Varo is an online FDIC-insured bank offering a checking and savings account with a ton of features, including cashback rewards, a high APY and barely any fees. It also offers a secured credit card called Varo Believe that doesn’t have an APR or annual fees and allows you to set the spending limit. But Varo doesn’t offer joint accounts or wire transfers, and to earn the highest APY on savings, you must meet deposit requirements. As more fintechs and online banks enter the space, competition is fierce. Here are nine alternative online banks like Varo with their own unique strengths.
Refer a friend to Chime using your referral link, and if they complete a $200 direct deposit within 45 days of opening their new account, you both get $100.
When it comes to hassle-free checking, Chime takes the cake. It's a fintech company with banking services backed by its bank partners. Chime offers one checking account, a savings account and a secured credit card. Its checking account has no monthly fees, no opening deposit requirement, no foreign transaction fees, and fee-free overdraft with SpotMe®. In addition, with direct deposit set up, you may qualify for Chime SpotMe®, its unique overdraft service that covers purchases up to $200 with no fees. However, similar to Varo, it doesn't offer cashback rewards, accept cash deposits or allow joint owners.
Fee
$0 per month
Minimum deposit to open
$0
When it comes to hassle-free checking, Chime takes the cake. It's a fintech company with banking services backed by its bank partners. Chime offers one checking account, a savings account and a secured credit card. Its checking account has no monthly fees, no opening deposit requirement, no foreign transaction fees, and fee-free overdraft with SpotMe®. In addition, with direct deposit set up, you may qualify for Chime SpotMe®, its unique overdraft service that covers purchases up to $200 with no fees. However, similar to Varo, it doesn't offer cashback rewards, accept cash deposits or allow joint owners.
Pros
No monthly fees and no opening deposit
Overdraft service Chime SpotMe
Secured credit card for credit building
Get 2.00% Annual Percentage Yield (APY) on savings
Cons
No cashback rewards
No cash deposits
No joint accounts
Annual Percentage Yield (APY)
N/A
Intro or bonus offer
Refer a friend to Chime using your referral link, and if they complete a $200 direct deposit within 45 days of opening their new account, you both get $100.
Rewards
Cash back offers on everyday purchases through the app
Chime is a financial technology company, not a bank. Banking services and debit card provided by The Bancorp Bank N.A. or Stride Bank, N.A., Members FDIC. ATMs: Out-of-network ATM withdrawal fees may apply except at MoneyPass ATMs in a 7-Eleven, or any Allpoint or Visa Plus Alliance ATM. Deposit: Once the retailer accepts your cash, the funds will be transferred to your Chime Checking Account. Cash deposit fees may apply if using a retailer other than Walgreens and Duane Reade. Mobile Deposit: Mobile Check Deposit eligibility is determined by Chime in its sole discretion and may be granted based on various factors including, but not limited to, a member's direct deposit enrollment status. Chime Savings Account: Chime Checking Account is required to be eligible for a Savings Account. APY: The Annual Percentage Yield (“APY”) is variable and may change at any time. The disclosed APY is accurate as of May 22, 2023. No minimum balance required. Must have $0.01 in savings to earn interest. Get Paid Early: Early access to direct deposit funds depends on the timing of the submission of the payment file from the payer. We generally make these funds available on the day the payment file is received, which may be up to 2 days earlier than the scheduled payment date. Credit Builder: To apply for Credit Builder, you must have an active Chime® Checking Account. SpotMe: Chime SpotMe is an optional, no fee service that requires a single deposit of $200 or more in qualifying direct deposits to the Chime Checking Account each at least once every 34 days. All qualifying members will be allowed to overdraw their account up to $20 on debit card purchases and cash withdrawals initially, but may be later eligible for a higher limit of up to $200 or more based on member’s Chime Account history, direct deposit frequency and amount, spending activity and other risk-based factors. Your limit will be displayed to you within the Chime mobile app. You will receive notice of any changes to your limit. Your limit may change at any time, at Chime’s discretion. Although there are no overdraft fees, there may be out-of-network or third party fees associated with ATM transactions. SpotMe won’t cover non-debit card transactions, including ACH transfers, Pay Anyone transfers, or Chime Checkbook transactions. See Terms and Conditions.
