Is Varo a real bank? (2024)

Is Varo a real bank?

Yes, Varo is an online bank insured by the Federal Deposit Insurance Corporation (FDIC #59190). It offers checking, savings, a secured credit card and cash advances.

How legit is Varo Bank?

Varo Bank is an FDIC-insured, online-only bank that provides services online or via mobile app, with zero physical branches. Varo has limited account options, but the current options boast savings accounts with competitive APYs with zero fees or minimum balances.

Is Varo recognized as a bank?

Unlike some other fintechs, we're a legit bank and you can count on us to keep your money FDIC-insured for up to $250,000 per depositor, per ownership category in case the worst happens.

Is Varo a secure bank?

Varo is safe to use. Your money is FDIC-insured, and your personal information is protected with industry-standard encryption.

Who owns Varo Bank?

Is Varo in trouble?

Varo is the latest fintech to run into financial trouble. Since raising $510 million at a $2.5 billion valuation last September, it has been burning through that money quickly, losing $84 million last quarter alone.

What are the cons of Varo Bank?

Does Varo have Zelle?

Yes, Varo Bank does work with Zelle. You can send, request, or receive money with Zelle right in your Varo app. To be eligible to enroll in Zelle at Varo, you must have a qualifying direct deposit in the last 31 days. Once enrolled, you will always be able to access Zelle at Varo.

What state is Varo Bank from?

Varo Bank, formerly Varo Money was founded in 2015 and headquartered in San Francisco, California. Varo Bank is a banking app where you can pay your bills and manage expenses with tracking tools are a featured service. VaroBank, a Fintech company was founded in 2015 and headquartered in San Francisco, California.

Why is my Varo card being declined when I have money?

You Already Reached Your Spending Limit

Many debit cards come with a preset daily spending limit. Once it's reached, your card will automatically be denied.

How many people use Varo Bank?

Varo Bank has grown exponentially since its inception, currently exceeding 7 million accounts. But many of these relationships are small-dollar deposit customers.

What is the best online bank?

Does Varo affect credit score?

Better credit is possible. Sign up for a Varo Bank account in less than 2 minutes. It's free, easy, and there's no impact to your credit score.

How much can you borrow from Varo?

When you qualify, we'll give you a credit limit—from $20 up to $250. Then just continue to bank, borrow, and make on-time payments to work your way up to $500.

How long has Varo Bank been around?

Varo Money was founded by Assaf Guery, Colin Walsh, Mykola Klymenko, and Roger Van Duinen, in 2015. The company offers no-cost premium bank accounts and their savings accounts have high-interest rates.

Who is Varo partnered with?

NEW YORK, US – SEPTEMBER 12, 2023 – Temenos (SIX: TEMN) today announced that Varo Bank, N.A., the first all-digital, nationally chartered consumer techbank in the US, has extended its relationship with Temenos.

Is Varo going broke?

On the credit side, Varo is still struggling. Loans tied to its Varo Believe card, which functions akin to a secured charge card, are down about 8% vs. last quarter to $25.7 million. Outstanding loans for its Varo Advance small-dollar loan product rose a robust 30.5% to $14.4 million.

Is Varo running out of money?

Based on the bank's Q1 2022 equity of $263 million and burn rate of $84 million, it could run out of money before the end of the year — and would become less than well capitalized before then (though Varo does have an additional ~$37 million in equity at the bank holding company level).

Can Varo freeze your account?

We may cancel or suspend the Bank Account or this Bank Account Agreement at any time and for any reason, at our sole discretion.

What is better than Varo?

There are other accounts like Varo in the US. Examples include Revolut, Wise, and others, which offer a checking account and debit card. We particularly like Revolut for its fee-free checking account, debit card, good APY, and cashback, making it an excellent Varo alternative all around!

What happens if you don't pay Varo Bank?

You'll have 30 days to pay back your loan amount. You may also select an automatic repayment date in a timeframe of 15 to 30 days. If you do not make a payment for Varo Advance within 30 days, there aren't any late fees. However, Varo will withdraw the money you owe from your Varo Bank when you make a deposit.

Should I use Varo or Chime?

Interest-Earning Accounts

Chime offers the users a 2.00% Annual Percentage Yield (APY)⁵ on their savings without a balance requirement. In contrast, Varo offers a variable APY of 3.00% to 5.00%; you'll need at least $0.01 to earn this interest.

Can I transfer money from Varo to another bank?

Transfer money to or from another bank account in the Varo app*. First, follow the steps for linking external accounts to your Varo Bank Account. Once the external account is linked, open the Varo app and tap: Move Money > Transfer Money > Transfer Money.

Does Varo Bank work for Cashapp?

You can send and receive instant transfers from digital wallets like Zelle®, Varo to Anyone, Cash App, PayPal, Venmo and Square; or instant deposits from companies like Uber, Lyft, and Daily Pay. The speed of the transfer varies by digital wallet, but it usually takes less than 30 minutes.

Is Chime bank legitimate?

Is Chime legit? Yes. While not a bank, customer accounts through Chime are FDIC-insured through its partner banks. It currently services millions of customers—more than any other online financial institution by a wide margin.