Varo Bank Review: An Easy, No-Frills Option for Online Banking

If youre in the market for a new personal savings account, keep reading to discover whether or not Varo may be a fit.

Although the word “bank” was when associated with a physical area, the reality is that more and more banks inhabit just digital space. Varo, founded in 2015, is among the lots of options readily available to todays lenders– if theyre prepared to pass up the capability to go to an actual bank structure, that is.

Like other online-only banks, Varo provides deposit and checking accounts with low costs and high interest-earning rates, making it an attractive option to more traditional banking.

Varo doesnt provide small organisation banking, credit cards, loans, or other additionals that might be needed for some consumers, and the method it handles cash deposits is cumbersome and costly.

In this evaluation:

Varo Bank Review: The Cons and pros

Heres what we liked about Varo– and what we didnt, so much.


Varos customer care is readily available via phone or e-mail.

Conserve Your Pay permits you to set aside a portion of each direct deposit you receive and instantly transfers it to your savings account.

Make at least five debit purchases per calendar month.
Get at least $1,000 in direct deposits per calendar month.
Keep your day-to-day Savings Account balance at or below $10,000.

In truth, you might even get approved for its No Fee Overdraft service, which permits you overdraw your account up to $50 on debit card purchases and pay it back within 30 days with no charges or interest charges. (To be qualified for No Fee Overdraft, youll require to make at least five purchases each calendar month with your Varo debit card and receive a minimum of $1,000 in payroll or government direct deposits to your account.).


Considered that the cash in your Varo accounts is FDIC insured approximately the $250,000 optimum, we can find almost zero faults with this cost savings program.

Yes, thats a maximum balance, not a minimum balance– and no matter just how much money you keep in your online savings account, theres no monthly fee.

Varo account holders can only transfer money through the Green Dot Network, which is both inconvenient and pricey: Those deals cost approximately $4.95 a pop.
Varo doesnt use little organisation banking, credit cards, or loans; its overall line of monetary items is limited.
Although there are no foreign transaction costs, in-network Varo ATMs are just available in a little selection of nations outside the U.S. (outlined below).

The only charge Vary takes from its customers is a $2.50 charge for out-of-network ATM withdrawals– though, as specified above, you might be on the hook for third-party charges to make cash deposits at Green Dot places.

Conserve Your Change is Varos round-up program, which rounds each deal you make up to the nearby dollar and transfers the change to your cost savings account.

Getty ImagesGrade: B+.

Varos app takes pleasure in high rankings from both Apple and Android users: 4.6 stars on the Google Play shop, with more than 21,000 reviews, and 4.8 stars on the App Store with almost 45,000 customers.

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The United Kingdom.
Puerto Rico.

Nevertheless, the Green Dot cost– or the $2.50 cost youll pay if you make a withdrawal from an out-of-network ATM– are practically the only expenses youll have to fret about when it pertains to Varo. There are no foreign transaction fees or fees to change a lost or taken debit card.

Grade: A+.

Mobile Banking.

Grade: A.

Online-only banks do, by meaning, lack the benefit of physical places, Varo uses a live, U.S.-based customer service hotline thats offered seven days a week. If you d rather prevent the phone, you can also send an email.

Offered how couple of fees Varo charges, much of its consumers wonder how it makes a profit.

Varo also makes money through partner deals, along with through debit card deal fees paid by the merchant. (In other words, in manner ins which do not affect you at all!).

Depositing cash is a little hairy, nevertheless; youll require to do so at a taking part Green Dot retailer, such as CVS, Walmart, or Walgreens, and these areas do charge a fee of up to $4.95 for the transaction.

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Together with its online bank account, Varo also offers an online cost savings account– and an extremely attractive one, offered its high APY rates.

Varo likewise provides early direct deposit, which might provide you access to your paycheck funds up to two days earlier than you d otherwise get them.


” No fees” suggests no fees: no monthly maintenance cost or minimum account balances, or overdraft charges, and no foreign deal or card replacement charges, either.
Varo uses early direct deposit, which might mean you get access to your money approximately 2 days previously.
Its No Fee Overdraft service areas you up to $50 with no interest, so long as you fulfill the minimum credentials. (If you do not, or dont opt for the service, your card will simply be decreased at no charge to you.).
Varo uses considerable interest earning capacity on its cost savings accounts, particularly if you fulfill the eligibility requirements for its greater APY– that include an account maximum rather than an account minimum.

