Varo Bank Savings Review 2023
Saving money might be one of your big financial goals. So it’s important to decide where to keep the money you plan to save to maximize interest earnings while minimizing fees.
Varo Bank is one option you might consider. Varo offers online savings accounts with no monthly fees. You can save automatically while earning a highly competitive annual percentage yield (APY).
Not sure if a Varo Bank savings account is right for you? Here’s a closer look at how these savings accounts work.
Who Is Varo Bank Savings Account For?
Varo Bank’s high yield savings account might appeal to people who want to earn the best savings rate without paying monthly fees.
You might consider this savings account option if you:
- Are comfortable opening a savings account line and don’t mind missing out on branch access
- Want to earn a competitive rate on savings balances
- Are interested in growing your savings balances automatically
- Typically maintain a balance of $5,000 or less in your savings accounts
- Regularly have direct deposits into savings
Of course, if you prefer branch banking access then you may want to consider a traditional brick-and-mortar bank instead. Keep in mind, however, that you’re more likely to pay monthly fees or earn a lower APY when you open a savings account at a traditional bank vs. an online bank.
Compare Varo Bank Savings Accounts to Others
Varo Bank isn’t the only bank you might consider for opening a high yield savings account. Here are a couple of other online banking options that may catch your eye if you’re looking for a good APY with minimal fees.
Bread Savings™ offers a competitive APY that’s on par with the minimum APY you could earn with a Varo Bank Savings Account. You’ll need a $100 minimum to open a Bread Savings™ account but there are no monthly fees or hidden fees of any kind.
Brio Direct keeps things simple by offering a solid APY with its high yield savings account and charging no monthly fees. You could also open a Brio Direct checking account but you’re not required to if you only need a savings account.
See how these and other savings accounts stack up against Varo’s savings account. Compare accounts and find the best one for you.
Top Features of Varo Bank Savings Accounts
Varo Bank’s high yield savings account has several features that make it a standout, compared to other savings account options. Some of the best features and benefits include:
- Up to a 3.00% APY on savings balances
- Save Your Pay feature, which allows you to automatically save part of your paychecks when you enroll in direct deposit
- Save Your Change feature, which rounds up transactions when you spend and deposits the difference into your savings account
- No minimum deposit to get started and no credit check to apply
- No monthly fees of any kind
To qualify for the highest APY, you’ll need to meet a few conditions. Here’s what you’ll need to do:
- Receive total direct deposits of $1,000 or more each qualifying period
- Keep a daily savings balance of $5,000 or less the entire calendar month
- Keep your bank account and savings account balances above or equal to $0.00 for the entire calendar month
There’s one more thing to know: When you open a Varo Bank savings account you’re also getting a Varo bank account. This is an online checking account with no monthly fees.
A Varo Bank account is necessary to use the Save Your Pay and Save Your Change features. But both of these features can make it easy to grow your savings automatically. That’s a plus if you’ve struggled to get into a regular savings habit.
How to Get Started
As mentioned you’ll need to open a Varo bank account to open a Varo savings account. You’ll be given the option to add on a savings account when you sign up.
You can open both accounts online in minutes through the Varo Bank website, with no credit check. You will need to give Varo Bank some basic information, including your:
- Date of birth
- Social Security number
- Phone number
- Email address
You’ll also need to share a routing number and bank account number for the account you plan to use to make your initial deposit. Remember, there’s no minimum deposit but you’ll need at least $0.01 in your savings account to start earning interest.
Once your account is open, you can schedule transfers between your Varo Bank account and Varo savings account. You can also make deposits via mobile check deposit or ACH transfer from an external linked bank account. Varo does impose limits on mobile check deposits, ACH transfers, and ATM cash withdrawals.
Rating the Features
Varo Bank offers some solid features with its savings accounts. If you’re considering opening an account, here’s a closer look at some of the highlights.
Overall, Varo Bank offers a great user experience in terms of how easy it is to navigate the website and how you can access your money via the mobile banking app. Getting started is simple and you can open an account in minutes. If you get stuck or need help, customer service is available by phone.
Fees and Rates
Varo Bank savings accounts are fee-friendly, as there are no monthly fees. You can also access more than 55,000 Allpoint ATMs fee-free with your Varo debit card. The minimum APY you can earn is competitive but you could earn six times that rate by meeting direct deposit and minimum balance requirements.
Varo makes it as easy as possible to get answers to your questions about savings or checking accounts. There’s a help center on the website, along with a Resources section that dives into more detail about Varo’s offerings. And again, if you need more assistance you can call customer service for help.
Varo Bank offers flexibility with savings accounts, in that you can choose whether to use the automatic savings features. One potential snag is that you do have to open a Varo Bank account in order to add on the savings account. If you’re only looking for a savings account you may want to consider a different bank.
You can manage your accounts online at the Varo Bank website or through the Varo Bank mobile app. The app is free to download in the Google Play Store and the App Store. Customer service is available by calling 1-877-377-8276. There is no live chat option available, unfortunately.
Pros and Cons of Varo Bank Savings Accounts
Savings accounts aren’t all alike and before opening one, it’s important to consider the pros and cons. Here are some of the main advantages and disadvantages to know about when saving with Varo Bank.
Varo Bank could help you get closer to your savings goals while earning a generous APY on balances. With no monthly fees, you’re not handing back any of the interest you earn. And you have convenient access to your savings when you need it through the Varo Bank mobile app or at fee-free ATM locations when you use your Varo Bank account debit card. If you’re ready to start saving with Varo, take the next steps and open an account online today.