Some advertisements and offers on this page are from advertisers who pay us. That may influence which products we write about, but it does not affect what we write about them. Here's an explanation of how we make money and our Advertiser Disclosure.
Summary: Founded in 2015, Varo Bank is an online bank with a handful of product offerings, including checking, savings, and credit options. While this bank’s product list is on the shorter side, it does offer low-cost, high-yield account options for customers who want to avoid fees and maximize their saving potential. Varo Bank was ranked as one of our 10 best online banks for 2025.
Varo Bank product overview
Varo currently offers the following products and account options:
Online checking account
Varo’s checking account doesn’t come with any monthly fees or overdraft charges, and as an added feature, customers can get paid up to two days earlier thanks to its early direct deposit feature. There are no minimum deposit requirements to open an account and you don’t need to maintain a minimum balance to avoid fees.
Online savings account
Varo offers a high-yield savings account that pays up to 5% APY on balances up to $5,000, and 2.5% APY on balances higher than $5,000. You can also use the account’s saving tools to automatically save a portion of each paycheck or round up purchases to the nearest dollar, depositing the difference directly in your savings account.
This account doesn’t have a minimum opening deposit or minimum balance requirement.
Varo Believe Credit-Builder Card
The Varo Believe credit card is a credit-building card that has no minimum security deposit, no annual fee, and does not charge interest. There’s no credit check needed to apply for the card, and applying does not impact your score. Additionally, Varo Believe Card customers, on average, see a 40+ point increase in their credit score after three months of on-time payments, according to the bank.
To qualify for a Believe Credit-Builder card, you must have a Varo bank account with no negative balance or overdue cash advance, and you must receive qualifying direct deposits of $200 or more in the last month. Users set their own credit limit, which is equal to the available balance in your Varo Believe account.
Varo Cash Advance
Varo Advance allows customers to borrow a cash advance for surprise expenses. To qualify, your Varo account must be active and in good standing, with no negative balance. You’ll also need at least $800 in total qualifying direct deposits to your Varo checking or savings account, or both combined, in the current or last calendar month.
Varo will determine the amount you’re eligible for, which is initially $250. After you’ve established a history of on-time payments, you may qualify for higher amounts up to $500. There is a one-time advance fee ranging from $1.40 to $40, depending on the amount you borrow. You have up to 30 days to pay back what you owe.
Varo Personal Line of Credit
Varo Bank customers can borrow up to $2,000 with a Varo Personal Line of Credit. There is a single flat fee with no interest and repayment terms as long as 12 months. There are no late fees or prepayment penalties and your credit limit can grow over time as you establish a positive repayment history.
Varo Bank fees
Varo Bank charges few fees; there are no monthly maintenance fees on deposit accounts or overdraft fees. However, customers may be subject to fees for specific services:
-
ATM withdrawal fee (out of network): $3.50 per transaction
-
Over the counter (OTC) cash withdrawal: $2.50 per transaction
-
Cash deposits via third-party money transfer services: The deposit location may charge up to $5.95
Pros and cons of Varo Bank
There are a few major pros and cons customers should note before banking with Varo Bank.
Pros:
-
No monthly maintenance fees: Varo Bank doesn’t charge monthly maintenance fees on deposit accounts
-
No overdraft fees: If you don’t have sufficient funds in your account to cover the charge, Varo Bank will decline or return the transaction. You will never be charged an overdraft fee.
-
No minimum balance requirements: Accounts are free to open and don’t require a minimum opening deposit or minimum balance to earn interest or avoid fees.
Cons:
-
Limited product offerings: Varo Bank only offers checking and savings account in addition to its credit and cash advance products. If you’re looking for a greater variety of financial products, this could be a major drawback.
-
No physical branches: Varo Bank operates exclusively online. While that translates to high-yield, low-cost account options, it can be a drawback for those who prefer in-person banking assistance.
-
Cap on top savings APY: Varo Bank offers up to 5% APY on high-yield savings account balances, but this is limited to the first $5,000. Higher balances earn just 2.5% APY.
Varo Bank customer support and mobile banking experience
Varo Bank customers can reach a support representative in-app through a 24/7 live chat feature and specialized support via telephone 7 days a week between 7:00 a.m. and 8:30 p.m. ET. Customer support is closed on federal holidays.
Varo customers can bank primarily through the Varo app which allows you to check balances, get real-time transaction alerts, transfer funds via Zelle, and even check your credit score. The app is available for download on the App Store and Google Play and has a rating of 4.9 and 4.7, respectively.
Varo Bank’s social and environmental impact
The Varo Impact Program is focused on giving back to the community through initiatives that promote financial literacy, inclusion, and empowerment.
Some of its past initiatives include a partnership with the Aspen Institute to urge the Treasury Department to address financial inclusion gaps in the U.S. It also partnered with EVERFI to roll out personal finance curriculum to nearly 2,400 middle schools.
Varo previously joined in on an initiative to help small business owners through financial support and professional mentorship.
FAQs
Is Varo Bank an actual bank?
Yes. Varo Bank is a real, FDIC-insured bank with a national bank charter.
Can you use Zelle with Varo Bank?
Yes. Varo customers can use Zelle via the Varo mobile app to send and receive money with no fees.
How do I deposit money into my Varo account?
You can deposit money into your account instantly when transferring funds through an eligible platform such as Zelle, PayPal, or Square. You can also deposit up to $1,000 cash per day into your Varo account during checkout at participating Green Dot retailers. Check deposits can be made via Varo’s mobile app, which offers remote check deposit capabilities.
