- No monthly fees, minimum deposit or balance requirements
- Mobile check deposits via app
- Roundup tools to automate savings
- Highest APY available limited to balances up to $5,000
- Minimum of $1,000 in monthly direct deposits required to earn APY
Varo Bank is the second bank on our list with a tiered savings rate that benefits lower balances. You’ll earn 5.00% APY on balances up to $5,000 and 3.00% APY on balances above this. But there are a few catches.
You’ll start off by earning 3.00% APY. To qualify for 5.00% APY on all balances totaling $5,000 or less, you’ll need to have $1,000 in direct deposits coming into your account every month, and you must end each month with a positive balance in both your Varo Bank and Savings account. While Varo presents a tempting APY for those with lower balances, once your account balance exceeds $5,000, you’ll drop down to the lower APY.
However, we like that Varo offers more wiggle room to grow your stash with automatic round-ups to move your change from deposits and transactions to your savings.