As soon as you open a Varo Savings Account, you start earning the standard 1.00% Annual Percentage Yield (APY)1. To qualify for the elevated 3.75% APY on your first $5,000, you must meet both of the following two requirements during the same Qualifying Period2:
- Receive $1,000 or more 3 in qualifying direct deposits
- Have a positive balance in both your Varo Bank and Savings Accounts at month end
After qualifying, you’ll start earning the 3.75% APY for next month, and continue to earn 1.00% APY on any additional balance above $5,000.00.
You’ll still earn 1.00% APY on your entire savings account balance if you don't meet the requirements outlined above.
Find and Track Your APY in the App
On the Home screen, you’ll see a direct deposit widget under your Varo Savings Account to help track your progress towards unlocking the elevated savings rate. Tap the progress bar to see what’s left to do in the current month to receive the elevated APY next month.
Understand APY
APY is the compounded interest rate you earn over a year. We use the daily balance method to calculate interest on your Savings Account, which includes the amount deposited, plus any interest already earned.
APY gives an idea of what you can earn by maintaining a steady balance in your account for a year. For example, if you keep $100 in your Savings Account every day for a year, and meet the qualifications for elevated APY, then you’d earn $3.75 in interest at the end of the year.
If you move between savings rates, or change your savings account balance, the amount earned 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 is automatically deposited into your Savings Account on the day after the last business day of the month.
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1Annual Percentage Yield (APY) is accurate as of July 1, 2026. Start earning 1.00% APY, then qualify to earn 3.75% APY on your balance up to $5,000.00 next month by 1) Receiving direct deposit(s) totaling $1,000 or more; and 2) Ending the month with a positive balance in all your Varo Accounts. Rates subject to change at any time.
2The requirements must be met within the Qualifying Period that begins on the first calendar day of the month and ends at close of business (4:25 pm MT) on the last business day of the month. Meet the requirements in the current month to qualify to earn 3.75% APY for the following month.
3Qualifying direct deposits are electronic deposits of your paycheck, pension or government benefits (such as Social Security or unemployment) from your employer or government agency to the extent that can be identified. Tax refunds and government stimulus payments, Person-to-Person payments (such as Venmo or Varo to Anyone), and funds deposited using a Varo routing number are not considered a direct deposit.