Varo Bank is an online bank with simple and low-cost banking products focused on helping its customers save money and grow their credit scores.
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 also has a feature that allows you to file your federal taxes through its banking app and then receive any return into your Varo bank account up to five days earlier.
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 is an easy and low-cost entry point for anyone trying to save for the first time or build their credit score. It offers a free, no-frills checking account and a savings account with a high APY of up to 5.00%. Because the bank is online-only, you can sign up for an account within minutes through its mobile app or website.
Varo also has a partnership with a network of more than 40,000 ATMs nationwide and roughly 90,000 retail locations where you can make account transactions like deposits.
Who shouldn’t use Varo Bank?
If you are looking for a wide variety of savings options, such as individual retirement accounts (IRAs) or certificates of deposit (CDs), you won’t find that at Varo Bank. It only has one savings and one checking product. It also does not have 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 has one savings account with a high yield of up to 5.00% on the first $5,000 . While this is the bank’s only interest-yielding account, it is a very competitive rate compared to other high-yield savings accounts.
The bank also encourages saving money by allowing you to opt into a program where it rounds up any change from a transaction in your checking account to the next dollar, then deposits that difference into your savings account.
Checking accounts
Varo Bank has one very simple and free checking account, that it simply calls a bank account. There’s no monthly maintenance fee or charge to open the account. There’s also no minimum balance requirement or overdraft fee, although you do risk having your account closed if it’s been inactive for nine months or more or you’ve had a negative balance for an extended period of time.
Varo’s basic account does not yield interest. But it does allow you to get your paycheck up to two days early by setting up direct deposit with your employer and other qualified sources. It also has a feature where you can earn up to 6% cash back on transactions with certain retailers when you use a Varo debit card or the Varo Believe secured credit card. There are no limits on the number of transactions you can make with this account and although you can’t write a physical check, you can deposit checks from others.
Savings accounts
Varo Bank has one savings account offering a 5.00% APY on amounts up to $5,000 . That yield is among some of the best high-yield savings accounts nationwide.
There is a caveat to getting the 5.00% yield, however. You must also have a Varo checking account and get at least $1,000 in direct deposits each month. As long as you have a positive balance in both accounts at the end of the month, you can qualify for the 5% APY during the following 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
Customers who have questions about their Varo account can contact a customer service representative via the Varo app. Varo Bank’s app is highly rated on both the Apple App Store and Google Play for Android users.
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
If Varo doesn’t quite fit your money management needs, Ally and SoFi are two popular online banks you may wish to consider instead.
 Varo Bank |  Ally Bank |  SoFi® (Member FDIC) |
|---|---|---|
| Top savings APY | Top savings APY | Top savings APY |
| Up to 5.00% | Up to 3.50% | Up to up to 3.80%%.1 Get a 0.70% Boost on Savings APY to up to 4.50% 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?
Varo Bank can be a great option for those who are starting out with their savings or want to build their credit history and score. The bank has simple and free options to create a checking or high-yield savings account online or through the mobile app.
And, the bank’s secured credit card and its small-dollar cash advance can be good options for people who want to build their credit history without as much risk of taking on credit card debt or quickly access funds without being subject to punishing finance charges.
That said, if you already have a substantial amount of savings you’re looking to earn interest on, there might be better options as Varo caps its top savings APY at a $5,000 balance.
Frequently asked questions
Is Varo Bank safe?
Varo offers deposit insurance through the Federal Deposit Insurance Corp. (FDIC) in amounts of up to $250,000 per account type, per depositor in the event of bank failure. You can also get protection against unauthorized charges with the Varo debit card through the Visa Zero Liability coverage.
How do I withdraw or deposit money in a Varo Bank account?
There are several ways to withdraw or deposit money in your online bank account with Varo. The bank provides access to more than 40,000 ATMs in the U.S. for free through the Allpoint ATMs network. You can also deposit cash into your account at roughly 90,000 retail locations that Varo Bank has partnered with through a service called Green Dot Reload. Deposits are free at most eligible CVS locations and there is a retail service fee of up to $5.95 for Green Dot cash deposits at other participating locations.
Is Varo Bank an actual bank?
Yes, Varo Bank is an online-only bank with a national charter. Varo Bank offers FDIC deposit insurance for maximum insurable amount of up to $250,000 per account in the event there is a failure.
SoFi disclaimer
1:
SoFi members who enroll in SoFi Plus with Eligible Direct Deposit or by paying the SoFi Plus Subscription Fee every 30 days or SoFi members with $5,000 or more in Qualifying Deposits during the 30-Day Evaluation Period can earn 3.80% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. Members without either SoFi Plus or Qualifying Deposits, during the 30-Day Evaluation Period will earn 1.00% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Interest rates are variable and subject to change at any time. These rates are current as of 1/24/25. There is no minimum balance requirement. If you have satisfied Eligible Direct Deposit requirements for our highest APY but do not see 3.80% APY on your APY Details page the day after your Eligible Direct Deposit arrives, please contact us at 855-456-7634. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet. See the SoFi Plus Terms and Conditions at https://www.sofi.com/terms-of-use/#plus.
2: 0.70% Savings APY Boost
Earn up to 4.50% Annual Percentage Yield (APY) on SoFi Savings with a 0.70% APY Boost (added to the 3.80% APY as of 8/5/25) for up to 6 months. Open a new SoFi Checking & Savings account with Eligible Direct Deposit by 1/31/26. Rates variable, subject to change. Terms apply at sofi.com/banking#2. SoFi Bank, N.A. Member FDIC.