The All-Digital Bank Launches 5% Savings Rate, Over 80 Times the National Average
SAN FRANCISCO, April 7, 2022 – Varo Bank, the first all-digital, nationally chartered U.S. consumer bank built from the ground up, announces a five percent savings rate. U.S. customers can earn one of the highest annual percentage yields (APY) in the country – over 80 times the national average(1) – with a Varo Savings Account. As inflation continues to soar, consumers are looking for ways to make their money work smarter not harder. Opening a high-yield savings account is one way to minimize the impact of inflation on savings.
Customers can immediately start earning 0.50% APY, and can then qualify to earn 5.00% APY(2). Unlike some traditional banks, there are no hidden fees,(3) and there is no minimum balance required to open a Varo Savings Account, but there is a minimum balance to earn interest.* Upon completing additional tasks during each Qualifying Period,(4) customers will earn the 5.00% APY. This includes getting direct deposits totaling $1,000 or more;(5) having $0.00 or more in Varo Bank and Savings accounts at the end of the Qualifying Period; and ensuring the savings account balance isn’t higher than $5,000 at the end of each business day.(6)
“Rising inflation affects all of us. By offering a five percent savings rate, we are doing what we can to help our customers lessen the impact and continue to strive towards their financial goals,” said Colin Walsh, Founder and CEO of Varo Bank. “At Varo, we offer products to help our customers move up the broken wealth ladder as we try to fix it.”
Account holders can grow their balance over time without even thinking about it by using Varo Bank’s automatic savings tools – Save Your Change and Save Your Pay. Now customers can practice smart ways to save without interrupting daily life.
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 0.50% APY, the average of the close-of-business-day balances for the month must be at least $11.78 in a 31-day month and $12.17 in a 30-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 and $1.25 in a 30-day month.
(1) Based on rates, as of March 21, 2022, as found on fdic.gov/regulations/resources/rates.
(2) Annual Percentage Yields (APYs) are accurate as of April 1, 2022. Rates may change at any time without prior notice, before or after the account is opened.
(3) We don’t have many fees, but there are a few, as listed on our No Hidden Fees page.
(4) 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.
(5) 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. Person-to-Person payments (such as Venmo) are not considered a direct deposit. Funds deposited using a Varo Money routing number are not considered a direct deposit.
(6) The balance in the Savings Account must not exceed $5,000 at the close of business each business day during the calendar month. Close of business is 6:00 pm MST/5:00 pm MDT, except on the last business day of the month, when it is 4:25 pm MST/3:25 pm MDT.
About Varo Bank, N.A.
Varo Bank is on a mission to make financial inclusion and opportunity a reality for all – by empowering people with the products and support they need to create healthy financial habits and be in control of their finances. Varo Bank offers customers premium bank accounts that have no minimum balance requirement or monthly account fee, high-interest savings accounts, and tech-first features to help people save and manage their money effortlessly. Varo Bank is the first consumer fintech to be granted a national bank charter by the Office of the Comptroller of the Currency, was named one of Fast Company’s Most Innovative Companies and ranked No 7 on the Inc 5000 list of fastest growing companies for 2021. For more information on Varo Advance, Perks, and the upcoming Believe program, visit www.varomoney.com, like Varo Bank on Facebook, and follow us on Instagram and Twitter @varobank. Member FDIC.