Varo is a mobile-first bank that operates entirely online

Varo Bank is a bank you access through a smartphone app or website, not through a physical branch. It offers the same basic services as a traditional bank — checking and savings accounts, debit cards, transfers — but everything happens on your phone. You open an account online in minutes, deposit checks by taking a photo, and manage your money from anywhere.

The bank is chartered and insured by the federal government, which means your money is protected the same way it would be at any other bank. Varo is owned by a company called Varo Inc., which is based in San Francisco. It has been operating since 2017 and serves hundreds of thousands of customers.

Key Takeaways

  • Varo is a fully online bank where you do everything through an app — there are no physical branches to visit.
  • Your deposits are insured by the FDIC up to $250,000, the same protection you get at any other bank.
  • Varo charges no monthly fees on its checking account and no overdraft fees, which saves money compared to many traditional banks.
  • You can deposit checks by photographing them with your phone, and you receive a debit card to use at ATMs and stores.
  • Varo is best suited for people comfortable managing money on their phone and who do not need in-person banking services.

How you open an account and what you need

Opening a Varo account takes about five minutes and requires only a smartphone or computer. You read the Varo app or visit their website, enter your name, email, phone number, and Social Security number, and create a login. Varo will ask you to verify your identity by taking a photo of your driver's license or state ID card.

Once your identity is verified, your account is active when ready. You can start receiving deposits right away — Varo will give you account and routing numbers so your employer or other sources can send you money directly. You can also deposit checks by taking a photo of the front and back with your phone, and the money usually appears in your account within one business day.

What accounts and features Varo offers

Varo's main product is a checking account called the Varo Checking Account. It comes with a debit card, online bill pay, the ability to send money to other people, and access to a network of ATMs where you can withdraw cash for free. The account has no monthly maintenance fee and no minimum balance requirement.

Varo also offers a savings account that earns interest — meaning the bank pays you a small amount of money for keeping your savings there. The interest rate changes based on what the Federal Reserve does with interest rates, so it varies over time. Varo advertises this savings account as having a competitive rate, but you should compare it to other online banks to see if it matches what you need.

One feature Varo emphasizes is early direct deposit, which means if your employer sends your paycheck electronically, Varo may deposit it up to two days before your official payday. This can help if you need money before the standard deposit date.

Fees and what it costs to use Varo

Varo charges no monthly fee to maintain a checking account, and it does not charge overdraft fees if you spend more money than you have in your account. This is different from many traditional banks, which charge $30 to $35 per overdraft. Varo straightforward declines the transaction instead, which means you cannot spend money you do not have.

Varo does not charge fees for common activities like transferring money between your accounts, sending money to other people, or using their ATM network. However, if you use an ATM outside their network, you may be charged a fee by that ATM's owner — Varo does not control that fee.

If you need to send money internationally, Varo does offer wire transfers, but those come with a fee. The amount depends on where you are sending the money.

How Varo compares to traditional banks

The main difference is convenience versus in-person service. With Varo, you never visit a branch, so you cannot deposit cash, speak to someone face-to-face, or get a cashier's check printed on the spot. Everything happens through your phone. If you prefer handling money in person or need services that require a physical location, a traditional bank may be better for you.

Varo typically charges lower fees than traditional banks because it has no physical branches to maintain. Many traditional banks charge monthly fees, overdraft fees, and minimum balance fees — Varo does not. However, traditional banks often offer more products, like mortgages and business accounts, which Varo does not provide.

Interest rates on savings accounts vary between banks and change frequently, so comparing Varo's current rate to other online banks is worth doing if saving money is important to your plan.

Who Varo works well for

Varo is a good fit if you are comfortable managing money entirely on your phone, have a smartphone with reliable internet access, and do not need to deposit cash regularly. It works well for people who want low fees, no overdraft charges, and a straightforward checking account without extra features they will not use.

Varo is also useful if you receive your paycheck by direct deposit and want access to that money as early as possible. The early direct deposit feature can help you manage cash flow if you are paid biweekly and need money before payday.

If you need to deposit cash, prefer speaking to someone in person, or require banking products like loans or mortgages, a traditional bank or a bank that combines online and physical branches may serve you better.

Security and protection of your money

Varo Bank is a federally chartered bank, which means it is regulated by the Office of the Comptroller of the Currency (OCC). Your deposits are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000 per account holder, per bank. This is the same protection you receive at any other bank, so if Varo were to fail, your money would be protected.

Varo uses encryption and security measures to protect your login information and transactions, similar to what other banks use. You should use a strong, unique password for your Varo account and enable two-factor authentication if Varo offers it — this adds an extra step when you log in, making it harder for someone else to access your account.

Frequently Asked Questions

Can I deposit cash at Varo?

No, Varo does not accept cash deposits because it has no physical branches. You can deposit checks by photographing them with your phone, and you can receive money through direct deposit or transfers from other accounts. If you need to deposit cash, you would need to use a different bank or cash it at a store that offers that service.

Is my money safe at Varo?

Yes, your deposits are insured by the FDIC up to $250,000, the same as any other bank. Varo is regulated by the federal government and uses standard security measures to protect your account. Your money is as safe at Varo as it is at a traditional bank.

What happens if I need to speak to someone at Varo?

Varo offers customer support through the app and website, typically through chat or phone. You cannot visit a physical branch, but you can contact support if you have questions or problems with your account. Response times vary depending on how busy they are.

Can I use my Varo debit card everywhere?

Yes, your Varo debit card works at any store, restaurant, or online merchant that accepts Visa debit cards. You can also use it to withdraw cash at ATMs in Varo's network for free, or at other ATMs for a fee charged by that ATM's owner.

How long does it take to open a Varo account?

The account opens when ready after your identity is verified, which usually takes a few minutes. You can start using your account right away to receive deposits or transfers, though your debit card will arrive by mail within one to two weeks.