Varo Bank Review 202: Should You Consider It
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Varo Banking Review
You might say that for a bank that entered the banking arena about five years ago, Varo Banking has accomplished a great deal in terms of reach and popularity.
Positioning itself as a mobile-only banking service, Varo entered the banking industry with an aggressive marketing thrust that countered traditional bank offerings. For starters, they dont charge a minimum balance fee nor an overdraft fee.
Then, Varo threw in a bunch of other innovative offers such as higher-than-industry-average APY for a qualified savings account. On the other hand, Varo has a limited banking product line. Rather than trying to emulate a conventional high street bank, Varos aim is to help its customers rebuild or build credit. So, its products are tailored to this purpose.
Varo Banking can be a perfect fit if:
- You like the idea of a checking account working seamlessly with your savings account
- You want a secured credit card
- You want help to build or rebuild your credit
Varo Will Continue To Rely More On Interchange Income Than Interest Income Which Allows It To Develop Lower
However, building out that lending and credit portfolio will be a big part of Varos strategy for the next couple of years. It started in 2020 with small-dollar access through Varo Advance, which offers customers up to $100 for a small fee of between $3 and $5. And, as mentioned, the company is preparing to launch a secured credit card to be called Varo Believe
Varo is now also looking at other lending products with larger amounts and a longer tail to help customers move up the wealth ladder, says Girling. Even as Varo strives to attract new customers from broader demographics, it will also focus on offering products to existing customers as they move up to higher credit scores and better management of their own money. We dont want people to graduate out of Varo, Girling states. We want them to grow up with Varo so that we continue to offer them what theyre looking for.
Essential to that plan is offering these customers a more holistic view of their financial worlds, so everything they need to manage their money is within Varo. And because Varo wants to build products in a manner that promotes financial fairness, it is helpful that most of the revenue base comes from interchange fees. It allows us to develop lending products that dont have to be the main driver of our income, says Girling.
This article was originally published on November 30, 2021. All content © 2022 by The Financial Brand and may not be reproduced by any means without permission.
Which Is Better Chime Or Varo
Theres some savage contest in the online-just bank stakes concerning loan costs, low expenses, and simple admittance to reserves. Whether Varo is superior to Chime, for example, it relies upon what you want for your deposit cash. Varo account could be better in case youre searching for a high return of 0.50 APY.
If you satisfy monthly standards, you can get a pace of 3.00% contrasted with the 0.50% that Chime offers for its reserve funds account. The toll can be a decent decision if youre keen on a clients cordial financial experience. Both are online fee-free banks with checking and savings account options and no monthly fees.
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Is Varo Fdic Insured
The Bancorp Bank is the provider of the account services that may be accessed through Varo. Bancorp provides you with FDIC protection on your savings, up to a maximum of $250,000. On the other hand, Varo does not provide services that are typically provided by banks, such as certificates of deposit or money market accounts.
Other Accounts And Services
Varo Bank is in the process of adding to its core services of checking and savings accounts. One such benefit is the Varo Advance program, which gives you a small financial cushion to help you avoid overdrawing your account. And, while its still marked as coming soon at the Varo Bank website, Varo Believe will offer a special program to help Varo customers build their credit.
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What Bank Does Varo Go Through
Varo is able to keep its own deposits when operating as Varo Bank N.A. however, from 2017 to 2019, this responsibility was handled by The Bancorp Bank. Is Varo covered by the FDIC? The FDIC does in fact guarantee Varo Bank N.A. .
At the moment, Varo is responsible for the front end of clients banking services nevertheless, The Bancorp Bank is the institution that really holds customers accounts.
How Much Money Can I Have In My Varo Account
What is the maximum amount of cash that I may put into my account? You are permitted to make deposits of up to $1,000 every day and up to $5,000 per month total. However, there is a possibility that some Green Dot outlets will impose their own restrictions on the frequency and amount of cash that can be deposited into your Varo Bank Account.
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Who Should Join Varo
Varo is better than Chime if:
- You want to build an emergency fund. Varos Save Your Pay rule lets you set aside any percentage of your paychecks you want, so you can set it above Chimes 10% Save When You Get Paid rule to help you reach your savings goals faster.
- You want to make the most of your savings. Varo offers six times Chimes interest rate on savings for qualifying account holders, though the rate comes with balance requirements.
- You live in the Mountain states. Although services in general tend to be limited in this region, Allpoints ATM network has a little more coverage than both MoneyPass and Visa Plus Alliance in Montana, Idaho, Wyoming, Colorado, Utah and Nevada.
