chat 24/7 (closed on federal holidays) and phone support from 7 a.m. to 8:30 p.m. ET daily.
Feature | Varo | Chime |
Phone support | 7 a.m.–8:30 p.m. ET daily | 24/7 |
Email support | Yes | Yes |
Chat support | Yes, in-app | Yes, in-app |
In-person support | Not available | Not available |
Social media support | Yes | Yes |
Someone who wants to bank with a directly chartered institution rather than a fintech using partner banks.
A customer who wants cash back on everyday debit card purchases.
Interested in automatic savings tools paired with early direct deposits.
Someone who occasionally overdraws and wants fee-free coverage up to a set limit through SpotMe.
A customer who wants round-the-clock phone support alongside email and chat.
Looking for one of the most widely used fintech banking apps, with a large support community.
Varo
1. To open a Varo Savings Account all you need is a Varo Bank Account. Applying won’t impact your credit score, plus there are no monthly fees, and no minimum balance required. Annual Percentage Yield (APY) is accurate as of June 16, 2025. Start earning 2.50% APY, then qualify to earn 5.00% APY on your balance up to $5,000.00 next month by 1) Receiving direct deposit(s) totaling $1,000 or more; and 2) End the month with a positive balance in all your Varo Accounts. Rates subject to change at any time.
2. As of January 23, 2026 as found on fdic.gov/resources/bankers/national-rates/
Chime
Chime is a financial technology company, not a bank. Banking services provided by The Bancorp Bank, N.A. or Stride Bank, N.A., Members FDIC.
¹ Chime® Checking Account is required to be eligible for a Savings Account.
² The 3.75% Annual Percentage Yield (APY) is only available to members with Chime Prime status, otherwise, either the 3.00% APY for members with Chime Plus status or the standard rate of 0.75% APY will apply. The APYs are effective as of 02/26/2026, are variable and may change at any time. No minimum balance required. Must have $0.01 in savings to earn interest. See Chime Membership Tiers Terms and Conditions for more details.
³ Chime is not FDIC-insured. The Bancorp Bank, N.A. and Stride Bank, N.A. are the FDIC-insured members. Deposit insurance covers the failure of an insured bank. Certain conditions must be satisfied for pass-through deposit insurance coverage to apply. FDIC deposit insurance limit is $250,000 per depositor, per insured bank, per ownership category.
For Savings Account depositors, funds are eligible for FDIC insurance when it arrives at the bank. See details at Changes to Chime Savings Annual Percentage Yield (APY) and the Introduction of Program Banks.
Elizabeth Rivelli is a business finance and insurance expert at BestMoney.com with over five years of experience covering car, home, life, and health insurance. She has contributed to major outlets such as Investopedia, Forbes, CNN Underscored, U.S. News & World Report, and Bankrate. Elizabeth also partners with insurance companies to provide readers with practical insights into industry trends.
