Varo Savings Account Review: Excellent Earnings on Beginner Savings

Varo Savings Account at a glance

The Varo Savings Account's main selling point is its high APY, but qualifying for the top 5.00% (as of 04/25/25) rate does require jumping through a few hoops. I don't love the fact that you have to open a Varo checking account alongside your savings, and each month you must receive at least $1,000 in direct deposits.

The $5,000 balance cap is the account's most glaring limitation. Once you exceed that threshold, the portion of your balance above $5,000 will only earn 2.50% (as of 12/11/24). While that's still a respectable rate, it's a notable drop from the headline APY and means this account is really best suited for modest savers.

On the plus side, Varo doesn't charge any monthly fees or require minimum balances for the savings or checking account, making it a low-cost option. You also get convenient features like mobile check deposit and automatic savings tools.

How much can your savings earn?

So you're checking out high-yield savings accounts! Congratulations! This is a fabulous tactic for stashing your emergency fund, since you can access the money anytime without penalty (though with Varo you are limited to six withdrawals per month).

You can earn significantly more on your savings with a robust APY like the Varo high-yield savings account, compared to a traditional savings account. The FDIC notes that the average savings account APY was just 0.41% (as of 4/21/25).

Take a look at how that rate compares to the maximum 5.00% APY with Varo. (We'll use $5,000 since that's where the maximum earnings stop, and assume you leave the funds alone for up to 10 years.)

With a traditional savings APY of 0.41% (as of 4/21/25), $5,000 only earns about $22 in one year, while with a Varo 5.00% (as of 04/25/25) APY, your $5,000 earns more than $236 in one year.

The major downside with this account is that beyond $5,000, any additional balance in Varo Savings will earn only 2.50% (as of 12/11/24) APY. But that is still much higher than an account that earns less than half a percent, so it's not a terrible option.

Useful Varo banking features

Within the Varo Bank Account and Varo Savings Account, the fintech platform offers several other perks that make your financial life more convenient.

Instant transfer

Are you someone who frequently goes out with friends and needs to split the bill? That can be such a hassle, but Varo is one of the apps you can use to easily send money to someone else. I could use the instant transfer feature to send birthday money to my college-aged nieces and nephews, for example, or pay back my friend for my share of our recent trip to Boston.

With a Varo account, you can send and receive money whether the other party uses Venmo, Chime®, Zelle®, or a U.S. bank.² <p class="">Chime is a financial technology company, not a bank. Banking services and debit card provided by The Bancorp Bank, N.A. or Stride Bank, N.A.; Members FDIC.&nbsp;<br></p> Amount limits may apply, and make sure that if your recipient doesn't have Varo, they know to accept payment within 14 days, otherwise it will be returned to your account.

Automated savings tools

One of the cardinal rules (for me, anyway) of how to save money is that it has to be automated. Otherwise, I'd just haphazardly throw a sum of money into savings whenever I thought of it, which might be every month, but would more likely be sporadic — going three months or six months or longer without contributing anything.

Automated saving is simple with Varo, as it instantly rounds up purchases with its Save Your Change feature. If you spend $32.55 at a restaurant, the extra $0.45 goes straight into your savings. That can add up over time.

You also can easily arrange automatic savings from every paycheck or every month. Indicate the percentage you want funneled into your Varo Savings Account, and it's done until you turn the feature off or change the amount.

Free Varo debit card

You can use your digital debit card right away after opening your account, plus you'll get a physical debit card.

No monthly account fees

Varo Bank Accounts and Savings Accounts are fee-free, so there's no charge to do your checking, debit, and savings with Varo. Plus, you won't be charged fees for debit card purchases, check deposits, or transactions at over 40,000 ATMs.

Other no-fee features:

• No overdraft fees
• Free Zelle® or Varo-to-Varo transfers
• No minimum balance fees
• No foreign transaction fees

There are just a few fees you do want to be aware of:

• $3.50 per non-Allpoint ATM transaction
• $2.50 per over-the-counter cash withdrawal (from Varo Bank Account)
• $1.60 and up for Varo Advance

Who is Varo Savings best for?

Varo is a good fit for savers who are just starting to build up savings and can easily meet the direct deposit and debit card usage requirements each month. If you tend to keep modest savings balances under $5,000, Varo lets you maximize your earnings on that money with minimal fees.