What Is Varo Financial Institution
- The Varo Bank app is a mobile-only bank account that was developed using industry-leading technologies to assist users in reaching their financial goals.
- Customers of Varo Bank may take use of the following benefits, in addition to the banks user-friendly interface and design: Banking that is both secure and branchless Deposits made in advance through direct deposit* There are no monthly bank fees.
How Do I Open An Account With Varo
There are two kinds of accounts you can open with Varo: The Varo Bank Account and the Varo Savings Account. The first is a basic checking account. The second is a high-yield saving account.
Then tap Sign Up and enter your info.
The set-up process if fairly routine. Youll enter your email and create a password. A six-digit verification code will then be sent to your email.
Next youll begin the bank account application in earnest. Youll need to enter the following information:
- First name
Youll also be asked to estimate your expected number of ACH transfers per month and expected ATM withdrawals per month.
If you run into any problems along the way, you can either drop Varo an email at or call their U.S.-based customer service number at 1-800-827-6526.
Charter Struggle Added Key Skills And Systems
Many fintech executives come from tech backgrounds and shy away from the regulatory environment. Much of Varos team, by contrast including both Walsh and Girling comes from the banking sector. As a result they leaned headfirst into the regulatory challenge because they understood that regulations are there for a reason, Girling tells The Financial Brand.
Regs are there to protect the consumer, protect the bank and protect the integrity of the financial services system, she says. Before landing at Varo in 2019, Girling served in a similar capacity at Investors Bank and Capital One.
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Varo Bank Pros And Cons
The foremost thing is the yearly yield rate on Varo investment that’s reliable at 0.40%. Furthermore, the extra measures it includes are reliable, and you can acquire as much as 2.80% APY.
No-monthly-fee checking and savings accounts
Varo includes no monthly fee for a savings account and checking account. YES! You won’t pay any additional charges for the Varo savings account or any deposit cash fees. Moreover, it has no minimum balance requirement and overdraft fees.
The plus point is that it will not cost you any in-network ATM fees or no debit card replacement fees, transfer fees, and no foreign transaction fees. Isn’t that amazing? You can avoid the out-of-network ATM fees through the 55,000 in-network Allpoint ATMs. Therefore, it’s one of the best online savings account available within the bank or credit union. No- or low-fee cash advance
Varo bank ensures almost $100 as an advance for people who passed the qualifying period. The $20 advance is fee-free, but the betterment of the above can have fees between $3 to $5. You have to pass the qualifying period to avail of the Varo advance program by getting a direct deposit of $1000 monthly or making five debit card transactions.
How Can I Save More Money With A Varo Bank Account
Mobile banks often have strong savings rates due to their low costs of operation, and Varo is no exception. The bank offers a top-tier 0.50% savings APY that doesn’t require any hoops to jump through, though you can earn a 3.00% rate after meeting certain requirements. Beyond this, you can structure your account to automatically save money for you with Varos Save Your Pay and Save Your Change features.
Even responsible banking customers can run into the occasional fee. However, Varo offers no monthly fees, no foreign transaction fees, no overdraft fees and more. In fact, one of the only times you may encounter a fee is when you deposit cash at a Green Dot® retail location, such as CVS or Walgreens. In this scenario, a fee of up to $5.95 could be charged, not by Varo, but by a third-party like Green Dot®. The benefits of this system are clear, as it essentially ensures that your money will stay in your pocket for good.
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How Do I Access My Money
Every Varo Bank customer is handed a Varo Visa® debit card that can be used exactly like a credit card. Varo will supply you with a PIN code so you can safely use your card for any type of purchase. If you so desire, these debit cards can be added to Apple Pay, Google Pay and Samsung Pay virtual wallets. Should you lose your Varo Visa®, dont fret, as you can lock it from the app and Varo will replace your card free of charge.
Allpoint®s extensive network of 55,000 ATMs lets Varo customers get their hands on cash whenever they need it, for free. The ATM locator in Varos mobile app will help you find machines in your area. You can request paper checks right through your app as well. Simply enter the recipients name and address and itll arrive in the next three to nine business days.
How Is Varo Regulated
Varo has notably become the first consumer fintech in US history to become a national bank. Varo Money has announced that it was granted a national bank charter on July 31st, 2020.
What does all this mean for you? Should you care about Varo becoming a full-fledged bank?
Well, if you have an account with them or if you want to become their customer, Varo becoming a bank is good news. They can now offer more services that target a broader set of customer needs. Think credit cards, loans, , and savings products.
