Savings rates at Varo vs. big banks

Last modified 07/01/26

Saving isn’t always easy, regardless of whether it’s a little or a lot. It often takes hard work to put away even just a bit of your hard-earned money once you’ve factored in all of life’s expenses. But when you’ve scrimped, you’ve sacrificed, and you’ve brown-bagged your lunch all year in order to build up your nest egg, it’s time to get the most out of your savings and start putting that money to work for you.

If you’re ready to start achieving your savings goals faster, Varo’s high yield savings account offers customers a 3.75% Annual Percentage Yield (APY) on their first $5,000 with 1.00% on any balances above that mark1.  Just meet the following two requirements in the current month.

• Receive direct deposit(s) totaling $1,000 or more

• End the month with a positive balance in both your Varo Bank Account and Savings Account What else do you need to know about opening a Varo Savings Account?

Why customers like Varo's high yield savings

1. It’s free. There are no minimum balance requirements and no account fees. It’s just a great place to stash cash and earn high interest on it, whether that’s your first $500 toward a rainy day fund or your $2,500 tax refund.

2. It’s accessible. You can access your savings account 24/7—you don’t need to wait for a weekday or banking hours. Need to tap into savings immediately? You can move money out of your savings account.

3. It’s easy. Your Varo Savings Account is attached to your Varo Bank Account. You can move money from your Bank Account into your Savings Account as much as you like.

4. It's automatic. When you turn on Save Your Change, we'll round up every transaction you make and transfer the difference from your Varo Bank Account into your Varo Savings Account. With Save Your Pay, we'll automatically sweep a percentage of your choosing from each direct deposit into your savings.

Why are Varo’s rates so awesome (and some big bank rates so dismal)?

Great question. We offer great rates to our customers for a few reasons.

First, we’re all online—our only branch is right there on your smartphone. That means our costs are low, as we don’t have to pay for buildings, parking lots, or other expensive infrastructure.

Next, our mission is not just to make banking better for everyone, but to also improve your financial health. While the Varo app has great features to help you budget and see how you’re doing money-wise each month, we don’t want you to miss out on getting the most out of your savings too.

So now, you’re probably wondering why some big banks have such low rates in comparison. Well, one reason is that they have no real incentive to raise them—they are hoping that customers who have been with them awhile will just stick around for no other reason except inertia. But that inertia can unfortunately come at a real cost to you.

Consider a savings pot of $5,000. With Varo’s 3.75% APY, you’ll earn $187.50 of interest in 12 months. That same $5,000 parked in a savings account at one of the big banks would only earn you about $19 on average2.

Beyond the low rates, many big banks also have minimum balance requirements and leave it up to you to read the fine print. They also often charge monthly and overdraft fees3. At Varo, we pride ourselves on having none of the above. 

People deserve better—that’s why Varo is here. We believe money shouldn’t work for some of us. It should work for all of us.

1 To open a Varo Savings Account all you need is a Varo Bank Account. Applying won’t impact your credit score, plus there are no monthly fees, and no minimum balance required. Annual Percentage Yield (APY) is accurate as of July 1, 2026. Start earning 1.00% APY, then qualify to earn 3.75% APY on your balance up to $5,000.00 next month by 1) Receiving direct deposit(s) totaling $1,000 or more; and 2) Ending the month with a positive balance in all your Varo Accounts. Rates subject to change at any time.

Qualifying direct deposits are electronic deposits of your paycheck, pension or government benefits (such as Social Security or unemployment) from your employer or government agency to the extent that can be identified. Tax refunds and government stimulus payments, Person-to-Person payments (such as Venmo or Varo to Anyone), and funds deposited using a Varo routing number are not considered a direct deposit.

2 As of June 15, 2026 as found on fdic.gov/resources/bankers/national-rates/

3 Transactions will be declined when you don’t have sufficient funds. You could have a negative balance if a transaction is approved for one amount, but the actual charge is more than what you have in your account, but we won’t charge you an overdraft fee.