Varo Bank is FDIC-insured up to $250,000 per account holder, which is the same protection you get at any traditional bank

Varo is a real bank chartered by the Office of the Comptroller of the Currency (OCC), a federal agency that oversees national banks. This means your money in a Varo checking or savings account is protected by FDIC insurance — the Federal Deposit Insurance Corporation insures deposits up to $250,000 per person, per bank. If Varo failed tomorrow, you would not lose your money up to that limit.

The FDIC insurance is the same protection you would have at a bank down the street. It covers your balance if the bank becomes insolvent, which is extremely rare. The last bank failure in the United States was in 2023, and FDIC insurance has protected depositors since 1933.

Varo does not hold your money itself — it partners with other FDIC-insured banks to hold deposits. This is common practice among online banks and does not change your protection. You still have the same $250,000 per account type may provide.

Key Takeaways

  • Varo is a federally chartered bank regulated by the OCC, which means it meets the same safety standards as traditional banks.
  • Your deposits are FDIC-insured up to $250,000, the same as any other bank, and this protection covers you if the bank fails.
  • Varo uses encryption and multi-factor authentication to protect your login and transactions from unauthorized access.
  • You can verify Varo's FDIC insurance status on the FDIC's official website by searching for the bank name.

How FDIC insurance works and what it covers

FDIC insurance covers deposits in checking accounts, savings accounts, and money market accounts. The $250,000 limit applies per person, per bank — so if you have $200,000 in a Varo checking account and $100,000 in a Varo savings account, only $250,000 is insured (the first $250,000 of your combined balance). If you have a joint account with someone else, that account gets its own $250,000 of coverage.

FDIC insurance does not cover investment accounts, cryptocurrency, or money you lend to other people through the bank. It also does not cover losses from fraud or theft if you give someone your password or PIN — that is a different kind of protection called Regulation E, which covers unauthorized electronic transfers under certain conditions.

You can check whether Varo is FDIC-insured by visiting the FDIC's Bank Find tool on their website (fdic.gov). Search for Varo Bank, and you will see the bank's charter number, the date it was insured, and the amount of coverage available. This is a public record and takes two minutes to verify.

How Varo protects your account from unauthorized access

Varo requires a password and uses multi-factor authentication, which means you have to verify your identity in more than one way before you can log in. Usually this means entering a code sent to your phone or email after you type your password. This makes it much harder for someone to access your account even if they know your password.

The app and website use encryption, which scrambles your information so that even if someone intercepts it, they cannot read it. This is the same technology used by banks, credit card companies, and any website that handles money.

If you notice unauthorized transactions, Varo has a fraud dispute process. You contact the bank, report the transaction, and Varo investigates. Under Regulation E, you are usually not liable for unauthorized electronic transfers if you report them within a certain timeframe — typically 60 days from when you see the transaction on your statement. The exact rules depend on how quickly you report and whether you were negligent (for example, if you wrote your PIN on a sticky note).

What makes Varo different from a traditional bank

Varo is an online-only bank, which means there are no physical branches. You cannot walk into a location to deposit a check or withdraw cash. Instead, you deposit checks by taking a photo with the app, and you withdraw cash at ATMs or by transferring money to another bank. This is not a safety issue — it is just a different way of doing banking.

Because Varo has no branches, it has lower overhead costs than traditional banks. This is why it can offer higher interest rates on savings accounts and checking accounts with no monthly fees. The tradeoff is that customer service is only available by phone, email, or in-app chat — not in person.

Varo is still subject to the same federal banking regulations as any other bank. It has to maintain certain capital reserves, undergo regular audits, and follow anti-money-laundering rules. The OCC examines Varo regularly to make sure it is operating safely and soundly.

How to verify Varo's safety status yourself

You do not have to take anyone's word for it. The FDIC maintains a public database called Bank Find where you can look up any bank and see its insurance status. Go to fdic.gov, click on Bank Find, and search for "Varo Bank." You will see the bank's official name (Varo Bank, N.A.), its charter number, and confirmation that deposits are insured.

You can also check the OCC's website (occ.treas.gov) to see that Varo holds a national bank charter. The OCC publishes examination reports and enforcement actions, though these are not always available to the public when ready.

If you want to know more about how Varo handles your data, read its privacy policy on the Varo website. This document explains what information Varo collects, how it uses it, and who it shares it with. It is long and technical, but it is the official source for how your information is treated.

What safety concerns are worth paying attention to

The main risk with any bank — online or traditional — is user error. If you reuse passwords across multiple websites, use a weak password, or share your login information, someone could access your account. This is not Varo's fault, but it is a real risk. Use a unique, strong password and never share it with anyone, including Varo employees.

Phishing is another real threat. Scammers send fake emails or texts that look like they are from Varo and ask you to click a link or enter your password. Varo will never ask you for your password by email or text. If you get a message asking for your password, do not click any links — go directly to the Varo app or website instead.

If you keep more than $250,000 in Varo, the amount over $250,000 is not FDIC-insured. If this is a concern for you, you can split your money across multiple banks, each with its own $250,000 of coverage. Some people do this deliberately to protect large amounts of money.

Frequently Asked Questions

What happens to my money if Varo goes out of business?

The FDIC takes over and pays you up to $250,000 from the insurance fund. This process usually takes a few days to a few weeks. You would not lose money within the insured amount. If you had more than $250,000, the amount over $250,000 would be at risk, but this is extremely rare in practice.

Does Varo sell my personal information to third parties?

Varo shares information with service providers who help run the bank (like payment processors), with other financial institutions if you authorize it, and with government agencies if required by law. Read Varo's privacy policy for the full details. Varo does not sell your information to marketers or data brokers for profit.

Is my money safer at Varo or at a traditional bank?

The FDIC insurance is identical, so your deposits are equally protected. The difference is in how you access your money and the features each bank offers. Varo is safer if you prefer online banking; a traditional bank is safer if you need to deposit cash or checks in person regularly.

What if someone steals my phone and accesses my Varo app?

If your phone is stolen, contact Varo when ready and ask them to lock your account. Because Varo requires multi-factor authentication, a thief cannot access your account without your password and your phone (or email). Once you report the theft, Varo can freeze your account and investigate any unauthorized transactions.

Can I lose money if Varo gets hacked?

A major hack is possible but extremely unlikely — Varo uses the same encryption and security standards as large banks. If a hack did occur and your account was compromised, Regulation E would protect you from unauthorized electronic transfers if you reported them within 60 days. You would not lose money within the FDIC insurance limit regardless.