Banking Banking Basics

Banks Like Varo [2024]: 7 Banks That Can Help You Save

Varo’s high-interest savings account and credit-building features make it appealing, but many other online banks offer similar features.

By Kate Daugherty

Edited by Melinda Sineriz, ABFP™

Updated Sept. 30, 2024

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If you’re like me, you might do a lot of your banking digitally and not find it too much of a drawback if you can’t drop by a local branch for transactions. I’ve moved most of my savings to online-only banks, and this has allowed me to get a better return without much inconvenience.

Varo is one online-only bank that has many appealing features, such as high interest rates on savings accounts, no hidden fees, access to Zelle, and more. But while it might be a good choice for some people, other online financial institutions — such as Ally and Chime — have similar offerings that might be a better fit for your needs.¹

Let’s look at what seven banks like Varo offer to help you make the most of your money.

How we evaluate products

Banks like Varo comparison

	Best for …	Monthly fee	APY
Chime®	If you’re worried about security	No monthly fees	2.00% (as of Sept. 9, 2024) on savings
Current²	When you’re trying to rebuild your credit	No monthly fees³	Up to 4.00% (as of Nov. 21, 2023) savings bonus
One	When you regularly shop at Walmart	No monthly fees	Up to 4.35% (as of 10/10/24) APY on savings for meeting specific criteria⁴⁵
Ally	If you’re looking for additional savings options like money market or CD accounts	No monthly fees	4.00% (as of 10/28/24) on savings 4.00% (as of 10/28/24) money market Up to 0.25% (as of 10/28/24) on checking Up to 4.40% (as of 10/28/24) on CDs
Axos	When you primarily use a checking account	No monthly fees	Up to 3.30% on Rewards Checking⁶ Up to 0.61% (as of 07/01/24) on savings balances 0.25% (as of 10/28/24) on money market 0.20% (as of 10/28/24) on CDs
Revolut⁷	If you frequently travel internationally	$0 to $16.99 a month, based on the membership plan	3.25%-4.25% (as of 07/01/24) depending on the plan
Capital One	If you’re more comfortable with a traditional bank, but want the convenience and higher interest rates of an online bank	No monthly fees	4.00% (as of 10/28/24) on 360 Performance Savings 0.10% (as of 10/28/24) on 360 Checking 3.50%-4.50% (as of 10/28/24) on 360 CDs

Chime

Pros

Chime has more than 60,000 fee-free ATMs across the country.⁸
It has no overdraft fees, and those who qualify for SpotMe® can overdraft by up to $200 before purchases are declined.⁹
It offers a debit card with customizable security features.¹⁰

Cons

Chime doesn’t have physical branches.
It charges a $2.50 fee for out-of-network ATM withdrawals.
Chime only accepts cash deposits through third-party retailers like 7-Eleven or RiteAid, which may charge a fee.¹¹

Chime is a financial technology company, not a bank, that offers many of the same features as Varo. You can open a checking and savings account with no monthly fees and earn 2.00% (as of Sept. 9, 2024) interest on your savings. Note that you can’t open a standalone savings account — you can only open a savings account with a checking account.¹²¹³¹⁴

Comparatively, Varo currently provides 5.00% (as of 07/01/24) on up to $5,000 in savings and 3.00% (as of 6/14/24) on any remaining balance after you meet certain requirements.

This company offers a debit card with customizable safety features like daily balance updates, real-time transaction alerts, and protection from unauthorized charges. It doesn’t charge overdraft fees and will decline a purchase if funds aren’t available. But, if you qualify, the SpotMe feature allows eligible members to overdraft by up to $200 as long as you have a monthly direct deposit of at least $200.

Like Varo, Chime has a secured credit card you can use to help build your credit. Getting it requires a Chime checking account.¹⁵

Visit Chime® | Read our full Chime review

Current

Pros

Current can help you build credit through making everyday purchases.
It offers a competitive savings rate if you meet payroll deposit requirements.
Current doesn’t have minimum balance requirements or annual fees.

Cons

You’ll pay a fee of $3.50 per transaction for cash deposits.
Current’s savings account only earns interest on balances of up to $6,000.
It only has single options for savings, spending, and investing accounts.

Current is a financial technology company offering Spend, Save, and Invest (crypto) accounts as well as paycheck advances of up to $500.¹⁶²¹⁷

The savings account lets you break up funds into pods for specific goals like a vacation or emergency fund. You’ll get a boost of up to 4.00% (as of Nov. 21, 2023) on pod balances up to $2,000 ($6,000 total across all pods) by meeting two requirements every 35 days: having $500 in eligible paycheck deposits with at least one equaling a minimum of $100.¹⁸ Balances over $6,000 don’t earn interest.

