Varo Review
By Itai Varochik | Last updated February 1, 2026
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Our Verdict
Varo is the best fee-free digital bank for underbanked Americans who need early direct deposit, cash advances, and credit-building tools. It's not a full-service bank, but it delivers essential banking without the fees that disproportionately affect lower-income customers.
GetASearch Score: 7/10
Rating: 4/5 (540 reviews)
Pros
- Full bank charter
- High-yield savings
- No fees
- Credit builder tool
Cons
- Limited product range
- No joint accounts
- Basic app features
- Smaller ATM network
Score Breakdown
| Criteria | Score |
|---|---|
| Features | 6.0/10 |
| Ease of Use | 8.0/10 |
| Value for Money | 9.0/10 |
| Customer Support | 6.0/10 |
| Overall | 7.0/10 |
What is Varo?
Varo is a digital-first bank holding a national bank charter from the OCC, making it one of the few fintech companies to operate as an actual bank rather than partnering with a traditional institution. Founded in 2015 by Colin Walsh, Varo has attracted over 7 million customers by targeting underbanked Americans with fee-free banking, early direct deposit, and accessible credit-building tools. Varo's checking account (Varo Bank Account) has no monthly fees, no minimum balance requirements, no overdraft fees, and no foreign transaction fees. The debit card works at 55,000+ Allpoint ATMs fee-free. Early direct deposit (up to 2 days early) and Varo Advance (up to $250 in fee-free cash advances for qualifying customers) provide liquidity features that resonate with paycheck-to-paycheck users. The Varo Savings Account offers a competitive 5.00% APY on balances up to $5,000 (with qualifying direct deposits; 3.00% otherwise), which is among the highest in the digital banking space. The Save Your Change feature rounds up debit card purchases and deposits the difference into savings, automating micro-savings. Save Your Pay lets users automatically transfer a percentage of each direct deposit into savings. Varo Believe is a credit-building secured credit card that reports to all three credit bureaus. Unlike traditional secured cards that require an upfront deposit, Believe uses a linked Varo savings account as collateral, making credit building accessible without tying up cash. Monthly payment history is reported, helping users establish or rebuild credit scores. The Varo mobile app is well-designed, with spending insights, category breakdowns, and push notifications for every transaction. However, the app-only model means there are no branches, and customer support is limited to in-app chat, email, and phone - with mixed reviews on response times. Limitations include the lack of joint accounts, limited investment options (no brokerage or retirement accounts), a small product lineup compared to SoFi or traditional banks, and occasional complaints about account holds or freezes that are difficult to resolve without branch access. The 5.00% APY also requires meeting direct deposit and spending thresholds.
Varo Features
| Feature | Available | Description |
|---|---|---|
| High-Yield Savings | Yes | Competitive APY |
| Credit Builder | Yes | Build credit score |
| No Fees | Yes | No monthly fees |
Varo Pricing
Free (no monthly fees)
Best For
- Savings-focused users
- Credit builders
- Fee-averse consumers
- Mobile-first bankers
Final Verdict
Varo is the best fee-free digital bank for underbanked Americans who need early direct deposit, cash advances, and credit-building tools. It's not a full-service bank, but it delivers essential banking without the fees that disproportionately affect lower-income customers.