Just like Varo, SoFi is an online bank that's directly FDIC-insured. SoFi has a long list of products and services, including its all-in-one Checking and Savings account with no monthly fees, opening deposit requirement, overdraft fees or foreign transaction fees. If you set up direct deposit, you can earn up to 4.00% APY on your savings balance and 0.50% on your checking. You can also enjoy high FDIC insurance of up to $2 million. Alongside its banking products, SoFi offers personal loans, mortgages, student loan refinancing, credit cards, investing and much more. Similar to Varo, SoFi accepts cash deposits at Green Dot locations for a $4.95 fee.
APY
Up to 4.00%
Fee
$0 per month
Minimum deposit to open
$0
Just like Varo, SoFi is an online bank that's directly FDIC-insured. SoFi has a long list of products and services, including its all-in-one Checking and Savings account with no monthly fees, opening deposit requirement, overdraft fees or foreign transaction fees. If you set up direct deposit, you can earn up to 4.00% APY on your savings balance and 0.50% on your checking. You can also enjoy high FDIC insurance of up to $2 million. Alongside its banking products, SoFi offers personal loans, mortgages, student loan refinancing, credit cards, investing and much more. Similar to Varo, SoFi accepts cash deposits at Green Dot locations for a $4.95 fee.
Pros
Hybrid bank account with no fees
Variety of products and services
High FDIC insurance up to $2 million
Up to 4.00% APY on savings
Cons
No international wire transfers
Annual Percentage Yield (APY)
Up to 4.00%
Intro or bonus offer
Get up to $300 cash bonus with qualifying direct deposit. Terms apply. This offer is available until December 31, 2024.
Rewards
Get up to $300 cash bonus with qualifying direct deposit. Terms apply. This offer is available until December 31, 2024.
New and existing Checking and Savings members who have not previously enrolled in Direct Deposit with SoFi are eligible to earn a cash bonus of either $50 (with at least $1,000 total Direct Deposits received during the Direct Deposit Bonus Period) OR $300 (with at least $5,000 total Direct Deposits received during the Direct Deposit Bonus Period). Cash bonus will be based on the total amount of Direct Deposit. Direct Deposit Promotion begins on 12/7/2023 and will be available through 1/31/2026. Full terms at sofi.com/banking. SoFi Checking and Savings is offered through SoFi Bank, N.A., Member FDIC. SoFi members with Direct Deposit can earn 4.00% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Direct Deposit amount required to qualify for the 4.00% APY for savings (including Vaults). Members without Direct Deposit will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Interest rates are variable and subject to change at any time. These rates are current as of 12/3/2024. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.
SoFi members with Direct Deposit or $5,000 or more in Qualifying Deposits during the 30-Day Evaluation Period can earn 4.00% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. Members without either Direct Deposit or Qualifying Deposits, during the 30-Day Evaluation Period will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Only SoFi members with direct deposit are eligible for other SoFi Plus benefits. Interest rates are variable and subject to change at any time. These rates are current as of 12/3/24. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.
We do not charge any account, service or maintenance fees for SoFi Checking and Savings. We do charge a transaction fee to process each outgoing wire transfer. SoFi does not charge a fee for incoming wire transfers, however the sending bank may charge a fee. Our fee policy is subject to change at any time. See the SoFi Checking & Savings Fee Sheet for details at sofi.com/legal/banking-fees/.