And if you fulfill Varos requirements, your rate will increase to 2.80%:.

Account Fees.

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And while its network ATMs offers great U.S. protection, in-network worldwide ATMs are limited to just the following countries:.

Grade: A.

Varos online savings account carries no month-to-month maintenance charge or minimum balance, and they dont evaluate overdraft charges, either.

The app gives you an easy birds- eye view of your bank account and plays well with Google and Apple Pay. Varos app also includes an “deals” tab which may assist you discover services and offers, and even tasks that could help you conserve and earn cash. (Keep in mind, however, that these deals are from Varos partners, so the business will make some money if you take them.).

Since Varo doesnt have physical areas, youll have the ability to manage your cash through its digital app in addition to having access to a network of more than 55,000 Allpoint ATMs.


You need to decide in to this overdraft defense plan, nevertheless– and if you dont, or you do not qualify, your transaction will simply be declined at no extra cost to you if you have insufficient funds.

Simply by opening an account, youll earn 1.21% APY (compared to a nationwide average of just 0.06%, according to the FDIC).

Banking with Varo: How We Rate It.

Phone: 1-800-827-6526 offered Friday, 8 a.m. to 9 p.m. ET and Saturday– Sunday, 11 a.m. to 7 p.m. ET,.

Varo does get a bit of a ding for its lack of complimentary or easy money deposits.

Varo Bank Customer Service.

Varo likewise offers 2 automated cost savings tools to help you build a cushion without actually thinking about it.

Email: [email protected]

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Is Varo Right for You?

Getty ImagesVaro Bank is a practical and inexpensive alternative to a major, sticks-and-bricks bank that may charge a rash of charges in return for their services. Nevertheless, its not the right option for everybody.

We provide top grades to banks that have low costs because our survey showed that this is the No. 1 thing you look for in a bank. We think about the number of brick-and-mortar areas because more than 70% of you stated you visited a physical bank branch last year. But more than one-third of you utilize mobile apps for more than 75% of your banking, so digital functions are also thought about thoroughly.

The Penny Hoarders editorial group considers more than 25 consider its checking account evaluations, including costs, minimum everyday balance requirements, APYs, overdraft charges, ATM gain access to, variety of physical places, client service support access and mobile features.

Get your incomes primarily in the type of direct deposits.
Discover yourself frequently hit by irritating bank costs that you d rather avoid.
Want to earn a substantial interest rate on your savings account without paying month-to-month fees.
Have a relatively minimalistic approach to your finances and arent searching for a bank that can offer extras like charge card, loans, and so on
. Travel frequently, however just to the countries listed above where Varo offers in-network ATMs.
Are interested in discovering more about Varos partner deals, which could assist you earn and save cash along with build your credit.

Jamie Cattanach is a full-time freelance author whose work has actually been included at Fodors, Yahoo, SELF, The Huffington Post, The Motley Fool and other outlets. Find out more at

Work for tips or otherwise deal with a lot of cash.
Required small company banking or other peripheral financial products.
Travel frequently beyond the above-listed countries.
Keep more than $10,000 in savings.

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Our Bank Review Methodology.

Personal checking accounts.
Personal cost savings accounts.
Small-business banking.
Mobile banking.

Varo might be a good fit if you:.

On the other hand, Varo might not be the best fit if you:.

Charge card and loan products are not presently thought about.

Scores are designated throughout the following categories:.

To determine how we weigh each aspect, The Penny Hoarder surveyed 1,500 people to discover what banking functions matter most to you.

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Personal privacy Policy.

We provide top grades to banks that have low fees since our survey showed that this is the No. 1 thing you look for in a bank. Due to the fact that more than 70% of you said you went to a physical bank branch last year, we think about the number of brick-and-mortar areas.

The app offers you an easy birds- eye view of your bank account and plays well with Google and Apple Pay. Varos app likewise includes an “deals” tab which might assist you discover services and offers, and even tasks that could help you earn and save money. (Keep in mind, though, that these deals are from Varos partners, so the business will make some cash if you take them.).