These Are the Best Alternatives to Varo Bank in 2024

Varo Bank is one of the most widely-used banking apps in the US, popular among a tech-savvy generation of users for its low fees, easy-to-use checking and savings accounts, and capable banking features.

However, if you're a frequent Varo user, you'll probably be aware that there are some downsides to the bank, such as the third-party fees for cash deposits and the rather strict daily and monthly limits on outgoing transfers ($5,000 and $10,000 respectively).

Fortunately, there are great alternatives to Varo which exist! As we'll see in this guide, various options offer similar online banking features to Varo, each with its strengths, weaknesses, and use cases.

Top 7 Alternatives to Varo

There's no two ways about it: Varo is an excellent mobile-only bank.

In our opinion, what makes Varo truly unique compared to other checking and savings accounts in the US is that it charges almost no fees whatsoever! You pay $0 for checking and savings account maintenance, overdraft, ATM withdrawals, and more when using Varo. There is also no minimum balance requirement. This makes Varo pretty unique compared to big banks like Wells Fargo and Chase, where you'd pay pricier fees for essential financial services.

However, Varo does come with its downsides. For one, depositing cash into your account will cost you, as you'll need to get the job done using a third-party retailer. What's more, there are also rather strict limits on accessing Varo's high-yield interest rates, and better deals can be found elsewhere. You also cannot earn more than $5,000 in accrued interest on savings, and you cannot transfer more than $5,000 out of your account per day or $10,000 per month.

Fortunately, great alternatives to Varo do exist. We compare seven of the best ones below:

Chime

Founded in 2013, Chime® is one of the more established US neobanks with 12 million customers. It offers no monthly fees and a panel of features, which includes overdraft on debit card purchases and cash withdrawals⁵ offered via a special optional service called SpotMe® and direct deposit. Chime also provides free in-network ATM withdrawals¹ and offers APY of 2.00% via its Chime Savings Account³ (to open this, you need to have opened a Chime Checking Account). There are a few downsides, most notably the fact that you won't be able to send or receive wire transfers, and you can pay a lot in fees if you need to add cash to the app. On the whole, though, Chime offers simple online checking that's well-liked by its users, and if you're looking for a mobile financial app and you don't need an extensive list of features, we believe that Chime is probably the best choice you could make.

• Account: Chime Checking Account
• Monthly fee: $0
• Overdraft: Yes
• Interest (APY on balance or savings): 2.00% (on the Chime High Yield Savings Account)
• FDIC-insured: Yes (partner bank: Bancorp Bank, N.A. and Stride Bank, N.A.)
• More info: See our Chime review or visit their website.

Revolut

UK-based fintech giant Revolut is also active in the US, offering its checking account and debit card in partnership with Metropolitan Commercial Bank, Member FDIC. On top of a host of features like early direct deposit, free ATM withdrawals or an interest-earning savings account, Revolut also offers many internationally-oriented features, like ten free foreign transfers a month, free foreign exchange up to $1000 a month, and the ability to hold a balance in foreign currencies, making it a good choice for those who frequently travel abroad.

• Account: Standard
• Monthly fee: $0
• Overdraft: No
• Interest (APY on balance or savings): 0%
• FDIC-insured partner: Metropolitan Commercial Bank
• More info: See our Revolut review or visit their website.

Wise Account

You might be familiar with Wise if you often need to send or receive money abroad. Formerly known as TransferWise, this UK-based fintech made its name by enabling cheap and fast international money transfers, bypassing traditional SWIFT transfers — which makes it a frequently featured player in Monito’s comparison engine! Aside from its money transfer product, Wise also offers a multi-currency account, which comes with a debit MasterCard. Its main feature is that it allows you to hold money in more than 50 currencies and gives you account details for 10 of them, including USD, EUR or GBP (though note that you will have to pay a small fee actually to exchange money).

• Account: Multi-Currency Account
• Monthly fee: $0
• Overdraft: No
• Interest (APY on balance or savings): 0%
• FDIC-insured: Yes (partner bank: BBVA USA)
• More info: See our Wise Account review or visit their website.

