Varo is an online-only, federally insured bank that offers a checking account, high-yield savings account, secured credit card and cash advance. Your product selection is limited compared with traditional banks.
The Varo Bank Account — a checking account — is necessary to access the three other products. This account charges no monthly maintenance fees or overdraft fees and requires no minimum balance.
Another notable feature of this account is that it’s checkless, which means you can’t pay bills by writing paper checks. The bank provides digital options for making payments, including the Varo Visa Debit Card or Zelle. You’ll also be able to use any U.S.-based Allpoint ATM without a fee.
The Varo Savings Account can earn a 3.00% annual percentage yield to start and then qualify to earn a 5.00% APY on balances up to $5,000 the next month after receiving qualifying direct deposits of at least $1,000 and ending the month with a positive balance in your Varo Savings and Varo Bank accounts. Any portion of your balance over $5,000 will continue to earn 3.00% APY.
Varo customer service is provided by phone, in-app chat or online form. You won’t find physical branches for in-person service.
Varo pros and cons
Pros:
• Competitive APY on savings account
• Large, fee-free ATM network
• No overdraft or monthly service fees
• Highly rated mobile app
Cons:
• Must meet requirements to qualify for competitive APY
• No out-of-network fee reimbursement
• Cash deposit fees
• No physical branches for service
I Would Recommend Varo To Anyone
I'm shock of the reviews I've been using varo for 7 months now I never had a problem with my card with direct deposit or nothing I'm sorry any of you had to go through this but since it never happen to me they must improve they help build credit I'll have to give varo five stars Great Card to use I will recommend anyone to use varo.
Regular Cuts On APY
Totally untrustworthy if you want to use this bank looking at the Savings APY. They keep cutting APY on regular basis, and you'll never keep your APY you signed up for longer than some weeks. I joined with 0.40%, 1 month later they cut to 0.20%. Their high yield was 2.80% topped $10k, it's been raised 0.2% to 3% but the limit cut in half to $5k. So, in real life, you end up with less money. I should have believed in many, many, many customer reviews everywhere stating the same situation.
Really Ridiculous System
So I left Bank of America and did a ton of research and decided on Varo. Seemed great and overall I liked it in the beginning but then I noticed that there were some pretty stupid limitations or convoluted ways of doing things. For example to deposit a check, you need to add a note that its for Varo Bank only on the check. The really frustrating part was that the mobile deposit had a really low limit. As a freelancer, I get checks of varying sizes and having a limit on single deposits wasnt going to work. When I reached out to customer service about this issue, I didnt get a response for almost 2 weeks. The process of removing that limit was equally as ridiculous and frustrating. People shouldn't have to jump through hoops to get their money.
Varo Bank Is Fantastic For The "Un-Rich"
Varo has been a huge relief from chexsystems denials, exorbitant overdraft fees, and especially the long wait of receiving gov. Benefits every month.
I opened a checking account online within 5 minutes, after being turned down by corporate banks due to history with chexsystems.
My card came in the mail and my direct deposits arrived 6-7 days earlier than the expected pay date. Wow!
This was a really helpful feature, especially when living "check to check", as the CEO Collin Walsh reported "are his primary demographic" of customers.
Luckily, I was not able to overdraft my account, so depending on a negative account balance, did not become a monthly problem.
As the months of banking history continued, I received an offer from Varo Bank to request an "advance", the amounts were dependent on my income, not the banks ability to profit. Better yet, the average fee for an advance was less than $5 per month, to borrow $50-$200.
For a person who struggles financially, having the ability to receive an advance, without fighting the cycle of poverty due to pay-day loans made me feel so much better about banking at Varo; that it IS... possible for a fiscally (and socially) responsible bank to pass the buck back to its customers, regardless of the amount spent or earned.
In addition, the average interest rate (gained) on a savings account is 5%. A 'Marcus Savings', by Goldman Sachs account has one of the highest-yield savings accounts commercially advertised, which caps at 3.4% annually. I had originally though was the best in the industry - until I realized Varo offers better...
The toughest part of having an account at Varo, is that when you've overspent, it is very difficult to find an online lender who will use Varo if you need an emergency/ same day/ payday loan.
Toward the end of a 1 year banking relationship as a customer of Varo, I feel grateful that I wasn't consumed by debt, that because of its' consumer-conscious financial practices, I still have my same account: still in good standing, and that I don't owe $200+ dollars to another bank, for not being rich enough to support their greed.
My debts have decreased, and I have learned to make due with the means that I have. Family and friends helped me get through this year as well, however Varo made it possible to bounce back onto my feet!
If I had the ability, I would invest in Varo Bank.
Companies like these are sorely needed in a capitalist world, where the majority of consumers fall prey to greed.
Thank you, Colin; for making a bank that "supports" it's customers, instead of destroying their future.
With gratitude,
YJ
Data as of Q2 2024
Learn why bank health mattersHealth Grade Components
| Overall | |
|---|---|
| FDIC Certificate # | 59190 |
| Year Established | 2020 |
| Employees | 385 |
| Primary Regulator | OCC |
| Profit Margin | |
|---|---|
| Return on Assets - YTD | -11.95% |
| Return on Equity - YTD | -60.18% |
| Annual Interest Income | $7.5MM |
| Assets and Liabilities | ||
|---|---|---|
| Assets | Q2 2024vs Q2 2023 | $480.4MM$554.8MM |
| Loans | Q2 2024vs Q2 2023 | $62.9MM$37.9MM |
| Deposits | Q2 2024vs Q2 2023 | $339.2MM$360.8MM |
| Equity Capital | Q2 2024vs Q2 2023 | $89.5MM$149.9MM |
| Loan Loss Allowance | Q2 2024vs Q2 2023 | $3.8MM$3.6MM |
| Unbacked Noncurrent Loans | Q2 2024vs Q2 2023 | $0$0 |
| Real Estate Owned | Q2 2024vs Q2 2023 | $0$0 |