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Chime® vs. Varo: Which Will Boost Your Savings?

Q: What is the downside to Chime?

Although Chime is a good fee-free banking option 1 Optional services and products may have fees or charges, such as outbound instant transfers, out-of-network transactions, and credit products. Learn more here. Link leads to <a href="https://www.chime.com/policies/chime/fees-info/">chime.com/feesinfo</a> , the biggest downside is that it isn't actually a bank. Instead, it partners with banks that hold your money. You also won't have access to paper checks and can only make cash deposits at select retailers.

Both Varo and Chime boast fee-free checking¹ Optional services and products may have fees or charges, such as outbound instant transfers, out-of-network transactions, and credit products. Learn more here. Link leads to <a href="https://www.chime.com/policies/chime/fees-info/">chime.com/feesinfo</a> and savings accounts, but they differ in terms of rates and accessibility.

By Kat Tretina and Steve Miller , Edited by Melinda Sineriz, ABFP®

Fact Checked by Kelly Wise

Updated July 31, 2026

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2026 AWARD WINNER Best Checking for Bad or No Credit

4.9

No monthly fees or minimum balance requirements
Early paycheck access up to 2 days early with direct deposits² Early access to direct deposit funds depends on the timing of the submission of the payment file from the payer. We generally make these funds available on the day the payment file is received, which may be up to 2 days earlier than the scheduled payment date.
No fee overdraft up to $200 for eligible members³ SpotMe® on Credit is an optional, no interest / no fee overdraft line of credit tied to the Secured Deposit Account available to qualifying members with an active Chime Card Account. To qualify for the SpotMe on Chime Card service, you must receive $200 or more in qualifying direct deposits to your Chime® Checking Account each month and have activated your physical secured Chime Visa® Credit Card or Chime Visa® Debit Card. Qualifying members will be allowed to overdraw their Secured Deposit Account up to $20, but may later be eligible for a higher limit of up to $200 or more based on Chime account history, direct deposit frequency and amount, spending activity and other risk-based factors. The SpotMe on Chime Card Limit will be displayed within the Chime mobile app and is subject to change at any time, at Chime’s or its banking partners’ discretion. Although Chime does not charge any overdraft fees for SpotMe on Chime Card, there may be out-of-network or third-party fees associated with ATM transactions and fees associated with OTC cash withdrawals. SpotMe on Chime Card won’t cover non-card transactions. <a href="https://www.chime.com/policies/" style="background-color: rgb(255, 255, 255);">SpotMe on Chime Card Terms and Conditions</a>.
Large network of fee-free ATMs⁴ Out-of-network ATM withdrawal and over the counter advance fees may apply except at FCTI® ATMs in a 7-Eleven® or Speedway, or any Allpoint® or Visa® Plus Alliance ATM participating in the Allpoint network.
Automatic savings features⁵ You can automatically transfer part of your direct deposits of $1 or more from your Checking Account into your selected Chime account(s).

4.3

No minimum balance requirements
No monthly fees
Earn 3.75% (as of 07/15/26) APY with direct deposit
Automate saving with "Save Your Change" and "Save Your Pay" features

Our view

When's the last time you stepped foot in an actual bank? If you're like me, it's been a while; I do all of my banking online or through my phone. Not only are fintechs convenient, they tend to have lower fees and higher annual percentage yields (APYs) than traditional financial services providers. That's particularly true for Chime®⁶ Chime is a financial technology company, not a bank. Banking services provided by The Bancorp Bank, N.A. or Stride Bank, N.A., Members FDIC. The secured Chime Visa® Credit Card is issued by The Bancorp Bank, N.A. or Stride Bank, N.A., pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa credit cards are accepted. Please see the back of your Card for its issuing bank. and Varo, two of the biggest names in online banking services.

Both Chime and Varo are reliable options, but Chime has an edge over Varo thanks to the potential for a higher APY on balances over $5,000⁷ The Annual Percentage Yield (“APY”) for the Chime Savings Account is variable and may change at any time. The disclosed APY is accurate as of 01/29/26. No minimum balance required. Must have $0.01 in savings to earn interest.  with Chime Plus and added account features like the account roundup tool.⁸ Round Ups automatically round up debit card purchases to the nearest dollar and transfer the round up from your Chime Checking Account to your savings account.  Chime's roundup option makes it easier to save money by helping you set aside your spare change.

How we rate products

We know checking and savings accounts can be critical tools for managing your money. They're one of the financial tools you use the most. That's why the features offered by a bank matter so much and we've taken that into consideration in our evaluations.

We consider the annual percentage yield (APY), account features, minimum opening balance required, fees, customer service, and FDIC insurance. The best banks also offer a variety of account types and the support you need to you make the most of your money.

