Varo increases annual percentage return on savings account to 2.80%, industry leader¹

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SAN FRANCISCO, January 29, 2019 / PRNewswire / – To Make High Yield Savings Accessible to More Americans, No-Fee Mobile Banking Company Varo money, Inc., today announced that it has increased the Annual Percentage Return (“APY”) of its FDIC-insured Varo Savings Account to 2.80% for customers with savings account balances of $ 50,000 or less, and who have made eligible direct deposits and debit card purchases from their Varo bank account.1 An APY of 2.12%1 will apply if these conditions are not met.

“We have a serious savings problem in America and the banks are not doing enough to address it,” said co-founder and CEO Colin Walsh. “Four in ten Americans cannot cover a $ 400 surprise expenses without selling something or going into debt, and the typical working-age household has only $ 3,000 in retirement assets. Varo’s mission is to help improve people’s financial well-being and we’re proud to put a stake in the ground with a peak rate for FDIC insured accounts. ”

Varo’s new 2.80% APY for qualifying customers is more than triple the national 12-month average CD rate and far exceeds the measly 0.09% APY which is the national average.2 Varo’s 2.80% APY also significantly exceeds inflation, which was 2.3% on average in 2018 and is expected to remain at that level in 2019.

Departure January 29, 2019, all Varo customers whose payroll or government direct deposits to their Varo bank account total $ 1,000 or more each month, make at least five purchases with the Varo Visa® Debit card every month and have a balance of $ 50,000 or less in their savings account will be paid 2.80% APY. For savings accounts with more than $ 50,000 or who do not meet the other qualifications, an APY of 2.12% will apply. Bank Varo and savings accounts are provided by the Bancorp Bank, a member of the FDIC, and deposits are insured by the FDIC until $ 250,000. Varo has no minimum balance requirements and does not charge any fees.3

“The banks collected $ 34 BILLION in overdraft fees4 only one of hardworking Americans last year, and many paid very close to zero interest on savings clients entrusted them with. It’s just not fair, ”Walsh said. “We believe consumers deserve bank accounts that charge no fees and help them save money. “

In addition to toll-free banking services and an industry-leading savings rate, Varo offers tools like Save Your Pay and Save Your Change that automate savings to help consumers save more easily. Varo is available on the Google Play Store with an Android version of its banking app and available through its iOS app in the App Store, where it has over 13,000 reviews and an average rating of 4.7 stars.

On its way to becoming the first national mobile-centric bank in U.S. history, Varo believes banking services should be free, easy, and accessible to everyone via a smartphone. In August 2018, Varo has obtained preliminary approval of a national banking charter by the Office of the Comptroller of the Currency (OCC). Upon opening as a national bank, Varo will offer its clients an expanded range of banking products and solutions that meet the highest standards in consumer protection.

Varo was founded in 2015 and has collected more than $ 144 million in funding with Warburg Pincus and The Rise Fund, a global impact fund led by private equity firm TPG as lead investors.

About Varo money

Varo money, Inc. (“Varo”) is on a mission to redefine banking services so that it’s easy for everyone to make smart choices with their money. In a mobile application, Varo offers customers free of charge5 premium bank accounts and high interest savings accounts offered by The Bancorp Bank; and technology features to help people manage their money more easily. As a fintech leader, Varo has obtained preliminary approval of a national de novo banking charter by the Office of the Comptroller of the Currency (OCC) and is on track to become the first national bank focused on mobile. of the history of the United States. Situated at San Francisco and Utah and private, Varo raised $ 144 million to date, led by Warburg Pincus. Varo Personal Loans are offered by Varo money, Inc., under state license, subject to application approval. For more information visit www.varomoney.com, like Varo on Facebook and follow us on Instagram and Twitter @varomoney.

The Varo visa® The debit card is issued by The Bancorp Bank pursuant to a license from Visa United States Inc. and can be used anywhere Visa debit cards are accepted.

1To earn 2.80% APY, the savings account balance must be $ 50,000 or less and the customer must meet the following two requirements. If the savings account balance is higher $ 50,000, or if both of the following conditions are not met, the APY will be 2.12% on the entire Savings Account balance:

  1. Receive direct government payrolls or deposits totaling at least $ 1,000 every month in the Varo bank account
  2. Using the Varo visa® Debit card to authorize at least 5 purchases per month (excluding cash withdrawals at ATMs or over the counter and P2P transfers)

New customers looking to qualify for the 2.80% APY will first need to set up direct deposit and receive their debit card in the mail and activate it. Until qualifying direct deposit (s) are displayed and debit card purchase transactions are completed, they will earn 2.12% APY.
APYs are accurate as of 29 january 2019; prices are variable and may change. There is no minimum balance required to open the account. The savings account balance must be at least $ 0.01 to earn interest.

2National average APY for 12-month CD (0.68% APY) exact at January 16, 2019 as published in the National Weekly Rates and FDIC Tariff Caps; the national APY average is correct at January 11, 2019, as published in the FDIC Weekly National Rates and Rate Caps, the average rate is for deposits under $ 100,000.

3Varo does not charge any fees for banking services. While Varo does not charge a fee for ATM withdrawals, some third-party ATM operators may charge a fee. To completely avoid ATM fees, customers can use an Allpoint network® AU M. There are over 55,000 Allpoint locations worldwide.

4https://www.marketwatch.com/story/overdraft-fees-havent-been-this-bad-since-the-great-recession-2018-03-27

THE SOURCE Varo money

Related links

http://www.varomoney.com



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