Varo Bank
top 5% APY on modest savings balances for first-time savers and credit builders
How it works
Varo Bank is a fully chartered national online bank offering a checking account and high-yield savings account with zero monthly fees. Its standout feature is a 5.00% APY on savings balances up to $5,000 when you meet monthly direct deposit requirements. Varo also offers the Believe secured credit card for credit building, cash advances up to $500 through Varo Advance, and up to 6% cash back at select retailers through Varo Perks.
Is it right for you?
Consider if you
- You are starting to save and want the highest APY on balances under $5,000
- You want to build or rebuild credit with a secured card that has no APR or annual fee
- You want a fully digital bank with absolutely zero monthly or overdraft fees
Skip if you
- People with savings balances well above $5,000 — rate drops to 2.50% on excess
- Those who need joint accounts, CDs, IRAs, or money market accounts
- Anyone who prioritizes reliable customer support during account issues
Your money and data
Varo Bank is a federally chartered national bank, Member FDIC. Deposits are FDIC-insured up to $250,000. Varo connects third-party budgeting apps via read-only Plaid integration — it can view your transactions but cannot move money on your behalf. Data is encrypted in transit and at rest.
Pros & Cons
Pros
- Best-in-class 5.00% APY on first $5,000 in savings with direct deposit
- Zero monthly fees, no overdraft fees, no minimum balance requirements
- Varo Believe secured credit card builds credit with no APR and no annual fee
Cons
- 5.00% APY capped at $5,000 — larger balances earn only 2.50% APY
- Customer support is the #1 user complaint — chatbot-driven, hard to reach a human
- Rising reports of sudden account freezes and closures with funds held for weeks in 2025-2026
Pricing details
$0/month · no monthly fees · no minimum balance · Varo Advance fees $1.60-$80 per advance
On varo.com · We may earn a commission
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