We intensively research all products and services we review, and our team members personally use a wide array of financial products. Our product rankings and scores are based on objective measurements and product features as well as expert opinions from our editorial team.

Chime vs. Varo comparison


ATM network	40,000+	47,000+⁴ <p>Out-of-network ATM withdrawal and over the counter advance fees may apply except at FCTI® ATMs in a 7-Eleven® or Speedway, or any Allpoint® or Visa® Plus Alliance ATM participating in the Allpoint network.</p>
Cash deposits accepted	Yes, at partner retailers	Yes, at partner retailers⁹ <p>Once the retailer accepts your cash, the funds will be transferred to your Chime account. Cash deposit fees may apply if using a retailer other than Walgreens and Duane Reade. </p>
FDIC insured	Yes, up to $250,000	Yes, up to $250,000
Partner bank	Own bank charter	The Bancorp Bank, N.A. and Stride Bank, N.A.
Other financial products	Cash advance Personal line of credit Secured credit card	MyPay® ¹⁰ <p>MyPay® line of credit provided by The Bancorp Bank, N.A. or Stride Bank, N.A. MyPay services provided by Chime Capital, LLC (NMLS 2316451).</p> <p>To be eligible for MyPay, you must receive qualifying direct deposits to your Chime Checking Account as set forth in the MyPay Agreement. A qualifying direct deposit is a deposit from an employer, payroll provider, gig economy payer, government benefits payer, or other permitted source of income by Automated Clearing House (“ACH”) or Original Credit Transaction (“OCT”). Your MyPay Credit Limit and Maximum Available Advance may change at any time. MyPay is a line of credit and available limits are based on estimated income and risk-based criteria. Eligible members may be offered a $20 - $500 Credit Limit per pay period. Your Credit Limit and Maximum Available Advance will be displayed to you within the Chime app. MyPay is currently only available to eligible Chime members in certain states. Other restrictions may apply. See <a href="https://www.chime.com/policies/bancorp/mypay/">Bancorp MyPay Agreement</a> or <a href="https://www.chime.com/early-pay/mypay/">Stride MyPay Agreement</a> for details.</p> Secured Chime Visa^® Credit Card
TrustPilot rating	4.1	3.6
Mobile app ratings	4.9 (iOS) 4.6 (Google Play)	4.8 (iOS) 4.7 (Google Play)

When to go with Chime

Chime was founded in 2012. Since its launch, it has become one of the top fintechs, offering checking and savings accounts and other features to help people manage their money. Chime doesn't have its own bank charter, so it partners with banks like Bancorp and Stride to provide its accounts to customers.

Chime is the better choice in the following scenarios.

You want a flat APY

While Varo offers a high APY of 3.75% (as of 07/15/26), it only applies to the first $5,000 you deposit. With Chime, you earn a flat APY on savings, regardless of your account balance. If you have a more substantial amount in savings, having a higher rate on the entire balance can help you earn more interest.

With Chime savings, you'll earn 0.75% APY on your balance. But, if you have Chime Plus™ membership (which you can qualify for by signing up for direct deposit), you could earn a 2.75% APY on your balance.¹¹ The disclosed Annual Percentage Yield (APY) is available only while you maintain Chime Plus status, otherwise the standard 2.75% APY for non-Chime Plus will apply. The APYs for the Chime Savings Account are effective as of 02/26/2026 and are variable and may change at any time. No minimum balance required. Must have $0.01 in savings to earn interest. See Chime Plus Terms and Conditions for more details. With Chime's highest membership tier, Chime Prime™, you could earn an APY of 3.75%.¹² To be eligible for Chime Prime status, receive $3,000+ in qualifying direct deposits to your Chime Checking Account in the past 34 days. To be eligible for Chime Plus status, receive either 1) a single $200+ qualifying direct deposit; or 2) $400+ in cumulative qualifying direct deposits to your Chime Checking Account in the preceding 34 days. Certain products marketed as perks have additional eligibility requirements. While some perks may have associated fees, none of these fees are mandatory to access the perks or to maintain the applicable status. See the Chime Membership Tiers Terms and Conditions for details on all listed Prime and Plus perks.

You need help saving money

If you're like me, you know how easy it is to make unnecessary purchases or fritter away extra cash. If you need help saving money for the future, Chime's roundup feature may come in handy.

Every time you pay a bill or make a purchase with your Chime Visa® Debit Card¹³ Banking services and debit card provided by The Bancorp Bank N.A. or Stride Bank, N.A., Members FDIC, pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa debit cards are accepted. , Chime will round up the purchase total to the nearest full dollar and deposit the extra change into your savings account. Over time, those little savings can add up.

I have an account with the roundup feature, and it's helped me painlessly set aside cash for the upcoming holidays (and a mountain of gifts for my nephews).

