Varo Overview

Varo is an online bank offering a checking account packed with features to simplify your banking experience.

It has no minimum opening deposit requirements and doesn’t charge monthly, overdraft, or in-network ATM fees. Additionally, it lets you receive your paycheck up to 2 days early and comes with a free debit card offering up to 6% cash back at select brands.

Pros and Cons

Varo Bank at a Glance

Suitable For?

Varo’s checking account, simply known as the Varo Bank Account, is perfect for individuals who prefer managing their finances online.

It offers a fully digital banking experience, allowing you to access your account and perform a wide range of transactions anytime, anywhere, using your smartphone or computer. There's no need to visit a physical branch, wait in line, or abide by traditional banking hours.

The absence of fees and account minimums also makes it an excellent choice for budget-conscious customers, as well as younger people who might not have a regular income to maintain an account minimum.

Features/Highlights

Advantages over traditional banks

Varo eliminates many common fees associated with traditional banks, such as monthly maintenance, ATM withdrawal, and overdraft fees. Additionally, there are no minimum opening deposit or balance requirements.

Your account also comes with a complimentary debit card providing up to 6% cash back when you spend at select brands. This is a unique perk you’ll unlikely find at a traditional bank.

Cutting-edge banking services

Varo offers various cutting-edge banking services through its online and mobile platforms. Here are some of the banking tasks you can easily do on the 2 platforms:

• Keep track of your account balances
• Send and receive payments instantly with the Zelle digital payments network
• Link external bank accounts
• Monitor your credit score
• Set up alerts to stay informed about account activities
• Deposit checks
• Contact customer support
• Manage your Varo cards, including adding them to your digital wallet
• Set up automatic savings features

Traditional banking services

Despite being an online-only bank, Varo allows you to deposit cash through participating Green Dot retailers like CVS, 7-Eleven, and Walgreens. However, you’ll have to pay a fee for this service, and you can only deposit a maximum of $1,000 daily.

Fund availability depends on the type and timing of the deposit. Electronic payments may be available right away, while mobile check deposits typically take up to 2 business days to clear. Varo will notify you if it needs to hold your funds for longer than usual.

Generally, all funds are available for withdrawal no later than the 9th business day.

Varo is a member of the Allpoint ATM network, which comprises 55,000+ fee-free machines worldwide

Other than the checking account, Varo also has a couple of other traditional banking products. This includes a savings account offering an annual percentage yield (APY) of up to 5%, which is one of the highest rates in the market.

The bank’s other major product is the Varo Believe Card, a credit-building card. It’s designed for people who want to build a credit profile, or those with poor credit scores looking to improve them.

According to Varo, more than 90% of users who had no credit score before using the card have one after just 1 month. Meanwhile, those with existing scores see an average increase of 42 points after 3 months of timely payments.

If you’re running low on funds, you can qualify for a cash advance of up to $500, depending on your banking history.

Interest Rates and Fees

The Varo Bank Account has no monthly or overdraft fees. There are also no fees for using in-network ATMs, but withdrawing from an out-of-network machine costs $3. Additionally, if you deposit cash at a Green Dot retailer, you may also have to pay a 3rd-party fee of up to $5.95.

Customer Service and Online Experience

Varo offers phone support Monday-Friday and in-app chat Monday-Sunday from 8am to 4.30pm MT (except on Thanksgiving, Christmas, and New Year’s Day). However, phone support is limited to 3 items:

• Disputing a transaction
• Account login problems
• Adding your Varo card to a digital wallet

For other issues, you can use the in-app chat support option or submit an online ticket.

In addition, Varo’s website features a wealth of useful support resources. This includes FAQs and guides and tutorials on the bank’s products and services. There are also blog articles on a wide range of financial topics, like budgeting and debt management.

The bank’s online platform is quite easy to use, and signing up takes less than 5 minutes. However, reviews about the quality of customer service are mixed—on Trustpilot, Varo has a rating of just 2 stars out of 5. A common complaint is that the bank directs most customer inquiries to chat support, where they, unfortunately often have to wait a long time for help.

