Varo Bank

Varo Bank: digital banking with its own charter and FDIC insurance

Varo Bank presents itself as the first fintech to become a nationally FDIC-insured bank, aiming to offer Americans a digital alternative for managing their money. Founded in 2017, it operates exclusively online and markets its products as an option with no surprise fees or hidden charges.

Everyday products

The institution offers a bank account with no monthly fees, designed for receiving direct deposits and handling everyday transactions. Among the advantages it highlights are no overdraft fees, no fees for withdrawals at Allpoint network ATMs, and no minimum balance fees. The Varo Visa debit card is free and offers cashback on specific purchases.

The direct deposit service allows access to your paycheck up to two days before the scheduled pay date, according to the company. Additionally, customers can deposit cash for free at more than 7,500 CVS locations nationwide.

High-yield savings

Varo's savings account offers an annual percentage yield (APY) of up to 3.75% on the first $5,000 and 1.00% APY on the rest of the balance. To qualify for the maximum rate, the customer must receive direct deposits totaling $1,000 or more and end the month with a positive balance in all their Varo accounts. The institution notes that these rates are effective as of July 1, 2026, and may change at any time.

Cash advances and line of credit

Varo Advance allows you to get cash advances of up to $250 immediately, with the possibility of increasing the limit up to $700 over time if direct deposit requirements are met. The average loan is $170. It does not accrue interest, but a flat fee applies that ranges from $1.60 to $100 depending on the amount.

The Varo Line of Credit offers loans between $600 and $2,000, with an average loan of $825. It is a short-term loan with a flat fee of $60 to $400 per advance, with no interest. Only one active advance is allowed at a time, and the credit limit may fluctuate based on various factors.

Credit building

The Varo Believe Visa card is a secured credit card designed to help build credit history. The user must deposit funds before using it, and that amount sets the spending limit. The funds spent are held in a security account to pay the balance in full each month. According to Varo's internal data as of January 6, 2026, customers with an existing VantageScore 3.0 credit score showed an average increase of approximately 40 points after three months of use with on-time payments.

Cashback and management tools

The cashback program offers refunds on purchases at gas stations, grocery stores, restaurants, and other merchants. Users must activate the offers in the Varo app to accumulate benefits. The maximum cashback amount is $750 per calendar month.

The mobile app allows free credit score tracking, setting up automatic savings tools, and managing all accounts. Varo also offers an educational blog, the Varo podcast, and personal finance resources.

Security and regulation

Deposits are FDIC-insured up to $250,000. Varo Bank operates with its own banking charter as an independent institution, which reinforces its position as a regulated digital bank. The company states that its services are available to residents in the United States.