Quick Summary
Varo Bank made history as the first consumer fintech to receive a national bank charter in the US. This means Varo is a real bank, not a fintech partnering with a bank. Targeting underbanked Americans, Varo offers no-fee checking, savings up to 5.00% APY (with qualifying conditions), early direct deposit, and small cash advances through Varo Advance. It's designed for people tired of traditional banking fees.
Score Breakdown
What We Like
- ✓ First all-digital nationally chartered bank
- ✓ Up to 5.00% APY on qualifying savings
- ✓ No monthly fees or minimums
- ✓ Early direct deposit (up to 2 days)
- ✓ Varo Advance small cash advances
What Could Improve
- ✗ High APY requires meeting multiple conditions
- ✗ Limited product range
- ✗ Customer service needs improvement
- ✗ No joint accounts available
Features
Varo offers a checking account with no fees, savings account with up to 5.00% APY (requiring $1,000+ direct deposit and 5+ debit transactions monthly), and Varo Advance for small cash advances up to $250. Early direct deposit gets paid up to 2 days early. Save Your Pay automatically transfers a percentage of your paycheck to savings.
Pricing
No monthly fees, no minimums, no overdraft fees. Savings APY is 5.00% on balances up to $5,000 when meeting requirements (otherwise 3.00%). Checking pays no interest. Varo Advance up to $250 with no interest (if repaid on time). Free ATM at 40,000+ Allpoint locations.
Usability
Varo's app is modern and focused on the mobile-first experience. The interface is clean and easy to navigate. Account management, transfers, and savings tools work well. The app gamifies savings with tools like Save Your Pay and round-ups. However, the conditions for the highest APY can be complex to track.
Key Specifications
| Monthly Fee | $0 |
| Savings APY | 3.00-5.00% |
| Minimum Balance | None |
| ATM Network | 40,000+ Allpoint ATMs |
| FDIC Insured | Yes |
| Mobile Deposit | Yes |
| Zelle | No |
Final Verdict
Varo Bank is an excellent choice for younger consumers and those underserved by traditional banks. The no-fee structure and potential for 5.00% APY are compelling. However, meeting the qualifying conditions for the top rate requires active engagement. For most users, Ally or SoFi provide a more consistent and feature-rich banking experience.