Mobile app

Varo offers a user-friendly mobile app for managing your money on the go. The app is available for iOS and Android devices. Both versions boast impressive ratings, averaging 4.9 and 4.7 stars out of 5 on their respective app stores.

The Varo app offers a powerful suite of banking features and services, including account balance monitoring, mobile check deposits, and instant cash transfers.

Security

Varo is a member of the Federal Deposit Insurance Corporation (FDIC). That means your deposits are protected up to at least $250,000 in the unlikely event of the bank’s failure.

The bank uses 256-bit AES-level encryption to safeguard your data from unauthorized access during transmission to and from its servers—the same level of encryption used by the United States government to protect classified information. Varo also offers secure login options, including 2-factor authentication and biometrics.

Furthermore, the bank lets you set real-time alerts for account activities like transactions and deposits. These instant notifications can help you quickly detect suspicious activity and take action if needed.

If you suspect fraud, contact Varo's responsive fraud team via email at identity@varomoney.com. The team will investigate the issue promptly.

Finally, Varo's website provides a detailed privacy policy that outlines the information it collects from you and how it uses and shares it.

Application Process

To be eligible for a Varo account, you must be at least 18 years old and a US citizen (or permanent resident). Opening an account is a breeze. Here’s what you need to do.

• Go to the Varo Bank website or download the Varo mobile app.
• Click on the "Get Started" button on the website or “Sign up” on the mobile app.
• Provide your email address, your phone number, and a secure password to set up a profile.
• Follow the on-screen prompts to complete your application.

As part of the process, Varo might ask you to verify your identity by providing the following:

• A valid ID, e.g., your passport, state ID, driver's license, or military ID.
• Your Social Security number
• Your mailing address
• A selfie

Having this information on hand can speed up the process. Varo says it can take up to 3 business days to receive a final decision on your application. However, many users get a response sooner.

Varo Summary

If you’re looking for a convenient and affordable digital banking solution, Varo is worth considering. It only takes a few minutes to sign up, and there’s no minimum opening deposit requirement. What’s more, the bank doesn’t change any fees—plus you can make free ATM withdrawals at 55,000+ machines worldwide. Other standout perks include early paycheck access, a free debit card, and up to 6% cash back on purchases at select merchants.

Physical Address

222 Kearny Street

9th Floor

San Francisco, CA 94108

USA

Disclaimer

This Varo Bank, N.A. User Agreement ("Agreement") governs any access to, interaction with or use of the websites, mobile applications and/or technology platform (collectively "Varo Applications") offered, operated or made available by Varo Bank, N.A. ("Varo", "we" or "us"), together with Varo's associated service to monitor individuals' banking, lending and related financial transactions in order to provide useful guidance, advice and management tools (such Varo Applications, and services, together with any associated social media channels of Varo, collectively, the "Varo Services"). This Agreement applies when the individual or entity ("you" or "your") is accessing, interacting with, signing up for or using any of the Varo Services and is binding as of the first date you access, use, interact with or sign up for any Varo Services. If you are using a Varo Service that involves the collection and analysis of your financial transaction data, this Agreement governs your consent for Varo to collect and use such data. Other aspects of the Varo Services may be covered by other terms, conditions and agreements with Varo. This Agreement is subject to modification from time to time as described below. You will be provided notice via email at the email address you provide Varo or via in application messaging or push notifications through the mobile phone when modifications are made, and you can review the most current version at any time at: https://www.varomoney.com/policies. By accessing and/or using the Varo Services or, if applicable, providing access to your financial transactions data, you accept and agree to be bound by, and become a party to, the terms and provisions of this Agreement. If you do not agree to the terms and conditions of this Agreement or if you are not authorized to enter into or be bound by this Agreement (refer to section I, paragraph C for further details), then do not access, interact with, download or use or sign up for any Varo Services or provide us with any access to your financial transaction data