Varo Bank, N.A.

Varo Bank is a fully licensed national bank, one of the first consumer fintechs to receive a national bank charter in the United States. It offers mobile-first banking including checking and savings accounts, with no monthly maintenance fees and no minimum balance requirements. Varo positions itself as an alternative to traditional banks for consumers who prefer managing their finances entirely through a smartphone app.

Varo's savings account offers a competitive annual percentage yield, which may be higher than standard savings rates at traditional banks, though the rate is variable and can change. The higher rate typically requires meeting certain qualifying conditions such as a minimum number of monthly transactions and receiving direct deposits above a threshold.

Varo also offers Varo Believe, a secured credit card designed to help customers build credit. The card works by requiring you to set aside money in a secured account, which becomes your spending limit. There is no interest charged because you can only spend what you have already set aside, and no hard credit check is required to apply. Payment activity is reported to the credit bureaus, so responsible use can build your credit profile over time.

Varo Advance allows eligible Varo customers to access small cash advances before their next paycheck, subject to fees and eligibility requirements.

Because Varo is a chartered bank, deposits are FDIC-insured up to applicable federal limits. This is a meaningful protection not available with all fintech products. Review current terms for all Varo products before signing up, including the conditions required to earn the higher savings rate, any fees on the advance feature, and the terms of the Believe card.