Insider’s experts choose the best products and services to help make smart decisions with your money (here’s how). In some cases, we receive a commission from our our partners, however, our opinions are our own. Terms apply to offers listed on this page.
Varo and Chime require you to open a checking account before you open a savings account.
Varo; Chime; Insider
Varo is an online bank and Chime is a fintech company; both offer checking and savings accounts.
Chime and Varo offer an equally competitive fee-free online checking account.
If you’d like to open a savings account, too, the Varo Savings Account pays a higher interest rate.
Read Insider’s reviews of Chime and Varo.
If you’re looking to open both a high-yield savings account and a checking account, Varo or Chime might be worth considering. Both offer online savings and checking accounts with zero monthly service fees and no minimum opening deposit.
We’ve compared Varo and Chime’s banking products to help you distinguish which company may be a good fit for you.
Pros and cons of Chime
ProsConsSolid interest rate on savings accountNo minimum opening deposits for accountsEarly direct deposit on checking accountNo foreign transaction feesSavings tools No physical branchesNo money market accounts or CDsMust open checking account before you open a savings accountNo joint bank accountsMust be at least 18 years or older to open an account
Pros and cons of Varo
ProsConsCompetitive interest rate on savings accountNo minimum opening deposits for accountsEarly direct deposit on checking accountNo foreign transaction feesEarn up to 15% cash back on checking accountSavings toolsNo physical branchesNo money market accounts or CDsMust open checking account before you open a savings accountNo joint bank accountsMust be at least 18 years or older to open an account
Checking account comparisons
Chime Spending AccountVaro Checking AccountMinimum opening depositChime Checking AccountVaro Checking AccountMonthly service feeNoneNonePerksEarly direct deposit pays you up to 2 days earlySavings tool that allows you to round up debit card purchases and transfer your spare change to your savings accountNo foreign transaction feesIf you make a direct deposit of $200 or more, you’ll qualify for Chime Spot Me, which covers you for free if you overdraw from your account (maximum of $20 to $200 depending on your account history)Early direct deposit pays you up to 2 days earlyEarn up to 15% cash back at select retailers; offers listed in the Varo appNo foreign transaction feesSave Your Change lets you transfer extra change to your savings account when you make purchases or transfersIf you make at least 5 debit card purchases and receive at least $1,000 in direct deposits each month, you’ll qualify for No Fee Overdraft Protection, which covers you for free if you overdraw up to $50 in your accountCaveats$2.50 out-of-network ATM feeDenies purchases when you overdraw if you don’t qualify for Chime Spot Me or if you exceed your limit (anywhere from $20 to $200)Deposit cash for a fee at Green Dot locations (up to $4.95 per transaction)$2.50 out-of-network ATM feeDenies purchases when you overdraw if you don’t qualify for the No Fee Overdraft Protection Program or if you surpass the program’s $50 limitDeposit cash for a fee at GreenDot locations (up to $4.95 per transaction)Next stepsChime Spending AccountVaro Checking Account
Winner: Tie
Chime Spending Account and Varo Checking Account checking accounts stack up pretty evenly and share similar features. The deciding factor between these two accounts ultimately boils down to minor preferences, like whether you prefer to earn cash back or find it easier to qualify for a particular overdraft protection program.
Savings account comparisons
Chime Savings AccountVaro Savings AccountAPYChime Savings AccountVaro Savings AccountMinimum opening depositChime Savings AccountVaro Savings AccountMonthly service feeNoneNonePerksLets you automatically transfer part of your paycheck to your savings accountNo balance requirements to earn interestLets you automatically transfer part of your paycheck to your savings accountEarn 5.00% APY if you make a direct deposit of $1,000 or more to a Varo Bank Account, maintain a daily balance of $5,000 or less in your savings account, AND have a positive balance on both accountsEarn 2.00% APY if you don’t meet the requirementsCaveatsMust open the Chime Savings Account firstDeposit cash for a fee at GreenDot locations (up to $4.95 per transaction)Must open the Varo Checking Account firstDeposit cash for a fee at GreenDot locations (up to $4.95 per transaction)Next stepsChime Savings AccountVaro Savings Account
Winner: Varo
If you’re looking to also open a savings account, you may want to consider looking at Varo first. The Varo Savings Account offers a higher interest rate than Chime if you meet certain criteria.
Which online financial company is more trustworthy?
We use ratings from the Better Business Bureau to see how companies deal with customer issues.
The BBB gave Chime a B- rating for having a high volume of customer complaints on the BBB website. Meanwhile, Varo has an A rating. A good BBB rating indicates a company has transparent business practices, responds effectively to customer complaints, and has honest advertising.
A good BBB rating isn’t the be-all and end-all, though. You’ll want to talk to current customers or read online customer reviews, too.
Varo doesn’t have a history of scandals, but Chime has been involved in one settlement. In 2021, the Commission of Financial Innovation issued a cease and desist order that said Chime couldn’t use “chimebank.com,” “bank,” or “banking,” because the company isn’t licensed as an online bank. Chime is an online banking platform, and accounts are issued and insured by partner banks.
Winner: Varo
Varo has an A rating from the BBB and hasn’t been involved in public scandals. However, Chime may still be a trustworthy option.
FAQ (frequently asked questions)
Is Varo better than Chime?
You might prefer Varo if you’re looking to open both a checking and savings account with an online institution. Varo’s Varo Savings Account pays a higher interest rate if you meet certain balance requirements.
If you only plan to open a checking account, it’ll be a toss-up between the two. Both Varo and Chime offer fee-free checking accounts with similar features.
What is a fintech company?
Fintech companies offer banking products or services, but they aren’t banks. A fintech company isn’t directly insured by a government agency, like the Federal Deposit Insurance Corporation. Online platforms are still safe, though, if their accounts are federally insured through a partner bank.
Chime is a fintech platform, while Varo is an online bank. Chime’s accounts are provided by its two partner banks, Bancorp Bank or Stride Bank, N.A., which are federally insured financial institutions.
What are the advantages of an online bank?
Online banks generally offer more competitive interest rates than brick-and-mortar banks. Many online banks also waive common bank fees, like monthly services fees, overdraft fees, or paper statement fees.