Varo vs. Chime: Which Is Better for You?

May 21, 2022

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Are you managing your bank account through an app that allows you to manage your banking from mobile devices? Varo or Chime are two online banking options that will enable you to walk away from bank branch banking. Their apps online offer banking access 24/7 availability and aren’t tied to branches.

Varo vs. Chime

All you need to do is download the mobile application on your phone to manage your accounts. Both options for checking, savings, and more.

The Overview Varo Vs. Chime

As mobile applications, Varo and Chime are relatively simple; however, Varo, along with Chime, are simple mobile apps. They allow you to look up your savings and checking accounts on your phone.

These banks offer similar options and features to make banking easier and financial management for those like you. So you don’t need to visit traditional brick-and-mortar banks.

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Chime provides no-frills accounts with features designed to simplify money management and savings.

Varo, on the other hand, Varo offers free checking accounts that do not require a minimum balance. The company also has high yield savings account with no bank charges and a great banking experience.

Varo’s customer care is top-notch, earning them a 4.7 out of five stars in Google Play.

What’s Chime?

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Chime can assist you in reaching your savings goals with savings accounts and online shopping without a cost. Contrary to Varo, but unlike Varo, Chime is not a financial institution but rather a technology-based financial firm that offers a range of services that are made to be easy and affordable for customers.

Chime is gaining popularity due to its offering a variety of fee-free services. If there are fees, the charges are reasonably minimal — you will only need to shell out $2.50 for transactions, not in the network. The app has built-in features like automated savings, fee-free safeguarding against bank overdrafts, ATM networks, etc.

What is Varo?

Within the United States, Varo was the first app for online banking, which was approved for a full-bank charter. In the end, Varo has full status as a bank and is different from other banking apps that are associated with national banks.

Is Varo a Good Bank?

It certainly has a broad range of different financial services.

The services these banks provide comprise cash-advance loans and credit-building programs. Additionally, it gives Varo advance an additional overdraft security feature.

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The majority of banking services Varo offers are for free. The company also provides free ATM transactions, which isn’t a surprise. It’s only $2.50 to Varo for using third-party ATMs.

What are the similarities between Chime Varo and Chime? Varo?

Varo and Chime provide very similar services. Because of that, it could be challenging to determine which one is better. We’ve got the complete comparison if you’re unsure if Varo is superior to Chime.

Varo and Chime both have the option of a debit card and a savings account, which do not require monthly fees. Additionally, they simplify banking through automated savings tools that create a savings account automatically.

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An adjustable percentage could be transferred automatically to your savings account if you transfer funds to your checking account. The two versions, Chime and Varo, provide savings with high yields.

Interest-Earning Accounts

Chime provides users with an 0.50 percent APY on savings without the need for a balance.

To receive the highest interest rate, you’ll need to satisfy specific requirements. One is setting up direct deposits of at least $1,000 every month. Varo, on the other hand, Varo offers a variable APR of 0.50 percent to 5.00 percent; you’ll require a minimum of $0.01 to earn this rate.

Early Direct Deposit

As with several other banks online, Varo and Chime get your pay two days earlier in the case of direct deposit transactions. If your employer processes your payroll, the funds are accessible to you two days before your due date for your payday.

Both banking applications let you transfer money from more than 90,000 retail outlets via Green Dot.

Cash Pay, Money Transfer, and Bill Pay

Varo and Chime can also help you pay your bills via ACH transfer. Another advantage of these banking apps is that they allow you to immediately transfer money to different accounts without paying an additional fee for banking.

The instant money transfer will save the need to go to a traditional bank branch. Chime joined forces with The Bancorp Bank for FDIC backing. Valo Bank backs up Varo Money. Because these companies offer FDIC-insured accounts, your banking is secure.

Product Offerings

Varo and Chime cannot provide joint accounts or financial products such as personal loans, auto mortgages, or loans. They also do not offer check-writing on paper.

What are the differences between Varo as well as Chime?

The main distinction between the two firms is that Varo offers a “Save Your Pay” rule. You can reserve a specific amount of your earnings. The bank allows you to decide the amount.

Contrary to this, Chime provides only a fixed 10% discount for the “Save When You Get Paid “Save When You Get Paid” plan.

Fee-Free Accounts

Both companies provide fee-free savings and checking accounts. Additionally, you can add funds to the account via direct deposits or transfer from bank accounts outside the report.

The companies don’t require you to pay monthly maintenance fees or bank fees. Additionally, you can get earlier paydays using these applications. They are similar to the Visa Card requirements, and choices are very similar.

Savings Plan

One major differentiator between Chime and Varo is their savings plans. While Varo allows you to choose a number of your deposits to save, Chime only lets you intuitively reserve 10%. Naturally, it is possible that at any time, you can manually transfer funds into Chime checking account to an account for savings; however, this is just slight ease of use.

Interest Rates

While Varo is nearly precisely the same as Chime, It offers higher interest rates for balances below $5,000. You can decide based on your savings strategy in light of this distinction.

Which is Better: Varo or Chime?

Because Varo and Chime have similar features, You may be interested in opening an account with one of them. Before you make a choice, make sure to go through their options.

Are there better banks than Chime and Varo?

Chime and Varo don’t use ChexSystems, which many traditional banks utilize. These systems determine if you’re eligible to open an account with a bank.

Because neither companies use ChexSystem, If you have a poor background in banking will not prevent you from using Chime and Varo.

Other Banks to Consider

If you’re looking to gain access to this financial assistance, you can find some great alternatives to Chime and Varo. They comprise Axos Bank, Quontic Bank, and Ally Bank. These competitors provide impressive and high-demand features and great rewards when you bank online.

Chime is a technology for a financial services company, not a banking institution. Banking services are offered by debit cards issued by The Bancorp Bank or Stride Bank, N.A., and members of the FDIC.

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