You’ve scrimped, you’ve sacrificed, you’ve brown bagged your lunch all year in order to build up your nest egg. Now it’s time to get the most out of your savings with a high-interest Savings Account.
At Varo, we’re thrilled to announce the Annual Percentage Yield (APY) on the Varo Savings Account is starting at 2.02% APY** and then moving up to 2.80% APY** based on certain requirements (see table below) — significantly higher than the national average of 0.09%** APY.
|2.80%||The Savings Account balance must be $50,000 or less and the customer must meet both of the following requirements:
(For details see the Rate information section of the Varo Savings Account Agreement.)
Great question. We offer great rates to our customers for a few reasons.
First, we’re all online—our only branch is right there on your smartphone. That means our costs are low; we don’t have to pay for buildings, or parking lots, or other expensive infrastructure.
Next, our mission is not just to make banking better but to also improve your financial health. While the Varo app has great features to help you budget and see how you’re doing money-wise each month, we don’t want you to miss out on getting the most out of your savings too.
So now, you’re probably wondering why some big banks have such low rates in comparison. Well, one reason is that they have no real incentive to raise them—they are hoping that customers who have been with them awhile will just stick around for no other reason except inertia. But that inertia has a real cost to you.
Consider a savings pot of $10,000. With Varo’s 2.02% APY*, you’ll earn about $202 in interest in 12 months. That same $10,000 parked in a savings account at one of these big banks would only earn you about $9 on average.**
Beyond the low rates, many big banks also have minimum balance requirements or monthly fees. It’s up to you read the fine print.
People deserve better—that’s why Varo is here.