Searching for a convenient banking solution in the digital age can be overwhelming, particularly with so many options available. I grasp your dilemma as I’ve navigated this landscape myself and discovered that online banks like Varo provide competitive offerings to traditional brick-and-mortar institutions.
This comprehensive review of Varo Bank will delve into their services; from checking accounts to unique features like early direct deposit access and automatic savings tools, with no hidden fees! Ready? Let’s uncover if Varo is the smart choice for your financial needs.
- Varo Bank offers a convenient and comprehensive range of online banking services, including a no-fee checking account, high-yield savings account, and innovative features like early direct deposit access and automatic savings tools.
- Despite not having physical branches, Varo provides access to over 55,000 fee – free ATMs through its partnership with the Allpoint network.
- Varo Bank is safe and legitimate, holding a national bank charter and offering FDIC insurance for customer deposits. They prioritize customer security through features like Visa Zero Liability policy.
How Does Varo Work?
Varo Bank operates entirely online, making it a convenient choice for those comfortable with mobile banking. To start experiencing the benefits of their financial fintech company, you simply download their widely lauded mobile app and open an account there.
Varo offers a no-fee checking account called the Varo Bank Account where you can handle your everyday transactions such as deposits and withdrawals without worrying about maintaining a minimum balance or facing monthly charges.
A great benefit is that direct deposit payments are posted early—often on the same day they are received—which means faster access to your money. They also offer a high-yield savings account that comes packed with automated savings tools like Save Your Pay and Save Your Change features designed to help make saving money painless and automatic.
One remarkable service they offer is the Varo Advance program which enables instant access up to $250, providing emergency funds without any interest charges—a lifesaver in unexpected cash flow situations.
To ensure easy cash withdrawal, they’ve partnered with Allpoint network granting surcharge-free access to over 55,000 ATMs nationwide—a tremendous perk considering Varo’s online-only presence.
Offering such comprehensive services while discarding unnecessary fees clearly manifests why Varo has taken a confident stride ahead in this digital banking spectrum.
Is Varo Worth It?
Varo Bank provides a range of convenient online banking services, making it worth considering for those seeking a digital banking experience.
Trustpilot Reviews: Varo has a rating of 1.8 out of 5 based on 105 reviews. Many users have reported issues with customer service and account management.
Reddit Reviews: The feedback on Reddit is mixed. Some users appreciate the early direct deposit feature and the promotional offers. However, others have reported issues with account closures, delayed deposits, and customer service.
| Criteria | Rating (out of 10) | Explanation |
|---|---|---|
| Ease of Use | 7 | The app is generally reported to be user-friendly. |
| Customer Service | 3 | Many users have reported issues with customer service. |
| Features | 6 | Users appreciate the early direct deposit feature and promotional offers. |
| Reliability | 4 | There are reports of issues with account closures and delayed deposits. |
Overall Rating: 5
As someone who has used the Varo Banking app, I find it quite user-friendly with some useful features like early direct deposit. However, I’ve experienced some issues with customer service and reliability, which is why I give it a 5 out of 10.
Is Varo Bank Right for You?
Varo Bank offers a compelling convenience for anyone in search of an online-only banking experience. With no monthly maintenance fees, minimum balance requirements, or even ATM fees at the Allpoint network, Varo effectively removes several of the common stressors associated with traditional banks.
Where it truly shines is its high-yield savings account which can earn up to 5.00% APY if you meet specific conditions. This outstrips many traditional banks and could be a boon if you’re aiming to grow your savings aggressively.
Varo’s unique features such as automatic savings tools like Save Your Change and Save Your Pay can assist those who wrestle with saving money regularly. Their Varo Advance program could be a lifeline during financial emergencies by providing access to cash without charging interest—the sort of feature that can make an enormous difference when money gets tight.
However, bear in mind that while they offer FDIC insurance due to their bank charter status, there is no physical branch network, therefore all your dealings will have to be online via their mobile app.
If comfort lies in face-to-face interaction with your bankers, then you might wish to consider other alternatives before settling on Varo Bank.
Is Varo Safe and Legit?
