Chime vs. Varo: Which Mobile Bank Is Better for You?

Commitment to Our Readers

GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.

20 Years
Helping You Live Richer

Reviewed
by Experts

Trusted by
Millions of Readers

If you’ve moved away from traditional branch banking, chances are you’ve considered Chime or Varo. These two digital banking platforms are leading the charge in mobile-first money management, offering fee-free accounts, early direct deposits, and savings tools that make banking simpler.

But which one’s better for your needs? Here’s a 2025 comparison of Chime vs. Varo, breaking down features, risks, fees and best use cases.

Chime vs. Varo At a Glance

What Is Chime?

Chime is a financial technology company that partners with FDIC-insured banks — The Bancorp Bank N.A. and Stride Bank N.A. — to deliver mobile banking services.

It offers checking and savings accounts with no monthly maintenance fees, no overdraft fees (for SpotMe-eligible users) and early access to direct deposits.

Key Features:

• Fee-free overdraft up to $200 via SpotMe
• 60,000+ fee-free ATMs through MoneyPass®, Allpoint® and Visa Plus Alliance®
• Automatic savings tools: “Save When You Get Paid” (fixed 10% transfers)
• Unlimited outbound savings transfers (a unique flexibility advantage)
• Cashback rewards at partner merchants

Best for: Fee-free simplicity, flexible savings and beginner-friendly mobile banking.

What Is Varo?

Varo Bank, N.A. is the first fully chartered U.S. neobank — meaning it’s an actual FDIC-insured bank, not just a financial technology company partnered with one.

Like Chime, Varo offers no-fee checking and savings accounts but stands out with higher APY potential and built-in Zelle support.

Key Features:

• Earn up to 5% APY on savings (with $1,000+ monthly direct deposits)
• Direct FDIC insurance — no third-party partners involved
• “Save Your Pay” feature lets users customize savings percentages
• Zelle® integration for instant transfers
• Cash advances up to $250 for eligible users

Best for: Savers aiming for higher interest rates and Zelle access under one app.

Neobank 101: Understanding the Risks and FDIC Coverage

Before choosing between Chime and Varo, it’s important to understand how neobanks differ from traditional banks.

• Varo is a true bank with a federal charter, meaning your deposits are insured directly by the FDIC up to $250,000.
• Chime, meanwhile, is a financial technology platform that partners with FDIC-insured banks. While your funds are still insured, if a neobank partner fails, it’s up to the fintech to ensure customers regain access to their funds — a key nuance in risk exposure.

Takeaway: Both are FDIC-insured, but Varo’s direct charter structure offers slightly more clarity and stability in the event of institutional failure.

International Use and Travel Considerations

Neither Chime nor Varo is ideal for frequent travelers or digital nomads.

• Chime: Allows international card use but charges foreign transaction fees and doesn’t support global transfers.
• Varo: Offers similar international functionality — card purchases abroad are supported, but currency conversion fees may apply.

For international transactions or foreign currency transfers, consider pairing either account with a platform like Wise, which offers low-cost international transfers and better exchange rates.

Best Practice: Use Chime or Varo for domestic spending and Wise for cross-border transactions.

Transfer Limits and Zelle/ACH Access

One of the biggest differentiators between Chime and Varo lies in transfer tools and limits.

• Chime: Does not support Zelle. Users can send money to other Chime users instantly or transfer funds externally via ACH. Transfers typically take 1 to 3 business days.
• Varo: Supports Zelle®, enabling near-instant transfers between U.S. bank accounts.
  • ACH transfers: Up to $5,000 per day
  • Cash advance limits: $250 per pay cycle
  • Peer-to-peer transfer cap: $2,000 per day

Pro Tip: If you frequently send money to friends or freelancers, Varo’s Zelle support offers more flexibility than Chime’s limited peer-to-peer system.

Savings Accounts: Which Grows Your Money Faster?

Winner: Varo. Its tiered APY structure and customizable savings features outpace Chime’s fixed 10% savings automation.

Checking and Spending Features

Both offer fee-free checking accounts with early direct deposit and mobile bill pay. But there are small distinctions:

• Chime: Offers SpotMe overdraft protection up to $200 — no fees.
• Varo: Declines overdrawn purchases but offers cash advances up to $250 for a $5 fee.

Winner: Chime — the SpotMe feature offers no-fee coverage that can be a lifesaver for budget-conscious users.

Cashback, ATM Access and Deposits

Winner: Chime — wider ATM coverage and cashback diversity.

Credit-Building Tools

Winner: Chime. No deposit required, and their Credit Builder Card helps establish a positive payment history effortlessly.

Hybrid Banking Strategy: Using Chime and Varo Together

Rather than picking one, some users pair Chime and Varo for a hybrid setup:

• Use Chime for day-to-day spending, overdraft coverage and credit building.
• Use Varo for higher-interest savings and fast peer-to-peer Zelle transfers.
• Connect both to a major bank (like Chase or Wells Fargo) for cash deposits and international wire capabilities.

Result: You get the best of both worlds — low fees, high savings yields and flexibility.

Neobank Risks and Responsible Use

Neobanks make banking faster and cheaper, but they come with risks. Keep these best practices in mind:

• Maintain an emergency fund outside your neobank.
• Avoid overreliance on cash advances — they can encourage a debt cycle.
• Always verify FDIC coverage under your name and institution.
• Use two-factor authentication and monitor transactions for fraud.

Tip: If either app experiences downtime or delays, having a secondary traditional bank account ensures uninterrupted access to funds.

Final Take to GO: Chime vs. Varo in 2025

• Chime is ideal for those who want fee-free, automated banking with strong credit-building features.
• Varo suits those seeking higher savings rates, Zelle access and the confidence of a true bank charter.

Both make money management easier — and together, they can form a powerful hybrid banking system for 2025.

More on Chime Bank

• Chime Review
• Chime Account Promotions
• Chime ATM Withdrawal and Deposit Limits
• Where to Load Your Chime Card

Information is accurate as of Oct. 7, 2025.

Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.

Share This Article: