Update 3/1/22: On April 1, 2022, the savings rate will increase from 3% APY to 5% APY. Qualifications to be eligible for the rate remain the same. (ht Davis)
Update 10/10/21: Starting October 1, 2021, standard savings rate will increase to 0.50% APY, up from 0.20% APY.
Update 6/1/21: Starting 7/1, you will no longer need 5 debit transactions to get 3% APY. Must also keep a balance of $5,000 or less. Hat tip to reader Davis
Offer at a glance
- Interest Rate: 3% APY
- Minimum Balance: $0.01
- Maximum Balance: $5,000
- 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
- Varo Money is now offering a tiered savings account:
- Account earns 0.2% APY as long as the balance is $0.01 or more
- Account earns 3% on balances up to $5,000 if the following requirements are met:
- 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)
This account has no monthly fees to worry about.
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