SoFi Bank is a member FDIC and does not provide more than $250,000 of FDIC insurance per legal category of account ownership, as described in the FDIC’s regulations. Any additional FDIC insurance is provided by the SoFi Insured Deposit Program. Deposits may be insured up to $2M through participation in the program. See full terms at SoFi.com/banking/fdic/termsSee list of participating banks at SoFi.com/banking/fdic/receivingbanks
We’ve partnered with Allpoint to provide you with ATM access at any of the 55,000+ ATMs within the Allpoint network. You will not be charged a fee when using an in-network ATM, however, third-party fees incurred when using out-of-network ATMs are not subject to reimbursement. SoFi’s ATM policies are subject to change at our discretion at any time.
Early access to direct deposit funds is based on the timing in which we receive notice of impending payment from the Federal Reserve, which is typically up to two days before the scheduled payment date, but may vary.
Get a $50 referral bonus by inviting your friends to join Current. Once the person receives the invite link and makes qualifying deposits of at least $200 within 45 days of opening the account, you and the referred friend each earn $50
Current is a fintech company that offers an all-in-one checking and savings account with no monthly fees, overdraft fees or opening deposit requirement. You can create three savings pods to keep your goals separate and earn up to 4% bonus on up to $2,000 within each pod. You can also earn cashback points with select merchants, and eligible users can apply for paycheck advances with no credit check or fees. On top of that, Current offers a secured card that's very similar card to Varo's Believe card — the Current Build card has no interest charges, annual fees or credit check, and it's backed by your Current account which sets the spending limit. However, both Varo and Current don't offer joint accounts.
APY
4.00%
Fee
$0 per month
Minimum deposit to open
$0
Current is a fintech company that offers an all-in-one checking and savings account with no monthly fees, overdraft fees or opening deposit requirement. You can create three savings pods to keep your goals separate and earn up to 4% bonus on up to $2,000 within each pod. You can also earn cashback points with select merchants, and eligible users can apply for paycheck advances with no credit check or fees. On top of that, Current offers a secured card that's very similar card to Varo's Believe card — the Current Build card has no interest charges, annual fees or credit check, and it's backed by your Current account which sets the spending limit. However, both Varo and Current don't offer joint accounts.
Pros
No monthly fees and $0 opening deposit
Current Build card with 0% APR
Earn up to 4% bonus on savings
Accepts cash deposits at select retail locations
No fee Paycheck Advance feature
Cons
No joint accounts
$3 plus 3% on international ATM withdrawals
Annual Percentage Yield (APY)
4.00% on balances of $0.01 to $2,000
Intro or bonus offer
Get a $50 referral bonus by inviting your friends to join Current. Once the person receives the invite link and makes qualifying deposits of at least $200 within 45 days of opening the account, you and the referred friend each earn $50
Rewards
Earn up to 15x the points when you use your debit card at one of 14,000+ participating merchants
Designed for college students but available to anyone 18 and up, Fizz offers a unique card that can build credit. With no credit check or APR, the Fizz card can be a great fit for young adults looking to build credit history. Fizz requires users to have an external account with at least $150 in it and be at least 18 years old. Fizz's card offers very high cashback rewards from 25% to 100%, with merchants frequently found around college campuses, such as Starbucks, Chick-fil-A and Einstein Bros. Bagels. Varo has a similar product, but Varo's Believe card requires you to have the Varo account to qualify and for you to manually add funds to the Believe card to use it. But unlike Varo, you can't earn any APY with Fizz, and Fizz charges at least $49.99 per year for students.
APY
N/A
Fee
From $4.17 per month
Minimum deposit to open
$150
Designed for college students but available to anyone 18 and up, Fizz offers a unique card that can build credit. With no credit check or APR, the Fizz card can be a great fit for young adults looking to build credit history. Fizz requires users to have an external account with at least $150 in it and be at least 18 years old. Fizz's card offers very high cashback rewards from 25% to 100%, with merchants frequently found around college campuses, such as Starbucks, Chick-fil-A and Einstein Bros. Bagels. Varo has a similar product, but Varo's Believe card requires you to have the Varo account to qualify and for you to manually add funds to the Believe card to use it. But unlike Varo, you can't earn any APY with Fizz, and Fizz charges at least $49.99 per year for students.
