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Varo Bank Review: Overall Rating
| Product | Insider rating (out of 5) |
| Savings | 4.25 |
| Checking | 4 |
| Trustworthiness | 3.5 |
| Total | 4 |
Varo Bank Pros and Cons
| Pros | Cons |
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Varo Savings Rates
Varo pays two interest rates. You'll earn 5.00% APY on balances up to $5,000 if you receive at least $1,000 in direct deposits and keep a positive account balance on Savings and Bank Accounts. If you don't meet these requirements or have an account balance over $5,000, you'll earn 3.00% APY.
Keep in mind you must open a
Varo Checking Overview
The
It could also be a good choice if you're searching for special perks, like early direct deposit or cash back — you can earn up to 6% cash back at select retailers when you use a Varo debit card.
About Varo Bank
Varo Bank is an online bank with a checking account and high-yield savings account. You won't need to worry about a credit check or ChexSystems when you open an account at Varo, so it's an excellent online option for second chance banking. If you don't qualify to open an accounts elsewhere, you may be eligible with Varo.
You must open a
You can use over 55,000 Allpoint ATMs for free in the US, Puerto Rico, Canada, Mexico, Australia, and the United Kingdom. If you use a non-Allpoint ATM, Varo will charge you $3.
The Varo mobile app has received 4.9 out of 5 stars in the Apple store and 4.7 out of 5 stars in the Google Play store.
Contact customer service either over the phone or in-app chat Monday through Friday from 8 a.m. to 4: 30 p.m. MT. Weekend support is also available through in-app chat from 8 a.m. to 4:30 p.m. MT.
Varo doesn't offer joint accounts. Your deposits are FDIC insured for up to $250,000.
Is Varo Trustworthy?
Varo has received an A rating from the Better Business Bureau because it has received a high volume of customer complaints.
A good BBB rating won't guarantee your relationship with the bank will be perfect. Reach out to current customers or read online customer reviews to see if Varo is suitable for you.
Varo hasn't been involved in any recent public settlements. However, Varo reported a $236.5 million net loss last year and has faced concerns about its profitability.
Varo is an FDIC-insured financial institution. If it were to shut down, up to $250,000 would be protected by FDIC insurance in an individual bank account.
Varo Bank FAQs
Is Varo legit?
Yes, Varo is a legitimate bank. Varo bank accounts are federally insured by the FDIC for up to $250,000 per depositor, per account type.
Is Varo a good bank?
Varo could be a good option if you are looking for a bank account with minimal fees and low minimum opening deposits. If you've struggled to open a bank, Varo also has some of the best second chance bank accounts. If you're specifically searching for a money market account or CD, or the best high-yield savings account rates, you might find better options at other online banks.
Does Varo charge a monthly fee?
Varo doesn't charge any monthly service fees on its savings or checking accounts.
How do I deposit cash into a Varo account?
Varo doesn't have any branches. If you'd like to deposit cash into your account, you'll have to find a Green Dot location. You also might need to pay a fee of up to $4.95.
What is the Varo ATM withdrawal limit?
You can withdraw up to $1,000 from an ATM per day.
How Varo Compares
Varo vs. Chime
Varo and
That said, Varo is the better option overall. The Varo Bank Account offers up cash back on debit card purchases. At select retailers, you may earn up to 6% cash back when you use a Varo debit card. You also may prefer Varo if you'd like a more competitive savings account rate.
Varo vs. Ally
Varo and Ally both have free checking and savings accounts with zero monthly service fees and $0 minimum opening deposits. However, one notable distinction between the two banks is they have different requirements for earning interest on savings accounts.
The Varo Savings Account pays 5.00% APY balances up to $5,000, but you'll need to meet certain monthly requirements. For balances over $5,000, you'll earn 3.00% APY. You'll also earn 3.00% APY if you don't meet the monthly requirements. Meanwhile, the Ally Savings Account pays
Also, consider which types of bank accounts you'd like to get. Ally has a money market account and CDs, while Varo doesn't. Ally also allows you to open individual and joint accounts, while Varo only offers individual accounts.
Why You Should Trust Us: How We Reviewed Varo
For our Varo Bank review, we used our bank account methodology. Each account receives a rating between 0 and 5.
We look at ethics, customer service, and the mobile app when rating each bank account. Other factors considered depend on which type of account we're reviewing. For example, we evaluate interest rates for savings accounts and overdraft protection options for checking accounts.