Direct FDIC Insurance with Extra Perks
Online banking
- Has its own FDIC insurance (no partner bank)
- Very few fees compared to other banks
- Two ways to automate savings
- Extra perks include early direct deposits, cashback debit card and cash advances
- No physical branches
- Some features require direct deposit eligibility
- Basic budgeting tools may not be enough
| Products offered | Checking, savings, secured credit card, cash advance, line of credit, cashback debit card |
| Monthly fees | None |
| Savings annual percentage yield (APY) | Up to 5.00% |
| ATM network | 40,000+ (Allpoint) |
Varo is a mobile-only bank that offers a rare combo in the digital banking world: full FDIC insurance, zero hidden fees, and a suite of money tools designed to help you get ahead. From early direct deposit and cashback perks to a high-yield savings account and a secured credit card, Varo packs a lot into a single app.
Varo is one of the only fintechs with a national bank charter—meaning your money is insured directly through Varo, not some third-party partner. If you’re paid by direct deposit, want to avoid fees, or need short-term tools like cash advances and credit-building, Varo might be the bank for you.
Here’s what Varo offers, how it works, and how it compares to other mobile banks.
Table of Contents
What is Varo Bank?
Varo is a mobile-only bank, and not just in name. It was the first fintech to receive a national bank charter in the U.S., which means it’s a fully licensed bank, not just a tech company partnering with one. That’s a big deal if you care about where your money is actually being held and insured.
Unlike many money apps that park your cash with a third-party bank, Varo holds your deposits directly and insures them up to $250,000 through the FDIC. So yes, it’s legit.
Varo focuses on affordable, accessible banking. That includes a free checking account, a high-yield savings account, short-term cash advances, and a secured credit card to help you build credit without getting buried in interest or hidden fees.
Varo Bank’s products and services
Varo keeps things simple, but not basic. You’ll find all the core features of a traditional bank, plus some extras that make managing money a little easier.
Varo Bank Account
This is Varo’s version of a checking account, and it’s refreshingly fee-free. No monthly charges, no minimum balance, and no overdraft fees. (In many cases, any purchase that would bring your balance below $0 is declined. If your balance is negative, though, Varo still won’t charge a fee.)
You get access to more than 40,000 free Allpoint ATMs, mobile check deposit, ACH transfers, and compatibility with Apple Pay and Google Pay. The app also includes real-time alerts and spending insights to help you stay on track.
You can deposit cash into your Varo Bank account for free at CVS through the Green Dot Network.
Varo Savings Account
You’ll earn 2.50% APY from day one with Varo’s Savings Account. Plus, you’ll have the potential to boost to a 5.00% APY on balances up to $5,000 if you meet a few monthly requirements (like $1,000 in direct deposits and a positive balance). There are no fees or balance requirements, and you can automate saving with:
- Save Your Pay: Automatically move a percentage of each paycheck into savings.
- Save Your Change: Round up your debit card purchases and stash the difference.
Varo Advance
Need quick cash? Varo Advance lets eligible users borrow $20 to $250 instantly with a flat fee. There’s no interest or tipping. You get up to 30 days to repay, not just until your next paycheck, and you can choose your own due date.
To qualify, you’ll need at least $800 in direct deposits in the current or previous month, a Varo Bank Account in good standing, and no overdue Varo Advance balances. The more you bank with Varo, the higher your limit can grow—up to $500 over time.
Here’s what you’ll pay to borrow:
| Advance amount | Flat fee |
| $20 | $1.60 |
| $50 | $4.00 |
| $100 | $8.00 |
| $200 | $16.00 |
| $250 | $20.00 |
| $500 (over time) | $40.00 |
Varo Personal Line of Credit
Need to borrow more than $500? Varo’s personal line of credit might be a better fit than Varo Advance. You can borrow between $600 and $2,000, based on your credit and account activity. There’s no interest (just a one-time flat fee), and repayment happens in equal monthly installments (up to 12 months).
Here’s a sample of how it breaks down:
| Amount | Repayment term | Flat fee | Monthly payment |
| $600 | 3 months | $60 | $220 |
| $1,000 | 6 months | $152 | $192 |
| $2,000 | 12 months | $400 | $200 |
To qualify, Varo considers your direct deposits, payment history, and account health. You’ll start with a soft credit check. There’s only a hard pull if you move forward with an application.
Varo Believe Credit-Builder Card
This no-fee credit builder card doesn’t require a credit check or minimum security deposit. Instead, you transfer money from your Varo Bank Account into a special secured account, which becomes your spending limit.
Purchases are paid off automatically each month, and payment activity is reported to all three major credit bureaus (TransUnion, Equifax, and Experian). Unlike with other secured credit cards, the Varo Believe card has a 0% APR, so you won’t pay any interest as you build your score. There are also no annual fees.
On average, users see a 40-point credit score boost after three months of on-time payments. Of customers with no credit score, about 90% had a score within a month of opening a Varo credit-builder card.