Varo Money used to provide customers banking services, and all accounts were being held by The Bancorp Bank. Now thats all in the hands of Varo Bank. The banking license also means that the company has to move more than 2 million accounts to Varo Bank in a phased process.
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Varo Bank Review: Is It Legit
Varo Bank is a fairly recent addition to the long list of online, app-based banks. If youre thinking of opening an account, you probably have questions. Find out if Varo Bank is legit and what features it offers in this in-depth Varo Bank review.
Varo Bank is an online bank that lets you manage your money without brick-and-mortar branches.
Accounts are mostly app-based using the mobile app for Android and Apple devices.
Varo customers can access all of their account features on the go using the app.
Get up to $500* and build your credit.
How Much Does It Cost To Withdraw Money From Varo
Withdrawing cash from an ATM that is not part of the Allpoint® network will cost you a fee of $2.50 if you use Varo. Accounts at Varo Bank are offered by Varo Bank, and deposits made at Varo Bank, N.A., a member of the FDIC, are eligible for FDIC insurance of up to $250,000 per depositor.
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When Varo Bank Wins
On the other hand, Varo has a limited banking product line. Rather than trying to emulate a conventional high street bank, Varos aim is to help its customers rebuild or build credit. So, its products are tailored to this purpose.
There is one savings account, one basic checking account and a credit card. Some customers may also qualify for a fee free cash advance of up to $100 . This makes Varo a good option for those who want to concentrate on credit building.
Varo bank can be a better choice than SoFi Money if:
You want a secured credit card
You like the idea of a checking account working seamlessly with your savings account
You want help to build or rebuild your credit
Varo Money Strikes Marketing Partnership With Iheartmedia
Fast-growing mobile-banking service kicks off national media campaign
in cities across the country.
Mobile banking company Varo Money, Inc. today announced a multimillion dollar marketing partnership with iHeartMedia, the number one audio company in America. Under the agreement, Varo will launch an extensive three-year campaign across iHeartMedias multi-platform audio network, including its broadcast radio, digital, podcast, social, and live events platforms. The deal helps build further awareness of Varo as one of the most-loved challenger banking companies in the United States and will kick off with a seven-week campaign that spans the largest radio metros in the country, including radio talent out of Atlanta, Chicago, Houston, Dallas, Miami, San Francisco, Phoenix, Las Vegas, Los Angeles, and New York.
Varo, whose mission is to help every person feel better about their money and improve their financial health, has nearly one million bank account customers and has seen double-digit growth since the launch of its No Fee Overdraft initiative in August 2019. The first service of its kind, Varo customers can overdraft their bank account balance up to $50 with no fee and no interest when they meet certain eligibility requirements,* offering greater flexibility for paying bills in between paychecks. Incumbent financial institutions charged $34.5 billion in overdraft fees in 2018, and the vast majority of overdraft fee revenue came from customers who could least afford it.
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Varo Bank Checking Account
The best feature of the Varo Bank Checking Account is that it has no hidden fees. The bank account does not charge any monthly maintenance fees, and you dont need to keep any minimum balance in your account. It does not charge transfer or foreign transaction fees either.
The checking account comes with a Varo Debit card that you can use for online or retail purchases. If you have up to $50 overdraft, Varo will not charge overdraft fees as long as you enroll in the No Fee Overdraft feature through Varo Bank mobile app. And you have 30 days to pay the amount back.
To summarize, the benefits of opening a Varo Bank Account are:
- A free checking account with no hidden fees.
- No monthly maintenance fees or minimum balance fees.
- No transfer or foreign transaction fees.
- No overdraft fees up to $50 for 30 calendar days.
- Access to 55,000 Allpoint ATMs to withdraw cash for free.
- Free Visa debit card to make retail or online debit card purchases.
How Do I Make A Deposit If There Are No Physical Banks Near Me
Thanks to modern technology and a bunch of great partners, you can make the same deposit transactions you would at a traditional bank through AllPoint ATMs, Green Dot retailers, and the mobile app. Here are a few ways you can deposit your money with Varo anytime, anywhere:
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Who Should Join Either Bank
You might prefer either account over traditional banks if:
- You prefer the easy access and mobility of online banking.
- You regularly run your account balance close to $0 or live paycheck to paycheck.
- Youre often paid through direct deposit you could benefit from an early payday!
- Youre often paid in cash but want an online bank account.
- You want an easy way to save money automatically.
- You want a flexible and secure way to build credit without the risk of accruing debt.
A traditional bank or credit union is probably a better fit if you want to manage your checking, savings, loans, credit cards and investment accounts all in one place.