In Varo, the best returns are reserved for those who can meet strict criteria. The Varo Bank Account and the Varo Savings Account are the two types of accounts offered by Varo, an internet-based bank. Because of the high APY (annual percentage yield) for the savings account, Varo is a fantastic option for people who want to retain their savings and checking accounts with one bank.
It’s possible to achieve the best stated APY if your funds are under $10,000, but there are a few conditions that must be met. When saving a lot of money, you may want to look into banks that don’t place a limit on the amount of money you may get the greatest interest rate on. You may be better off opening an account like this if you’re just getting started with saving.
We hope our analysis of Varo Bank’s savings accounts will help you determine if it’s the best option for you or if you should seek elsewhere.
Varo Savings Account Basics
- APY. 0.50 percent when you start the account, and 3.00 percent if you satisfy specific requirements (as of Dec. 1, 2021)
- The APY’s minimum and maximum balances are shown below. The APY of 3.00% does not have a minimum balance requirement, however, the maximum amount is $5,000.
- The account opening requires a minimum of $100. There are no monthly costs for service. ATMs are not accessible. Your Varo Bank Account, which offers free ATM withdrawals at over 55,000 Allpoint ATMs each month, can only be opened when you transfer cash to your Varo Bank Account.
- The FDIC insures up to six withdrawals every statement cycle. Yes
We prefer the Varo Savings Account for these reasons
- There’s no requirement to have a specific amount on your account. To start a Varo Savings Account or to obtain the highest APY, no minimum amount is required.
A fantastic rate of interest. Varo’s APY is among the best in the industry.
- Furthermore, even those who are not eligible will still be rewarded with an annual percentage yield (APY) that is comparable to many other online savings accounts that provide significant APY. In the following part, we’ll explain how to qualify for the higher APY.
- Automated saving is possible. Automatic transfers of funds from your Varo Bank Account (also known as a “checkless checking” account) to your Varo Savings Account can be set up in two ways. You may save your change by rounding up all of your Varo Bank Account transactions to the nearest even dollar amount and then transferring the change to a savings account. “Save Your Pay” allows you to save a portion of each direct payment into your Varo Bank Account. Also options are free, and they both make it easy to save money away for the future, which is quite essential when it comes to saving.
- It’s simple to fund your Varo accounts. Transfers from your Varo Bank Account, transfers from another financial institution, direct deposits, mobile check deposits made using the Varo app, and automatic saves are all options for funding your Varo Savings Account, which you can access through the Varo app. There is no daily or maximum dollar amount that may be sent to your savings account from either your Varo or an outside bank account.
Improvements that might be made to the Varo Savings Account
- Opening a savings account isn’t sufficient in and of itself. To open a Varo Savings Account, you must first open a Varo Bank Account (a checking account). You’ll also have to withdraw money from your Varo Bank account. The money in your Varo Savings account cannot be transferred or accessed at an ATM. Before making a cash withdrawal, you must first make a transfer from your savings account to your checking account.
- Varo’s interest rates aren’t ideal for big savers. You are no longer eligible for the APY of 3% if you have more than $5,000 in your account (as of Dec. 1, 2021). When it comes to substantial quantities of money, the 0.50 percent annual percentage yield (effective on December 1, 2021) represents a significant reduction.
- To achieve the greatest interest rate, you’ll need to meet extra conditions. With an APY of 3.00 percent (as of Dec. 1, 2021), accounts valued at $10,000 or less can take advantage of Varo’s APY. Your company or the government must deposit at least $1,000 each month into your Varo Bank Account, and you must make at least five debit card purchases each month with the Varo Visa debit card associated with your account.
Compare the Varo Savings Account to a typical savings account in terms of profits.
Savings with Varo earn a 3.0% annual percentage yield (as of December 1, 2021)—significantly more than with standard savings accounts. Although standard bank accounts yield just 0.06 percent interest, according to the FDIC (Federal Deposit Insurance Corporation) (as of Dec. 1, 2021).
How to open a Varo Savings Account
It’s simple to open a Varo Savings Account. Begin by clicking “Get Started” on the Varo website. Varo will send a six-digit verification number to your email address when you give an email address and password. For verification, you’ll need your Social Security number, as well as a few other pieces of basic personal information. There is no credit check and applying will not damage your credit.
A Varo Savings Account and a Varo Bank Account are required in order to use the savings alternatives provided by Varo. A Varo banking app is required for both iOS and Android users to open, fund, and utilize an account.
You may fund your Varo Bank and Varo Savings accounts in a variety of ways once they’ve been opened.
- Using an outside banking institution’s ACH transfer to transfer money
- Depositing checks using your mobile app or sending a physical check is both convenient and secure.
- Taking money out of your Varo Bank Account and depositing it into your Varo Savings Account
- Creating a direct deposit account
- Varo doesn’t charge a fee for this service, but the Green Dot establishment participating in it may charge you up to $4.95 depending on how you deposit the cash.
How to withdraw money from your Varo Savings Account
Varo Savings Account monies can be withdrawn only if they are transferred to your Varo Bank Account. Your account may be accessed by using an ATM or debit card, issuing checks using the Varo app, or transferring funds to another financial institution once you’ve done this.
Varo customer service
Account-holders can contact Varo’s customer support department by phone or email. Varo may be contacted at the following address:
- [email protected]
There is no online chat, and there are no branches in your area. Because your online browser’s functionality is restricted, you’ll have to utilize the mobile banking app to get full access to your account(s).