Varo vs Chime® vs Aspiration Financial Options
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When choosing a new financial institution, the options are endless. With the number of products and services, it seems nearly impossible to choose just one. It's hard to know which way to go, from national banks to credit unions to digital-only banks.
While picking a bank isn’t exactly stressful, making the wrong choice could cost you. Before committing to one company, here’s our take on three online checking and savings options.
In this article
About each brand
Varo
, America’s first digital-only bank, prides itself on being inclusive. In 2021, the company added the slogan “A bank for all of us” to its website and brand launch. Varo’s campaign is to push the idea that banking is for everyone, regardless of ethnicity or financial situation. That’s why Varo offers consumers the chance to open a bank account sans credit checks, no monthly fees, and no minimum balance fee.
Varo offers both if you want a basic checking and savings option. Opening a Varo Bank account is easy: Just download the Varo app from the App Store or Play Store and follow the on-screen prompts. Once approved, account holders are issued a Visa debit card and are given the option to open a Varo Savings Account.
Although Varo is a branchless banking option, account holders can rest easy knowing that the money in their Varo savings account and Varo checking account is FDIC insured for a combined total of $250,000 through Varo Bank, Member FDIC.
Chime
is a fintech company that allows users to bank via the Chime website and/or one convenient mobile app compatible with iOS and Android devices.
Chime account holders are given a Chime Visa® Debit Card that connects to their Chime Checking Account, a basic checking account. Unlike most traditional checking accounts, however, a Chime Checking Account has no monthly service, transfer, overdraft, or foreign transaction fees. What’s more? Chime offers an early direct deposit feature that allows users to get their money up to two days early.
Account holders can also open a High-Yield Chime Savings Account, which offers an Annual Percentage Yield or APY of up to 2.00%. Neither the Chime Checking Account nor the High-Yield Chime Savings Account requires a minimum balance.
According to the company website, Chime accounts are FDIC insured up to $250,000 through The Bancorp Bank, N.A. or Stride Bank, N.A., Members FDIC.
Better banking is here.
- No account fees
- Earn up to 4.20% APY
- Up to 2-day-early-paycheck
- No-fee Overdraft Coverage.
- Do it all in one app.
- Up to $2M of additional FDIC insurance through a network of participating banks.
Aspiration
Aspiration does everything a traditional bank does, except it’s not a bank. Aspiration is an online financial service that focuses on being socially conscious and sustainable by offering members the option to plant a tree with every round-up. Aspiration combines its checking and savings offerings into two separate eco-friendly plans, offering an optional recycled plastic debit card.
The Aspiration Plus plan is $7.99 per month for users who want to pay monthly or $5.99 per month for those who decide to pay annually, whereas the Pay What Is Fair Aspiration plan is a donation-based plan where users can pay what they want, even if it is $0. In addition to its checking and savings options, Aspiration allows users to invest with professionally managed funds, open an IRA, and make tax-deductible donations to a cause of their choice.
According to the Aspiration website, Aspiration may not be a brick-and-mortar bank, but all account holder deposits are still FDIC-insured, up to $2 million per depositor.
Key features
Varo’s features
Varo offers two basic accounts: a Varo Bank Account and a Varo Savings Account. Here are the key features of each account:
Varo Bank Account
Varo offers a basic online checking account known as the Varo Bank Account. Setting up is easy and doesn’t charge a monthly maintenance fee. Potential Varo Account holders must be 18 or older and have a government-issued ID and social security number to sign up for a Varo Bank Account. Here are some of the key features associated with a Varo Bank Account:
- Early direct deposit. With Varo, account holders can receive their direct deposit up to two days earlier than their scheduled payment date, according to the Varo website. Varo posts the funds from an account holder’s employer or benefits provider as soon as Varo receives them in their account.
- No-fee overdraft. Varo also has a No Fee Overdraft program that allows users to overdraw their checking account by up to $50 when purchasing a debit card. To be a part of the No Fee Overdraft program, users must be able to make five debit purchases per month and receive a direct deposit of at least $1,000 per month. To enroll in the No Fee Overdraft program, account holders need to ensure that the feature is activated via the Varo mobile app. Once activated, Varo account holders have 30 calendar days to repay the amount.
- Free Varo to Varo transfers. Those with a Varo Bank Account can send money to other Varo users for free using Varo’s Instant Transfer feature. Account holders can make up to 50 Varo transfers per day and transfer up to $2,000 per 30-day period.
