Varo Bank Review: Outstanding Neobank With Fee-Free Banking
Written by
Rudri Patel
Edited by
Elizabeth Constantineau
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Varo Bank combines simplicity, security and savings to deliver an exceptional online banking experience.
Varo Bank is an entirely online institution offering FDIC-insured accounts up to $250,000. Varo stands out for its simplicity, featuring no monthly fees, competitive savings rates and an interest-free credit-building card to help you achieve financial goals effortlessly.
Thanks to its innovative approach to online banking and customer-friendly features, GOBankingRates has ranked Varo among the Best Neobanks of 2025. With no minimum deposit requirements and tools to help you maximize savings, Varo is redefining the online banking experience.
Varo Bank Checking Account
Although Varo Bank has one checking account option, its offerings are impressive: no monthly maintenance fees, an early direct deposit option and an impressive app.
- No minimum balance requirement.
- Ideal for new account holders — age 18 and with driver’s license.
- Comes with a Visa debit card.
- Fee-free cash deposits at CVS locations
Best For
Neobanks
Account Perks
Low Monthly Fees
Great APYs
Credit Cards
Banking Made Simple
Varo Bank’s checking account offers fee-free banking with no minimum deposit, access to 40,000 fee-free ATMs and convenient features like early direct deposit. Perfect for those who want a straightforward, digital-first banking experience.
Fees
None
APY
N/A
Min Opening
$0
Pros
- Good for new account holders
- No monthly maintenance fee
- No minimum deposit
- Access to 40,000 fee-free ATMs
- No fee for international transactions
Cons
- No physical branches
- Difficulty making cash deposits
- Out-of-network ATM fees
- Limited customer service hours
Quick Take
Varo Bank’s checking account is an excellent option for those who don’t like the hassle of in-person banking. The checking account is available for those who are 18 and have a driver’s license. The bar to get a checking account is low with no minimum deposit or monthly maintenance fees.
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Varo Savings Accounts
Varo savings accounts also feature no monthly fees or minimum balance requirements. But the best advantage is the high-yield interest rate.
- Deposits are FDIC-insured up to the limit to provide peace of mind.
- Impressive tiered structure to earn APY, with up to APY on balances up to $5,000 if you meet requirements like $1,000 in monthly direct deposits and a positive balance across accounts.
- No monthly fees.
Best For
Neobanks
Account Perks
Low Monthly Fees
Great APYs
Credit Cards
Boost Your Savings With No Fees
Varo Savings Accounts offer fee-free banking with no minimum deposit and innovative tools like “Save Your Change” to grow your savings. Eligible account holders can access even higher APYs.
Fees
None
APY
Up to
Min Opening
$0
Pros
- No monthly fees
- No minimum deposit
- Ability to earn up to APY
- Features like “Save Your Change” and “Save Your Pay” help build savings passively
Cons
- No in-person branches
- Depositing cash requires third-party services, which comes with a fee
- Need to meet eligibility for a high APY
Quick Take
The Varo Savings Account is best suited for individuals seeking a high-yield, fee-free, digitally-focused savings account with helpful automation tools. It may not appeal to those who prefer traditional banking products or need extensive access to cash deposit services.
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Banking Experience
Overall, most of Varo’s users are very happy with their online banking experience. It has earned a 4.9-star rating on the Apple App Store and a 4.7-star rating on the Google Play Store.
Most customers love the credit-building tracker and the easy-to-use interface. The main issue is that the live customer service phone line is only available until 8:30 p.m.
Comparable Online Bank Options
See how Varo Bank stacks up to other top online banks.
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MOST COMPARABLE
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$0
Varo Bank vs. Chime
Varo is quite similar to Chime®* in that it is all online and offers simple banking services with low fees as a selling point. Both have checking and savings accounts and a credit-building card with no fees. However, neither of them offers many additional services.
In terms of APY, neither bank offers interest rates on checking accounts. However, the APY1 is higher on Varo’s savings account than Chime offers on its account, as long as you meet the eligibility criteria. Chime has a higher number of free-to-use ATMs2 and over 9,000 locations where cash can be deposited without any fees3.
Varo Bank vs. SoFi
Like Chime, SoFi® is another online bank that has many of the same benefits as Varo, but offers much more in terms of services, including loans, mortgages, investing, business financing and insurance. Another feature in which SoFi comes out ahead is that checking accounts earn interest. Their savings APY4 is in line with Varo’s as well.
