Varo Review: Advance Fees, Limits and How It Works

Varo Bank is a digital bank that, unlike many competitors, operates its own banking infrastructure and is FDIC-insured. Varo offers a high-yield savings account with a competitive annual percentage yield (APY) and the ability to access a cash advance through its Varo Advance feature. For smaller, short-term needs, some users turn to services like Varo instead of other borrowing options such as personal loans. Varo accounts also come with no monthly maintenance or overdraft fees. 

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Quick Take

• Varo Bank has no monthly maintenance fees and doesn’t perform a credit check.

• If you have qualifying direct deposits, you can access Varo Advance for up to $500.

• If you’re unfamiliar with these services, it may help to first understand what cash advances are and how early access to funds works.

What Is Varo?

Varo, founded in 2015, is one of the first fintech banks that operate completely online. Varo’s mission is to put the customer first and so many of the accounts have no minimum balance requirements or maintenance fees.

Varo Banking Features

Here’s a breakdown of the top features of Varo.

Free Bank Account

Varo offers a free bank account with no required minimum, no monthly maintenance fees and no overdraft fees.

Savings Account

Varo’s Online Savings account offers APYs up to 5.00% on balances up to $5,000. To earn the highest rate, you must have monthly direct deposits of at least $1,000 each month and keep a positive balance.

Varo Advance

Varo allows you to access up to $500. New users typically can qualify for withdrawals between $20 to $250.

To get a Varo Advance, you’ll need to link to a qualifying external account, and have direct deposits of at least $800.

Repayment

Varo allows you to choose when you would like to repay your advance. You have the choice of an auto-repayment date between 15 and 30 days from the date of your advance.

Credit Impact

Varo doesn’t check your credit to qualify for the cash advance.

Varo Costs and Fees

Varo doesn’t charge monthly maintenance, overdraft or minimum balance fees. If you use an out-of-network ATM, you will pay a $3.50 transaction fee.

Varo Advance charges a flat fee based on the amount you borrow, with lower fees for customers who have at least $800 in qualifying direct deposits.

Varo Eligibility Requirements

To get Varo Advance, you must meet the following requirements:

• You must have a Varo bank account that is not overdrawn.

• Your account must be open for at least 30 days.

• You must have linked a debit card to your account.

• You must have a total of $800 in qualifying direct deposits in the last 31 days.

To check your eligibility, open your Varo app. Click on Varo Advance and it will let you know how much money you can withdraw.

Pros and Cons of Varo

Before opening a Varo account, it’s helpful to understand both the advantages and the potential drawbacks.

How To Open a Varo Account

Opening a Varo account takes only a few minutes through the mobile app. Follow these steps to get started:

1. Download and open the Varo app.

2. Tap “Get Started” and enter your basic information, including your name, email, phone number, date of birth and address.

3. Verify your identity by completing the requested verification steps.

4. Link a funding source if you want to deposit money into your account.

5. Set up security features and activate your account.

Varo vs. Other Cash Advance Options

If you're comparing services and wondering where you can get a cash advance, it helps to see how Varo stacks up against other options with similar features.

EarnIn

EarnIn determines cash advance amounts based on the wages you’ve earned during a pay period, with advances typically available up to $100 per pay period. EarnIn does not charge a monthly membership fee, though the app encourages users to leave optional tips.

Current

Current offers a Paycheck Advance feature with up to $750 for eligible users. Like Varo, it allows early access to funds, but users may need to pay a small delivery fee if they want the money instantly instead of waiting up to three days.

Who Varo Is Best For

Varo may be a good fit for people in the following situations:

• Those who prefer exclusively online banking

• Those who want to avoid monthly maintenance fees

• Those who want to earn a high APY on a high-yield savings account

• Those who want to avoid a credit check  

Final Take

If you like the digital-first banking experience and already use Varo Bank, signing up for Varo Advance is straightforward. The service doesn’t charge monthly fees and doesn’t require a credit check. To qualify, you must receive at least $800 in qualified direct deposits within a 31-day period.

Varo FAQs

Still have questions about Varo? These FAQs cover the basics.

Does Varo charge monthly fees?

Varo doesn’t charge monthly maintenance fees or overdraft fees.

How much can you borrow with a Varo Advance?

You can borrow up to $500, but most users qualify in the range of $20 to $250.

Does Varo check your credit?

Varo doesn’t check your credit to open a bank account or set up a Varo Advance.

Is Varo FDIC insured?

Varo is FDIC-insured and has its own bank infrastructure.

How long does it take to get approved?

Most Varo accounts and advances are approved instantly or within a day.

Photo credit: Sheviakova kateryna / iStock