Varo Savings Account
After opening a Varo Bank Account, users can also open a Varo Savings Account. There’s no minimum deposit and no minimum account balance. Here are some of the key features associated with a Varo Savings Account:
- Save Your Pay. Varo’s Save Your Pay tool allows users to save more by setting up a recurring transfer from their checking to their savings each time they receive a payment via direct deposit. Account holders can choose the percentage they’d like to transfer.
- Save Your Change round-ups. With Varo’s Save Your Change round-up feature, users can choose to round each transaction up to the nearest dollar. The difference is then deposited into the account holder’s savings account. There’s no fee for using Varo’s Save Your Change feature.
- 24/7 access. Varo is a branchless bank account, which means users have 24/7 access to their accounts via a mobile app. Varo customers also have fee-free access to more than 55,000 Allpoint ATMs. Out-of-network ATMs will cost you $3 per withdrawal.
Chime’s features
Chime offers users two types of accounts: a checking account and a high-yield savings account. To open a savings account, you must have a Chime Checking Account. Here are the key features of each account:
Chime Checking Account
The Chime Checking Account is basic. It includes a Visa debit card that can be used worldwide anywhere Visa is accepted. Here are some of the key features associated with the Chime Checking Account:
- Less fees. The Chime Checking Account is a checking account without monthly maintenance fees, transfer fees, overdraft fees, or foreign transaction fees. It’s also free to access any one of its 60,000 in-network ATMs.
- Automatic savings. Chime’s “Save When You Spend” feature automatically rounds up transactions to the nearest dollar and auto-transfers the round-up to your savings account, making saving for a rainy day or your dream vacation easier than ever. Want to save even more? Chime allows account holders to automatically transfer a percentage of every paycheck directly into their savings account — an ideal feature for independent contractors.
- Early direct deposit. Chime offers early direct deposit to any account holder who receives direct deposits from their employer or benefits provider. Those enrolled can access their funds up to two days earlier than they would with a traditional, brick-and-mortar financial institution.
High-Yield Chime Savings Account
Chime’s optional High-Yield Savings Account pays an APY of up to 2.00%— 10 times the national average. You must be a Chime Checking Account holder to open a savings account. Here are some of the key features associated with Chime’s High-Yield Savings Account:
- Less fees. Similar to the Chime Checking Account, the company’s high-yield savings account is free of hidden fees. This means there’s no minimum balance requirement or maximum on interest earned.
- Automatic savings. Chime is on a mission to save you as much money as possible with its built-in Automatic Savings feature. When users make a purchase with their debit card, Chime’s auto-save feature rounds up the transaction and auto-deposits the round-up into their High-Yield Savings Account. Chime account holders can also automatically transfer a percentage of every paycheck directly into their savings account.
- Mobile banking. Chime lets users stay on their finances via a mobile banking app. There’s no need to log in to check your balance, either. Chime sends users daily account balance notifications and instant transaction alerts directly to their phones.
Better banking is here.
- No account fees
- Earn up to 4.20% APY
- Up to 2-day-early-paycheck
- No-fee Overdraft Coverage.
- Do it all in one app.
- Up to $2M of additional FDIC insurance through a network of participating banks.
Aspiration’s features
Aspiration offers two Spend & Save account options: The Aspiration Plus plan and the Pay What Is Fair, the standard Aspiration plan. Here are some of the key features associated with Aspiration’s Spend & Save plans:
Aspiration Plus
Here are some key features associated with the Aspiration Plus plan:
- Unlimited fee-free ATM withdrawals at Allpoint ATMs. Aspiration customers can make fee-free ATM withdrawals at any Allpoint ATM. Users who decide to use a non-Allpoint ATM may be charged a fee. Even so, the Aspiration Plus account reimburses members for one out-of-network ATM monthly charge.
- Environmentally conscious round-ups. The Aspiration Plus and standard Aspiration plan allow users to opt in to the Plant Your Change program. Once opted in, each purchase made with an Aspiration debit card or a linked debit or credit card will be rounded up to the nearest whole dollar. Aspiration will plant one tree for each round-up made via its partnership with the Eden Reforestation Projects.
- Cash back rewards. In addition to providing customers with a cashback reward for Plant Your Change round-ups, Aspiration Plus offers members up to 10% cashback whenever they shop from a Conscience Coalition retailer.
Aspiration Pay What Is Fair
Aspiration’s Pay What Is Fair plan allows users to pay what they can, even if it is $0. Here are some of the key features associated with Aspiration’s Pay What Is Fair plan:
- No hidden fees. Aspiration members are not charged for overdrafts, check deposits, inactive accounts, or dormant accounts.
