Chime vs Varo (2026)
Varo is a chartered bank; Chime is a financial technology company whose partner banks hold the money. Varo pays 3.75% APY on the first $5,000 after a month with $800 or more in direct deposits, while Chime pays 3.00% APY with a $200 direct deposit and 4.00% APY with $3,000 or more in 34 days. Chime has a no-fee overdraft service; Varo declines purchases you cannot cover and offers advances with flat fees.
By Wealthy Pot Editorial · Facts checked October 19, 2026
| Feature | Chime | Varo |
|---|---|---|
| Type | Neobank | Neobank |
| Deposits held by | The Bancorp Bank, N.A.; Stride Bank, N.A. | Varo is the bank |
| $10,000 in savings for a year | $400 at 4% (if conditions met) | $375 at 3.75% (if conditions met) |
| Savings APY | 1.00% APY standard; 3.00% Chime Plus ($200+ direct deposit); 4.00% Chime Prime ($3,000+ in 34 days) | 3.75% APY on the first $5,000 with $800+ monthly direct deposit and positive balances; 1.00% otherwise |
| Monthly fee | $0 | $0 |
| Minimum deposit | $0 | $0 |
| Early direct deposit | Yes | Yes |
| ATM network | Fee-free in-network ATMs; $2.50 out of network | 40,000+ fee-free; $3.50 out of network |
| Best for | People with $3,000+ a month in direct deposits who want fee-free banking and SpotMe overdraft coverage | People with $800+ a month in direct deposits and savings under $5,000 |
The $10,000 row is our arithmetic at each headline APY, assuming you meet its conditions and the rate holds for a year.
Key differences
Both rates depend on direct deposits, but in different ways. Varo pays 1.00% APY on every account; after a month with $800 or more in qualifying direct deposits and all Varo balances at $0 or above at month end, the balance up to $5,000 earns 3.75% APY the next month, and the rest stays at 1.00% APY (APY as of October 5, 2026). Varo says tax refunds and person-to-person transfers do not count. Chime sets its tier from qualifying direct deposits in the past 34 days: 3.00% APY from a single $200 deposit or $400 in total, 4.00% APY from $3,000 or more, and 1.00% APY otherwise.
A hypothetical saver keeps $5,000 in savings for a year at unchanged rates. With $1,500 a month in direct deposits, Varo pays about $5,000 x 3.75% = $187.50 and Chime Plus about $5,000 x 3.00% = $150. With $3,000 or more every 34 days, Chime Prime pays about $5,000 x 4.00% = $200. Above $5,000 the picture shifts against Varo, since its extra balance earns 1.00% APY. With less than $800 a month by direct deposit but at least $200, Varo drops to 1.00% APY ($50) while Chime stays at 3.00% APY.
Short-term cash works differently. Chime's SpotMe covers debit purchases and cash withdrawals with no fee, from $20 and possibly up to $200 or more, and MyPay offers up to $500 per pay period, free within 24 hours or $2 to $5 for instant delivery. Varo has no overdraft feature; Varo Advance runs from $20 to $250 at first, up to $700 over time, with a flat fee: $8 on $100 with qualifying deposits, $20 without. On ATMs, Varo charges $3.50 out of network and Chime $2.50. Varo Bank, N.A. holds deposits itself (FDIC certificate 59190); Chime uses pass-through coverage with conditions.
Where Chime wins
- 4.00% APY on savings with $3,000+ in direct deposits in 34 days
- No monthly fee, and the Plus and Prime tiers are free
- SpotMe covers debit overdrafts with no fee
- Paychecks up to 2 days early
- Secured Chime Card with no annual fee and no interest
Where Varo wins
- A chartered bank: FDIC insurance is direct, not pass-through
- 3.75% APY on the first $5,000 with $800+ in monthly direct deposits
- No monthly, minimum balance or overdraft fees
- Free cash deposits at 7,500+ stand-alone CVS stores
- Varo Believe secured card with no annual fee, interest or late fee
Which should you choose?
Pick Chime if
- You get $3,000+ a month in direct deposits and want 4.00% APY on savings.
- You overdraw small amounts now and then and want no-fee overdraft coverage on debit purchases (SpotMe, from $20).
- You withdraw cash at Allpoint or 7-Eleven ATMs, which Chime counts in its 47,000+ fee-free network.
- You want to build credit with a secured card that has no annual fee and no interest.
Pick Varo if
- You want the bank in the app to be the bank that holds your money (Varo Bank, N.A.).
- You get $800+ a month in direct deposits and keep under $5,000 in savings.
- You deposit cash and live near a stand-alone CVS, where Varo deposits are free.
- You want a secured credit card with no annual fee, no interest and no late fee.
Chime vs Varo: FAQ
Which pays more on savings, Chime or Varo?
With $3,000 or more in qualifying direct deposits in 34 days, Chime's 4.00% APY is above Varo's 3.75% APY. With $800 to under $3,000 a month, Varo's 3.75% APY on the first $5,000 is above Chime Plus at 3.00% APY, though Varo pays 1.00% APY on anything above $5,000. With $200 to under $800, Chime pays 3.00% APY and Varo 1.00% APY. See our Varo review and Chime review.
Is Chime or Varo a real bank?
Varo is. Varo Bank, N.A. received a national bank charter from the OCC in 2020 and is an FDIC member, certificate 59190, insured directly up to $250,000. Varo says it is not tied to any partner banks. Chime is a financial technology company; its accounts are held at The Bancorp Bank, N.A. or Stride Bank, N.A., and Chime says pass-through coverage needs certain conditions. Chime agreed in September 2026 to buy Stride Bank's parent for $590 million, pending Fed and OCC approval. The CFPB ordered Chime to pay a $3.25 million penalty on May 7, 2024.
Which charges fewer fees, Chime or Varo?
Neither charges a monthly or overdraft fee. Out-of-network ATMs cost $3.50 at Varo and $2.50 at Chime, plus the owner's fee, and both charge $2.50 over the counter. Varo cash deposits are free at stand-alone CVS stores and can cost up to $5.95 at other retailers; we could not confirm Chime's retail cash deposit fees. Chime charges 1.75% for instant transfers out and $2 to $5 for an instant MyPay advance; Varo Advance carries a flat fee, such as $8 on $100 with qualifying deposits.
Compare these against every option in our neobanks comparison.
We summarize each company's published terms and pricing, not user reviews or our own testing. Facts come from our full reviews of both apps, each checked against the company's own pages, deposit agreements and regulator records on October 19, 2026 with every source listed. Many neobanks are fintechs whose deposits are held at partner banks. We do not earn a commission from either app. Nothing here is financial advice.