Chime vs. Varo: Which Mobile Bank Is Better for You? Rudri PatelOctober 8, 2025 at 5:25 AM 0 13Smile / Getty Images/iStockphoto If you've moved away from traditional branch banking, chances are you've considered Chime or Varo.
- - Chime vs. Varo: Which Mobile Bank Is Better for You?
Rudri PatelOctober 8, 2025 at 5:25 AM
0
13-Smile / Getty Images/iStockphoto
If you've moved away from traditional branch banking, chances are you've considered Chime or Varo. These two digital banking platforms are leading the charge in mobile-first money management, offering fee-free accounts, early direct deposits, and savings tools that make banking simpler.
But which one's better for your needs? Here's a 2025 comparison of Chime vs. Varo, breaking down features, risks, fees and best use cases.
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Chime vs. Varo At a Glance
Feature
Chime
Varo
Monthly Fee
None
None
Checking Account
Fee-free with no balance requirement
Fee-free with no balance requirement
Savings Account
Up to 2.0% APY
Up to 5.0% APY (with $1,000+ direct deposit)
Overdraft Protection
SpotMe up to $200
None (offers cash advance up to $250)
Early Direct Deposit
Yes – up to 2 days early
Yes – up to 2 days early
Cash Deposits
Green Dot & Walgreens
Green Dot
ATM Access
60,000+ fee-free ATMs
55,000+ fee-free ATMs
FDIC Insurance
Partner banks: The Bancorp Bank, Stride Bank
Direct FDIC coverage (Varo Bank N.A.)
Credit-Building Tools
Chime Credit Builder Card
Varo Believe Credit Card
Zelle Transfers
Not supported
Yes (via Varo app)
International Use
Limited
Limited
App Ratings
4.8 stars (App Store), 4.7 stars (Google Play)
4.9 stars (App Store), 4.7 stars (Google Play)
What Is Chime?
Chime is a financial technology company that partners with FDIC-insured banks — The Bancorp Bank N.A. and Stride Bank N.A. — to deliver mobile banking services.
It offers checking and savings accounts with no monthly maintenance fees, no overdraft fees (for SpotMe-eligible users) and early access to direct deposits.
Key Features:
Fee-free overdraft up to $200 via SpotMe
60,000+ fee-free ATMs through MoneyPass®, Allpoint® and Visa Plus Alliance®
Automatic savings tools: "Save When You Get Paid" (fixed 10% transfers)
Unlimited outbound savings transfers (a unique flexibility advantage)
Cashback rewards at partner merchants
Best for: Fee-free simplicity, flexible savings and beginner-friendly mobile banking.
What Is Varo?
Varo Bank, N.A. is the first fully chartered U.S. neobank — meaning it's an actual FDIC-insured bank, not just a financial technology company partnered with one.
Like Chime, Varo offers no-fee checking and savings accounts but stands out with higher APY potential and built-in Zelle support.
Key Features:
Earn up to 5% APY on savings (with $1,000+ monthly direct deposits)
Direct FDIC insurance — no third-party partners involved
"Save Your Pay" feature lets users customize savings percentages
Zelle® integration for instant transfers
Cash advances up to $250 for eligible users
Best for: Savers aiming for higher interest rates and Zelle access under one app.
Neobank 101: Understanding the Risks and FDIC Coverage
Before choosing between Chime and Varo, it's important to understand how neobanks differ from traditional banks.
Varo is a true bank with a federal charter, meaning your deposits are insured directly by the FDIC up to $250,000.
Chime, meanwhile, is a financial technology platform that partners with FDIC-insured banks. While your funds are still insured, if a neobank partner fails, it's up to the fintech to ensure customers regain access to their funds — a key nuance in risk exposure.
Takeaway: Both are FDIC-insured, but Varo's direct charter structure offers slightly more clarity and stability in the event of institutional failure.
International Use and Travel Considerations
Neither Chime nor Varo is ideal for frequent travelers or digital nomads.
Chime: Allows international card use but charges foreign transaction fees and doesn't support global transfers.
Varo: Offers similar international functionality — card purchases abroad are supported, but currency conversion fees may apply.
