You don't have to use Varo's checking account, but Varo won't let you move money in or out without one
Varo is a mobile bank, which means it doesn't have physical branches. To move money into or out of your Varo account at all—whether by direct deposit, ACH transfer, wire, or peer transfer—you need a checking account with Varo. You can't just open a savings account and leave it at that. The checking account is the gateway for all money movement.
That said, you don't have to keep money in the checking account. Once money lands there, you can transfer it to a Varo savings account, a money market account, or another bank entirely. But the checking account itself has to exist and be active for any of those moves to happen in the first place.
Key Takeaways
- Varo requires a checking account to receive direct deposits, ACH transfers, or wire transfers—you cannot use only a savings account.
- Money can arrive in the checking account and then be moved to a Varo savings account or another bank without restriction.
- If you close your Varo checking account, direct deposits and transfers will fail until you open a new one.
- The Varo checking account has no monthly fee, so keeping it open costs nothing even if you don't use it for daily spending.
How money enters and leaves a Varo account
Every deposit method—employer direct deposit, ACH transfer from another bank, wire transfer, or peer-to-peer payment—routes through your Varo checking account first. Varo assigns you a routing number and account number tied to that checking account. When your employer or another person sends money to you, it lands in the checking account by default.
Once the money is there, you control where it goes next. You can leave it in the checking account, move it to a Varo savings account in the same app, or initiate an outbound ACH transfer to move it to a completely different bank. None of those moves require you to keep a balance in the checking account itself.
What happens if you close your checking account
If you close your Varo checking account, direct deposits and incoming transfers will bounce back to the sender. Your employer's payroll system will receive a rejection notice, and the money won't reach you. You'll have to contact your employer to update your banking information, which can take a pay cycle or two to process.
For this reason, many people keep the Varo checking account open even if they don't use it for spending. Since Varo doesn't charge a monthly maintenance fee, there's no cost to leaving it active as a receiving point.
Moving money out of Varo
To transfer money from Varo to another bank, you initiate an ACH transfer from the Varo app. The money leaves your Varo checking account and moves to the external bank account you've linked. ACH transfers typically take one to three business days. You can also set up recurring transfers if you want money to move automatically on a schedule.
If you need money faster, Varo offers instant transfers to linked external accounts for a fee (the fee amount varies). This is useful if you need to move money the same day, but it costs more than a standard ACH transfer.
Keeping a checking account open with no balance
You can maintain a Varo checking account with zero dollars in it. The account won't close due to inactivity, and there's no minimum balance requirement. This makes it practical to keep open as a receiving account even if you prefer to store money elsewhere or spend from a different bank.
However, if you don't use the account for a very long time—typically several years—Varo may close it. Check Varo's current account maintenance policy or contact support if you're concerned about an account that's been dormant for an extended period.
Using Varo's checking account for daily spending
You can use the Varo checking account like any other bank account: debit card purchases, bill payments, ATM withdrawals, and peer-to-peer transfers through apps like Venmo or PayPal. Varo offers a debit card and access to a network of fee-free ATMs. Whether you use it for daily spending or just as a receiving account is entirely up to you.
If you prefer to spend from a different bank, you can transfer money out as soon as it arrives and use that account for purchases instead. The Varo checking account can stay in the background, receiving deposits and sending them where you want them to go.
Frequently Asked Questions
Can I receive direct deposit into a Varo savings account instead of checking?
No. Direct deposits must go to a checking account. You'll need to open a Varo checking account to receive payroll deposits, then transfer the money to savings if you want it there.
What if I want to close Varo but keep receiving deposits somewhere?
You'll need to update your direct deposit information with your employer and provide them with a new bank's routing and account numbers. Varo can't forward deposits to another bank once you close your account.
Does Varo charge a fee to keep a checking account open?
No. Varo's checking account has no monthly maintenance fee, no minimum balance, and no inactivity fee (within normal timeframes). You can keep it open indefinitely at no cost.
Can I have multiple Varo checking accounts?
Varo allows one checking account per person. If you need multiple accounts for different purposes, you would need to open accounts at different banks.
What if my employer sends money to my old Varo account after I close it?
The deposit will be rejected and returned to your employer. You'll need to contact your employer's payroll department to update your banking information with your new account details before the next pay cycle.