Varo Bank vs. Ally
Varo Bank and Ally Bank are both digital-first financial institutions offering competitive high-yield savings accounts but cater to slightly different audiences. Varo stands out with its tiered savings account, offering up to APY on balances up to $5,000 for customers meeting direct deposit and balance requirements, making it ideal for savers with steady income streams.
Ally Bank, on the other hand, offers a consistent APY on its Savings Account without any conditions, appealing to those who prioritize simplicity and reliability. Ally also provides a broader range of financial products, including CDs, money market accounts and loans, while Varo focuses on streamlined offerings like checking, savings and credit-building tools.
Final Take
If you are looking to simplify your finances, then Varo might be the neobank for you. It is an easy-to-use and straightforward app with great ATM access, amazing interest rates on savings accounts and a credit-building credit card. There are plenty of positives to be had here.
If you are just stepping into the world of personal finance or are looking to have a fresh start, you may find that Varo offers all of the products and services you need. However, this might not be what you need if you are in the market for more comprehensive banking services or an in-person banking experience.
Varo Bank FAQs
Here are more answers to some commonly asked questions about Varo Bank.- Does Varo have fees?
- Varo is committed to having fee-free banking. There is no charge for monthly maintenance, overdraft, transfer or required minimum balance fees. However, there may be a charge for out-of-network ATM usage and depositing cash through a third-party depositor.
- Does Varo have a checking account?
- Yes. Varo has one checking account. There are no monthly fees or minimum balance requirements, and you have access to 55,000 fee-free ATMs.
- Is Varo good for savings?
- Varo offers a high-yield savings account that offers new account holders a starting APY of 2.50% and the possibility to elevate your APY of 5.00% if your balance is $5,000 and meets specific requirements.
- What are the limits on Varo Bank?
- Varo has no physical branches since it is an exclusively online bank. There are limits on mobile deposits, external transfers and cash deposits - usually $1,000 a day and $5,000 a month. The limit is typically determined by the length of time your account has been active and the amount of activity.
Daria Uhlig, John Csiszar, Preston Hartwick and Brandy Woodfolk contributed to the reporting for this article.
Rates are subject to change; unless otherwise noted, rates are updated periodically. All other information on accounts is accurate as of Nov. 26, 2024.
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.
*Chime is a financial technology company, not a bank. Banking services provided by, and debit card issued by, The Bancorp Bank, N.A. or Stride Bank, N.A., Members FDIC
1The Annual Percentage Yield (“APY”) for the Chime Savings Account is variable and may change at any time. The disclosed APY is effective as of September 20, 2023. No minimum balance required. Must have $0.01 in savings to earn interest.
2Out-of-network ATM withdrawal and over the counter advance fees may apply. See here for details.
3There’s no fee for the Chime Savings Account. Cash withdrawal and Third-party fees may apply to Chime Checking Accounts. You must have a Chime Checking Account to open a Chime Savings Account.
4SoFi 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 http://www.sofi.com/legal/banking-rate-sheet. See the SoFi Plus Terms and Conditions at https://www.sofi.com/terms-of-use/#plus.
Earn up to 4.50% Annual Percentage Yield (APY) on SoFi Savings with a 0.70% APY Boost (added to the 3.80% APY as of 8/5/25) for up to 6 months. Open a new SoFi Checking & Savings account with Eligible Direct Deposit by 1/31/26. Rates variable, subject to change. Terms apply at sofi.com/banking#2. SoFi Bank, N.A. Member FDIC.
Neobanks are fintech firms that offer apps, software and other technologies to streamline mobile and online banking. These fintechs generally specialize in particular financial products, such as checking and savings accounts. To determine rankings for the Best Neobanks of 2025, GOBankingRates analyzed the following factors: (1) monthly checking fee ratio (percent the minimum to avoid fee compared to the monthly fee itself); (2) minimum needed to earn APY; (3) savings APY; (4) products/services offered (credit cards and investment services); (5) the average mobile app rating between the Google Play (Android) and Apple stores; and (6) number of extra benefits and perks unique to neobanks. All factors were then scored and combined, with the lowest score being the best. Factors (1) and (2) were weighed 0.5 times, and factors (3) and (6) were weighed 2 times. All products and offerings had to be available as of Nov. 1, 2024, to be considered. Rates are subject to change; unless otherwise noted, rates are updated periodically. All other information on accounts is accurate as of Nov. 26, 2024.