Current

Current’s checking account doesn’t have as much functionality as some other banks in this ranking, so if you’re looking to make use of its premium features, it might be worth weighing other options before subscribing to the paid plan, especially if their rewards program doesn’t seem to offer much in your area. There’s one area where we think Current as the edge, however: if you’re looking to open a monitored account for your teens, they’re one of the better options.

• Account: Current
• Monthly fee: $0
• Overdraft: Yes
• Interest (APY on balance or savings): 4%
• FDIC-insured: Yes (partner bank: Choice Financial Group)
• More info: See our Current review or visit their website.

Capital One

Exceedingly cheap to use — even when travelling abroad — and offering solid functionality with the peace of mind afforded by a reputable financial institution, Capital One's 360 Checking Account is one of the easiest bank accounts to open and provides US residents with a cheap, accessible and online way to bank. What's more, the application process is quick and can be done entirely online.

• Account: 360 Checking
• Monthly fee: $0
• Overdraft: Yes
• Interest (APY on balance or savings): 2.15%
• FDIC-insured: Yes
• More info: See our Capital One review or visit their website.

Majority

Focused on immigrants and newcomers, Majority is a secure digital banking platform that offers multi-lingual support to its international clients and a powerful mobile app with international calling features to help them connect with family back home and low-cost international money transfers. A great option for residents in the United States and those who get paid in US dollars, Majority is a debit card and checking account for immigrants that we recommend, especially for newcomers and those with family living abroad.

• Account: Majority Account
• Monthly fee: $5.99
• Overdraft: No
• Interest (APY on balance or savings): 0%
• FDIC-insured: Yes (partner bank: Axiom Bank)
• More info: See our Majority review or visit their website.

Disclaimers

Chime is a financial technology company, not a bank. Banking services and debit card provided by The Bancorp Bank, N.A. or Stride Bank, N.A.; Members FDIC. Credit Builder card issued by Stride Bank, N.A.

¹ Out-of-network ATM withdrawal and over-the-counter advance fees may apply. See here for details.

² To apply for Credit Builder, you must have received a single qualifying direct deposit of $200 or more to your Chime Checking Account. The qualifying direct deposit must be from your employer, payroll provider, gig economy payer, or benefits payer by Automated Clearing House (ACH) deposit OR Original Credit Transaction (OCT). Bank ACH transfers, Pay Anyone transfers, verification or trial deposits from financial institutions, peer to peer transfers from services such as PayPal, Cash App, or Venmo, mobile check deposits, cash loads or deposits, one-time direct deposits, such as tax refunds and other similar transactions, and any deposit to which Chime deems to not be a qualifying direct deposit are not qualifying direct deposits.

³ The Annual Percentage Yield ("APY") for the Chime Savings Account is variable and may change anytime. The disclosed APY is effective as of September 20, 2023. No minimum balance is required. Must have $0.01 in savings to earn interest.

⁴ On-time payment history can have a positive impact on your credit score. Late payment may negatively impact your credit score. Results may vary.

⁵ SpotMe® on Credit is an optional, no-interest/no-fee overdraft line of credit tied to the Secured Deposit Account available to qualifying members with an active Chime Credit Builder Account. SpotMe on Debit is an optional, no-fee overdraft service attached to the Chime Checking Account available to qualifying members after Visa debit card activation. Both SpotMe on Credit and SpotMe on Debit are sometimes collectively referred to as "SpotMe" or, if you have signed up to use SpotMe with only one account, "SpotMe" means the elected service. To qualify for SpotMe, you must receive $200 or more in qualifying direct deposits to your Chime Checking Account monthly. Qualifying members will be allowed to overdraw their Chime Checking Account and/or Secured Deposit Account (associated with your Chime Credit Builder credit card) up to $20 but may be later eligible for a higher limit of up to $200 or more based on Chime account history, direct deposit frequency and amount, spending activity and other risk-based factors. The SpotMe limit will be displayed within the Chime mobile app and is subject to change at any time, at Chime’s sole discretion. Although Chime does not charge any overdraft fees for SpotMe, there may be out-of-network or third-party fees associated with ATM transactions. SpotMe Debit Terms and Conditions and SpotMe on Credit Terms and Conditions.