For international transactions or foreign currency transfers, consider pairing either account with a platform like Wise, which offers low-cost international transfers and better exchange rates.
Best Practice: Use Chime or Varo for domestic spending and Wise for cross-border transactions.
Transfer Limits and Zelle/ACH Access
One of the biggest differentiators between Chime and Varo lies in transfer tools and limits.
Chime: Does not support Zelle. Users can send money to other Chime users instantly or transfer funds externally via ACH. Transfers typically take 1 to 3 business days.
Varo: Supports Zelle®, enabling near-instant transfers between U.S. bank accounts.
ACH transfers: Up to $5,000 per day
Cash advance limits: $250 per pay cycle
Peer-to-peer transfer cap: $2,000 per day
Pro Tip: If you frequently send money to friends or freelancers, Varo's Zelle support offers more flexibility than Chime's limited peer-to-peer system.
Savings Accounts: Which Grows Your Money Faster?
Feature
Chime
Varo
Base APY
2.0%
2.5%
High-Yield APY
—
Up to 5.0% (with $1,000+ direct deposit)
Minimum Deposit
None
$0.01 to earn interest
Automatic Transfers
Fixed 10% from paychecks
Custom % via "Save Your Pay"
Outbound Transfers
Unlimited
Limited by federal guidelines
Winner: Varo. Its tiered APY structure and customizable savings features outpace Chime's fixed 10% savings automation.
Checking and Spending Features
Both offer fee-free checking accounts with early direct deposit and mobile bill pay. But there are small distinctions:
Chime: Offers SpotMe overdraft protection up to $200 — no fees.
Varo: Declines overdrawn purchases but offers cash advances up to $250 for a $5 fee.
Winner: Chime — the SpotMe feature offers no-fee coverage that can be a lifesaver for budget-conscious users.
Cashback, ATM Access and Deposits
Feature
Chime
Varo
ATM Access
60,000+ (MoneyPass®, Allpoint®, Visa Plus Alliance®)
55,000+ (Allpoint®)
Cash Deposits
Green Dot + Walgreens
Green Dot locations only
Cashback
Up to 24% at select partners
Up to 6% (max $200/month)
Winner: Chime — wider ATM coverage and cashback diversity.
Credit-Building Tools
Feature
Chime Credit Builder
Varo Believe
Deposit Needed
None
Security deposit required
Reporting
All 3 credit bureaus
All 3 credit bureaus
0%
0%
Automatic Payments
Yes
Yes
Winner: Chime. No deposit required, and their Credit Builder Card helps establish a positive payment history effortlessly.
Hybrid Banking Strategy: Using Chime and Varo Together
Rather than picking one, some users pair Chime and Varo for a hybrid setup:
Use Chime for day-to-day spending, overdraft coverage and credit building.
Use Varo for higher-interest savings and fast peer-to-peer Zelle transfers.
Connect both to a major bank (like Chase or Wells Fargo) for cash deposits and international wire capabilities.
Result: You get the best of both worlds — low fees, high savings yields and flexibility.
Neobank Risks and Responsible Use
Neobanks make banking faster and cheaper, but they come with risks. Keep these best practices in mind:
Maintain an emergency fund outside your neobank.
Avoid overreliance on cash advances — they can encourage a debt cycle.
Always verify FDIC coverage under your name and institution.
Use two-factor authentication and monitor transactions for fraud.
Tip: If either app experiences downtime or delays, having a secondary traditional bank account ensures uninterrupted access to funds.
Final Take to GO: Chime vs. Varo in 2025 -
Chime is ideal for those who want fee-free, automated banking with strong credit-building features.
Varo suits those seeking higher savings rates, Zelle access and the confidence of a true bank charter.
Both make money management easier — and together, they can form a powerful hybrid banking system for 2025.
More on Chime Bank -
Chime Review
Chime Account Promotions
Chime ATM Withdrawal and Deposit Limits
Where to Load Your Chime Card
Information is accurate as of Oct. 7, 2025.
Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.
This article originally appeared on GOBankingRates.com: Chime vs. Varo: Which Mobile Bank Is Better for You?
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