Varo Bank Account

What it is

A no-monthly-fee online checking account from Varo Bank, a nationally chartered bank. Varo says it does not use ChexSystems or check credit when you apply, and there's no minimum opening deposit. It's a checkless account: you pay with the debit card and transfers, and card purchases are declined if funds are short.^2,3

Varo's own second-chance banking article says Varo never runs credit report checks or ChexSystems screenings on account applications, and frames this as helpful for people with past banking trouble. This comes from Varo's educational articles (dated Aug 9, 2023), not its account agreement.²

Does Varo use ChexSystems?

Varo says it doesn't use ChexSystems to open this account. Two Varo-published articles say Varo doesn't use ChexSystems when reviewing account applications and doesn't check credit history when you apply. The account agreement (effective Feb 13, 2026) and general terms (effective May 4, 2026) don't mention ChexSystems; they let Varo verify applicants against third-party databases.¹

Varo says there's no credit check to apply.

Fees and overdraft

Monthly fee

$0. No monthly, minimum balance or maintenance fees. Out-of-network and international ATM withdrawals cost $3.50, over-the-counter cash withdrawals cost $2.50, and retailers other than standalone CVS stores may charge up to $5.95 for cash deposits.^2,3,4

Minimum to open

$0

Overdraft

Card transactions are declined when funds are short, and Varo doesn't charge overdraft fees. A balance can still go negative in some cases, and Varo may close the account if it stays negative for more than 60 days. Varo Advance is a separate, fee-based cash advance ($20 to $250 to start), and approval depends on consumer reports and account activity.

ATMs

No fee at U.S. Allpoint ATMs (40,000+); $3.50 at out-of-network and international ATMs, plus any operator fee.

Early direct deposit

Yes

Who can open it

Online and app only. Open to people 18 or older with a valid SSN or ITIN and a physical U.S. street address (no P.O. boxes) in the 50 states or DC. One Bank Account per customer.

Deposit insurance: Varo Bank, N.A., Member FDIC. Varo says it is a nationally chartered online bank, so deposits are FDIC-insured up to $250,000 directly with Varo, with no partner bank.

If you've been denied before

• If a bank or credit union turns you down because of a checking account report, it must send you an "adverse action" notice with the name and contact information of the reporting company it used.^9,10
• By law, you can get a free copy of your checking account report once every 12 months, and you are also entitled to a free copy if a bank turns you down because of it.^11,12
• If your checking account report has an error, you have the right to dispute it with the reporting company and with the bank or credit union that supplied the information. Under the FCRA, companies must investigate disputes free of charge.^11,12,13
• The Office of the Comptroller of the Currency (OCC) says negative information generally stays on ChexSystems and Early Warning Services reports for five years.¹⁴

ChexSystems, explained