Online-only banks have changed the way people manage money. Instead of driving to a branch or paying hidden fees, you can open an account in minutes and handle everything right from your phone.
Two of the most popular choices are Varo and Chime. Both promise low fees, easy access, and helpful digital tools—but each has its own strengths. Here’s a head-to-head comparison to help you decide which one fits your needs best.
Varo vs. Chime: Side-by-Side Comparison
Here’s a quick look at how the two stack up on the features that matter most:
| Feature | Varo | Chime |
|---|---|---|
| Checking Account | No monthly fees, no minimum balance, free Visa debit card | No monthly fees, no minimum balance, free Visa debit card |
| Savings Account APY | 3.00% APY standard, up to 5.00% APY with direct deposit requirements | Up to 3.75% APY with automatic savings tools |
| Overdraft Protection | Up to $50 with $1,000+ monthly direct deposit | Up to $200 with $500+ monthly direct deposit |
| ATM Network | 40,000+ fee-free Allpoint ATMs | 47,000+ fee-free ATMs |
| Cash Deposits | Over-the-counter cash deposits ($5.95 fee) | Green Dot retail locations (fees apply) |
| Customer Support | Phone and email support | Phone, email, and in-app chat support |
| Extras | High-yield savings rates, partner offers in app | Credit Builder card, early direct deposit, automatic round-up savings |
Chime Overview: Features, Pros, and Cons
Chime®
Chime is a fintech company that partners with FDIC-insured banks to offer checking and savings accounts with no monthly fees.
Varo Overview: Features, Pros, and Cons
Varo
Varo is an online-only bank that offers free checking and a high-yield savings account with some of the best rates available.
Varo vs. Chime: Fees and Account Costs
Neither Varo nor Chime charges monthly maintenance fees, overdraft fees, or minimum balance fees. Both are designed to keep banking affordable, but there are still a few costs to know about.
- Varo fees: $2.50 for out-of-network ATM withdrawals and $5.95 for over-the-counter deposits or withdrawals.
- Chime fees: $2.50 for out-of-network ATM withdrawals plus any third-party operator fees. Cash deposits through Green Dot also come with fees.
Varo vs. Chime: Savings Account APY
Savings rates are one of the biggest differences between these two banks. Chime offers a competitive 2.00% APY, while Varo pushes higher with a tiered structure.
- Varo savings: 3.00% APY automatically, with the chance to earn 5.00% APY if you receive at least $1,000 in direct deposits each month.
- Chime savings: 1.25% APY, or 3.75% APY with Chime+ and qualifying direct deposits, plus automatic savings features that make it easy to grow your balance over time.
Varo vs. Chime: Overdraft Protection
Both banks offer fee-free overdraft programs, but the requirements and limits are different.
- Varo overdraft: Overdraw your account by up to $50 with direct deposits of at least $1,000 per month. You must repay the amount within 30 days.
- Chime overdraft: Overdraw your account by up to $200 with direct deposits of at least $500 per month. The amount is automatically covered by your next paycheck.
Varo vs. Chime: ATM and Cash Deposit Access
ATM access is another area where both banks compete closely. Chime gives you a slightly larger network, while Varo still offers wide coverage.
- Varo access: 40,000+ fee-free Allpoint ATMs and the option to deposit cash over the counter for $5.95 per transaction.
- Chime access: 47,000+ fee-free ATMs and cash deposits through Green Dot retailers, though retailer fees apply.
Varo vs. Chime: Mobile App and Customer Support
Digital access is at the heart of online banking, so both Varo and Chime have mobile apps and online platforms. Still, there are differences in support options and features.
- Varo support: Mobile app with check deposit, account monitoring, and partner offers. Customer service is available by phone or email.
- Chime support: Mobile app with savings tools, bill pay, and money transfers. Customer service is available by phone, email, and in-app chat.
Who Should Choose Chime?
Chime is a strong choice if you want simple banking with tools that make everyday money management easier. It’s especially helpful for people focused on building credit or avoiding surprise fees.
- Best for credit building: The Chime Card reports to all three credit bureaus without requiring a security deposit.
- Best for lower direct deposit needs: Overdraft protection kicks in with only $500 in monthly direct deposits.
- Best for bigger ATM network: Access to 47,000+ fee-free ATMs gives you more flexibility.
- Best for early payday: Direct deposit lets you get paid up to two days early.
Who Should Choose Varo?
Varo is better suited for those who want to maximize their savings and keep fees as low as possible. It also works well for people who want a traditional bank charter behind their account.
- Best for higher savings APY: Earn 3.00% APY automatically, or up to 5.00% APY with $1,000 in monthly direct deposits.
- Best for larger balances: Higher APYs help your savings grow faster if you keep more money in the account.
- Best for fee-free overdrafts: Overdraft protection allows up to $50 with no fees if you meet deposit requirements.
- Best for simple banking needs: Checking and savings accounts with a straightforward app experience.
Final Verdict: Is Varo or Chime Better?
Both Varo and Chime keep banking affordable and convenient, but the right choice depends on your priorities. If you want stronger savings rates and don’t mind higher deposit requirements, Varo gives you the chance to earn more. If credit building and flexible overdraft protection matter most, Chime is the better fit.
At the end of the day, both accounts are safe, easy to use, and fee-free. The best option is the one that aligns with how you manage money every month.
Compare Other Banks
See also: 6 Free Online Checking Accounts: No Opening Deposit Required