As a trusted financial fintech company, Varo Bank holds its own as a safe and legitimate choice for your banking needs. After receiving a national bank charter in 2020, they have taken steps to further solidify their reputation among U.S. consumers.
On top of this, the fact that Varo is FDIC insured should put anyone’s mind at ease when it comes to the safety of deposits.
Varo takes customer security seriously with features like the Visa Zero Liability policy which protects against unauthorized transactions. Their strong commitment to providing secure banking services is reflected in all areas from mobile banking through their highly-rated app to ensuring swift direct deposit payments.
No matter how you choose to interact with your Varo account, rest assured you’re dealing with an institution rooted in trust and legitimacy.
Pros and Cons of Varo Bank
Varo Bank presents certain advantages and disadvantages for its users. Let’s dive in to understand the nuances of Varo Bank through the following table.
| Pros | Cons |
|---|---|
| Varo Bank offers checking and savings accounts without monthly maintenance fees or minimum balance requirements. | Varo Bank does not have physical branches, which may be inconvenient for some who prefer in-person banking. |
| Varo is the first US consumer fintech to receive a national bank charter, ensuring FDIC insurance for its customers. | Despite offering a vast network of ATMs, cash deposits are not available at all locations. |
| The bank provides access to over 55,000 fee-free ATMs in the Allpoint network. | Daily withdrawal limits may be lower compared with traditional banks. |
| Varo Bank offers an attractive savings account with a competitive 3.00% APY and the potential to earn up to 5.00% APY by fulfilling specific requirements. | Access to the highest APY requires meeting certain debit card usage and direct deposit criteria. |
| Users benefit from automatic savings tools like Save Your Pay and Save Your Change. | Customer support operates online, which may not suit everyone’s comfort level. |
| The Varo Advance program offers instant access to up to $250 cash without any interest charges. | Wire transfers are not currently supported by Varo Bank. |
| Varo Believe provides a secured credit card with no minimum deposit, no annual fee, and no APR. | The Varo Believe program is only available to invited Varo Money account holders. |
| Varo’s mobile app is highly rated, making banking on the go convenient and efficient. | Some banking features, such as checks, are only available through the mobile app, which might be inconvenient for some users. |
Overview of Varo Bank Services
Varo Bank offers a range of banking services, including a checking account, high-yield savings account, Varo Advance program for instant cash access, and the Varo Believe secured credit card.
Discover how these services can benefit your financial journey.
Checking Account
As an online bank, Varo offers a checking account that is packed with convenient features and benefits. With no monthly maintenance fees or minimum balance requirements, this account makes it easy to manage your finances without any unnecessary costs.
One standout feature is the early access to direct deposit payments, which means you can receive your funds on the same day they are received – no more waiting around for your paycheck to clear.
Plus, with a spending limit of $2,500 per calendar day for purchases or cash back, you have plenty of flexibility when it comes to accessing and using your funds. While Varo’s checking account does not provide paper checks, you can easily make payments through the mobile app at no additional cost.
Savings Account
I absolutely love the savings account offered by Varo Bank. Not only does it come with a competitive 3.00% APY, but you can actually increase that to an impressive 5.00% APY by meeting certain requirements.
And the best part? There’s no monthly fee and no minimum deposit required! Plus, Varo Bank really goes above and beyond when it comes to helping you save effortlessly. They offer automatic savings tools like Save Your Pay and Save Your Change, making it super easy to watch your savings grow without even thinking about it.
And with early access to direct deposits and surcharge-free cash withdrawals at over 55,000 ATMs in the Allpoint network, managing your money has never been more convenient.”.
Varo Advance
One standout feature of Varo Bank is its Varo Advance program, which provides customers with instant access to up to $250 without any interest charges. This can be a helpful tool for those who find themselves in need of some extra cash before their next paycheck.
With Varo Advance, users can easily request an advance through the mobile app and receive the funds directly into their Varo Bank Account. This convenient service eliminates the need for traditional payday loans or high-interest credit cards, offering a more affordable and accessible solution.
Whether it’s for unexpected expenses or bridging the gap until payday, Varo Advance provides a flexible and straightforward way to manage short-term financial needs.
