The All-Digital Bank Launches 2.00% Initial Savings Rate, Over 15 Times the National Average
SAN FRANCISCO, Sept. 1, 2022 – Varo Bank, the first all-digital, nationally chartered U.S. consumer techbank, today announced that consumers can immediately start earning a 2.00% savings rate1, one of the highest annual percentage yields (APY) in the country – over 15 times the national average2.
Opening a high-yield savings account is a simple way to minimize the impact of inflation. The Varo Savings Account now starts at a competitive 2.00% APY, which could increase to 5.00% APY2 or customers who qualify3, as announced earlier this year. Unlike traditional banks, the Varo Savings Account has no hidden fees4 and no minimum balance requirement to open an account. There is a minimum balance required to earn interest.*
“Varo Bank will continue to stand by our customers during these challenging economic times”, said Colin Walsh, Founder and CEO of Varo Bank. “The Varo mission is about helping people build financial resilience. An important part of this goal includes providing products and technology facilitating consistent positive cash flow balances. This rate increase is one of the ways we help our customers continue to save their hard-earned money despite the rising costs of basic necessities.”
Account holders can also grow their balance over time effortlessly by using Varo Bank’s automatic savings tools – Save Your Change and Save Your Pay, which is a convenient way to sweep money from qualifying purchases and transfer those funds into their savings account.
Find out more information about the current savings rate and how to qualify at https://www.varomoney.com/savings-account/.
*The minimum balance to earn interest varies based on the number of days in the calendar month. To earn 2.00% APY, the minimum average daily balance for the month is $2.98 in a 31-day month, $3.08 for a 30-day month, and $3.30 for a 28-day month. To earn 5.00% APY, the average of the close-of-business-day balances for the month must be at least $1.21 in a 31-day month, $1.25 in a 30-day month, and $1.34 in a 28-day month.
(1) Annual Percentage Yields (APYs) are accurate as of September 1, 2022. Rates may change at any time without prior notice, before or after the account is opened.
(2) Based on rates, as of August 15, 2022, as found on fdic.gov/regulations/resources/rates.
(3) The qualifying period begins on the first calendar day of the month and ends at close of business (4:25 pm MST/ 3:25 pm MDT) on the last business day of the month. Eligibility is determined separately each month. Further qualifications as follows and can be found at https://www.varomoney.com/savings-account/: (a)Receive direct deposits totalling $1,000 or more. Qualifying direct deposits are electronic deposits of a paycheck, pension or government benefits (such as Social Security or unemployment) from an employer or government agency. Tax refunds and government stimulus payments and Person-to-Person payments (such as Venmo) are not considered a direct deposit. (b) Your Varo Bank Account and Varo Savings Account balances must be greater than or equal to $0.00 at the end of the qualifying period. (c) Additionally, the balance in your Savings Account must not exceed $5,000 at the close of business each day during the calendar month. Close of business is 6:00 pm MST, except on the last business day of the month, when it is 4:25 MST/3:25 MDT.
(4) We don’t have many fees, but there are a few as listed on our No Hidden Fees page.
About Varo Bank, N.A.
Varo Bank is the first all-digital, nationally chartered U.S. consumer techbank built from the ground up, designed to make financial inclusion and opportunity a reality for all. Varo Bank is reimagining the modern banking experience and providing customers with the tools they need to build financial resilience and realize their financial power – with offerings such as Varo Believe, a secured card to help build credit, Varo Advance to help stretch hard-earned dollars between paychecks, the ability to earn cashback at 1,000 merchant locations nationwide, and a newly launched high yield savings account option, more than 38x the national average. A different kind of financial institution – Varo Bank serves everyone striving to build a better future – from those with abundance to people struggling to make ends meet. Varo has been named one of Forbes’ World’s Best Banks in 2022, Fast Company’s Most Innovative Companies, and is on the Inc 5000 list of fastest growing companies for 2022. For more information on Varo Advance, Varo Believe, and other offerings such as Perks, visit www.varomoney.com, like Varo Bank on Facebook, and follow us on Instagram and Twitter @varobank. @2022 Varo Bank, N.A. Member FDIC.