TL;DR
- Varo Bank offers a free checking account and a high-yield savings account with up to 5.00% APY.
- It is an online-only bank, ideal for users who prefer digital banking and lack of physical branches.
- Varo Bank provides services like early direct deposit, cash advance, and a secured credit card for credit building.
- The bank does not offer other savings products like CDs or money market accounts.
Varo Bank offers straightforward, affordable banking solutions online, aiming to assist clients in accumulating savings and improving their credit standing.
The virtual bank has one free checking account—although there are no physical checks and it’s somewhat confusingly just called a bank account—and a high-interest savings account, which offers an industry-leading annual percentage yield (APY) of up to 5.00%. Although Varo doesn’t have other savings products, such as certificates of deposit (CDs) or money market accounts, it does have a credit card and small-dollar loans aimed at helping borrowers who have limited credit history.
Varo offers a service enabling users to submit federal tax filings via its banking app, with the potential to receive tax refunds into their Varo account up to five days sooner.
Rates are current as of Aug. 18, 2025 and are subject to change.
Varo Bank
| Checking account | Free with no opening deposit minimum |
| Savings account | Up to 5.00% APY |
- Year Founded: 2015
- Company Headquarters: San Francisco, CA
- CEO: Gavin Michael
at MoneyLion
Who is Varo Bank good for?
Varo Bank provides a simple, affordable way for individuals to begin saving or improve their credit. It features a complimentary, basic checking account and a savings account boasting a competitive APY of up to 5.00%. As an entirely online institution, Varo Bank allows account creation in just minutes via its mobile application or web platform.
Varo offers a collaboration with an extensive network of over 40,000 ATMs across the country, alongside approximately 90,000 retail spots for conducting account activities such as deposits.
Who shouldn’t use Varo Bank?
Varo Bank doesn't offer a broad selection of savings choices, including individual retirement accounts (IRAs) or certificates of deposit (CDs); it provides just a single savings and a single checking account. Furthermore, it lacks physical branches.
Pros
- Free checking with no minimum balance
- Free savings with up to 5.00% APY
- Easy access to all banking products virtually
Cons
- Only one type of savings account
- No physical branches
- No CDs or retirement accounts
Varo Bank rates and products
Varo Bank offers a single savings account that provides a substantial yield, reaching as high as 5.00% on the initial $5,000. Although this is the bank's sole account that generates interest, its rate is highly competitive when measured against other high-yield savings options.
The financial institution also promotes saving by offering a program where it rounds up any spare change from a checking account transaction to the nearest dollar, subsequently transferring that difference to your savings.
Checking accounts
Varo Bank offers a straightforward, no-cost checking account, which it names simply a bank account. Opening the account incurs no monthly maintenance fees or charges. Furthermore, there's no minimum balance requirement or overdraft fee, though your account could be closed if it remains inactive for at least nine months or if you've maintained a negative balance for an extended duration.
Varo's standard account doesn't offer interest. However, it enables you to receive your paycheck up to two days sooner by arranging direct deposit with your employer and other eligible entities. Additionally, it includes a perk where you can receive up to 6% cash back on purchases from select merchants when using a Varo debit card or the Varo Believe secured credit card. This account has no transaction limits, and while you can't write physical checks, you can deposit checks from others.
Savings accounts
Varo Bank provides a savings account with a 5.00% APY for balances up to $5,000. This interest rate ranks among the best high-yield savings accounts across the country.
However, there's a condition to achieving the 5.00% yield. You'll also need a Varo checking account and receive a minimum of $1,000 in direct deposits monthly. Provided both accounts maintain a positive balance by month's end, you'll be eligible for the 5% APY in the subsequent month.
Any amount that exceeds $5,000 earns a 2.5% APY.
Other services Varo Bank offers
- Varo Cash Advance: Customers who are in a financial bind can use Varo Cash Advance to borrow up to $250 initially, then gradually up to $500 if they stay in good standing. You pay a flat fee based on the amount you’re borrowing.
- Varo Believe: Varo offers a credit card that is meant to help customers with no credit history or a bad score. The card is based on a dollar amount that you transfer over to the account, which determines your total available balance on the card. Because of this, the card is secured by your committed cash. It doesn’t require an annual fee or credit check, and there is no interest charged.
- Column Tax: Varo has a feature on its app allowing you to file your taxes through Column Tax for free. You can also get any tax refund up to five days earlier by having it deposited directly into your Varo bank account.
- Early direct deposit: Varo customers can get access to their paycheck up to two days earlier than traditional banks.
