Varo uses Customers Bank as its partner bank

Varo is a fintech company, not a bank itself. Your Varo checking account is actually held at Customers Bank, a real bank chartered in Pennsylvania. Customers Bank holds the deposits, processes the transactions, and provides the FDIC insurance that protects your money up to $250,000 per account.

This setup is common in fintech. Varo handles the app, the customer service, and the user experience you see on your phone. Customers Bank handles the actual banking infrastructure behind the scenes. When you transfer money, make a purchase, or receive a direct deposit through Varo, Customers Bank is the institution processing it.

You do not need to open a separate account at Customers Bank or deal with them directly. Your relationship is with Varo. But knowing which bank backs your account matters if you need to verify FDIC coverage, report fraud, or understand where your money actually sits.

Key Takeaways

  • Varo deposits are held at Customers Bank, a Pennsylvania-chartered bank, so your money carries full FDIC insurance protection.
  • Customers Bank processes all transactions behind the scenes while Varo runs the app and customer service you interact with.
  • You manage your account entirely through Varo and never need to contact Customers Bank directly for routine banking.
  • If you need to verify FDIC coverage or report a serious issue, Customers Bank is the institution that can confirm account details.

How the Varo and Customers Bank relationship works

Varo is licensed as a bank holding company, but it does not have its own banking charter. Instead, it partners with Customers Bank under what is called a pass-through FDIC insurance arrangement. This means Customers Bank is the chartered institution that holds your deposits and maintains the reserve accounts required by federal banking law.

When you deposit money into Varo, it goes into an account at Customers Bank held in your name. Varo's systems track your balance and transactions, but the actual money sits in Customers Bank's vaults and reserve accounts. This is why your account is insured by the FDIC through Customers Bank's charter, not through Varo.

The partnership allows Varo to offer banking services without building its own infrastructure. Customers Bank provides the regulatory backbone, and Varo provides the technology and customer experience. You benefit because you get a modern app and low fees, while your deposits remain protected by a traditional bank's insurance and regulatory oversight.

FDIC insurance and what it covers

Because your Varo account is held at Customers Bank, your deposits are covered by FDIC insurance up to $250,000 per depositor, per insured bank, per ownership category. This means if Customers Bank fails, the FDIC will reimburse you for your balance up to that limit.

The $250,000 limit applies to your combined balances across all deposit accounts you hold at Customers Bank in the same ownership category. If you have a Varo checking account and a Varo savings account, both are counted together toward the $250,000 limit. If you have accounts at other banks, those are insured separately.

FDIC coverage does not protect you against fraud, unauthorized transactions, or Varo's business decisions. It only protects your deposits if the bank holding your money becomes insolvent. For fraud protection, Varo offers its own fraud monitoring and dispute processes, which are separate from FDIC insurance.

What happens if you need to contact the bank directly

For routine issues—transfers, card disputes, account questions—contact Varo through its app or customer service line. Varo handles these requests and coordinates with Customers Bank behind the scenes. You should not need to contact Customers Bank directly.

There are rare situations where you might need Customers Bank's involvement. If you are disputing a transaction and Varo's process does not resolve it, you can file a complaint with Customers Bank directly. If you need written confirmation of your account details for legal or tax purposes, Customers Bank can provide that documentation. If you want to verify FDIC coverage details specific to your account, Customers Bank's customer service can confirm them.

Customers Bank's customer service number is available through Varo's help section. You can also reach them by mail at their headquarters in Lititz, Pennsylvania. Most people never need this contact information, but it is there if a serious issue requires the bank's direct involvement.

Why Varo chose Customers Bank

Varo selected Customers Bank because it is one of the few traditional banks willing to partner with fintech companies on this scale. Customers Bank has a history of working with fintech platforms and understands the regulatory requirements for these partnerships.

The partnership also gives Varo access to the payment networks, reserve systems, and compliance infrastructure that a fintech company cannot build on its own. Customers Bank handles the connections to the Federal Reserve, the ACH network, and the wire transfer systems. Varo focuses on the mobile experience and customer acquisition.

This model has become standard in fintech. Companies like Chime, SoFi, and others use similar partnerships with traditional banks. It allows newer companies to offer banking services quickly without waiting years to obtain their own charter.

What this means for your account security

The fact that Customers Bank holds your deposits does not change your security responsibilities. You still need to protect your Varo login, use a strong password, and enable two-factor authentication. Varo's app security is your first line of defense against unauthorized access.

If your account is compromised, contact Varo immediately through the app or phone. Varo will freeze your account, cancel your card, and investigate the unauthorized transactions. Varo's fraud team handles these cases, not Customers Bank. Varo typically covers unauthorized transactions within its fraud policy, which is separate from FDIC insurance.

The partnership with Customers Bank actually strengthens security because Customers Bank is subject to regular audits and regulatory oversight by the Federal Reserve and the FDIC. This means your account is held by an institution that must meet strict security and operational standards.

Frequently Asked Questions

Is my money safe at Varo if Customers Bank fails?

Yes. Your deposits are insured by the FDIC up to $250,000 because they are held at Customers Bank, which is an FDIC-insured institution. If Customers Bank becomes insolvent, the FDIC will reimburse you for your balance up to the insurance limit. This protection is the same as if you held an account directly at Customers Bank.

Can I move my money to a different bank if I want to?

Yes. You can transfer your Varo balance to any other bank account you own. Use Varo's transfer feature to send money to your external account, or request an ACH transfer. There are no penalties for moving your money, though some transfers may take one to three business days to complete.

What if Varo goes out of business?

If Varo closes, your deposits remain at Customers Bank and are still FDIC-insured. You would need to contact Customers Bank to access your account or transfer your money elsewhere. Varo's business failure does not affect the safety of your deposits because the money is held by Customers Bank, not by Varo.

Do I need to do anything to maintain FDIC coverage?

No. FDIC coverage is automatic for all deposits held at Customers Bank in your name. You do not need to register, pay a fee, or take any action. As long as your balance stays under $250,000 and you hold the account in your individual name, you are fully covered.

Can I see Customers Bank information in my Varo app?

Varo does not display Customers Bank details in the app because you interact with Varo, not with Customers Bank directly. If you need to verify which bank holds your account or confirm FDIC coverage details, you can find this information in Varo's account documentation or by contacting Varo's customer service.