Chime and Varo are two of the most popular neobanks in America — both built for people who want fee-free banking with early direct deposit and mobile-first features. They serve similar customers but differ in important ways. Here’s the complete comparison.
Chime vs Varo: Quick Comparison
| Feature | Chime | Varo |
|---|---|---|
| Type | Fintech (not a bank) | Nationally chartered bank |
| FDIC insured | Yes (through partner banks) | Yes (directly) |
| Savings APY | 2.00% | 3.00% (up to 5.00% with qualifications) |
| Checking APY | 0% | 0% |
| Monthly fees | $0 | $0 |
| Overdraft coverage | SpotMe: up to $200 | Up to $50 (fee-free) |
| Cash advance | ❌ | Varo Advance: up to $250 |
| Early direct deposit | ✅ Up to 2 days | ✅ Up to 2 days |
| ATMs (free) | 60,000+ (Allpoint + MoneyPass) | 40,000+ Allpoint |
| Mobile app rating | 4.7/5 (iOS) | 4.6/5 (iOS) |
| Credit builder | ✅ (Chime Credit Builder) | ✅ (Varo Believe) |
| Minimum balance | $0 | $0 |
Checking Accounts
| Feature | Chime Checking | Varo Bank Account |
|---|---|---|
| Monthly fee | $0 | $0 |
| Minimum balance | $0 | $0 |
| Early direct deposit | ✅ Up to 2 days early | ✅ Up to 2 days early |
| Overdraft coverage | SpotMe: up to $200 | Up to $50 fee-free |
| Debit card | ✅ (Visa) | ✅ (Visa) |
| Mobile check deposit | ✅ | ✅ |
| Bill pay | ❌ | ❌ |
| Zelle | ❌ | ❌ |
| Checks | ✅ (Chime Checkbook) | ❌ |
| Pay Friends | ✅ (Chime Pay Anyone) | ❌ |
| Round-ups to savings | ✅ | ✅ |
| Instant transfers (Chime-to-Chime) | ✅ | ❌ |
SpotMe vs Varo Overdraft
| Feature | Chime SpotMe | Varo Fee-Free Overdraft |
|---|---|---|
| Maximum coverage | $200 | $50 |
| Eligibility | $200+/month direct deposit | Account history and direct deposit |
| Fee | $0 | $0 |
| Covers debit purchases | ✅ | ✅ |
| Covers ATM withdrawals | ✅ | ❌ |
| Pay back | Next direct deposit | Next direct deposit |
| Boost from friends | ✅ | ❌ |
Winner: Chime — SpotMe covers up to $200 with no fees and works at ATMs. Varo’s overdraft is limited to $50 on debit purchases only.
Cash Advance (Varo Only)
| Feature | Chime | Varo Advance |
|---|---|---|
| Available | ❌ | ✅ |
| Maximum advance | N/A | $250 |
| Fee | N/A | $0-$15 (varies by amount and delivery speed) |
| Instant delivery fee | N/A | $3-$9 |
| Standard delivery | N/A | Free (1-3 business days) |
| Repayment | N/A | Next paycheck |
| Eligibility | N/A | Active account + qualifying direct deposits |
Winner: Varo — the advance feature (up to $250) fills a gap Chime doesn’t address. However, instant delivery fees apply.
Savings Accounts
| Feature | Chime Savings | Varo Savings |
|---|---|---|
| Base APY | 2.00% | 3.00% |
| Boosted APY | N/A | 5.00% (with qualifications) |
| Monthly fee | $0 | $0 |
| Minimum balance | $0 | $0 |
| Round-ups | ✅ (from checking) | ✅ (from checking) |
| Auto-save (% of paycheck) | ✅ | ✅ |
| Save When I Get Paid | ✅ (automatic %) | ✅ (automatic %) |
Varo’s Boosted Savings Rate
To earn Varo’s 5.00% APY (on balances up to $5,000), you need:
- At least $1,000 in direct deposits per month
- At least 5 qualifying purchases per month
- Positive account balance
On balances above $5,000, you earn the base 3.00% rate.
Savings Earnings Comparison
| Balance | Chime (2.00%) | Varo (3.00%) | Varo Boosted (5.00%) |
|---|---|---|---|
| $1,000 | $20/yr | $30/yr | $50/yr |
| $5,000 | $100/yr | $150/yr | $250/yr |
| $10,000 | $200/yr | $300/yr | $250 + $150 = $400/yr* |
| $25,000 | $500/yr | $750/yr | $250 + $600 = $850/yr* |
*Varo boosted rate applies only to first $5,000; remainder earns 3.00%
vs Online Banks
| Bank | Savings APY | Notes |
|---|---|---|
| Ally | 4.50% | No requirements |
| Marcus | 4.50% | No requirements |
| Discover | 4.40% | No requirements |
| Varo (boosted) | 5.00% | Requires qualifications, capped at $5K |
| Varo (base) | 3.00% | No requirements |
| Chime | 2.00% | No requirements |
Winner: Varo — higher savings rate even at the base level. The boosted 5.00% is excellent on the first $5,000. But if savings APY is your top priority, dedicated online banks like Ally and Marcus pay more without requirements.
