Opening a Varo Savings Account automatically earns the standard 1.00% Annual Percentage Yield (APY)1. You can earn an elevated 3.75% APY on your first $5,000 in savings by meeting both of the following two requirements during the same Qualifying Period2:
- Receive $800 or more in qualifying direct deposits3
- Maintain a positive balance in both your Varo Bank Account and Varo Savings4 Account at month-end.
After qualifying, you will earn 3.75% APY for next month on balances up to $5,000.00. Any balance above $5,000.00 continues to earn 1.00% APY.
If you don't meet the requirements outlined above, you will still earn 1.00% APY on the entire savings account balance.
Eligibility Timeline for the 3.75% APY Rate
The 3.75% APY Rate is always based on the prior month's activity, not the current month:
- First Month Activity > Second Month Rate: If you meet both requirements in the first month, you'll earn 3.75% APY starting in the second month.
- Prior Month Basis: Your rate for the given month depends on your prior month's activity — not what you do during that month.
- Reversion: If you stop meeting the requirements in a given month, your rate reverts to 1.00% APY the following month.
To track your progress toward the 3.75% APY:
- Go to Home > Direct Deposit widget.
- Tap the Progress Bar to view any remaining requirements for the month.
Qualifying Direct Deposit Types
Qualifying 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.
If you’re qualified direct deposit was not recognized, consider the following:
- Confirm how your direct deposit was categorized in the Varo App.
- Contact your employer to clarify how your deposits are coded.
- Contact Us if you believe your deposit was miscategorized.
Exclusions (do not qualify): 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.
APY Calculations & Interest Payment Timing
APY is the compounded interest rate you earn over a full calendar year, reflecting your total expected return on a steady balance. Varo uses the daily balance method to calculate interest on your Varo Savings Account, applying interest to your principal balance plus any interest already earned.
For example, if you meet the monthly qualification requirements, maintaining a steady $100.00 balance in your Varo Savings Account every day for a full year at the elevated 3.75% APY yields $3.75 in total interest at year end.
Any changes to your Varo Savings Account balance or interest rate will alter your total interest payout. APY serves as a standard metric to evaluate and compare yields across various banks.
Related Articles
1Annual Percentage Yield (APY) is accurate as of Sept. 23, 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 $800 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.