About company
Varo Bank is a financial institution that offers banking and savings products with a focus on accessibility and affordability. It stands out for its commitment to providing customers with a banking experience free from monthly fees or minimum balance requirements. Varo Bank boasts a substantial fee-free ATM network, making cash withdrawals convenient for customers. Additionally, it provides automatic savings tools to help customers effortlessly build their savings. However, one challenge customers may encounter is the absence of physical branches, as Varo operates primarily online. Cash deposits are facilitated through third-party retailers, albeit with associated fees. Despite these limitations, Varo Bank remains dedicated to its mission of providing accessible banking solutions that empower customers to manage their finances effectively.
Key features
- Completely Online. Varo Bank operates exclusively through online channels, providing customers with convenient access to their accounts anytime, anywhere.
- No Overdraft Fees. Varo Bank distinguishes itself by eliminating overdraft fees, offering customers peace of mind and financial flexibility.
- Cash Advances Available. Customers have the option to request cash advances through Varo Bank, providing a convenient solution for immediate financial needs.
- ATM Network. Varo Bank provides access to a sizable nationwide ATM network, allowing customers to withdraw cash without incurring additional fees. This expansive network enhances accessibility and convenience for Varo Bank customers.
Pros and cons
Pros
Cons
Reliability
Varo Bank's reliability can be assessed in part through its Better Business Bureau (BBB) rating. With a rating of "A-" from the BBB, Varo demonstrates a level of reliability and trustworthiness in its operations. However, it's important to consider other factors beyond the BBB rating when evaluating a bank's reliability, such as customer reviews, regulatory compliance, and the bank's track record for handling customer inquiries and issues effectively. Overall, Varo's positive BBB rating suggests a level of reliability, but individuals may wish to conduct further research to ensure it aligns with their expectations and needs.
Products
Varo Checking Account
Varo's online checking account, known as the Varo Bank Account, offers a host of benefits without the burden of monthly maintenance fees or minimum balance requirements. Sign-up is hassle-free, requiring only a government-issued ID and Social Security number, with no minimum deposit necessary to open the account. As long as you're 18 and have a device capable of accessing Varo's mobile app, you're eligible to join. One standout feature is Varo's promotion of early access to direct deposit payments, often posting deposits on the same day they're received—potentially up to two days earlier than the scheduled payment date. This means you may have access to your funds as early as Wednesday for most Friday paydays. Varo also facilitates cash withdrawals at over 40,000 Allpoint ATMs nationwide without surcharges, though out-of-network ATM transactions incur a $3 withdrawal fee. Cash deposits can be made at over 90,000 retail locations using Green Dot Reload. Additionally, Varo offers fee-free instant transfers between Varo Bank accounts, enabling seamless money transfers. However, Varo accounts do not currently support wire transfers.
Varo Savings Account
Varo offers a versatile savings solution alongside its banking services, providing customers with an option to open a Varo savings account with ease. With no minimum deposit required to get started and no mandatory account balance to maintain, Varo ensures accessibility for all users. Even having just a penny in your savings account makes you eligible to earn interest. Currently, the account offers a competitive 3.00% APY without imposing a monthly fee, with the potential to earn up to 5.00% APY by fulfilling specific monthly requirements. To qualify for the higher rate, customers must receive direct deposits of $1,000 or more within each qualifying period and maintain a daily savings balance of $5,000 or less for the entire calendar month, while also maintaining balances above or equal to $0.00 in both savings and bank accounts for the entire calendar month. Varo offers two automatic savings tools in conjunction with its bank accounts: "Save Your Pay," allowing users to set up recurring transfers from checking to savings each time they receive a direct deposit payment, and "Save Your Change," which rounds up each checking transaction to the nearest dollar and moves the extra amount to the savings account. These features empower customers to effortlessly grow their savings while managing their finances efficiently.
Varo Believe Card
Varo Believe offers a unique credit-building opportunity through its Believe Credit Card program, designed to assist Varo Bank account holders in establishing or improving their credit history. The credit card features no minimum security deposit, no annual fee, and no APR, making it accessible and affordable for users. Applying for the card won't impact your credit score, providing peace of mind during the application process. To qualify for the Believe secured card, users must actively utilize a Varo Bank Account, maintaining positive balances and receiving qualifying direct deposits of $500 or more. The credit limit is determined by the available balance in the Varo Believe Secured Account, with daily purchase limits of up to $2,500 and cash advance limits of up to $1,000, totaling no more than $10,000 per billing cycle. Varo reports payment history to the three major credit bureaus, allowing users to track their credit score's progress conveniently through the Varo mobile app.
Varo Debit Card
Varo Bank provides customers with a Visa debit card as part of its banking account, offering convenience and accessibility without imposing monthly fees or minimum balance requirements. As a member of the Allpoint network, Varo grants access to over 55,000 fee-free ATMs across the United States, Puerto Rico, Canada, Mexico, Australia, and the United Kingdom. Notably, Varo distinguishes itself by refraining from charging foreign transaction fees on ATM withdrawals or debit card purchases made abroad, though Visa determines the exchange rate for such transactions. This combination of features makes Varo's debit card an appealing choice for individuals seeking flexibility and cost-effective banking options domestically and internationally.
Varo Cash Advance
Varo Advance provides a convenient solution for unexpected expenses, offering users access to up to $500—a substantial advance amount compared to other options. What sets Varo Advance apart is its simplicity, affordability, and zero-interest policy, making it an attractive option for those in need of short-term financial assistance. Users can initiate the process by borrowing smaller amounts initially and gradually increasing their limit over time as needed. This flexibility empowers individuals to manage unforeseen circumstances effectively without incurring high fees or interest charges, demonstrating Varo's commitment to providing accessible and customer-centric financial solutions.
Coming Soon: Line of Credit
On its main page, Varo informs the audience that they will soon be able to borrow up to $2,000 using Varo's line of credit service.
Conditions and requirements
Conditions
- Cash Deposits via Third-Party Money Transfer Services. Up to $5.95 fee may be charged for cash deposits made through third-party money transfer services.
- Out-of-Network (Non-Allpoint) ATMs. A fee of $3 per transaction applies for ATM withdrawals made from out-of-network ATMs, excluding those within the Allpoint network.
- Account APY (Annual Percentage Yield). The account offers a baseline APY of 3.00% without charging a monthly fee. However, customers have the opportunity to earn up to 5.00% APY by meeting specific requirements each month.
- Cash Advances. Varo Bank offers cash advances of up to $500, providing customers with immediate access to funds for short-term financial needs.
Requirements
- Age Requirement. Applicants must be at least 18 years old to open an account with Varo Bank.
- Identification. A government-issued ID and Social Security number are necessary for the sign-up process.
- Access to Varo's Mobile App. Applicants must possess a device capable of accessing Varo's mobile app to manage their account.
Network of ATMs
Varo provides convenient access to cash through its extensive ATM network, boasting over 40,000+ Allpoint ATMs nationwide that offer surcharge-free withdrawals. However, for out-of-network ATM transactions, Varo imposes a $3 cash withdrawal fee. In addition to ATMs, Varo offers the option to deposit cash at more than 90,000 retail locations using Green Dot Reload. This combination of ATM accessibility and cash deposit options enhances Varo's accessibility and convenience for customers, ensuring that they can manage their finances effectively wherever they are.
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Editorial opinion
Additional Resources
- Varo Reviews
