Varo Bank Review

Company background

Varo Bank is a licensed bank, founded in 2015, headquartered in the United States, operating under Varo Bank, N.A.. Varo is the rare US neobank that holds its own national bank charter, so deposits are directly FDIC insured while the savings rate stays at the top of the table. We rate it best US high-yield neobank. It is a phone-first current account, bundling in-app savings and an overdraft into one app.

Fees and pricing

On day-to-day costs, Varo Bank charges no monthly account fee, and applies a 0% markup on foreign-currency spending.

• Monthly fee: no monthly account fee.
• FX markup: 0% on spending outside your currency.
• ATM withdrawals: 0% fee.
• Savings: up to 5% AER on in-app balances.
• Welcome offer: cash bonus with qualifying direct deposits.

For everyday domestic use the running cost is effectively nil, so the figure that matters most is how often you spend or withdraw in another currency.

Regulation and safety

Varo Bank operates as a licensed bank, regulated by OCC and FDIC. Eligible deposits are protected up to 250,000 USD under FDIC up to 250,000 USD (Varo Bank, N.A.). That guarantee is backed by a national compensation scheme, so your covered balance is returned even if the provider fails.

Platform experience

Varo Bank is available across iOS, Android and Web. The mobile apps score 4.8/5 on the App Store and 4.4/5 on Google Play. Payments run on a Visa physical and virtual card, and it works with Apple Pay and Google Pay.

Pros and cons

On the plus side, real national bank charter with direct FDIC insurance, one of the highest savings APYs among US neobanks and fee-free overdraft and early direct deposit. The main trade-offs are top savings rate needs qualifying activity to unlock and uSD-only and US-resident only. On balance it is a comfortable pick best US high-yield neobank, provided its limitations line up with how you actually bank.