Varo: Banking Reimagined for Today’s Consumer

Updated April 2025

As the first U.S. fintech to receive a national bank charter, Varo Bank, N.A., redefines banking with a no-fee, digital-first approach. Offering a suite of services for tech-savvy and budget-conscious users, Varo prioritizes accessibility and financial inclusion. As a Member FDIC, Varo directly insures deposits up to $250,000 per depositor, per ownership category, ensuring security for checking and savings accounts. Learn more on Varo’s security page.

Products and Services

Varo delivers robust banking through its mobile app, blending traditional and innovative features:

• Checking Accounts: The Varo Bank Account (checking) has no monthly fees, no minimum balance, and access to over 40,000 fee-free Allpoint ATMs. A Visa debit card supports digital wallets and incurs no foreign transaction fees, though non-Allpoint ATM withdrawals cost $3.50 plus potential owner fees.
• High-Yield Savings: The Varo Savings Account offers a 2.50% APY, with up to 5.00% APY on balances up to $5,000 if you receive $1,000+ in qualifying direct deposits monthly and maintain positive checking/savings balances. Balances over $5,000 earn 2.50% APY. Tools like Save Your Pay and Save Your Change automate savings.
• Cash Advances and Loans: Varo Advance provides $20–$500 loans (fees $1.60–$50, no interest, repayable in 30 days) for those with $800+ monthly direct deposits. A personal line of credit ($600–$2,000, flat fees $60–$400) is also available, with eligibility based on account activity.
• Varo Believe Credit Card: This secured card helps build credit with no annual fees or interest. Fund a Believe Secured Account to set your limit, and on-time payments are reported to all three credit bureaus, potentially boosting scores by 40+ points in three months.
• P2P Money Transfers: Instant “Varo to Anyone” transfers work between Varo accounts, while Zelle enables external transfers. ACH transfers to other banks take up to 3 days.
• Early Direct Deposit: Get paychecks up to two days early for qualifying direct deposits (e.g., paychecks, government benefits).
• Tax Filing: File federal/state taxes free via Column Tax in the app, with paid Expert Assist available. Refunds can arrive up to five days early.

Target Market

Varo appeals to millennials, Gen Z, and budget-conscious users who prefer digital banking. Its no-fee structure, high-yield savings, and credit-building tools attract those wary of traditional banks, especially underserved individuals needing no-credit-check accounts.

Pros and Cons

Pros:

• No monthly, overdraft, or foreign transaction fees.
• Up to 5.00% APY on savings (with conditions).
• Varo Believe Card for credit building.
• Early direct deposit (up to two days).
• User-friendly app with high iOS/Android ratings.

Cons:

• No physical branches for in-person support.
• Non-Allpoint ATM fees ($3.50 + owner fees).
• Limited account types (no CDs, IRAs, or mortgages).
• Cash deposits via Green Dot cost up to $5.95.
• Customer service limited to 8 AM–4:30 PM MT, with reported slow responses.

Rewards Program

Varo Perks offers up to 6% cash back at select retailers (e.g., Zara, Levi’s), deposited after $5 is earned (max $50/month). A $25 referral bonus incentivizes new sign-ups, though the program’s scope is narrower than some competitors.

Marketing Niches

Varo champions financial inclusion, offering transparent banking without credit checks or ChexSystems. Its mission resonates with those underserved by traditional banks, emphasizing affordability and accessibility.

Final Thoughts

Varo Bank blends innovation and simplicity, delivering no-fee checking, high-yield savings, and credit-building tools through a sleek app. Features like early direct deposit, Zelle, and tax filing enhance its appeal for digital natives. However, limited account types, cash deposit fees, and customer service constraints may deter some. With a Trustpilot score of 3.8/5 (3,261 reviews) and an A- BBB rating, reviews are mixed—praising fees and savings but noting service issues. For tech-savvy users seeking inclusive banking, Varo remains a strong contender, but research its fit for your needs at varomoney.com.