As soon as you open a Varo Savings Account, you start earning the standard rate of 3.00% Annual Percentage Yield (APY)*. To qualify for the elevated savings rate of 5.00% APY on your first $5,000, meet these two requirements during the same Qualifying Period**:
- Receive direct deposit(s) totaling $1,000 or more***; and
- End the month with a positive balance in both your Varo Bank and Savings Accounts.
After qualifying, you’ll start to earn the 5.00% APY for next month and continue to earn 3.00% APY on any additional balance above $5,000.00.
You’ll still earn 3.00% APY on your entire savings account balance if you don't meet the requirements outlined above.
Finding and Tracking Your APY in the App
On the Home screen, you’ll see a direct deposit widget to help you track your progress towards unlocking the elevated savings rate. The widget is located under your Varo Savings Account. Tap the progress bar to see what’s left to do for the month to get to the elevated APY next month.
APY is the compounded rate of interest you’re earning over a year. We use the daily balance method to calculate interest on your savings account, which includes the amount you deposited, plus any interest you already earned.
APY gives you an idea of what you can earn if you keep a steady balance in your account for a year. For example, if you kept $100 in your savings account every day for a year, and met the qualifications for elevated savings rate, you would earn $5 in interest at the end of the year.
If you move between savings rates or change your savings account balance, the amount you earn on your savings account will also change. However, knowing the APY can help you compare rates between different banks.
Interest Payment Timing
The amount of interest you earned the previous month will be automatically deposited into your savings account on the day after the last business day of the month.
*Annual Percentage Yield (APY) is accurate as of December 1, 2022. Rates may change at any time without prior notice, before or after the account is opened. Start earning 3.00% Savings APY, then qualify to earn 5.00% APY on your balance up to $5,000.00 for next month by meeting these two requirements this month: 1) Receive qualifying direct deposit(s) totaling $1,000 or more; and 2) End the month with a positive balance in both your Varo Bank Account and Savings Account. You’ll continue to earn 3.00% APY on any additional balance above $5,000.00.
**The Qualifying Period begins on the first calendar day of the month and ends at close of business (4:25 pm MST/ 3:25 pm MDT) on the last business day of the month. Your eligibility is determined separately each month.
***To see qualifying direct deposits, review our terms and disclosures, please revisit the Savings Account Agreement , which can be found on our Privacy and Legal web page.
Find the Privacy and Legal page here: https://www.varomoney.com/privacy-legal/.