You also can benefit from Varo's HYSA if you want to keep your checking and savings within the same platform, and you like the automated features it has. Round-ups on purchases that go automatically into savings, plus set-it-and-forget-it savings deposits can help you increase your savings balance effortlessly.

Who should look elsewhere for savings

While the Varo Savings Account has some great features to help you grow your money and easily transfer money to others, it's not ideal for everyone.

As mentioned previously, since the high APY only applies to the first $5,000 in your account, you may want to find a different HYSA if you plan on keeping much more than that in savings. I like to have $10,000 or more in savings, so it wouldn't make sense for me to use Varo as a lot of my balance would earn a lower APY of 2.50% (as of 12/11/24).

Of course, if you prefer working with a brick-and-mortar bank, Varo isn't for you. It's not a bank, first of all, and there aren't any physical branches to visit.

How to open a Varo Savings Account

You'll have to open both a Varo Bank Account and a Varo Savings Account to gain access to the savings options. You must also download the Varo banking app for iOS or Android to open, fund, or use either type of account.

How to add money to your account

There's no minimum deposit to open an account and no hard credit check. Once your account is open, you have several options to fund both your Varo Bank and Varo Savings accounts, including:

• Transferring funds through an ACH transfer from an outside financial institution
• Depositing checks using your iOS or Android app or by mailing a paper check
• Moving funds from your Varo Bank Account to your Varo Savings Account
• Setting up direct deposit
• Depositing cash at one of 90,000 Green Dot locations (Note: Varo doesn't charge a fee for this service, but the participating Green Dot location may charge you up to $4.95 depending on the deposit method)

You may deposit up to $1,000 in cash per day, with a maximum of $5,000 in any given month.

How to withdraw money from your account

To withdraw funds from your Varo Savings Account, your only option is to move the money to your Varo Bank Account.

Once you've done that, you can withdraw up to $1,000 per day using the Varo Bank Visa® Debit Card or Varo Believe card. You can withdraw funds at an ATM, use your Varo debit card for purchases, issue checks from your account through the Varo app, or transfer funds to another financial institution.

One thing of note is that you used to be limited to six savings withdrawals per month, but Varo no longer enforces this limit.

Varo customer service

What if you need to reach someone to dispute a transaction or handle technical issues? Varo provides customer service to account holders via phone and email. You can contact Varo at:

• help@varomoney.com
• 1-877-377-VARO
• Click varomoney.com/support for an online help form.

There's no online chat, and there are no local branches you can visit. You also must use the mobile banking app to access many features of your account(s), as you're limited in what you can do on your website browser.

Other Varo accounts to consider

If you're looking at opening a Varo Savings Account, it's a good idea to know about Varo's other financial account offerings. They are especially well-suited to those who are early in their money journey.

Here's a quick glance at the what you can do with Varo:

• Bank account: Receive your paycheck up to 2 days early with direct deposit.
• Varo Advance: As a banking customer with Varo, get a one-time cash advance up to $250 for initial instance, up to $500 over time.

Alternatives to Varo Savings Account

While Varo's 5.00% (as of 04/25/25) APY on balances up to $5,000 is certainly attractive, there are other high-yield savings accounts that may better suit your needs, especially if you have a larger balance or prefer a bank with physical locations:

Revolut

Revolut is a neobank that offers similar savings APYs and features to Varo's Savings Account. The account earns you up to 2.75%-3.50% (as of 04/18/25) APY. Be sure your earnings and other features are worth the monthly fee before signing up. Like Varo, Revolut also rounds up purchases to the nearest dollar to add to your savings.

SoFi Checking and Savings

I'd definitely take a minute to check out SoFi's Checking and Savings account. It's a true one-stop shop for your checking and savings needs. With qualifying direct deposits, you can earn up to 3.80% APY on your savings balance, which is slightly lower than Varo's top rate but without any balance cap (so much simpler!).³ <p>SoFi members who enroll in SoFi Plus with Eligible Direct Deposit or by paying the SoFi Plus Subscription Fee every 30 days or SoFi members with $5,000 or more in Qualifying Deposits during the 30-Day Evaluation Period can earn 3.80% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. Members without either SoFi Plus or Qualifying Deposits, during the 30-Day Evaluation Period will earn 1.00% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Interest rates are variable and subject to change at any time. These rates are current as of 1/24/25. There is no minimum balance requirement. If you have satisfied Eligible Direct Deposit requirements for our highest APY but do not see 3.80% APY on your APY Details page the day after your Eligible Direct Deposit arrives, please contact us at 855-456-7634. Additional information can be found at <a href="http://www.sofi.com/legal/banking-rate-sheet">http://www.sofi.com/legal/banking-rate-sheet</a>. See the SoFi Plus Terms and Conditions at <a href="https://www.sofi.com/terms-of-use/#plus">https://www.sofi.com/terms-of-use/#plus</a>.</p>