ATM Access
| Feature | Chime | Varo |
|---|---|---|
| Fee-free ATMs | 60,000+ | 40,000+ |
| ATM network | Allpoint + MoneyPass + 7-Eleven | Allpoint |
| Out-of-network ATM fee | $2.50 | $3.00 |
| Cash deposits | Walgreens, 7-Eleven, CVS (via cash deposit partners) | ❌ limited options |
| Cash deposit fee | $3.50-$4.95 | Varies |
| Daily ATM limit | $500 | $500 |
Winner: Chime — larger ATM network (60,000+ vs 40,000+) and more cash deposit options through retail partners.
Fees Comparison
| Fee | Chime | Varo |
|---|---|---|
| Monthly maintenance | $0 | $0 |
| Overdraft | $0 | $0 |
| In-network ATM | $0 | $0 |
| Out-of-network ATM | $2.50 | $3.00 |
| Foreign transaction | 0% | 0% |
| Card replacement | $0 (standard), $25 (expedited) | $0 |
| Incoming wire | ❌ Not supported | $0 |
| Outgoing wire | ❌ Not supported | ❌ Not supported |
| Paper statements | ❌ Not available | $5 |
| Account closure | $0 | $0 |
Winner: Chime — slightly lower out-of-network ATM fee. Both are essentially fee-free.
Credit Builder Cards
| Feature | Chime Credit Builder | Varo Believe |
|---|---|---|
| Type | Secured credit card | Secured credit card |
| Annual fee | $0 | $0 |
| Security deposit | Move money from Chime checking | $10-$10,000 from Varo account |
| Credit limit | Equal to deposit | Equal to deposit |
| Reports to | All 3 bureaus | All 3 bureaus |
| Interest rate | N/A (no interest charged) | N/A (no interest charged) |
| Credit check | No hard pull | No hard pull |
| Auto-payment | ✅ (from Chime checking) | ✅ (from Varo account) |
Winner: Tie — both are excellent credit builders with no fees, no interest, and reporting to all three bureaus.
Mobile App and Digital Experience
| Feature | Chime | Varo |
|---|---|---|
| App rating (iOS) | 4.7/5 | 4.6/5 |
| App rating (Android) | 4.5/5 | 4.4/5 |
| Pay Friends | ✅ (Pay Anyone) | ❌ |
| Zelle | ❌ | ❌ |
| Round-ups | ✅ | ✅ |
| Auto-save from paycheck | ✅ | ✅ |
| Transaction alerts | ✅ | ✅ |
| Card lock/unlock | ✅ | ✅ |
| Mobile check deposit | ✅ | ✅ |
| Budgeting tools | Basic | Basic |
Winner: Chime — slightly higher app ratings and Chime’s Pay Anyone feature for sending money.
Security
| Feature | Chime | Varo |
|---|---|---|
| FDIC insurance | Yes (via Bancorp/Stride Bank) | Yes (directly — Varo Bank, N.A.) |
| 2-factor authentication | ✅ | ✅ |
| Biometric login | ✅ | ✅ |
| Instant card lock | ✅ | ✅ |
| Transaction alerts | ✅ | ✅ |
| Zero liability (fraud) | ✅ | ✅ |
Key difference: Varo is a nationally chartered bank, directly FDIC-insured. Chime is a fintech company whose deposits are held at partner banks (Bancorp Bank or Stride Bank), which are FDIC-insured. Your money is equally safe at both.
Who Should Choose Chime?
✅ You want SpotMe overdraft up to $200
✅ You want the largest fee-free ATM network (60,000+)
✅ You need to deposit cash at retail locations
✅ You want Chime Pay Anyone for sending money
✅ You want the most popular neobank (larger user community)
✅ You want Chime Checkbook for writing checks
✅ You want a well-established fintech (10+ years)
Who Should Choose Varo?
✅ You want a higher savings rate (3.00% base, up to 5.00%)
✅ You need cash advances up to $250 (Varo Advance)
✅ You prefer banking with an actual chartered bank (not a fintech)
✅ You want to earn 5.00% on your first $5,000 in savings
✅ You receive incoming wire transfers
✅ You like having a checking + savings + credit builder from one bank
Bottom Line
| Category | Winner |
|---|---|
| Checking features | Chime (SpotMe, Pay Anyone, checkbook) |
| Savings rate | Varo (3-5% vs 2%) |
| Overdraft protection | Chime (up to $200 vs $50) |
| Cash advance | Varo (up to $250) |
| ATM network | Chime (60,000+ vs 40,000+) |
| Cash deposits | Chime (retail partners) |
| Fees | Tie |
| Credit builder | Tie |
| Mobile app | Chime (slightly higher rated) |
| Best for most people | Chime |
Chime is the better neobank for most people — larger ATM network, more generous SpotMe overdraft, cash deposit options, and a smoother app experience. Varo wins on savings rate (especially the 5.00% boosted rate on the first $5,000) and the Varo Advance cash advance feature. If you’re serious about earning interest on savings, consider pairing either neobank with a dedicated online savings account from Ally or Marcus for the highest rates.
Related: Best Checking Accounts | Best Online Banks | Best Savings Accounts | SoFi vs Marcus | Online Banks vs Traditional Banks
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