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Review: https://fioney.com/varo-bank-review/
The first thing you need to know about Varo is that they are now a licensed bank with their own FDIC insurance.
Last year, Varo became the first fully digital consumer bank to be granted a national banking charter. While other FinTech apps often partner with FDIC-insured banks, Varo Bank now maintains their own FDIC insurance, which covers customer funds up to 250,000 per depositor. Please note that while new Varo customers will be directed to Varo Bank to open an account, those who had an account with Varo Money can be transferred to the new Varo Bank.
Next, while Varo's standard APY isn't much to write home about, the bank offers a way to earn up to 5% APY on your money
At the time I record this video, Varo Bank savings accounts earn a standard APY of 0.50%. While that's better than many major banks, it's certainly not great. However, customers who meet a few requirements can increase that rate to an impressive 3% APY.
To earn this increased rate, you must first receive at least $1,000 per month in qualifying direct deposits. In addition, you must make at least 5 purchases per month with your Varo payment card. Finally, to maintain the 5% APY, you must keep our daily balance under 5,000. Any amount over 5,000 earns Varo's base APR of 3%.
Although Varo has no physical locations, customers can access a number of free ATMs, deposit mobile checks, and even deposit cash at participating locations
Like other digital banking services, Varo partners with the Allpoint ATM network, giving customers access to more than 55,000 free ATMs. However, if you use an ATM outside this network, Varo will charge you a fee of 2.50 on top of the fees charged by the ATM operator.
As for deposits, the Varo Bank app offers mobile check deposit. Additionally, the bank offers customers the ability to deposit cash at participating Green Dot Network locations. These include several CVS, Walmart, Walgreens, Family Dollar stores and more. While Varo doesn't charge for this service, they note that merchants can charge up to 4.95 per deposit – or 5.95 if you choose to deposit cash via a GreenDot MoneyPak. Also keep in mind that there are limits on these deposits, but at least the option is available.
An interesting benefit of Varo Bank is the Varo Advance feature that allows customers to avoid overdrafts
For those concerned about overdrawing their account or running out of money before their paycheck arrives, Varo now offers the Varo Advance option. With Advance, customers can borrow up to 100. While eligible suits can borrow 20 at no cost, there are fees associated with larger advances, ranging up to 5 to borrow 100.
To qualify for Varo Advance, your account must be at least 30 days old and you must have made at least 1,000 direct deposits in the last 31 days. That said, your deposit limit can start at 20 and increase over time as you make more deposits and build a repayment history. Varo notes that using Advance will not affect your credit, as there is no credit check for the feature.
Finally, another benefit of Varo FioneyMoney, the reason I signed up in the first place, is that the bank is partnering with the Long Game Rewards app in an effort to make saving fun
Recently, the Long Game app was relaunched as Long Game Rewards. Along with the new name, the service has also changed its model and is now only available to people with accounts at two banks: NBKC or Varo. By linking your Varo Bank account to Long Game, you will earn coins as your savings balance grows. You can then use these coins to play different games and have a chance to win real money.
As a long-time fan of Long Game, I think it's pretty great that Varo is working with the app and I think this is just another advantage for the bank.
Overall, I see Varo Bank as a good option for those who enjoy the benefits of FinTech banking apps but also want the protection that comes with dealing directly with a licensed institution
For more money management product reviews, visit https://fioney.com/category/reviews/
and for all my personal finance app reviews https://www.youtube.com/playlist?listPLFfM5Lf816alBbvzGubm4OJskddfxTtCZ
#Varo #DigitalBanking #FioneyMoney
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