Varo is a mobile-first bank with no physical branches
Varo Bank is a federally chartered bank that operates entirely through a mobile app and website—there are no brick-and-mortar locations. You open an account, deposit money, pay bills, send transfers, and manage your finances all from your phone or computer. Varo is FDIC-insured up to $250,000 per account category, the same protection you get at any traditional bank.
The bank was founded in 2015 and is based in San Francisco. It holds a national bank charter from the Office of the Comptroller of the Currency (OCC), which means it is regulated as a real bank, not a fintech company that partners with another bank behind the scenes. Your deposits are held directly by Varo, not swept to a third party.
Varo makes money primarily through interchange fees on debit card transactions and through overdraft fees, rather than monthly account maintenance charges. Most checking accounts have no monthly fee, though some features (like early direct deposit) come with conditions.
Key Takeaways
- Varo is a fully licensed bank you access only through mobile app or website, with FDIC insurance protection on deposits.
- You can deposit checks by taking a photo through the app, receive direct deposits, and use a debit card at any ATM or merchant.
- Varo offers savings accounts with interest rates that change based on market conditions, and checking accounts with no monthly fee.
- Transfers to and from other banks take one to three business days through standard ACH, or you can use Varo's own ATM network for cash withdrawals.
- Overdraft fees apply if you spend more than your balance, though Varo offers an overdraft protection feature that can prevent some fees.
How to open an account and fund it
You download the Varo app, provide your name, Social Security number, date of birth, and address, and verify your identity through the app. The process takes about 10 minutes. Varo will run a soft credit check and check ChexSystems (a banking history database), but these do not affect your credit score.
Once your account is open, you can fund it in several ways: link an external bank account and transfer money via ACH (takes one to three business days), deposit a check by photographing it through the app (takes one to two business days), or use a debit card to load money at certain retailers. You cannot deposit cash directly at a Varo location because there are no locations.
If you receive a paycheck, you can set up direct deposit to your Varo account. Varo advertises early direct deposit—the ability to receive your paycheck up to two days before your employer's official payday—but this feature is only available if your employer's payroll system supports it, which not all do.
What accounts Varo offers
Varo's main product is a checking account with no monthly fee. It comes with a debit card, online bill pay, and the ability to send money to other people through the app. You can set up automatic payments for recurring bills. The account includes access to Varo's ATM network (over 55,000 ATMs nationwide through the Allpoint network) with no surcharge, plus fee reimbursement if you use an out-of-network ATM.
Varo also offers a savings account that earns interest. The rate changes based on market conditions and is not may provide. Varo advertises competitive rates, but you should check the current rate on Varo's website before opening, as it varies over time. Savings accounts have no monthly fee and no minimum balance requirement.
Some Varo accounts come with additional features like Varo Advance (a small cash advance before payday) or Varo Savings Pods (separate savings buckets within your savings account for different goals). These features may have conditions or may be able to access requirements that vary.
How money moves in and out
Sending money to another person's bank account takes one to three business days through standard ACH transfer. Varo does not offer same-day or next-day transfers through its app, though some third-party services (like PayPal or Square Cash) can move money faster if both people use those platforms.
Receiving money works the same way: if someone sends you an ACH transfer, it arrives in one to three business days. If your employer sends a direct deposit, it typically arrives on payday or, in some cases, one to two days early if your employer's system supports it.
To withdraw cash, use your debit card at any ATM in the Allpoint network (no fee) or at your bank's ATM if you have another account. You can also withdraw cash at many retail locations (grocery stores, pharmacies) when you make a purchase and ask for cash back.
Overdraft fees and protection
If you spend more money than you have in your account, Varo will cover the transaction and charge you an overdraft fee. The fee amount varies but is typically $35 per overdraft. Multiple overdrafts in a single day may each incur a separate fee, though Varo caps the total number of overdraft fees per day.
Varo offers an overdraft protection feature that can prevent some overdraft fees. If you link a savings account or external bank account to your checking account, Varo can automatically transfer money from that account to cover a shortfall. You pay a small transfer fee (usually $1 to $2) instead of a larger overdraft fee. You must set this up in advance for it to work.
If you overdraft and cannot pay it back quickly, the negative balance will accrue daily fees until the account is brought positive. After a certain period (typically 60 days), Varo may close the account and report it to ChexSystems, which can make it harder to open accounts at other banks.
Security and fraud protection
Varo uses encryption to protect your login information and requires two-factor authentication (a code sent to your phone) to access sensitive features like changing your password or linking a new external account. You can also set up biometric login (fingerprint or face recognition) on your phone.
If someone uses your debit card without permission, you are protected by federal law: report the fraud to Varo within 60 days and your liability is capped at $50 (or $0 if you report it before the fraudulent transaction clears). Varo's fraud team will investigate and reverse the charge if it is confirmed as unauthorized.
Varo also monitors accounts for suspicious activity and may freeze your account temporarily if it detects unusual transactions. If this happens, you can contact Varo support through the app to verify the transactions and unfreeze your account.
Comparing Varo to other online banks
Varo is one of several mobile-first banks, alongside Chime, N26, and others. The main differences come down to interest rates on savings, ATM network access, overdraft policies, and which features are included without extra fees.
Unlike Chime, Varo does not offer early direct deposit as a may provide feature—it depends on your employer's payroll system. Like Chime, Varo has no monthly account fee and reimburses out-of-network ATM fees. Varo's savings account interest rate is typically higher than Chime's, but rates change frequently and you should compare current rates before deciding.
If you need to deposit cash, Varo is less convenient than a traditional bank with branches, but more convenient than some online-only banks that do not accept cash deposits at all. If you need to speak to someone by phone, Varo offers customer support through the app and by phone, though wait times can be longer than at large national banks.
Frequently Asked Questions
Is my money safe at Varo?
Yes. Varo is a federally chartered bank regulated by the OCC, and your deposits are FDIC-insured up to $250,000. This is the same protection you have at any traditional bank. Your money is held directly by Varo, not by a third party.
Can I use my Varo debit card everywhere?
Yes, your Varo debit card works at any merchant that accepts Visa, and you can withdraw cash at any ATM in the Allpoint network (over 55,000 locations) with no fee. Out-of-network ATM fees are reimbursed by Varo.
How long does it take to transfer money from Varo to another bank?
Standard ACH transfers take one to three business days. Varo does not offer same-day transfers through its app. If you need cash immediately, use your debit card to withdraw from an ATM or make a purchase and ask for cash back.
What happens if I overdraft my Varo account?
Varo charges an overdraft fee (typically $35) for each transaction that overdrafts your account. You can set up overdraft protection by linking a savings or external account, which allows Varo to automatically transfer money to cover shortfalls for a smaller fee ($1 to $2).
Can I deposit cash at Varo?
Varo does not have physical locations, so you cannot deposit cash directly. You can deposit checks by photographing them through the app, or transfer money from another bank account via ACH. Some retailers allow you to load money onto a prepaid card that you can then transfer to Varo.