Why Varo?
- Good rate for small balancesTop APY on the first $5,000
- No feesNo monthly or minimum fees
- Early paycheckUp to two days early
- Mobile-firstEverything in the app
- Save Your PayAuto-save from each paycheck
- FDIC insuredVaro Bank, N.A.
Overview
Varo Bank is a nationally chartered, app-only bank. Its savings rate is high on the first $5,000 if you meet a monthly direct deposit requirement, and lower above that.
Good for starting an emergency fund, less good for large balances.
Pricing
What Varo pays and what it takes to earn the top rate, as of October 7, 2026.
| Plan | As of October 7, 2026 | What you get |
|---|---|---|
| APY (first $5,000) | 3.75% | With qualifying direct deposits |
| APY (above $5,000) | 1.00% | Lower tier |
| Minimum | $0 | None |
| Monthly fee | $0 | None |
Rates note: APYs and terms are as of October 7, 2026 and are variable. FDIC membership was checked on each bank's own website; FDIC insurance covers up to $250,000 per depositor, per insured bank, per ownership category. Confirm the current rate and terms before you open an account.
Try Varo for yourself
$0 minimum, no monthly fees.
Key features
- Save Your Pay: Auto-save a percentage of each deposit.
- Round-ups: Round up card purchases into savings.
- Early direct deposit: Up to two days early.
- App-only: No branches.
Watch the balance cap
Only the first $5,000 earns the top rate. On larger balances your blended rate falls quickly, so compare usable APY on your real balance.
Pros and cons
What we like
- High rate on first $5,000
- No fees
- Good savings automation
- Early direct deposit
What to watch
- Balance cap on top rate
- Direct deposit required
- App-only
- Rate is variable
Who it is for
Pick Varo if you are building your first $5,000 of savings and already have direct deposit.
Ready to start with Varo?
Best for small balances.
Alternatives to Varo
FAQ
Is Varo a real bank?
Yes. Varo Bank, N.A. is a nationally chartered bank and FDIC member.
What APY do I get over $5,000?
A lower rate on the amount above the cap.
Does Varo have branches?
No. It is app-only.
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Not advice: Rates and terms change often; check the bank's site before you open an account. General information only, not tax, legal or financial advice. Consult a qualified tax professional.