Pros
0% APR
No credit check
High cashback rewards with rotating offers
Reports to all three credit bureaus
Cons
No overdraft services
Requires external bank account
Starts at $49.99 annually
Annual Percentage Yield (APY)
N/A
Intro or bonus offer
Earn 1,000 points ($10 value) when you download the Fizz app and enter code FINDER.
Dave is a mobile banking app chock full of great features, including its very high 4% APY available on its Spend account — as long as you meet direct deposit requirements. It's just barely lower than Varo's 5% APY. Dave also offers cash advances, credit monitoring, budgeting features and cashback rewards of up to 15%. However, Dave costs $1 per month, while Varo doesn't have a monthly fee. Like Varo, Dave doesn't offer joint accounts but accepts cash deposits at Walgreens and CVS locations for a $4.95 fee.
APY
4.00%
Fee
From $0 per month
Minimum deposit to open
$0
Dave is a mobile banking app chock full of great features, including its very high 4% APY available on its Spend account — as long as you meet direct deposit requirements. It's just barely lower than Varo's 5% APY. Dave also offers cash advances, credit monitoring, budgeting features and cashback rewards of up to 15%. However, Dave costs $1 per month, while Varo doesn't have a monthly fee. Like Varo, Dave doesn't offer joint accounts but accepts cash deposits at Walgreens and CVS locations for a $4.95 fee.
Earn 10% cash back at Walmart, up to $20, on your first purchase. Limited time offer. Get 3% cash back on future purchases up to an additional $50 a year with eligible deposits.
Varo and One are very similar digital banking options, though One is a fintech with banking partners. One Cash offers a 3.75% APY on savings by meeting direct deposit or balance requirements. However, One Cash's requirements are slightly easier to meet, only requiring direct deposit of $500 per month, or an average balance of $5,000. Varo requires a balance of at least $5,000 and direct deposit of at least $1,000 per month. Neither account has monthly fees or opening deposit requirements, and One Cash also offers cashback rewards, though they're not as robust as Varo's 6%. Both Varo and One Cash lack the ability to support joint accounts.
APY
Up to 3.75%
Fee
$0 per month
Minimum deposit to open
$0
Varo and One are very similar digital banking options, though One is a fintech with banking partners. One Cash offers a 3.75% APY on savings by meeting direct deposit or balance requirements. However, One Cash's requirements are slightly easier to meet, only requiring direct deposit of $500 per month, or an average balance of $5,000. Varo requires a balance of at least $5,000 and direct deposit of at least $1,000 per month. Neither account has monthly fees or opening deposit requirements, and One Cash also offers cashback rewards, though they're not as robust as Varo's 6%. Both Varo and One Cash lack the ability to support joint accounts.
Pros
No monthly fees
All-one-account digital account
High 3.75% APY on savings
Easier deposit requirements than Varo
Cons
No joint accounts
Cashback not as good as Varo
Annual Percentage Yield (APY)
3.75% on balances of to $250,000 1.00% on balances of +
Intro or bonus offer
Earn 10% cash back at Walmart, up to $20, on your first purchase. Limited time offer. Get 3% cash back on future purchases up to an additional $50 a year with eligible deposits.