One way you'll find SoFi's account beats out Varo Savings is that there's no minimum amount for your direct deposits to qualify for the high APY. (Or you can direct deposit $5,000 every 30 days to qualify.)

SoFi® also doesn't charge any monthly fees, minimum balance fees⁴ <p>We do not charge any account, service or maintenance fees for SoFi Checking and Savings. We do charge a transaction fee to process each outgoing wire transfer. SoFi does not charge a fee for incoming wire transfers, however the sending bank may charge a fee. Our fee policy is subject to change at any time. See the SoFi Checking & Savings Fee Sheet for details at <a href="http://sofi.com/legal/banking-fees/">sofi.com/legal/banking-fees/</a></p> , or overdraft fees⁵ <p>Overdraft Coverage is limited to $50 on debit card purchases only and is an account benefit available to customers with Eligible Direct Deposits of $1,000 or more during the current 30-day Evaluation Period as determined by SoFi Bank, N.A.&nbsp; The 30-Day Evaluation Period refers to the "Start Date" and "End Date" set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the "30-Day Evaluation Period"). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking &gt; Savings &gt; Current APY or (ii) Banking &gt; Checking &gt; Current APY.&nbsp; Members with a prior history of non-repayment of negative balances are ineligible for Overdraft Coverage.</p> . As an online bank, it offers perks like early paycheck access.⁶ <p>Early access to direct deposit funds is based on the timing in which we receive notice of impending payment from the Federal Reserve, which is typically up to two days before the scheduled payment date, but may vary.</p>

SoFi is a Member, FDIC. ⁷ <p><b style="font-family: Rubik, -apple-system, BlinkMacSystemFont, &quot;Segoe UI&quot;, Roboto, &quot;Helvetica Neue&quot;, Arial, sans-serif;">SoFi Bank is a member FDIC and does not provide more than $250,000 of FDIC insurance per depositor per legal category of account ownership, as described in the FDIC’s regulations.&nbsp;Any additional FDIC insurance is provided by the SoFi Insured Deposit Program. Deposits may be insured up to $3M through participation in the program. See full terms at&nbsp;<a href="http://sofi.com/banking/fdic/sidpterms">SoFi.com/banking/fdic/sidpterms</a>. See list of participating banks at <a href="http://sofi.com/banking/fdic/participatingbanks">SoFi.com/banking/fdic/participatingbanks</a>.</b></p>

Visit SoFi or learn more in our SoFi Checking and Savings review.

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SoFi Checking & Savings - Earn Up to $300 When You Set Up Direct Deposit

