Varo Savings Account
Varo Bank, N.A. offers up to a 5.00% APY on a qualifying balance (with eligible direct deposits) and no monthly fee, held at Varo Bank, National Association (Member FDIC), which we confirmed is an active FDIC member. The rate comes from NerdWallet, our verified data partner with direct provider relationships.
Is the Varo Savings Account worth it?
The Varo Savings Account offers up to a 5.00% APY on a qualifying balance (with eligible direct deposits) and no monthly fee. We source this rate from NerdWallet, our verified data partner with direct provider relationships — so it carries our ◆ Partner data label rather than a rate we fetched from the provider ourselves.
The account is held at Varo Bank, National Association. We confirmed with the FDIC that it is an active insured institution — certificate #59190 in Draper, Utah. Deposits are covered up to $250,000 per depositor, per ownership category.
The honest caveat: the APY is partner-supplied and variable, so confirm the current rate on the provider’s own site before opening. This is not financial advice.
How does a high-yield savings account work?
A high-yield savings account holds cash and pays interest, quoted as an annual percentage yield (APY). The bank can change a variable APY at any time, and federal rules may limit certain withdrawals. Interest compounds — usually daily or monthly — and is taxable income in the year you earn it.
How much could you earn with the Varo Savings Account?
At a 5% APY, a $10,000 balance in the Varo Savings Account earns about $500 in interest over a year, before taxes. Double the balance and you roughly double the interest; your real return depends on how long the rate holds.
Illustrative estimate based on the figures on this page, not an offer. Your results will differ.
What are the pros and cons of the Varo Savings Account?
The Varo Savings Account stands out for up to a 5.00% APY, sourced from our verified data partner, though rate is partner-supplied — not fetched from the provider ourselves.
- up to a 5.00% APY, sourced from our verified data partner
- No monthly fee and no minimum to open
- Held at Varo Bank, National Association, an FDIC member we confirmed with the regulator
- Rate is partner-supplied — not fetched from the provider ourselves
- APY is variable and can change without notice
- Online-focused account with limited or no branch access
Who should get the Varo Savings Account?
The Varo Savings Account is best for savers chasing a strong APY.
- Savers chasing a strong APY
- People comfortable with an online-first bank
- Anyone who wants FDIC-insured savings
How does the Varo Savings Account compare?
Among the 29 high-yield savings accounts we track, the Varo Savings Account ranks #20 with a money8020 score of 84/100.
| Product | Score | Tier | Provider |
|---|---|---|---|
| Marcus by Goldman Sachs Online Savings | 96 | Essential | Marcus by Goldman Sachs |
| Bread Savings High-Yield Savings | 94 | Essential | Bread Savings |
| Pibank Savings | 94 | Essential | Pibank |
| Poppy Bank High Yield Savings | 94 | Essential | Poppy Bank |
| Vio Bank High Yield Online Savings | 94 | Essential | Vio Bank (a division of MidFirst Bank) |
See all high-yield savings accounts, ranked →
Common mistakes to avoid with a high-yield savings account
- Chasing a teaser rate without checking the ongoing APY or any balance tier needed to earn it.
- Leaving an emergency fund in a 0.01% big-bank account instead of a high-yield account.
- Assuming the APY is fixed — it is variable and can drop after you open.
- Overlooking transfer times: moving money to a linked bank can take one to three business days.
Key takeaways
- Varo Savings Account earns a money8020 score of 84/100, ranking #20 of 29 high-yield savings accounts.
- up to a 5.00% APY, sourced from our verified data partner
- At a 5% APY, a $10,000 balance in the Varo Savings Account earns about $500 in interest over a year, before taxes.
- Best for savers chasing a strong APY.
- Rate and terms sourced from our verified data partner, NerdWallet.
Frequently asked questions about the Varo Savings Account
What is the APY on the Varo Savings Account?
Per NerdWallet, our data partner, it offers up to a 5.00% APY on a qualifying balance (with eligible direct deposits) and no monthly fee. The APY is variable and can change without notice — confirm the current rate on Varo Bank, N.A.'s own site. This is not financial advice.
Is the Varo Savings Account FDIC insured?
Yes. Funds are held at Varo Bank, National Association, which we confirmed with the FDIC is an active insured institution (certificate #59190, Draper, Utah). Deposits are insured up to $250,000 per depositor, per ownership category.
Can the rate on the Varo Savings Account change?
Yes. A high-yield savings APY is variable, so the bank can raise or lower it at any time, often following moves in the federal funds rate. Check the rate before you open and review it periodically.
How is interest from the Varo Savings Account taxed?
Savings interest is taxable as ordinary income in the year you earn it. If you earn more than $10, the bank sends a Form 1099-INT, and you report it on your federal return.
Sources
We sourced these figures from our verified data partner and independently confirmed the provider’s regulator status, last checked May 30, 2026. Primary sources: