Varo is a fintech company, not a traditional bank

Varo itself does not hold your money. Varo is a financial technology company that builds the app and handles customer service, but the actual bank behind your account is Varo Bank, N.A., a federally chartered bank based in Salt Lake City, Utah. When you open a Varo account, your deposits are held at Varo Bank, N.A., which is the entity regulated by the Office of the Comptroller of the Currency (OCC).

This matters because it determines where your money actually sits and what protections cover it. Varo Bank, N.A. is a real bank with a charter and regulatory oversight. Your deposits are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000 per account holder, per account category, just as they would be at any other bank.

The split between Varo (the company you interact with) and Varo Bank, N.A. (the institution holding your funds) is common in fintech. You use Varo's app and customer service, but the bank itself is the one regulated and responsible for safeguarding deposits.

Key Takeaways

  • Varo Bank, N.A. is a federally chartered bank in Utah that actually holds your deposits, even though you interact with Varo's app and customer service.
  • Your money is FDIC-insured up to $250,000 per account holder, the same protection you would have at any other bank.
  • Varo Bank, N.A. is regulated by the Office of the Comptroller of the Currency, which oversees national banks.
  • The distinction between Varo (the fintech company) and Varo Bank, N.A. (the actual bank) is why your account is safe even though Varo is a newer company.

How Varo Bank, N.A. is regulated

Varo Bank, N.A. holds a national bank charter issued by the OCC, which is part of the U.S. Department of the Treasury. This means the bank is subject to regular examination, capital requirements, and operational standards that explore to all national banks. The OCC publishes examination reports and maintains oversight of the bank's lending practices, risk management, and compliance with federal banking law.

Because Varo Bank, N.A. is a national bank, it is also a member of the Federal Reserve System and the FDIC. This dual oversight—from the OCC as primary regulator and the FDIC as insurer—is what protects your deposits. If Varo Bank, N.A. were to fail, the FDIC would step in to cover insured deposits.

You can verify Varo Bank, N.A.'s charter status and find examination reports through the OCC's website or the FDIC's bank search tool. Both are public records.

FDIC insurance coverage on your Varo account

Your Varo checking and savings accounts are covered by FDIC insurance. The standard coverage limit is $250,000 per depositor, per bank, per account category. This means if you have both a checking account and a savings account at Varo Bank, N.A., each is insured separately up to $250,000.

If you have a joint account with another person, that account is insured separately as well, up to $250,000 for the joint account itself. The coverage applies to the account holder, not to the individual who opened it or the app you use to access it.

FDIC insurance covers deposits, not investments. If Varo ever offered brokerage services or investment products through a separate entity, those would not be FDIC-insured. Currently, Varo's core products—checking and savings accounts—are standard deposit accounts and are covered.

Why Varo uses a bank charter instead of operating as a service

Varo obtained its own national bank charter in 2020 rather than partnering with an existing bank to hold deposits. This is a significant step that required substantial capital, regulatory approval, and ongoing compliance infrastructure. The reason fintech companies pursue their own charters is to control the customer experience end-to-end and avoid dependence on another bank's systems or policies.

Before receiving its charter, Varo held customer deposits through partner banks. Once Varo Bank, N.A. was approved, Varo could move deposits to its own institution. This gave Varo more control over features, fees, and customer service, but it also made Varo responsible for all banking operations and regulatory compliance.

For you as a customer, the main effect is that your account is now directly with Varo Bank, N.A. rather than held through a middleman. Your FDIC insurance, your account terms, and your regulatory protections all flow from Varo Bank, N.A.'s charter.

What to do if you need to verify Varo Bank's status

If you want to confirm that Varo Bank, N.A. is a real, regulated bank, you can search for it in two places. The FDIC's Bank Find tool (available at fdic.gov) lets you search by bank name and see coverage information. The OCC's website also maintains a list of national banks and their charter status.

You can also contact Varo directly through the app or website and ask for documentation of the bank charter. Varo's customer service can provide proof of the OCC charter and FDIC membership if you need it for your records.

If you are considering moving money to Varo or are concerned about the safety of your existing account, checking these public records takes a few minutes and will confirm that your deposits are held at a federally regulated bank.

Frequently Asked Questions

Is my money safe at Varo if the company goes out of business?

Yes. Your deposits are held at Varo Bank, N.A., which is a separate legal entity from Varo the company. If Varo as a company failed, the bank would continue to operate and your deposits would remain insured by the FDIC. The bank charter is what protects you in that scenario.

Can I lose money if Varo Bank, N.A. fails?

Only if your balance exceeds $250,000 in a single account category. The FDIC insures up to that limit per depositor, per bank, per account type. Amounts above $250,000 would not be covered. Most personal accounts fall well below this threshold.

Does Varo Bank, N.A. lend out my deposits?

Yes, like all banks, Varo Bank, N.A. uses deposits to fund loans and other banking operations. That is how banks generate revenue. Your deposits are still insured and protected; the FDIC insurance does not depend on whether the bank lends the money out.

What is the difference between Varo and Varo Bank, N.A.?

Varo is the fintech company that built the app and provides customer service. Varo Bank, N.A. is the federally chartered bank that holds your deposits and is regulated by the OCC. You interact with Varo, but your money is held at Varo Bank, N.A.

Can I see Varo Bank, N.A.'s financial statements?

Yes. As a national bank, Varo Bank, N.A. files regular reports with the OCC and the Federal Reserve. These are public records. You can request examination reports or financial information through the OCC's website or by contacting the bank directly.