Rewards
Earn 3% cash back at Walmart, up to $50 annually, with eligible deposits
One is a financial technology company, not a bank. Banking services provided by Coastal Community Bank, Member FDIC. Debit card rewards: ● Earn 10% cash back at Walmart, up to $20, on your first purchase. Limited time offer¹ ● Get 3% cash back on future purchases, up to an additional $50 every year, with eligible deposits² ● Earn up to 5% cash back on select brands³ Early Pay: Get paid up to 2 days early. Direct deposit may be available up to 2 days in advance, but depends on when your employer sends paycheck data. 3.75% APY on Savings with eligible deposits: 3.75% annual percentage yield (APY) applies to the Savings balance of One Cash customers who either (i) received $500 or more of Direct Deposits in the previous month or (ii) have a total daily account balance of $5,000 or more. 3.75% APY is also earned on Pay Autosave balances without these deposit or balance requirements. In all instances, 3.75% APY is limited to a total Savings balance of up to $250,000. All other Savings balances will earn 1.00% APY. APYs are as of 12/20/2024, but may change at any time before or after account opening. ATM: Allpoint Network ATM transactions are fee-free for accounts with eligible direct deposits totaling at least $500 in the previous month. For all other ATM transactions the One ATM Fee will apply and third-party ATM fees may be incurred. Overdraft Protection: Available with Direct Deposits totaling at least $500 in the previous month. You must be 18 or older to receive Overdraft Protection. When on, Savings Backup will be used before Overdraft Protection. Overdraft balance is due right away. Transactions eligible for Overdraft Protection are at the discretion of One and may exclude certain transactions (e.g., bill pay, global transfers). See terms for details. ¹Only available to consumers who open an account through Walmart.com, the Walmart app, one.app, or the One app from 8/8/24 - 10/31/24. Terms apply. ²To receive 3% cash back, eligible customers (at the time their purchase settles) must (i) have received $500 or more of eligible direct deposits in the previous month, or (ii) have a total account balance of $5,000 or more. 3% cash back is limited to up to $50 per year and applies only to purchases made at U.S. Walmart locations and on Walmart.com. This promotion may not be combined with other One promotions that offer cash back on purchases at Walmart. Terms apply. ³Cash back can be earned through the Debit Rewards Program. Individual offer details can be found in the One app. Terms apply.
Based in the UK, Revolut is a fintech company with banking services. Revolut is designed for globetrotters as it's a multi-currency account. You can in spend over 150 currencies and enjoy free exchange for over 25 currencies with monthly allowances. You can also earn between 3.25% and 4.25% APY on your savings balance, depending on your membership tier. Revolut is free to open, but its paid plans called Premium and Metal offer more international perks and cost between $9.99 to $16.99 per month. Revolut supports wire transfers, a perk Varo lacks, and the paid plans offer discounts on international wire transfers. However, just watch out for withdrawal limitations at out-of-network ATMs, as that can lead to extra fees.
APY
Up to 4.25%
Fee
From $0 per month
Minimum deposit to open
$0
Based in the UK, Revolut is a fintech company with banking services. Revolut is designed for globetrotters as it's a multi-currency account. You can in spend over 150 currencies and enjoy free exchange for over 25 currencies with monthly allowances. You can also earn between 3.25% and 4.25% APY on your savings balance, depending on your membership tier. Revolut is free to open, but its paid plans called Premium and Metal offer more international perks and cost between $9.99 to $16.99 per month. Revolut supports wire transfers, a perk Varo lacks, and the paid plans offer discounts on international wire transfers. However, just watch out for withdrawal limitations at out-of-network ATMs, as that can lead to extra fees.
Pros
Free and paid plans available
Earn 3.25% to 4.25% APY on savings
Spend in over 150 currencies
Discounts on travel and wire transfers with paid plans
Cons
$10 to send or receive domestic wire transfer
May incur extra withdrawal fees with out-of-network ATMs
Annual Percentage Yield (APY)
4.25% on balances of $0+ 3.25% on balances of $0+
Intro or bonus offer
Get a $10 cash reward when you first use you card on a qualifying $1+ transaction. Terms & Conditions apply.