All you need to qualify is a Varo Bank Account with a positive balance and at least $200 in deposits within the last 31 days.
Pros and cons of Varo Bank
Here’s a quick breakdown of what Varo does well—and where it might fall short.
Pros
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FDIC-insured full-service bank
Varo is a nationally chartered bank—not just a fintech using a partner institution.
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Fee-free structure
No monthly fees, overdraft fees, or minimum balance requirements.
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Useful savings automation
“Save Your Pay” and “Save Your Change” make it easy to build savings without thinking about it.
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Early direct deposit
Get paid up to two days early when you set up direct deposit.
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Cashback offers via debit card
Earn up to 6% automatic cash back at 10,000+ partner merchants. No opt-ins are required.
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Credit-building and cash advance tools
Varo Believe and Varo Advance are designed to help with credit and cash flow.
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Real-time transaction alerts and freeze/unfreeze controls
Stay in control with app-based alerts and the ability to pause your card instantly.
Cons
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No physical branches or cash deposits at banks
You’ll need to use mobile check deposit or visit a CVS to deposit cash.
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Some features require direct deposit eligibility
You won’t unlock certain tools like a cash advance, line of credit, secured credit card, or 5% APY on savings unless you meet monthly deposit thresholds.
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Basic budgeting tools
Varo’s built-in insights can be helpful for everyday tracking, but serious budgeters might still prefer using one of these budgeting apps for deeper planning and goal setting.
How Varo compares to other mobile banks
Varo isn’t the only digital bank out there, but it does stand out in a few key ways. Here’s how it stacks up next to other popular players:
| Feature | Varo | Chime | SoFi |
| FDIC insurance | Direct | Through partner bank | Direct |
| Checking account fees | $0 | $0 | $0 |
| Savings APY | Up to 5.00%* | Up to 3.75%* | Up to 3.80%* |
| Overdraft coverage | Yes; declines charges that bring balance below $0 | Yes; up to $200 with SpotMe | Yes; up to $50 (with eligibility) |
| Cash advances | Up to $500 over time | Yes; up to $200 via SpotMe | No |
| Credit builder card | Yes | Yes | No |
| Cashback rewards debit card | Yes | No | No |
| Physical branches | No | No | No |
| Cash deposits | Yes (free) | Yes (fees may apply) | Yes (fees may apply) |
*as of June 2025
Who Varo is best for
Varo could be a great fit for:
- Teens and young adults getting started: With no fees, no credit check, and tools that teach healthy money habits, Varo makes a solid first bank for students and Gen Z users.
- People paid by direct deposit: You’ll unlock early paydays, high-yield savings, and access to cash advances with regular income deposits.
- Those building or rebuilding credit: The Varo Believe card is ideal for credit beginners. It lets you build a score without interest, fees, or the risk of overspending.
- Anyone tired of bank fees: No minimums, no monthly charges, no overdraft fees. Varo keeps things transparent and wallet-friendly.
- Mobile-first users who don’t need branches: Everything from account setup to money transfers happens in the app. And you can still deposit cash for free at stand-alone CVS locations.
Is Varo legit?
Yes, Varo is a real bank. It has its own banking charter and is FDIC-insured up to $250,000 per account type, per depositer. If you’re curious how it compares to other options, check out our list of personal finance companies for side-by-side reviews.
FAQs
Is Varo a real bank?
Yes. Varo isn’t just a money app—it’s a nationally chartered bank regulated by the Office of the Comptroller of the Currency (OCC). Your deposits are FDIC-insured up to $250,000, directly through Varo.
What bank does Varo use?
None. Unlike many fintechs, Varo doesn’t rely on a partner bank. It holds and insures your money itself.
Is Varo Bank FDIC insured?
Yes. Varo is a direct FDIC member, which means your deposits are insured up to $250,000 without going through a third-party institution.
How does Varo Bank work?
You open an account through the Varo app, then manage everything digitally all from your phone, including spending, saving, borrowing, and credit-building. There are no hidden fees, and key features like early direct deposit, cash advances, and a secured credit card can help improve your cash flow and financial health.
How do I get money from Varo?
You can withdraw cash at over 40,000 Allpoint ATMs for free. You can also send money to others instantly (similar to how you would with Zelle or Venmo) with Varo to Anyone. You can also transfer funds to external accounts, get cash from an ATM, or pay with your Varo debit card. Varo Bank Accounts do not come with physical checks.
Does Varo work with Zelle or Venmo?
Varo doesn’t currently support Zelle. But you can link your Varo debit card or account and routing number to apps like Venmo, PayPal, and Cash App to send and receive money. You can also use Varo To Anyone to send money to any person or business no matter where they bank.
Can I deposit cash into my Varo account?
Yes—but not at a bank branch. You can deposit cash for free at over 7,500 stand-alone CVS locations using the Green Dot network. Mobile check deposit is also available in the app.
| Company | Standout feature | |
|---|---|---|
| Direct FDIC Insurance |