Varo Money Savings Account – 2.12-2.8% APY

Offer at a glance

  • Interest Rate: 2.12-2.80% APY
  • Minimum Balance: $0.01
  • Maximum Balance: $50,000
  • Availability: Nationwide
  • Direct deposit required: Yes, $1,000+
  • Additional requirements: 5 debit card purchases
  • Hard/soft pull: Soft pull
  • ChexSystems:  No
  • Credit card funding: Unknown
  • Monthly fees: None
  • Insured: FDIC

The Offer

Direct link to offer

  • Varo Money is now offering a tiered savings account:
    • Account earns 2.12% APY as long as the balance is $0.01 or more
    • Account earns 2.80% on balances up to $50,000 if the following requirements are met (now $10,000 maximum):
      • Receive payroll or government direct deposits totaling at least $1,000 each month into the Varo Bank Account
      • Use the Varo Visa® Debit Card to authorize at least 5 purchases each month (excluding ATM or Over-the-Counter Cash Withdrawals and P2P transfers)

Avoiding Fees

This account has no monthly fees to worry about.

Our Verdict

A lot of people have Varo Money accounts from the $100 sign up bonus they previously offered. I don’t think this savings account is particularly useful, other accounts earn at a rate of 2.5% APY with no requirements (beating out the 2.12% APY offered here) and HeritageBank offers 3.33% APY with similar requirements (direct deposit not required, any ACH will work). I hope Varo Money offers another referral bonus again soon.

Hat tip to reader Francesco

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MrWHY
MrWHY

I was notified that my 2.8% is dropped to 0.4% on jan13 as my balance exceeded $10000. I transferred $0.10 to my varo money and did not make any difference. May be my $1000 Ally ACH doesn’t count anymore? Any idea?

DW
DW

There are DPs that Discover push no longer works for DD anymore either. My APY just dropped as well because of that. Not sure what still works anymore.

Chritom
Chritom

“*Annual Percentage Yield (APY) is accurate as of October 1, 2020. The new rate of 0.40% APY will be effective January 12, 2021.” – https://www.varomoney.com/savings-account/

:-/ That’s a steep drop.

Eric
Eric

They might be referring to the .81% (rather than the 2.8%) dropping to .4% in January. They put the same * by both the .81% and the 2.8% rate making it very confusing.

I was declined for this account a while ago and was considering applying again. I’ll wait for confirmation on the rate change before doing so.

Eric
Eric

William Charles, the limit for 2.8% is $10K but it shows as $50K in this post.

mothman69
mothman69

Alliant DD coupled with 5x Amazon reloads on the debit card triggers the 2.80% APY.

jr
jr

sad news, beginning may 1st rate will only be up to 10k instead of 50k.

Keith
Keith

Also just confirmed with P2 account that 5-in-a-row 50-cent Amazon GC reloads switched my savings rate to 2.8%

rigasphere
rigasphere

Question for you, thanks in ahead! Does the 2.8% rate only applicable from the day you qualify for the requirements (until the end of the month), or is it retroactively applied to all dates in the month as well?

Keith
Keith

I just qualified for the 2.8% — deposited $2k from Ent CU, then did 5 small debit card purchases in 2 days (convenience/drug stores), new rate showed up on savings acct details tab in android app the next day.

Honestly I think this is a pretty good deal right now, esp. given that Heritage is going to reduce their rate in a few days. I’ve already maxed out the 5% at Netspend and 4% at TMobile too.

CC
CC

Will fake DD work towards 2.8%?

Steve
Steve

If I have $51k on balance, do I get 2.8% APY on the first $50k and 2.12% on $1k, or is the interpretation 2.12% on the entire balance?

Steve
Steve

Ok, it seems based on whether the average daily balance for the month is above or below $50k. Then all or none with the 2.8% vs 2.12% rate.

https://www.varomoney.com/varo-savings-account-agreement/#rate-info

A M
A M

Can anyone confirm if hitting it with a DD of the sort that triggered bonus will trigger DD requirement for the 2.8% rate too?