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Varo Bank Review: A Smart Choice for Fee-Free Digital Banking?
By Ben Carter
8.6
Consumers Best Verdict: Varo Bank Highlights
Varo Bank is an all-digital bank offering checking and savings accounts with no monthly fees, early direct deposit, and a competitive APY on savings. It's designed for individuals comfortable managing their finances entirely through a mobile app.
Varo Bank excels for its straightforward, low-cost banking experience. The absence of monthly fees, access to early paychecks, and a high-yield savings option make it a compelling choice for many, particularly those looking to simplify their banking and save money. While it lacks physical branches, its robust digital platform and fee-free ATM network cater well to the modern consumer.
In-Depth Look: Varo Bank Features & Considerations
Core Features & Consumer Benefits
Varo Bank packs a punch with features designed to save you money and simplify your banking life.
No Monthly Fees or Minimum Balances
Enjoy fee-free banking without worrying about maintaining a minimum account balance on your Varo Bank Account or Savings Account.
Early Direct Deposit
Get paid up to two days earlier when you set up direct deposit to your Varo Bank Account.
High-Yield Savings Account
Grow your money faster with Varo's competitive Annual Percentage Yield (APY) on its Savings Account, especially when meeting qualifying conditions.
User-Friendly Mobile App
Manage your finances seamlessly on the go with Varo's intuitive and feature-rich mobile banking app, available for iOS and Android.
Fee-Free ATM Access
Access your cash without fees at over 55,000 Allpoint® ATMs located in retailers nationwide.
Important Considerations & Potential Downsides
- Digital-Only Banking
Varo Bank operates without physical branches, which may not suit individuals who prefer or require in-person banking services.
- Cash Deposit Limitations
Depositing cash can be inconvenient, typically requiring third-party services like Green Dot, which may charge a fee.
- Limited Product Range
While strong in core deposit accounts, Varo offers fewer products (like mortgages or auto loans) compared to traditional full-service banks.
- Customer Service Channels
Support is primarily available through the app, email, and phone during specified hours, lacking 24/7 phone support or in-person options.
Who Is the Varo Bank Best For?
Tech-savvy individuals who are comfortable managing all their banking needs through a mobile app.
Budget-conscious consumers looking to avoid common banking fees such as monthly maintenance, minimum balance, or overdraft fees (with Varo Advance qualification).
Employees or gig workers who value the convenience of receiving their paychecks up to two days earlier through direct deposit.
Savers seeking a competitive high-yield savings account to maximize their interest earnings on deposited funds.
Individuals who primarily use debit cards for purchases and ATMs for occasional cash withdrawals, rather than frequently depositing cash.
Who Might Want to Explore Other Options?
- Customers who prefer the option of in-person banking services for deposits, withdrawals, or customer support.
- Individuals who frequently need to deposit cash or require services like cashier's checks or money orders regularly.
- Those seeking a broader range of financial products from a single institution, such as mortgages, auto loans, or comprehensive investment services.
- Users who prioritize 24/7 phone support or believe their customer service needs are better met with face-to-face interaction.
Frequently Asked Questions
Make Your Savings Grow Faster.
UFB Direct, a division of Axos Bank, offers a high-yield savings account designed for individuals looking to maximize their interest earnings with minimal fees. It's an online-only option focused on providing competitive rates and a straightforward banking experience.
