No-Fee Overdraft Has Saved You $100M
September 2, 2020
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It’s been one year since we launched No Fee Overdraft, and it’s already saved the Varo Community over $100 million dollars.
That’s money back into the hands of hard working Americans.
Big banking is broken.
We care about your financial health and we’re creating a new way of banking to change things.
While the average overdraft is only $20, banks charge a fee of about $35 on average for an overdraft. The average payback time for an overdraft is only three days.
Some banks will also charge multiple fees per day. If you aren’t aware you’ve overdrafted, you might end up paying hundreds of dollars.
According to the Center for Responsible Lending, the biggest US banks took nearly $12 billion in overdraft fees from Americans in 2019.
None of the 10 largest banks have reduced or waived overdraft fees during the COVID-19 crisis.
These fees hit people who have the hardest time paying them and bank fees in general have a disproportionately higher impact on majority black communities and communities of color.
Based on research from New America, the minimum balance required to open an account is 18% higher in majority black communities than majority white communities.
The average minimum balance that’s required in order to escape these fees is about $250 higher.
Even the fees themselves are higher at an average of $2.50 more in majority Latinx communities.
Varo is different.
We want to serve every community in America.
We want to serve every person regardless of net worth.
Banks should help people.
Your bank should help you get to a better place and be transparent.
We’re using technology and a belief in a better way to bank to pull it off.
We only provide the tools, but you’re the community.
This is about you.
Opinions, advice, services, or other information or content expressed or contributed here by customers, users, or others, are those of the respective author(s) or contributor(s) and do not necessarily state or reflect those of The Bancorp Bank (“Bank”). Bank is not responsible for the accuracy of any content provided by author(s) or contributor(s).
That’s money back into the hands of hard working Americans.
Big banking is broken.
We care about your financial health and we’re creating a new way of banking to change things.
How the Big Banks Do Things
While the average overdraft is only $20, banks charge a fee of about $35 on average for an overdraft. The average payback time for an overdraft is only three days.
Some banks will also charge multiple fees per day. If you aren’t aware you’ve overdrafted, you might end up paying hundreds of dollars.
According to the Center for Responsible Lending, the biggest US banks took nearly $12 billion in overdraft fees from Americans in 2019.
None of the 10 largest banks have reduced or waived overdraft fees during the COVID-19 crisis.
That’s Not All
These fees hit people who have the hardest time paying them and bank fees in general have a disproportionately higher impact on majority black communities and communities of color.
Based on research from New America, the minimum balance required to open an account is 18% higher in majority black communities than majority white communities.
The average minimum balance that’s required in order to escape these fees is about $250 higher.
Even the fees themselves are higher at an average of $2.50 more in majority Latinx communities.
How Varo is Doing Things
Varo is different.
We want to serve every community in America.
We want to serve every person regardless of net worth.
Banks should help people.
Your bank should help you get to a better place and be transparent.
We’re using technology and a belief in a better way to bank to pull it off.
Congrats on $100M Saved
We only provide the tools, but you’re the community.
This is about you.
Opinions, advice, services, or other information or content expressed or contributed here by customers, users, or others, are those of the respective author(s) or contributor(s) and do not necessarily state or reflect those of The Bancorp Bank (“Bank”). Bank is not responsible for the accuracy of any content provided by author(s) or contributor(s).
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