Varo Believe
Varo Believe is a program offered by Varo Bank that provides customers with a secured credit card designed to help improve their credit scores. Unlike traditional secured cards, Varo Believe does not require a minimum security deposit, annual fee, or APR.
This makes it an accessible and affordable option for individuals looking to build or rebuild their credit history. By using the Varo Believe card responsibly and making timely payments, customers can establish a positive payment history and increase their creditworthiness over time.
With the convenience of managing their accounts through the Varo mobile app and benefiting from no additional fees, Varo Believe offers a valuable tool for those seeking to take control of their financial future.
What Makes Varo Bank Stand Out?
Varo Bank stands out from other banking options due to its unique combination of features and benefits. One key aspect that sets Varo Bank apart is its commitment to providing a seamless digital banking experience.
As an online bank, Varo offers convenient 24/7 access to your accounts through their user-friendly mobile app, allowing you to manage your finances anytime, anywhere.
Another standout feature of Varo Bank is its focus on financial inclusivity. With no minimum balance requirements or monthly fees for their checking account, Varo makes it easy for anyone to open and maintain an account, regardless of their financial situation.
Additionally, Varo’s high-yield savings account offers competitive interest rates without charging any monthly fees.
Varo Bank also distinguishes itself with innovative tools designed to help customers save money effortlessly. Their Save Your Pay and Save Your Change features automatically set aside funds from your paycheck or round up your everyday purchases to the nearest dollar, depositing the difference into your savings account.
Furthermore, Varo’s commitment to customer satisfaction is evident in their exceptional customer service. They provide prompt support through various channels such as live chat within the app and responsive email assistance.
In summary, what truly makes Varo Bank stand out are its convenient digital banking services, inclusive approach towards accessibility and affordability, innovative savings tools for effortless saving habits,and superb customer service experience.
Examination of Varo Bank Fees
Varo Bank charges various fees for its services, including ATM fees, overdraft fees, and wire transfer fees. To learn more about these fees and how they compare to other banks, read on!
ATM Fees
One of the standout features of Varo Bank is its approach to ATM fees. Unlike many traditional banks, Varo Bank does not charge any ATM fees for using ATMs within the Allpoint network. This means that customers have access to over 55,000 ATMs across the country where they can withdraw cash without worrying about paying extra fees.
Additionally, Varo Bank’s Visa debit card has a generous $2,500 spending limit per calendar day for purchases or cash back, providing flexibility and convenience for account holders. With no ATM fees and ample spending limits, Varo Bank ensures that accessing your money is easy and cost-effective.
Overdraft Fees
One great advantage of banking with Varo is that they do not charge any overdraft fees. This means you won’t have to worry about being hit with hefty penalties if your account balance goes negative.
With Varo Bank, you can manage your finances without the fear of incurring additional fees due to accidental overdrafts. In addition, their checking account does not charge monthly maintenance fees or foreign transaction fees, making it a cost-effective option for those who want to avoid unnecessary charges and maintain control over their funds.
Wire Transfer Fee
Varo Bank does not currently offer wire transfer services. This means that you won’t have to worry about paying any wire transfer fees when using Varo for your banking needs. While other banks may charge hefty fees for transferring money electronically, Varo focuses on providing a streamlined and cost-effective banking experience.
Instead, Varo offers a range of other convenient features, such as automatic savings tools and the Varo Advance program, which allows instant access to funds without charging interest. With Varo, you can save both time and money by avoiding unnecessary wire transfer fees.
Comparison: Varo vs. Other Banks
Varo Bank offers competitive features and benefits compared to other banks, such as Chime and Current Bank, making it a strong choice for customers seeking a modern, user-friendly online banking experience.
Varo vs. Chime
In my experience, when comparing Varo Bank to Chime, there are a few key differences to consider. One of the major distinctions is that Varo Bank offers a high-yield savings account with competitive interest rates ranging from 3.00% APY to 5.00% APY, depending on your balance.
On the other hand, Chime does not currently offer a dedicated savings account option. Additionally, Varo Bank has the advantage of being the first U.S. consumer fintech company to receive a national bank charter in 2020, which provides added credibility and security for customers.
