Our experts answer readers' banking questions and write unbiased product reviews (here's how we assess banking products). In some cases, we receive a commission from our partners; however, our opinions are our own. Terms apply to offers listed on this page.
- Varo is an online bank and Chime is a fintech company; both offer checking and savings accounts.
- Chime and Varo offer an equally competitive fee-free online checking account.
- If you'd like to open a savings account, too, the Varo Savings Account pays a higher interest rate.
- Read Insider's reviews of Chime and Varo.
If you're looking to open both a checking account and a savings account with an above-average interest rate, Varo or Chime might be worth considering. Both offer online savings and checking accounts with zero monthly bank maintenance fees and no minimum opening deposit.
Neither bank checks your credit score or banking history when you apply for an account. This means you may qualify for an account even if you don't at other banks, making them two of the best second chance banking options.
We've compared Varo and Chime's banking products to help you distinguish which company has the best high-yield savings account and best checking account for you.
Pros and Cons of Chime
| Pros | Cons |
|
|
Pros and Cons of Varo
| Pros | Cons |
|
|
Checking Account Comparisons
| Minimum opening deposit | ||
| Monthly service fee | ||
| Perks |
|
|
| Caveats |
|
|
| Next steps |
Savings Account Comparisons
| APY | ||
| Minimum opening deposit | ||
| Monthly service fee | ||
| Perks |
|
|
| Caveats |
|
|
| Next steps |
Which Company is More Trustworthy?
We use ratings from the Better Business Bureau to see how companies deal with customer issues.
The BBB gave Chime an F rating. The BBB states that Chime has a poor grade because it has a high volume of customer complaints, has not responded to some of these complaints, and takes a long time to respond to some complaints. Meanwhile, Varo has an A rating; the BBB says that it has an A rather than an A+ due to the high number of customer complaints.
There has also been government action against Chime. Chime used the URL "Chimebank.com" as well as using the words "bank" and "banking," even though the company is not licensed to operate as a bank in any jurisdiction. In a 2021 settlement with The Commissioner of Financial Protection and Innovation, Chime agreed to make it clear in future advertising that it is not a bank.
Many users have filed complaints with the Consumer Financial Protection Bureau, saying that Chime has unexpectedly closed their accounts and sometimes kept them from accessing their money.
FAQs (frequently asked questions)
Is Varo better than Chime?
You might prefer Varo if you're looking to open both a checking and savings account with an online institution. Varo's
If you only plan to open a checking account, it'll be a toss-up between the two. Both Varo and Chime offer fee-free checking accounts with similar features.
What is a fintech company?
Fintech companies offer banking products or services, but they aren't banks. A fintech company isn't directly insured by a government agency, like the Federal Deposit Insurance Corporation. Online platforms are still safe, though, if their accounts are federally insured through a partner bank.
Chime is a fintech platform, while Varo is an online bank. Chime's accounts are provided by its two partner banks, Bancorp Bank or Stride Bank, N.A., which are federally insured financial institutions.
What are the advantages of an online bank?
Online banks generally offer more competitive interest rates than brick-and-mortar banks. Many online banks also waive common bank fees, like monthly services fees, overdraft fees, or paper statement fees.