The spending account features a linked debit card that can help you build credit through everyday purchases, and it doesn’t require a credit check.¹⁹ You can only access the money in your Current spending account, so you can’t overspend, and purchases earn points when you use the debit card at certain retailers.

Visit Current | Read our full Current review

One

Pros

One offers up to a 4.35% (as of 10/10/24) APY boost on balances of up to $250,000.⁵
It doesn’t have monthly fees or minimum balances.
Users can earn up to 5% cash back on select brands.

Cons

Cash back rewards at Walmart are limited to $50 per year and only if you’ve set up a recurring direct deposit.
It has limited account options.
One doesn’t integrate with Zelle.

One is a financial technology company that offers a mobile banking app and debit card. It provides up to 4.35% (as of 10/10/24) APY in interest on savings if you meet requirements like setting up a monthly direct deposit of $500 or more and keeping a $5,000 daily balance.⁵

Like Varo, One offers cashback on some purchases when you use its debit card. After setting up a direct deposit, you can get 3% back on Walmart purchases, but only up to $50 per year. Other brands may provide up to 5% cash back through One’s Debit Rewards program.

Other notable features include early pay, no account minimums or fees, and a credit builder option.

Visit One Cash | Read our full One review

Ally

Pros

Ally offers relatively high interest rates on savings accounts, money market accounts, and CDs
There are no monthly fees or minimums.
It offers up to $250 in overdraft protection with CoverDraft to those who qualify.

Cons

Ally Bank doesn’t accept cash deposits.
It doesn’t have physical branches.
Ally won’t let you send international wires.

Ally is another online-only bank offering more traditional banking options, such as money market accounts, certificates of deposit (CDs), and spending (checking) and savings accounts. It also offers credit cards, some loans, and investment accounts.

Its checking account, which pays up to a 0.25% (as of 10/28/24) APY, has no monthly maintenance or overdraft fees. You can use the MoneyPass and Allpoint networks to access more than 75,000 ATMs nationwide, and Ally provides $10 each cycle in other ATM charge refunds. However, Ally doesn’t accept cash deposits.

It offers a better 4.00% (as of 10/28/24) on all balance tiers for its high-yield savings account, which has no fees or minimums. I currently keep some of my savings in this Ally account and enjoy the simplicity and helpful savings tools it provides. The bank also offers competitive interest rates on its money market and CD accounts.

Overall, Ally may be a good option if you’re looking for a bank like Varo but want to earn higher interest rates on balances over $5,000.

Visit Ally

Axos

Pros

Axos Rewards Checking account offers up to 3.30% interest.
It doesn’t charge monthly fees.
It has several checking accounts, including ones for teens and seniors.
Axos reimburses all domestic ATM fees for Rewards Checking customers.

Cons

You can find higher savings account interest rates at other banks.
Getting the highest interest rate on the Axos Reward Checking account can be challenging.
Axos only accepts cash deposits through third-party retailers that may charge fees of up to $4.95 per transaction.

Axos offers several checking account options without monthly fees or minimum balances. Its Rewards Checking provides up to 3.30% if you meet extensive requirements. Higher APYs require using Axos investment accounts or paying Axos loans.

Its high-yield savings account only earns up to 0.61% (as of 07/01/24) APY. The money market account is even lower, earning just 0.25% (as of 10/28/24) on all balance tiers, while all Axos CDs pay a low 0.20% (as of 10/28/24).

This bank may be a good option if you keep your money primarily in a checking account and have an investment account or loan through Axos, too, but you can likely find much higher interest rates with a competitor.

Visit Axos | Read our full Axos Bank review

Revolut

Pros

Standard accounts are free.
Revolut offers fee-free withdrawals from over 55,000 ATMs and as much as $1,200 in monthly reimbursements for other ATM fees.
There are no currency exchange fees on transfers up to $1,000 monthly for a Standard account.

Cons

You must join Premium or Metal plans with a monthly fee to access higher interest rates on savings.
Revolut has limited account types.
You may pay higher fees or exchange rates using Revolut.

Revolut is a financial technology company that offers a savings account and a linked debit card through an app. Unlike other apps, Revolut is designed for international users and allows money to be sent or received in over 25 currencies and 140 countries.

