Varo Bank summary
Pros
- Full-feature mobile app
- No monthly account maintenance fees
- Competitive savings rates
Cons
- Limited account options
- No loans or credit cards
Editorial score
Fees?
No fees at all
Security
FDIC insured and SSL/AES encrypted account
Customer service
Early morning, evening and weekend service with multiple communication options and a dedicated fraud team
Online experience
User friendly site with full online banking capabilities
Mobile experience
Excellent mobile app with all mobile banking features enabled, including digital check deposits
Advantages Over Traditional Banks
Varo is different from a regular bank. It offers online bank accounts and savings accounts, stripped down to the very basics to give you countless benefits without the downsides.
Here are the main reasons to choose Varo Bank over a regular bank:
- It takes only minutes to set up a bank account
- Open and manage your bank account using the Varo Bank mobile app
- No bank account maintenance fees whatsoever. That’s no monthly fees, no minimum balance requirements, and no transfer fees
- Extremely high savings annual percentage yields (APY) helping you save
Cutting-Edge Banking Services
Varo has stripped banking down to the features people need most, without bogging its users down with high fees and balance requirements.
Here are Varo’s top banking features and services:
- Collect your paycheck up to two days early with direct deposit1, which generally gives you access to your paycheck as soon as your employer files payroll.
- Push notifications sent to your phone whenever there’s a deposit or withdrawal from your Varo bank account or when your debit card is used for a purchase or cash withdrawal
- Lets you connect your other financial accounts to Varo to manage all your money in one place
- Allows you to deposit cash at 90,000+ retail locations around the US using Green Dot Reload @ the Register (Retail service fee applies)3
- Save Your Pay takes a percentage of deposits you make into your checking account and automatically transfers it to your savings account
- Save Your Change automatically rounds up every transaction to the nearest dollar and transfers the amount to your savings account
- Get up to $100 with the tap of a button with Varo Advance*
Traditional Banking Services
Varo Bank doesn’t ignore traditional banking services. Varo offers the convenience of mobile banking with many of the same basic features offered by traditional banks.
Traditional banking services include:
- Varo Visa® Debit Card. This is a regular debit card linked to your checking account. It is not a prepaid card.
- Fee-free withdrawals at 55,000+ Allpoint® ATMs worldwide.4
- Option of sending deposits and transfers from your bank account.
Interest Rates and Fees
Varo offers two types of accounts: a no-fee online Bank account and high-yield savings account. To access Varo’s services, you must set up a Varo Bank Account. The Savings Account is optional. As mentioned earlier, Varo doesn’t charge any monthly account maintenance fees. That means: no monthly fees, no transfer fees, no foreign transaction fees, no ATM fees (as long as you use Allpoint® ATMs) and no minimum balance requirements.
The Varo savings account promises a high minimum Annual Percentage Yield (APY). Start earning 0.5% - 3% APY with a balance of only $.01, if you meet these requirements each qualifying period2
- Make at least five qualifying Varo Bank Visa Debit Card purchases AND
- Receive qualifying total direct deposits of $1,000 or more
Additionally, you will need to meet these daily balance requirements at the close of business during the calendar month:
- Do not exceed a daily savings balance of $10,000 for the entire calendar month AND
- Keep your bank and savings account balances greater than or equal to $0.00
Customer Service
Varo’s Utah-based customer service team is available 7 days a week during extended business hours, by phone and email.
Mobile Apps
Varo isn’t just another one of those banks that offers a mobile app; its mobile app actually has more features than its online platform. Downloading the Varo app on the App Store or Google Play can give you full access to all of the banking services and products described in this review.
Security
Varo takes your security seriously. All money in your Varo account(s) is FDIC insured up to $250,000 through Varo Bank, N.A. Member FDIC. Furthermore, Varo promises never to sell your data and to keep you safe with powerful encryption and access control. Your spending is also protected, thanks to the Visa® Zero Liability, which guarantees you won’t be held responsible for any unauthorized charges on your debit card5.
Conclusion
Varo Bank represents the next stage in online banking. It does a few things that all online banks should really be doing by now, namely: it charges no fees for its services and rewards users with high-interest rates for meeting a few basic conditions each month. In short, if you’re looking for an online/mobile bank account that does the basics well – and doesn’t charge you an arm and a leg for it – then it’s worth checking out Varo Bank.
Disclosure
Bank Account Services provided by Varo Bank, N.A. Member FDIC. Visa® Debit Card is issued by Varo Bank, N.A. pursuant to a license from Visa U.S.A. Inc and may be used everywhere Visa debit cards are accepted.
*To qualify, you’ll need to have at least $1,000 in direct deposits to your Varo Bank Account or Varo Savings Account combined within the last 31 days. Your Varo Bank Account must be open and active, and the daily balance at close of business must be equal to or greater than $0.00. You are limited to taking out one Advance per calendar day, even if you repay in full on the same calendar day.
1 - Early access to direct deposit funds depends on timing of the payer’s submission of deposits. We generally post such deposits on the day they are received which may be up to 2 days earlier than the payer’s scheduled payment date.
2 - ¹Annual Percentage Yield (APY) is accurate as of Oct 1, 2021. All Varo Savings Accounts earn 0.50% APY beginning on that date. APY is variable and is subject to change. No minimum balance required to open an account. Balance in Savings must be at least $0.01 to earn interest. To earn 3.00% APY, the Varo Savings Account must meet these requirements: Account Holder must 1) receive total qualifying direct deposits of $1,000 or more to a Varo Bank Account or Varo Savings Account in the same qualifying period. 2) The daily balance in the Varo Savings Account must not exceed $5,000. 3) Keep your Bank Account and Savings Account balances above or equal to $0.00 the entire calendar month. If these conditions are not met, you will earn 0.50% APY on the Savings Account balance for that period. The Qualifying Period is defined as the first day of the calendar month through the last business day of the calendar month.
3 - There is no fee assessed by Varo Bank for cash deposits. However, a retail service fee of up to $5.95 applies.
4 - There is no fee to withdraw money from any Allpoint® ATM. There is a $2.50 ATM cash withdrawal fee assessed by Varo Bank for all non-Allpoint® ATM transactions (out of network transactions). The ATM operator may charge an additional fee.
5 - You must notify your financial institution immediately of any unauthorized use. For specific restrictions, limitations and other details, please contact Varo Bank
Our editorial staff consists of writers who are knowledgeable about financial services. We specialize in simplifying the process of choosing the right provider for your needs.
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