Is Varo Legit & Worth It? – Our Honest Review

Varo is a popular digital banking solution that's known for its low fees and awesome savings tools. And it even has cash advances and early payday perks to help you access your money faster.

But is Varo legit? And how does this banking solution stack up against some of the competition?

Our Varo review is covering how it works, its pros and cons, and how to ultimately decide if Varo is right for you.

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Key Takeaways:

• Varo is an online bank that offers a variety of financial services
• The bank offers checking, high APY savings, cash advances, credit building and more
• You don't pay monthly account fees or overdraft fees
• Varo is FDIC insured, legit, and safe
• This is a reliable banking solution as long as you don't mind digital-only banking 

Is Varo Legit?

Varo is legit and provides low-fee banking solutions to customers and is FDIC insured. It's a real bank that has millions of customers. And it also has an A- rating with the Better Business Bureau, with 3.36 stars out of 5 stars.

If you want to ditch bank fees, Varo is a great choice. It's also popular for earning passive income through its high-yield saving account. And it also helps people access their cash faster with cash advances and early paydays.

If you need a physical bank address and don't enjoy mobile banking, Varo isn't for you. But its Android and iOS app are both highly rates, and reviewers state that the Varo is user-friendly and that their app is easy to use. 

What Is Varo & What Does It Offer?

Varo is a mobile bank that provides a no-fee checking account, high-yield savings account, and credit building product. The company began in 2015 and is based out of San Francisco and has since grown to millions of customers.

Varo is best known for its lack of fees and online checking accounts and high-yield savings accounts. And if you're the kind of person who doesn't need to bank in-person and likes mobile banking, Varo could be a great fit. It's also a good fit for those who are looking for a high APY to maximize their savings.

Let's explore each of Varo's main accounts and features so you decide if it's right for you.

1. Varo Checking Account

Varo Bank offers free checking accounts with no minimum balance required. It doesn't charge any monthly maintenance fees either and comes with a Varo debit card. Some of the main perks include: 

• No overdraft fees
• No transfer or foreign transaction fees
• No ATM fees at 40,000+ in-network ATMs ($2.50 for out of network) 
• No credit check requirement
• Early paycheck deposits up to two days earlier
• Basic budgeting tools

On top of that, Varo lets you easily send money to anyone else on Varo without paying fees. And your account also has FDIC-insurance of up to $250,000 in deposits.

We also like Varo's checking account since you can earn up to 6% cash back when you shop. This is a nice way to get paid for shopping, and the money deposits in your account whenever you earn just $5.

Again, Varo doesn't have physical branches. But you can easily manage your account from its mobile app or online.

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2. Varo High-Yield Savings Account

Varo's high-yield savings account pays you 3% APY to start. However, you can get boosted up to 5% APY on your first $5,000 in savings if you receive at least $1,000 in qualifying direct deposits per month.

You still earn 3% APY on funds above $5,000. But even earning 5% in autopilot cash on just $5,000 in a great move for an emergency fund or any extra cash you have.

Additionally, this account doesn't have any minimum balance requirement or monthly maintenance fees. And you can use the automatic round-up feature to save money after every single purchase.

3. Cash Advances

With Varo's cash advance, new members can borrow up to $250 against a future paycheck. You can then qualify for up to $500 in a cash advance over time the longer you're with Varo.

There's no interest on your advance or credit check. Varo doesn't ask for tips either. And you have up to 30 days to pay back your advance with your future paychecks.

A $500 limit is the same as apps like Dave. But you can use apps like EarnIn to get an even higher limit of up to $750 in a given pay period. Plus, EarnIn has way lower express deposit fees than Varo, which is why we recommend using EarnIn instead.

Also note that you need at least $800 in qualifying monthly direct deposits to qualify for a Varo cash advance.

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4. Credit Builder

Have bad credit or no credit? Varo Bank has a program for that too.

The Varo Believe Card can help customers get their credit on the right track with no minimum security deposit. Most users start to see results in as little as one month and the card has zero fees too.

To qualify, you need at least $200 or more in deposits within the past 31 days. You also need a positive balance and no overdue advances.

Companies like Current and Brigit also have credit building products, so it's nice to see that Varo is keeping up with the competition here.

Varo Cash Advance Requirements

A lot of users come to Varo because it offers cash advances, which is super helpful if you need quick money to pay rent or bills. However, there are some requirements to be aware of, including:

• Having an active Varo bank account in positive standing
• Having a balance that is at least $0
• Having at least $800 in qualified direct deposits in a one month period 

Users are typically first approved for a smaller amount between $20 and $250. If you repay your advance, you can gradually increase your limit.

If Varo doesn't work out for you or your limit is too low, we suggest trying similar apps like Cleo or Super.com which can both advance you up to $250.

Varo Fees & Pricing

One of the biggest perks of a Varo bank account is the lack of fees. Here's how the fees break down for different accounts and features:

• Monthly maintenance fees – $0
• Overdraft fees – $0 
• Checking account fees – $0
• Savings account fees – $0
• In-network ATM withdrawal fee – $0
• Out-of-network withdrawal fee – $3.50 
• Cash deposit fee (done at retailers) – $5.95

What Are The Best Alternatives To Varo?

There are numerous companies and apps like Varo you can turn to depending on your financial goals and which features you find most compelling. Here are some of our top picks:

• EarnIn
• Current
• SuperMoney
• MoneyLion
• Klover
• Chime
• Cleo
• Brigit

If you want an all-in-one digital banking solution that's also low fee like Varo, we suggest Current. It pays 4% APY on up to $6,000 in savings. And it also has cash advances and a nifty $50 bonus for new members right now.

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Pros & Cons

Pros:

• No minimum balance requirements
• No overdraft fees
• Earn up to 5% APY
• Large network of fee-free ATMs
• FDIC-insurance of up to $250,000 per account
• Perks like cash-back rewards and early paycheck deposits

Cons:

• No physical branches
• Limited customer service hours
• There's a fee for cash deposits
• You need to open a checking account to open a savings account
• You can only earn 5% APY on up to $5,000 in savings

Is Varo Safe?

Varo is safe, and your money is also FDIC insured. This protects your funds up to $250,000. Varo Money also has a national bank charter which means they are regulated just like traditional banks. The company also encrypts your data to keep your personal and financial information safe.

Is There Customer Service?

Need to contact Varo Bank? Call them at 1-877-377-8276 or email them at [email protected]. Customer service is also available via chat.

Varo customer support is available via chat Sunday through Saturday, 8 a.m. to 4:30 p.m. Mountain time. Varo phone customer support is available Monday through Friday 8 a.m. to 4:30 p.m. Mountain time.

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Who Can Sign Up?

Varo is available in all 50 states and Washington, D.C. to individuals who are 18 years of age or older. 

No minimum deposit is required to open a Varo account. But you need to be 18 or older and also need a Social Security number and government-issued identification.

Is Varo Worth It?

Varo is worth it if you want a low-fee digital banking solution that makes it easy to access your money sooner. And it's also worth it if you're looking for a competitive savings account on a smaller cash balance or want to use its cash advance feature.

In contrast, Varo isn't worth it if you need to bank in person. It's also not worth using if you can't qualify for the 5% APY savings rate or have more than $5,000 in savings. And when it comes to cash advances, we think solutions like EarnIn or Super.com are better options.

Hopefully, this Varo bank review helps you decide if it's right for you!

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