💡 Quick Verdict
Varo is unique as an actual FDIC-insured bank (not just a fintech partnering with banks). This means direct protection for your deposits. The savings APY can reach 5% with qualifying activities. Banking features are solid but not exceptional compared to Chime's simplicity or SoFi's comprehensiveness.
✅ Pros
- Real FDIC-insured bank
- Up to 5% APY on savings
- No monthly fees
- Early direct deposit
- Varo Advance up to $250
- No minimum balance
❌ Cons
- 5% APY requires qualifying
- Limited ATM network
- No joint accounts
- Basic budgeting tools
- Cash deposits cost money
- Less feature-rich than SoFi
What is Varo?
Varo Bank became the first consumer fintech to receive a national bank charter in 2020. Unlike Chime or Cash App that partner with banks, Varo IS a bank, directly regulated and FDIC-insured. This provides stronger consumer protections and allows Varo to offer banking products directly.
Learn more about app safety in our Safe Finance Guide.
Real Bank
Direct FDIC insurance
High APY
Up to 5% on savings
Early Pay
2-day early deposit
Varo Advance
Up to $250 advance
Who Should Use Varo?
Varo is ideal for:
- Those who want a real bank (not fintech)
- People seeking high savings APY
- Anyone wanting FDIC protection clarity
- Those who qualify for 5% APY requirements
Varo might NOT be for you if:
- Those who can't meet 5% APY requirements
- People needing extensive ATM access
- Users wanting advanced budgeting
- Those who need joint accounts
Not sure if Varo is right for you? Take our quiz for a personalized recommendation.
Varo vs Competitors
Varo vs Chime
Chime: Chime is easier to use with more ATMs. Varo offers higher potential APY and is an actual bank.
Varo vs SoFi
SoFi: SoFi offers more features and consistent 4%+ APY. Varo's 5% requires meeting specific criteria.
Varo vs Ally Bank
Both are real banks. Ally has better traditional banking features; Varo is more mobile-focused.
❓ Frequently Asked Questions
Is Varo a real bank?
Yes! Varo Bank, N.A. is a nationally chartered, FDIC-insured bank—not a fintech company partnering with a bank.
How do I get 5% APY at Varo?
Receive $1,000+ in direct deposits monthly and make 5+ debit card purchases. Otherwise, APY is around 3%.
What is Varo Advance?
A fee-free cash advance up to $250. You need qualifying direct deposits and account history to access it.
Does Varo have fees?
No monthly fees, no minimum balance. Out-of-network ATM fees apply ($2.50) and cash deposits cost up to $4.95.
Can I deposit checks to Varo?
Yes, Varo offers mobile check deposit through the app.
Ready to Try Varo?
See if Varo is the right fit for your financial journey