You have a cash-based job

Although Chime is a digital fintech, it does allow customers to make cash deposits. It has a broader network of retailers that accept cash deposits than Varo and a higher monthly cash deposit limit. While Varo caps accounts at $5,000 per month, Chime allows up to $10,000 per month in cash deposits. If you have a well-paying, cash-based job, that higher limit is incredibly useful. ⁹ Once the retailer accepts your cash, the funds will be transferred to your Chime account. Cash deposit fees may apply if using a retailer other than Walgreens and Duane Reade.

Learn more in our Chime review

When to go with Varo

Varo is an online institution like Chime. But unlike Chime, which works with partner banks to offer checking and savings accounts, Varo has its own, national, full-service bank charter, meaning it offers its own banking products that are insured by the Federal Deposit Insurance Corporation (FDIC).

Varo has some extra products and features that can be useful, so choosing Varo over Chime can make sense in the following scenarios.

You are just starting to build an emergency fund

If you're building your savings or emergency fund, Varo can be a good choice since it offers a higher APY on the first $5,000 saved. After that, the APY is lower.

Learn more in our Varo review

Varo vs. Chime high yield savings

	Varo	Chime
Minimum deposit	$0	$0
Monthly fee	$0	$0
APY	3.75% (as of 07/15/26) on up to $5,000 with qualifying direct deposit (any additional amount earns 2.50% (as of 02/23/26))	Up to 2.75% APY ; 0.75% APY for non-Chime Plus™ members
Limit on monthly withdrawals	No	No
Extra perks	N/A	Round-ups for savings

Varo and Chime offer some of the best savings accounts. They both have high-yield savings accounts without a minimum deposit requirement or monthly fees. To qualify for the highest-advertised APY with each option, you do need to maintain eligibility requirements; otherwise, you'll earn a lower APY.

With Chime, the highest-advertised rate applies to your entire balance. By contrast, Varo's highest rate only applies to the first $5,000 in the account.

Varo vs. Chime checking

	Varo	Chime
Physical checks provided	No	No
Minimum deposit	$0	$0
Monthly fee	$0	$0
Overdraft fee	$0	$0
ATM access	40,000+	47,000+
Cash deposits	Yes, at partner retailers like Walmart and CVS	Yes, at partner retailers, including Walmart, 7-Eleven, Speedway, Dollar General, and more⁹ <p>Once the retailer accepts your cash, the funds will be transferred to your Chime account. Cash deposit fees may apply if using a retailer other than Walgreens and Duane Reade. </p>
Caps on cash deposits	$5,000 per month	$10,000 per month
Free overdraft protection	No	Up to $200 with SpotMe®¹⁴ <p>SpotMe® on Credit is an optional, no interest/no fee overdraft line of credit tied to the Secured Deposit Account. SpotMe on Debit is an optional, no fee service attached to your Chime Checking Account (individually or collectively, "SpotMe"). Eligibility for SpotMe requires $200 or more in qualifying direct deposits to your Chime Checking Account each month.</p><p>Qualifying members will be allowed to overdraw their Chime Checking Account and/or their Secured Deposit Account up to $20 in total, but may be later eligible for a higher combined limit of up to $200 or more based on member’s Chime account history, direct deposit frequency and amount, spending activity and other risk-based factors. Your SpotMe Limit will be displayed to you within the Chime mobile app. You will receive notice of any changes to your SpotMe Limit. SpotMe for Credit and SpotMe on Debit share a single SpotMe limit. Your SpotMe Limit may change at any time, at Chime or its banking partners’ discretion. Although there are no overdraft fees, there may be out-of-network or third-party fees associated with ATM transactions or OTC cash withdrawal fees at retailers. SpotMe won’t cover non-card transactions, including ACH transfers, Pay Anyone, or Chime Checkbook transactions. <a href="https://www.chime.com/policies/">SpotMe terms and conditions</a>.</p>
Early paycheck access	Yes, up to two days early¹⁵ <p>Early access to direct deposit funds depends on timing of the payer’s submission of deposits. We generally post such deposits on the day they are received which may be up to 2 days earlier than the payer’s scheduled payment date.</p>	Yes, up to two days early² <p> Early access to direct deposit funds depends on the timing of the submission of the payment file from the payer. We generally make these funds available on the day the payment file is received, which may be up to 2 days earlier than the scheduled payment date.</p>
Extra perks	Cash back at select retailers	N/A

Whether you need a basic checking account to receive your paychecks or pay your bills electronically, Varo and Chime are both low-cost options. There are no monthly fees or minimum deposit requirements, and you can access fee-free ATMs nationwide.

Both Varo and Chime allow you to receive your paycheck up to two days early. But there are some standout differences.