Earn up to 3.80% APY³ <p>SoFi members who enroll in SoFi Plus with Eligible Direct Deposit or by paying the SoFi Plus Subscription Fee every 30 days or SoFi members with $5,000 or more in Qualifying Deposits during the 30-Day Evaluation Period can earn 3.80% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. Members without either SoFi Plus or Qualifying Deposits, during the 30-Day Evaluation Period will earn 1.00% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Interest rates are variable and subject to change at any time. These rates are current as of 1/24/25. There is no minimum balance requirement. If you have satisfied Eligible Direct Deposit requirements for our highest APY but do not see 3.80% APY on your APY Details page the day after your Eligible Direct Deposit arrives, please contact us at 855-456-7634. Additional information can be found at <a href="http://www.sofi.com/legal/banking-rate-sheet">http://www.sofi.com/legal/banking-rate-sheet</a>. See the SoFi Plus Terms and Conditions at <a href="https://www.sofi.com/terms-of-use/#plus">https://www.sofi.com/terms-of-use/#plus</a>.</p> and collect up to a $300 cash bonus with direct deposit or $5,000 or more in qualifying deposits.⁸ <p>New and existing Checking and Savings members who have not previously enrolled in Direct Deposit with SoFi are eligible to earn a cash bonus of either $50 (with at least $1,000 total Eligible Direct Deposits received during the Direct Deposit Bonus Period) OR $300 (with at least $5,000 total Eligible Direct Deposits received during the Direct Deposit Bonus Period). Cash bonus will be based on the total amount of Eligible Direct Deposit. If you have satisfied the Eligible Direct Deposit requirements but have not received a cash bonus in your Checking account, please contact us at 855-456-7634 with the details of your Eligible Direct Deposit. Direct Deposit Promotion begins on 12/7/2023 and will be available through 1/31/2026. Full terms at <a href="https://www.sofi.com/banking/">sofi.com/banking</a>. SoFi Checking and Savings is offered through SoFi Bank, N.A., Member FDIC.</p><p>SoFi members with Eligible Direct Deposit can earn 3.80% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Eligible Direct Deposit amount required to qualify for the 3.80% APY for savings (including Vaults). Members without Eligible Direct Deposit will earn 1.00% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Interest rates are variable and subject to change at any time. These rates are current as of 1/24/25. There is no minimum balance requirement.&nbsp;Additional information can be found at <a href="http://www.sofi.com/legal/banking-rate-sheet" >http://www.sofi.com/legal/banking-rate-sheet</a>.</p> FDIC Insured.⁷ <p><b style="font-family: Rubik, -apple-system, BlinkMacSystemFont, &quot;Segoe UI&quot;, Roboto, &quot;Helvetica Neue&quot;, Arial, sans-serif;">SoFi Bank is a member FDIC and does not provide more than $250,000 of FDIC insurance per depositor per legal category of account ownership, as described in the FDIC’s regulations.&nbsp;Any additional FDIC insurance is provided by the SoFi Insured Deposit Program. Deposits may be insured up to $3M through participation in the program. See full terms at&nbsp;<a href="http://sofi.com/banking/fdic/sidpterms">SoFi.com/banking/fdic/sidpterms</a>. See list of participating banks at <a href="http://sofi.com/banking/fdic/participatingbanks">SoFi.com/banking/fdic/participatingbanks</a>.</b></p>

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Synchrony Bank High Yield Savings - 4.00% APY

Let your money work for you with great rates: count on it. Open a High Yield Savings account with Synchrony today. Member FDIC.⁹ <p>Annual Percentage Yield (APY) is subject to change at any time without notice. Rate accurate as of 2/4/2025. Offer applies to personal accounts only. Fees may reduce earnings. For High Yield Savings accounts, the rate may change after the account is opened. Visit synchrony.com/banking for current rates, terms and account requirements. Member FDIC.</p>

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Marcus Online Savings Account

Another option for earning a significant rate on your savings is the Marcus Online Savings Account from Goldman Sachs. Although the APY of 3.75% (as of 04/11/25) is lower than Varo's, you earn that rate with no minimum balance and no direct deposit requirements, so for people like me who don't have direct deposit as an option, you could try this high-yield savings account.

FAQ

Bottom line

The Varo Savings Account offers an industry-leading APY for savers who don't mind keeping balances under $5,000 and who can meet monthly direct deposit requirements. For beginning savers who want to avoid account fees, it's a strong choice. Plus, it's a nice shift from some accounts that require a high minimum balance to earn the maximum APY.

However, I wouldn't recommend this account if you plan on racking up a higher savings balance, since other HYSAs offer competitive APYs without the $5,000 limit. Consider your savings goals and banking preferences to decide if Varo's high-yield savings account makes sense for you.

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Christy Rakoczy

FinanceBuzz writer Christy Rakoczy has a Juris Doctorate from UCLA Law School with a focus in Business Law, and a Certificate in Business Marketing with an English Degree from The University of Rochester. As a full-time personal finance writer, she writes about all things money-related, but her special areas of focus are credit cards, personal loans, student loans, mortgages, smart debt payoff strategies, and retirement and Social Security. Her work has been featured by USA Today, MSN Money, CNN Money, and more, and you can learn more at her LinkedIn profile.

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Kate Underwood

Kate Underwood is a professional writer who spent fifteen years as a high school English and French teacher before writing about personal finance. Her specialties include investing, retirement planning, loans, and credit card rewards. Her work can be found on numerous publications, including Business Insider and ConsumerAffairs. She lives in Kentucky with her husband, two kids, and way too many pets.