- Online banking: Varo is an online-only bank, which means you can only open an account by applying through its mobile phone app or its website by desktop. The bank’s website says you can sign up for an account in “less than two minutes.” You should be able to do most transactions through Varo’s mobile app, such as deposit checks, transfer funds, link accounts, and track your spending.
The Varo Bank platform and customer support
For inquiries regarding their Varo account, customers may reach out to a customer service agent through the Varo app. The Varo Bank app has received excellent ratings on the Apple App Store and Google Play for users of Android devices.
The app features a live chat option, email, and a calling feature. Support by chat is available seven days a week, 24 hours a day. You can also reach Varo by sending a message through varomoney.com/support for questions about account applications and closed account refund checks. Support by phone and email is available Monday through Friday, from 7 a.m. To 8:30 p.m. ET. Services by phone and email are not available on federal holidays.
Compare Varo Bank alternatives
Should Varo not fully meet your financial management requirements, Ally and SoFi stand out as two well-liked digital banking options that might be worth exploring.
 Varo Bank |  Ally Bank |  SoFi® (Member FDIC) |
|---|---|---|
| Top savings APY | Top savings APY | Top savings APY |
| Up to 5.00% | Up to 3.30% | Get up to 3.60%.1 Get a 0.70% Boost on Savings APY to up to 4.30% for up to 6 months on new accounts with eligible Direct Deposit. Terms apply.2 |
| Top checking APY | Top checking APY | Top checking APY |
| None | Up to 0.25% | 0.50% |
| Top CD APY | Top CD APY | Top CD APY |
| N/A | 3.90% on a six-month CD | N/A |
| Learn more | Learn more | Learn more |
| View offer at MoneyLion | View offer at MoneyLion | View offer at SoFi |
Terms and conditions apply to earn the top APY.
Bank details checked Aug. 18, 2025.
Is Varo Bank right for you?
For individuals beginning their savings journey or aiming to improve their credit history and score, Varo Bank presents a compelling choice. This financial institution offers straightforward and cost-free methods for establishing a checking or high-yield savings account, accessible via its online platform or mobile application.
Furthermore, the bank's secured credit card and its limited-amount cash advance present viable choices for individuals aiming to establish their credit profile with reduced risk of accumulating credit card debt or to obtain funds swiftly without incurring severe finance fees.
However, if you possess considerable savings you wish to generate returns on, alternative avenues may prove more advantageous, given that Varo limits its highest savings APY to balances up to $5,000.
Frequently asked questions
Is Varo Bank safe?
Varo provides deposit insurance via the Federal Deposit Insurance Corp. (FDIC) for sums up to $250,000 per account type, per depositor should a bank fail. Additionally, the Varo debit card offers protection against unauthorized charges with its Visa Zero Liability coverage.
To withdraw or deposit funds in your Varo Bank account, you can utilize several methods. For deposits, you can link an external bank account to transfer money electronically, or you can receive direct deposits from your employer or other payers. You can also deposit cash at participating retail locations using your Varo debit card. For withdrawals, you can use your Varo debit card at ATMs to get cash, or you can transfer funds to a linked external bank account. Additionally, you can use your Varo debit card for purchases, which effectively withdraws money from your account.
Varo offers multiple methods for managing funds in your online bank account, including withdrawals and deposits. The bank grants access to over 40,000 ATMs nationwide at no charge via the Allpoint network. Additionally, you can deposit cash into your account at approximately 90,000 retail establishments that have partnered with Varo Bank through the Green Dot Reload service. While most qualifying CVS locations offer free cash deposits, other participating retailers may charge a service fee of up to $5.95 for Green Dot cash deposits.
Is Varo Bank an actual bank?
Yes, Varo Bank operates exclusively online and holds a national charter. Varo Bank provides FDIC deposit insurance, covering up to $250,000 per account in case of bank failure.
SoFi disclaimer
1:
The annual percentage yield (APY) can fluctuate and is subject to modification without notice. Current rates are effective as of 1/24/25. No minimum balance is necessary to open an account. Any applicable fees might decrease your earnings. You can find further rate details and information at https://www.sofi.com/legal/banking-rate-sheet
2: 0.70% Savings APY Boost
Receive a maximum of 4.30% Annual Percentage Yield (APY) on your SoFi Savings, which includes a 0.70% APY increase (added to the 3.60% APY as of 11/12/25) for a duration of up to six months. This offer is available when you open a new SoFi Checking & Savings account and set up Eligible Direct Deposit by 1/31/26. The rates are variable and may change. Conditions apply at sofi.com/banking#2. SoFi Bank, N.A. Is a Member FDIC.