Varo Bank Review 2026: Checking and Savings

Varo has a tiered rate: 5.00% APY on the first $5,000 when certain conditions are met, and 2.50% APY for anything over $5,000 or on the entire balance when conditions aren’t met. To compare, the national average for savings accounts is just 0.38% APY.

The conditions: To earn the 5.00% APY for balances up to $5,000, you must receive at least $1,000 in total qualifying direct deposits and your checking and savings balance must be positive at the end of the month. You’ll need to meet those requirements in the current month to qualify to earn 5.00% APY for the following month. See below for more information from Varo.

There's no monthly fee or minimum balance requirement for the Varo savings account. It also offers two automatic savings programs that are linked to Varo’s bank account. The first one, Save Your Pay, lets you opt for a percentage of your direct deposit to go directly to your savings account. The other, Save Your Change, rounds up banking transactions to the nearest dollar and transfers those cents to savings.

Varo allows an unlimited number of savings transfers and withdrawals, which you won’t find at all banks. But it does have limits on the amounts; you’ll be able to see how much you can transfer when you’re logged into the bank’s app. But wire transfers are not available, and Varo does not offer joint accounts.

Varo accounts are insured by the Federal Deposit Insurance Corp. The FDIC insures up to $250,000 per depositor, per ownership category, per institution. That means that your Varo savings account and banking account are insured, combined, up to $250,000.

» Have more cash you want to protect? Learn how to insure your money when you’re banking over $250K

• See more information from Varo

  Varo says:

  "Annual Percentage Yields (APY) are accurate as of December 1st, 2022. Rates may change at any time without prior notice, before or after the account is opened.

  The requirements for the Elevated Rate must be met within the Qualifying Period, which begins on the first calendar day of the month and ends at close of business (4:25 pm MST/ 3:25 pm MDT) on the last business day of the month. Meet the requirements in the current month to qualify to earn 5.00% APY for the following month.

  Qualifying direct deposits are electronic deposits of your paycheck, pension or government benefits (such as Social Security or unemployment) from your employer or government agency. Tax refunds and government stimulus payments, Person-to-Person payments (such as Venmo), and funds deposited using a Varo routing number are not considered a direct deposit.

  Be aware that interest is paid in whole cents only."

  "Early access to direct deposit funds depends on timing of payer’s submission of deposits. We generally post such deposits on the day they are received which may be up to 2 days earlier than the payer’s scheduled payment date."

There is no monthly fee or minimum balance required for Varo’s banking account, which comes with a Visa debit card. Varo Bank offers fee-free access to more than 40,000 ATMs in the Allpoint network.

Cash back is available, but only with select retailers. Varo customers can automatically earn up to 6% cash back at more than 10,000 retailers nationwide when they use their Varo debit card. Cash back rewards are limited to $500 per month.

Customers can send money instantly for free. Varo isn’t part of the Zelle money transfer network, but it has its own instant, free money transfer service that allows customers to send money. Recipients will receive a text that prompts them to either enter their debit card information or open a new Varo account to accept the payment.

Unlike many banks, Varo doesn’t charge a foreign transaction fee on ATM withdrawals or debit card purchases abroad. Note that Visa will determine the exchange rate on foreign transactions.

Varo will charge you $3.50 if you use a non-Allpoint ATM. That’s in addition to any fees charged by the ATM owner.

Varo can deposit your money early, if it receives a direct deposit notification before your payday. You can get paid up two days ahead of schedule.

Cash deposits at Varo are tougher. Because Varo doesn’t have branches, the only way to add cash directly to your account is by going to a retailer that participates in the Green Dot network, such as CVS, 7-Eleven or Walgreens. There’s typically a fee of up to $4.95 to add cash at their registers and limits on the amount of cash you can deposit, generally up to $500 per transaction, and $1,500 per day, depending on the retailer. CVS is an exception, though: Cash deposits are free at most of the retailer’s locations.

» See how Varo stacks up: Check out our picks for the best online banks