Cash deposit limits: With Varo, you can only deposit up to $5,000 per month in cash. For most people, that limit is perfectly fine. But if you have a higher-paying, cash-based job, that limit could be restrictive. Chime has a $10,000 limit, so it may be a better fit.
Overdraft protection: Varo doesn't charge overdraft fees, but it will deny any transactions that exceed your account balance. With Chime's SpotMe program, Chime will temporarily allow the transaction to go through (up to $200) without charging you overdraft fees. This feature can be useful if you misjudge your budget and your utility bill is due.

Key differences between Chime and Varo

Besides the differences between their checking and savings accounts, there are a few other key differences between Chime and Varo.

Lines of credit: If you need to borrow money, Varo has a personal line of credit you can use to borrow between $600 and $2,000. You can make payments for up to 12 months, and the line of credit has a flat fee. Chime offers a line of credit called MyPay that allows members to get up to $500 of their pay before payday.
Credit scores: Both platforms allow you to view your credit score and see how your score changes, but they provide different scoring models. Varo allows you to view your Vantage 3 Score, while Chime allows you to view your FICO score.

How and why to choose an online bank

Switching to an online bank means sacrificing access to physical branches, but fintechs like Chime and Varo have some major benefits that offset that downside.

You can qualify for fee-free checking and savings accounts, earn higher-than-usual APYs, and use convenient mobile apps to manage your money.

When considering your online banking options, think about the following factors.

ATM access: Even if you do most of your banking online, there may be times when you need to take out cash. Look for a bank with a broad ATM network to avoid unnecessary fees.
Cash deposits: Some online banks allow you to deposit cash at ATMs or retailers like CVS or Walmart. If you have a cash-based job, like a bartender or server, a bank with convenient cash deposit options is a necessity.
APY: Online banks usually have higher APYs than you'll find with traditional brick-and-mortar banks, but read the fine print. As is the case with Varo, the APY may only apply up to a certain balance, such as the first $5,000 you save. Another bank may have a lower APY but one that applies to the entire balance at all times.

FAQs

What is the downside to Chime?

Although Chime is a good fee-free banking option¹ Optional services and products may have fees or charges, such as outbound instant transfers, out-of-network transactions, and credit products. Learn more here. Link leads to <a href="https://www.chime.com/policies/chime/fees-info/">chime.com/feesinfo</a> , the biggest downside is that it isn't actually a bank. Instead, it partners with banks that hold your money. You also won't have access to paper checks and can only make cash deposits at select retailers.

What are the cons of Varo Bank?

Like Chime, Varo Bank is completely digital, so there are no physical branches. Its highest APY only applies to the first $5,000 in your savings account. After that, the APY is much lower.

Does Chime really spot you $200?

Chime will give you a little help (up to $200), but it's not free money. Instead, the SpotMe feature allows eligible users to overdraft relatively small amounts without having to worry about a typical overdraft fee or denied transaction. The transaction will still go through, but you'll need to pay the negative balance back.

Bottom line

If you're trying to decide between Chime and Varo in 2025, consider Chime if you prefer added protection for your checking account and a flat APY. If you want a higher APY on your initial deposit, Varo may be the better choice.

Looking for other features? You might want to check out our list of the best banks or best online banks for more options.

Get Your Paycheck Early

4.9

2026 AWARD WINNER Best Checking for Bad or No Credit

Chime® Benefits

Get no fee overdraft up to $200 with SpotMe®³ SpotMe® on Credit is an optional, no interest / no fee overdraft line of credit tied to the Secured Deposit Account available to qualifying members with an active Chime Card Account. To qualify for the SpotMe on Chime Card service, you must receive $200 or more in qualifying direct deposits to your Chime® Checking Account each month and have activated your physical secured Chime Visa® Credit Card or Chime Visa® Debit Card. Qualifying members will be allowed to overdraw their Secured Deposit Account up to $20, but may later be eligible for a higher limit of up to $200 or more based on Chime account history, direct deposit frequency and amount, spending activity and other risk-based factors. The SpotMe on Chime Card Limit will be displayed within the Chime mobile app and is subject to change at any time, at Chime’s or its banking partners’ discretion. Although Chime does not charge any overdraft fees for SpotMe on Chime Card, there may be out-of-network or third-party fees associated with ATM transactions and fees associated with OTC cash withdrawals. SpotMe on Chime Card won’t cover non-card transactions. <a href="https://www.chime.com/policies/" style="background-color: rgb(255, 255, 255);">SpotMe on Chime Card Terms and Conditions</a>.
Get paid up to 2 days earlier with direct deposit than you would with some traditional banks² Early access to direct deposit funds depends on the timing of the submission of the payment file from the payer. We generally make these funds available on the day the payment file is received, which may be up to 2 days earlier than the scheduled payment date.
24/7 live support with a real human
FDIC insured through The Bancorp Bank, N.A. or Stride Bank, N.A., Members FDIC

4.9

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