Varo has a tiered rate that’s one of the highest out there: 2.80% annual percentage yield for up to $50,000, if requirements are fulfilled, and 1.92% APY for all other balances.
An alternate neobank Chime, for example, only offers 0.01% APY. Like its checking account, Varo’s savings account is federally insured up to $250,000.
There’s no monthly fee or minimum balance requirement.
There are Two automatic savings programs. The first one, Save Your Pay, lets you opt for any percentage of your paycheck to go directly to your savings account. The other, Save Your Change, rounds up every checking transaction to the nearest dollar and transfers those cents to savings.
Requirements : You must receive at least $1,000 in direct deposits monthly and make at least five purchases with the Varo debit card per month in order to earn the 2.80% APY.