Varo Bank is an American digital, mobile-only neobank based in San Francisco, California. The company offers essential financial services through its mobile apps available on both Apple and Android platforms. As of 2021, Varo Bank boasts over 1 million customers.
Established in 2015, Varo Bank was co-founded by Colin Walsh and Kolya Klymenko. With a target demographic of young people and millennials dissatisfied with traditional banking services, Varo provides its products exclusively through its app. This approach ensures that customer experiences are closely monitored by a dedicated team instead of branch employees.
By 2020, Varo had become one of the top three neobanks in the United States, alongside Chime and Simple. Notably, Varo applied for a banking license in 2016, enabling its evolution into a full-fledged financial institution. Following approval from the Office of the Comptroller of the Currency in July 2020, Varo officially became a licensed bank.
Operating solely online, Varo Bank minimizes fees due to its low operational overhead, allowing for more affordable services, including no-fee checking and savings accounts and no overdraft fees. Varo also offers free ATM withdrawals through its partnership with Allpoint.
Varo Impact
Varo Impact is a program by Varo Bank that focuses on initiatives related to financial access and inclusion, financial literacy, employee engagement, and thought leadership.
This program aims to empower customers through various services such as the Varo Believe Card, which assists in building credit.
Varo Bank is dedicated to giving back to the community through its Varo Impact Program, showcasing their commitment to social and environmental impact.
Key Features of Varo Bank:
- No fees for monthly maintenance, foreign transactions, transfers, or debit card replacements.
- No minimum deposit requirement to open an account.
- Competitive interest rates, up to 3.00% APY if monthly requirements are met.
- Free ATM withdrawals at Allpoint Network locations, with a $2.50 fee for other ATMs.
- Easy integration of external bank accounts within the Varo app for streamlined account management.
- $50 referral bonus reward.
- Early direct deposit feature for paychecks received before payday.
- Cash advances up to $100 through the Varo Advance feature, with a flat fee for amounts over $20.
- FDIC insurance on all deposits up to $250,000.
- Visa Debit Card accepted wherever Visa is honored.
- Varo customer support available on weekdays and weekends.
- Budget tracking tools and transaction monitoring via the Varo mobile app.
