Varo’s 1.25% APY Savings Accounts have no fees or minimum balances and offer a rate that is more than 60x the average rate offered by the top 5 largest national banks. According to mybanktracker.com, the top 5 largest national banks offer an average of 0.02% APY, and many traditional bank savings accounts have a minimum balance requirement or fees.
Varo’s two new features are part of its continued expansion of features and focus on financial health for Varo customers:
? 1.25% APY Savings Account: All Varo customers can easily apply for an online savings account with a few taps through the Varo app and receive a rate of 1.25% APY.* Customers can access funds 24/7 and easily transfer money from their Varo Bank Account into their Varo Savings Account. There are no fees or minimum balances required to open or maintain the Savings Account. The Savings Account balance must be at least $.01 to earn interest. ? SMS Alerts: Customers can receive notifications based on aggregated financial activity across all linked accounts that let them know how they’re doing on income and saving and if they are at risk of overspending so they can stay on top of their money effortlessly. Standard text messaging and/or data rates from the wireless service provider may apply.
Varo’s digital model eliminates the fees that traditional banks often charge, such as minimum balance fees and foreign transaction fees. In addition, Varo does not charge ATM fees at a network of more than 55,000 Allpoint ATMs worldwide. Allpoint ATMs are located in popular retail stores—like Target, Costco, Walgreens, and CVS—so customers don’t have to go out of their way to get cash at a bank branch ATM.
*Varo's Savings interest rate is variable and may change. The balance in savings must be at least $0.01 to earn interest. The APY disclosed is accurate as of March 6, 2018. **APYs for other banks provided by mybanktracker.com.