Founded in 2015, Varo Bank is an online bank with a handful of product offerings, including checking, savings, and credit options. While this bank’s product list is on the shorter side, it does offer low-cost, high-yield account options for customers who want to avoid fees and maximize their saving potential.

Varo Bank’s product offerings

Varo currently offers the following products and account options:

Online checking account

Varo’s checking account doesn’t come with any monthly fees or overdraft charges, and as an added feature, customers can get paid up to two days earlier thanks to its early direct deposit feature. Varo doesn’t have any minimum deposit requirements to open an account and you don’t need to maintain a minimum balance to avoid fees.

Online savings account

Varo offers a high-yield savings account option that gives savers the chance to earn up to 5.00% annual percentage yield (APY) on up to $5,000 and a 3.00% APY on balances higher than $5,000. You can also use the account’s saving tools to automatically save a portion of each paycheck or round up purchases to the nearest dollar, depositing the difference directly in your savings account.

This account doesn’t have a minimum opening deposit or minimum balance requirement.

Varo Believe Credit-Builder Card

The Varo Believe credit card is a credit-building card that has no minimum security deposit, no annual fee, and no annual percentage rate (APR). There’s no credit check needed to apply and applying for the card doesn’t impact your existing score.

To qualify for a Varo card, you’ll need to have a Varo bank account without any negative balances or overdue cash advance, and you must receive qualifying direct deposits of $200 or more in the last month. Users set their own credit limit, which is equal to the available balance in your Varo Believe account.

Varo Cash Advance

Varo Advance allows customers to borrow a cash advance for surprise expenses. To qualify, your Varo account must be active and in good standing, with no negative balance. You’ll also need at least $800 in total qualifying direct deposits to your Varo checking or savings account, or both combined, in the current or last calendar month.

Varo will determine the amount you’re eligible for, which is initially $250. After you’ve established a history of on-time payments, you may qualify for higher amounts up to $500. There is a one-time advance fee ranging from $1.40 to $40, depending on the amount you borrow. You have up to 30 days to pay back what you owe.

Account fees

Here’s a closer look at the account fees Varo customers can expect to pay:

• Checking account fee: $0

• Online savings account fee: $0

• Overdraft fee: $0

• ATM withdrawal fee (out of network): $3.50 (per transaction)

• Over the counter (OTC) cash withdrawal: $2.50 (per transaction)

• Cash deposits via third-party money transfer services: The deposit location may charge up to $5.95

Pros and cons of Varo Bank

There are a few major pros and cons customers should note before banking with Varo Bank.

Varo Bank pros:

• No monthly maintenance fees: Varo doesn’t charge any monthly fees to maintain your account.

• No overdraft fees: If you don’t have sufficient funds in your account to cover the charge, Varo will decline or return the transaction. You will never be charged an overdraft fee.

• No minimum balance requirements to open accounts or avoid fees: Varo’s accounts are free to open and don’t require a certain opening deposit or minimum amount to keep your account open.

Varo Bank cons:

• Limited product offerings: At the moment, Varo only offers two bank account options, in addition to its credit and cash advance products. If you’re looking for a greater variety of financial products, this could be a major drawback.

• No physical branches: Varo operates strictly online. While that can often mean that customers have access to more low-cost or fee-free account options, this also means that you won’t have access to a live banker should you ever need it.

• No out-of-network ATM reimbursement: Varo account holders can make ATM withdrawals by using their debit card at any Allpoint ATM or in stores like CVS, Walgreens, and Target. However, using an ATM outside of that network will result in a $3.50 fee, and Varo does not offer reimbursements for this fee.

• The stellar savings APY is limited to certain balances: Varo boasts a 5.00% APY on Varo savings account balances, but this is limited to the first $5,000 in your savings account. Accounts with higher balances will see a drop in APY to 3.00%.

Varo Bank customer support and mobile banking experience

Varo Bank customers can reach a support representative in-app through a live chat feature and specialized support via telephone Monday through Friday between 8:00 AM to 4:30 p.m. MT. Customer support is closed on Thanksgiving, Christmas, and New Year's Day.

Varo customers can bank primarily through the Varo app which allows you to check balances, get real-time transaction alerts, transfer funds via Zelle, and even check your credit score. The app is available for download on the App Store and Google Play and has a rating of 4.9 and 4.7, respectively.

Varo Bank’s social and environmental impact

Varo’s environmental impact isn’t clear on its website, but it does have a Varo Impact Program focused on giving back to the community through initiatives that promote financial literacy, inclusion, and empowerment.

Some of its past initiatives include a partnership with the Aspen Institute to urge the Treasury Department to address financial inclusion gaps in the U.S. It also partnered with EVERFI to roll out personal finance curriculum to nearly 2,400 middle schools.

Varo previously joined in on an initiative to help small business owners through financial support and professional mentorship.

FAQs

Is Varo Bank an actual bank?

Yes. Varo Bank is a real, FDIC-insured bank with a national bank charter.

Can you use Zelle with Varo bank?

Yes. Varo customers can use Zelle via the Varo mobile app to send and receive money with no fees.

How do I deposit money into my Varo account?

You can deposit money into your account instantly when transferring funds through an eligible platform such as Zelle, PayPal, or Square. You can also deposit up to $1,000 cash per day into your Varo account during checkout at participating Green Dot retailers. Check deposits can be made via Varo’s mobile app, which offers remote check deposit capabilities.

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