Fee
From $0 per month
To waive the fee
Open a Standard plan with $0 monthly fee. Paid plans: • $9.99 monthly fee for Premium plan • $16.99 monthly fee for Metal plan
Money loaded on your prepaid card is held at Metropolitan Commercial Bank and money in your Savings Vaults is held at Sutton Bank. Money at each bank is FDIC insured up to $250,000 in the event of Metropolitan Commercial Bank's or Sutton Bank's failure. Securities products are not FDIC Insured, not bank guaranteed and may lose value.
*The Annual Percentage Yield (APY) is a variable rate and may change at any time. These APYs are accurate as of 16 March 2023. Monthly fees apply for Premium and Metal plans. Terms and Conditions Apply. Standard customers can earn up to 3.25%, while Premium and Metal customers can earn up to 4.25%. No minimum amount required. Savings Vault services provided by Sutton Bank, Member FDIC.
Revolut is a financial technology company. Banking services provided by Metropolitan Commercial Bank (Member FDIC) and are subject applicable terms.
Honeydue is a fintech company with a banking app specially designed for couples. The Honeydue app allows you to link external bank accounts and create a separate joint account called the Joint Cash account. You and your partner can customize the visibility of balances and transactions and even choose to hide certain transactions — such as that anniversary gift you don't want your partner to know you got. But besides its transparency feature, you can't earn APY on your balance or get cashback rewards like you can with Varo.
Fee
$0 per month
Card fee
$0
ATM withdrawal
$0
Honeydue is a fintech company with a banking app specially designed for couples. The Honeydue app allows you to link external bank accounts and create a separate joint account called the Joint Cash account. You and your partner can customize the visibility of balances and transactions and even choose to hide certain transactions — such as that anniversary gift you don't want your partner to know you got. But besides its transparency feature, you can't earn APY on your balance or get cashback rewards like you can with Varo.
Varo is a top banking option, and unlike many other online accounts, Varo is directly insured by the FDIC. You’ll find most online accounts such as Chime, Current and Honeydue all have banking partners that insure and back the accounts, which can limit what products they offer, though insurance coverage is typically the same.
Overall, Varo’s account has a strong cashback rewards program and a 5% high APY on the savings account when you meet direct deposit requirements. For balances under $5,000, you can earn 5% APY, and for those over $5,000, you’ll earn 2.5% if you direct deposit at least $1,000 per month. The Visa Varo Believe card is a debit-credit card that can build credit history, but you’ll need a Varo account and must manually transfer money to the Varo Believe card to use it. Overall, Varo is a competitive product but not the best choice if you need a joint account or a bank with physical locations.
Bethany Hickey is the banking editor and personal finance expert at Finder, specializing in banking, lending, insurance, and crypto.
Bethany’s expertise in personal finance has garnered recognition from esteemed media outlets, such as Nasdaq, MSN, Yahoo Finance, GOBankingRates, SuperMoney, AOL and Newsweek. Her articles offer practical financial strategies to Americans, empowering them to make decisions that meet their financial goals. Her past work includes articles on generational spending and saving habits, lending, budgeting and managing debt.
Before joining Finder, she was a content manager where she wrote hundreds of articles and news pieces on auto financing and credit repair for CarsDirect, Auto Credit Express and The Car Connection, among others.
Bethany holds a BA in English from the University of Michigan-Flint, and was poetry editor for the university’s Qua Literary and Fine Arts Magazine. See full bio
Bethany's expertise
Bethany has written 448 Finder guides across topics including:
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Finder.com is an independent comparison platform and information service that aims to provide you with the tools you need to make better decisions. While we are independent, the offers that appear on this site are from companies from which Finder receives compensation. We may receive compensation from our partners for placement of their products or services. We may also receive compensation if you click on certain links posted on our site. While compensation arrangements may affect the order, position or placement of product information, it doesn't influence our assessment of those products. Please don't interpret the order in which products appear on our Site as any endorsement or recommendation from us. Finder compares a wide range of products, providers and services but we don't provide information on all available products, providers or services. Please appreciate that there may be other options available to you than the products, providers or services covered by our service.
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