Both Varo Bank and Chime have user-friendly mobile apps and no monthly fees for their checking accounts; however, Varo also offers the convenient feature of early direct deposit and access to cash advances through their Varo Advance program—all without charging any interest fees! Considering these factors, I believe that Varo Bank stands out as an attractive choice for those looking for both high-interest savings options and comprehensive banking services within one platform.
Varo vs. Current Bank
When comparing Varo Bank to my current bank, the differences are clear. With Varo, I no longer have to worry about monthly maintenance fees or minimum balance requirements for my checking account.
I also enjoy the convenience of early access to direct deposit payments, which is a feature that my current bank does not offer. Additionally, Varo provides access to over 55,000 ATMs in the Allpoint network for surcharge-free cash withdrawals, giving me more flexibility when it comes to accessing my money.
And let’s not forget about Varo Bank’s savings account – with no minimum deposit and a competitive APY of up to 3%, it’s definitely an appealing option compared to what my current bank offers.
Varo vs. Albert
When comparing Varo Bank to Albert, there are a few key differences that customers should consider. First, Varo Bank acquired a national banking charter in 2020, which gives it the ability to offer a wider range of services and protections.
In contrast, Albert is not a bank but rather a financial management app that helps users budget and save money.
Secondly, Varo Bank offers automatic savings tools like Save Your Pay and Save Your Change, which help customers effortlessly grow their savings. These features are not offered by Albert.
Lastly, when it comes to customer service and accessibility, Varo Bank has received fewer complaints compared to other national banks. They provide support through a searchable FAQ section on their website as well as chat and phone support during weekdays.
On the other hand, Albert’s customer service options may be limited.
Understanding Varo Bank
Varo Bank is FDIC insured, meaning that your deposits are protected up to $250,000 per depositor.
Is Varo FDIC insured?
Varo Bank is FDIC insured, which means that your deposits with Varo are protected up to $250,000 per depositor. This insurance coverage ensures that even if something were to happen to the bank, your money would still be safe and secure.
It’s important to note that not all banks have this level of protection, so choosing an FDIC insured institution like Varo provides an added layer of security for your funds.
Does Varo have branches?
Varo Bank does not have physical branches. As an online-only bank, all of its banking services are conducted through its mobile app. This means that you can access your Varo Bank account anytime and anywhere using your smartphone or tablet.
While some people may prefer the convenience of in-person banking, Varo Bank offers a seamless digital experience without the need to visit a physical branch. This allows for greater flexibility and accessibility, as well as streamlined account management right at your fingertips.
What are the withdrawal limits with Varo?
Varo Bank has withdrawal limits in place to ensure the security and protection of its customers’ funds. The maximum daily ATM withdrawal limit for Varo Bank is $750, while the maximum daily spending limit for purchases made with your Varo debit card is $2,500.
It’s important to note that these limits are subject to change and may vary depending on individual account status or specific circumstances. However, it’s worth mentioning that Varo Bank provides flexibility when it comes to accessing your money by offering fee-free access to over 55,000 Allpoint ATMs nationwide.
This wide network allows you the convenience of withdrawing cash whenever you need it without incurring any additional fees. So whether you’re taking out cash at an ATM or using your Varo debit card for everyday purchases, Varo Bank ensures easy access to your money while maintaining secure transactions and peace of mind.
User Reviews of Varo Bank
I’ve had the opportunity to read through numerous user reviews of Varo Bank, and the overall consensus is overwhelmingly positive. Customers appreciate Varo’s fee-free checking account and competitive interest rates on its savings account.
Many users have expressed satisfaction with the high-yield savings account, which boasts one of the highest APYs among online banks for customers who meet monthly requirements. Furthermore, Varo’s savings account does not have a minimum balance requirement, making it accessible to individuals in all financial situations.
One aspect that stands out in the user reviews is the automatic savings tools provided by Varo Bank. Customers find these tools extremely helpful in effortlessly building up their savings. Additionally, users praise Varo’s mobile app for its user-friendly interface and convenient features.
The app receives high ratings on both iOS and Android devices, further enhancing customers’ banking experience with Varo.
