Varo is a young financial technology banking company that got started in 2015. They’re so new that they just received their national bank charter from the OCC (Office of the Comptroller of the Currency) in 2020. This will help them achieve their mission of serving the underbanked across America.
Let’s examine the top 3 reasons to bank with Varo.
To-the-point checking account
In a nutshell, their main checking account will get you easy access to your money but saves you from paying any fees at all like monthly, transfer, transaction, etc. Since they are entirely digital, their accounts can also be easily accessed at any point from their mobile app.
Their app is currently ranked #39 in finance and has 4.6/5 stars with approximately 7,000 reviews. This is impressive for a bank that didn’t exist as of 5 years ago.
High-interest savings account
One of the most attractive features of their service is their ultra-high savings rate. They offer an interest rate of 3.00% on your savings account IF you meet the following criteria:
1. Make at least five qualifying purchases using their debit card and receive $1,000 or more in direct deposits.
2. Do not exceed a daily savings balance of $5,000 for the entire calendar month while keeping both accounts greater than $0.00.
Even if you don’t meet these standards, you will still earn 0.2% on your money, which is still very competitive compare to the national average of 0.04%.
They also have features that allow you to automatically save a percentage of your income and round up your transactions to save the difference.
Transparency
Varo’s main selling point is that they are on the side of the consumer and want to help everyone improve their financial situation. They highlight this by only charging one fee, which is when you use an out-of-network ATM.
They are also very transparent with how they earn money as a business. Since they largely do not make money in fees, their revenue comes mainly when you use your debit card when the merchant pays them a small percentage. Apart from that, their website is filled with their commitment to helping the underserved get better access to financial services, including this quote from their CEO/co-founder:
“We’re building a bank from the ground up to improve the financial health of our customers through better technology and total transparency.
From the start, our team has paired banking veterans with tech experts to build a mobile-only bank account that makes smart financial choices easy.”
Summary
In summary, Varo is a very young company that is eager to help make banking more accessible and fair to everyone. They do this by offering a sleek mobile experience, attractive interest rates, and charging no fees.
Looking to learn more about checking accounts? Then you’ll want to learn more from Find a Better Bank. We help connect people with the bank that is right for them. On the site, you can search for your next bank by region, bank size or by your residential zip code. Stop by and find the checking account that’s best for you!