Standard accounts are free, but Premium or Metal plans cost $9.99 and $16.99 a month and come with added features. Examples include discounts on international transfer fees and travel insurance benefits. Accounts earn up to 3.25%-4.25% (as of 07/01/24) APY depending on the account type.

Revolut also offers investment accounts, budgeting tools, and cash back when you shop online through certain retailers.

Visit Revolut

Capital One

Pros

Capital One doesn’t charge monthly maintenance fees or overdraft fees.
There are no minimum balance requirements on checking, savings, or CD accounts.
The 360 Performance Savings and CD accounts offer competitive interest rates.

Cons

You can likely find higher interest rates on your checking account at another bank.
Capital One’s partner ATMs can’t accept cash deposits.
Although it has branches, many are in the Eastern U.S. (such as New York, Washington D.C., Maryland, Virginia, and New Jersey) and the South (Texas and Louisiana).

Capital One is the only bank on our list with physical locations, with under 300 branches in seven states. It offers traditional bank products like checking and savings accounts, CDs, credit cards, and loans.

Its 360 Checking account pays a little interest (0.10% (as of 10/28/24)) and has no monthly fees or minimum balance requirements. This account provides access to over 70,000 ATMs nationwide, but ATMs in the MoneyPass or Allpoint networks can’t accept cash deposits. However, you can visit CVS or Walgreens to put money in your checking account without a fee, which gives Capital One an advantage over some online-only competitors.

The 360 Performance Savings account offers a better 4.00% (as of 10/28/24) APY without monthly fees or minimum balance requirements. You could earn even more with one of the Capital One 360 CDs.

Visit Capital One | Read our full Capital One 360 review

How to choose the best bank like Varo

As you search for a new bank or banking app, keep the following in mind to make the most of your banking experience.

FDIC insurance: Before you move funds to any bank or financial technology app, check that your bank is covered by Federal Deposit Insurance Corporation (FDIC) coverage. That way, if the bank fails, your funds are protected up to $250,000 per depositor, per bank, per account ownership category.
Low or no fees: While some banks still charge monthly maintenance or minimum balance fees, many don’t. Research the bank’s account disclosures before signing up, and pay special attention to the fee schedule so you know what to expect. Watch out for any requirements to waive fees, such as overdraft charges.
Interest rates: You can generally find higher rates with an online bank than with a traditional brick-and-mortar bank. Look for an online bank that offers you a high APY on your savings and possibly even your checking account. That way, your emergency fund or vacation savings earn as much as possible while being easily accessible.
Accessibility: Except for Capital One, these Varo competitors don’t have branches, so make sure the available banking options suit you. While I don’t personally visit branches often, I do like having many free ATM options nationwide so I can take cash out of my online bank accounts in an emergency, even if I’m traveling. If you use cash a lot, you might want to pick one of these banks that takes those deposits as well.
Ease of use: A bank should be easy to work with and have a reputation for good customer service. Since a lot of banking is done online, review the bank’s app or mobile banking sites to ensure they’re easy to use and appeal to you. Read customer reviews to understand current customer issues and how the bank resolves them.

FAQ

Which is better: Current or Varo?

Varo is an online bank that offers various tools to help you save and grow your money. On the other hand, Current is a financial technology company that partners with a bank to provide many of the same features.

While you may find both apps helpful, Varo offers up to 5% APY on balances up to $5,000 and 3% on balances over $5,000 if you meet certain criteria. Comparatively, Current provides 4% interest on balances up to $6,000 total, with direct deposits totaling at least $500 (with one being $100+) over 35-day cycles. Any balance above $6,000 doesn’t earn interest.

Is Varo better than GO2bank?

Varo and GO2bank offer similar interest rates on savings accounts, but Varo doesn’t charge monthly maintenance fees, minimum balance fees, or foreign transaction fees. GO2bank charges a $5 monthly fee unless you set up a qualifying direct deposit and foreign transaction fees of 3% of the total transaction amount.

What is the easiest online bank to get approved for?

Many online banks require that you fill out an application, complete identity verification, and possibly make an opening deposit. Rarely, they’ll run a soft credit check. Since Current doesn’t require credit checks, it may be easier to get approved with them than with other online banks that do.

Bottom line

Many of Varo’s features — like high interest rates on savings balances, no monthly fees, and building credit help — are found at many other online banks too. As you look for a new provider, understand the fee structure and confirm what criteria you need to meet to get the highest interest rate possible so your money can work for you. Also, consider the banking access tradeoffs, such as no branches and limited deposit options, that come with online-only banks.