Overall, customer service seems to be another strong suit of Varo Bank as users report prompt and efficient assistance seven days a week via phone and email support channels. Compared to other national banks, there are significantly fewer customer complaints regarding Varo Bank’s services, indicating a high level of customer satisfaction.
In fact, review platforms like Trustpilot reflect this sentiment by providing high ratings to demonstrate their trustworthiness and reliability.
Varo Bank has quickly emerged as a leader in digital banking since its establishment in 2015. Their commitment to delivering excellent service can be seen through their A rating from the Better Business Bureau – evidence of their dedication to ensuring positive experiences for their customers.
Our Takeaway – Is Varo Bank Good?
In conclusion, Varo Bank is a reputable online bank with a range of convenient and affordable services. With no monthly fees, access to thousands of ATMs, high-interest savings accounts, and innovative features like Varo Advance and Varo Believe, it’s clear that Varo is a reliable choice for individuals looking for flexible banking options.
Whether you’re seeking a hassle-free checking account or want to build credit with the Varo Believe Secured Credit Card, Varo Bank offers solutions to meet your financial needs. Overall, if you value convenience, competitive rates, and excellent customer service, choosing Varo can be a smart move for your banking needs.
Varo Banking App
Varo Bank is an online-only bank with no fees and high savings rates. It’s praised for its user-friendly mobile app and but customer service is lacking. However, some users have concerns about changes in savings APY. Overall, it’s a decent choice for those seeking a fully digital banking experience.
Product Brand: Varo
Product In-Stock: InStock
3.79
Article Sources & Helpful Links
Here are some helpful links that may help you learn more:
- Varo Official Website: The official website of Varo, a digital banking service.
- FDIC Official Website: The official website of the Federal Deposit Insurance Corporation, a U.S. government agency that provides deposit insurance to depositors in U.S. commercial banks and savings institutions.
- Consumer Financial Protection Bureau: The official website of the Consumer Financial Protection Bureau, a U.S. government agency that ensures banks, lenders, and other financial companies treat consumers fairly.
- Federal Reserve Official Website: The official website of the Federal Reserve, the central bank of the United States.
- FDIC: Learn More About the FDIC: A page providing more information about the Federal Deposit Insurance Corporation.
- Federal Reserve: Structure of the Federal Reserve System: A page detailing the structure of the Federal Reserve System.
- Trustpilot: Varo Bank Reviews – Varo Bank has a rating of 3.1 based on over 2,500 reviews.
- Apple App Store: Varo Bank Mobile Banking – The app has a 4.9 rating from nearly 150,000 reviews.
- Google Play Store: Varo Bank Mobile Banking – The app has a 4.7 rating from over 180,000 votes.
- Better Business Bureau: Varo Money Profile – Varo Money has a profile on BBB with various customer reviews and complaints.
Review of Varo (FAQs)
What is Varo Bank?
Varo Bank is an online digital bank that provides savings and checking account services.
What type of accounts does Varo Bank offer?
Varo Bank offers savings accounts, high-yield savings accounts, and checking accounts.
What is the annual percentage yield (APY) on a Varo savings account?
The APY on a Varo savings account is 0.20%.
Can I deposit cash into my Varo account?
Yes, you can deposit cash into your Varo account at participating Green Dot locations.
What are qualifying direct deposits for a Varo account?
Qualifying direct deposits for a Varo account include electronic deposits made by your employer or a government agency.
Can I use the Varo app to manage my accounts?
Yes, the Varo app allows you to manage your accounts, make mobile deposits, and transfer funds.
What is the savings rate for a Varo high-yield savings account?
The savings rate for a Varo high-yield savings account is 1.21% APY on savings up to $10,000, and 0.20% APY on any additional balance.
Does Varo charge any fees?
Varo Bank doesn’t charge monthly maintenance fees, overdraft fees, foreign transaction fees, or ATM fees at 55,000+ Allpoint® ATMs worldwide.
How do I open a Varo Bank account?
You can open a Varo Bank account on their website or directly from the Varo app.
What is the Varo Believe Secured Account?
The Varo Believe Secured Account is a type of savings account that helps you build credit by reporting your monthly payments to credit bureaus.