- Green benefits. Neither the Aspiration Plus plan nor the Aspiration Pay What Is Fair plan uses deposits to fund fossil fuel explorations or production. In addition, Aspiration offers all account holders a unique Aspiration Impact Measurement (AIM) rating. This score provides users with stats on where they shop based on each business’s social and environmental impact.
- Cash back rewards. Aspiration’s Pay What Is Fair plan offers users 3 to 5% cashback on Conscience Coalition purchases. While that’s a bit less than what you’d get with an Aspiration Plus account, it’s still a nice perk!
Summary of Chime, Aspiration, and Varo
Chime | Aspiration | Varo | |
Monthly Fee | $0 | $0-$7.99 | $0 |
ATMs | 60,000+ | 55,000+ | 55,000+ |
ATM fees | $0/$2.50 | $0/$2.50 | $0/$3 |
Note: Under ATM cost, the first figure is for in-house or in-network ATMs. The second is for using out-of-network ATMs.
Costs and fees
Chime
With Chime, there are no monthly account maintenance fees, no minimum balances, no foreign transaction fees, and no overdraft fees. Users also get free access to any one of its 60,000 in-network ATMs.
A Chime account holder will only see a fee on their bank account if they make a cash withdrawal using an out-of-network ATM or an over-the-counter withdrawal at a bank or credit union. The fee is $2.50.
Better banking is here.
- No account fees
- Earn up to 4.20% APY
- Up to 2-day-early-paycheck
- No-fee Overdraft Coverage.
- Do it all in one app.
- Up to $2M of additional FDIC insurance through a network of participating banks.
Aspiration
Aspiration offers two plans, Aspiration Plus and Pay What Is Fair. The basic Pay What Is Fair account allows users to choose their monthly fee, even if it’s $0. If you don’t mind paying a monthly fee, Aspiration Plus is just $7.99 or $5.99 monthly if you pay for the full year.
Opening an Aspiration account is free. However, users are required to make a $10 minimum deposit to open a checking account.
Aspiration does not charge for ATM transactions made via the Allpoint ATM network. Members are granted one out-of-network ATM transaction monthly, with fees fully reimbursed. What’s more? All Aspiration members can enjoy cashback on debit card purchases from Conscience Coalition retailers.
Varo
Both the Varo Bank Account and the Varo Savings Account are fee-free. Varo doesn’t charge a fee for Allpoint ATM withdrawals (out-of-network withdrawals will cost $3 per withdrawal), a minimum balance fee, a monthly maintenance fee, or a foreign transaction fee.
Pros and cons
Chime pros and cons
Pros
- High APY %'s - Chime's HYSA (high-yield savings account) pays 2.00% APY, which is 9x the national average.
- Automated savings tool - The tool makes saving for a rainy day or an emergency super easy.
- Expansive ATM network - Chime has more than 38,000 ATMs across two networks.
- No ATM fees - No fees for ATMs that are in Chime's network.
- Early direct deposits - Chime offers its users access to their funds up to two days earlier than traditional banks.
- No-fee paper checks - While Chime doesn't offer physical checkbooks, the company will send paper checks on your behalf at no extra cost.
- Mobile check deposit - You can deposit checks by simply taking a photo with the app.
Cons
- No reversal of transfers on the Pay Friends program - The Pay Friends program doesn't allow users to cancel or reverse a transfer to existing Chime members. Users can also only transfer up to $2,000 per calendar month.
- No physical branches - Similar to other new-age banks, Chime doesn't offer any physical branches.
- Limit on incoming transfers - Users who'd like to transfer money to Chime from an external bank are limited to $200 transfers per day and $1000 transfers per month. Transferred funds are available in 5 business days.
- Depositing cash is difficult - Customers can only deposit cash at one of Chime's cash deposit partners.
Aspiration pros and cons
Pros
- Fee-free account - Aspiration provides a no-fee option that allows users to pay what they think is fair for the basic, no-interest Spend & Save plan.
- High APY- With Aspiration Plus, members will earn up to 3.00% APY.
- Socially conscious - Aspiration is dedicated to "doing the right thing." You can feel good knowing that your deposits are helping the planet.
- Strong cash-back incentives - Aspiration members receive cash back on select purchases. Plus, members can earn as much as 10% back, while Pay What Is Fair members will earn up to 5% back with merchants that are part of the Conscience Coalition.
- Mobile check deposit - You can deposit your check through the mobile app.
Cons
- Cash-back & high APY requirements - You must have an Aspiration Plus plan to receive high cash-back rates and APY%.
- No physical branches - Like most neo banks, Aspiration doesn't have any physical branches either.
- Out-of-network ATM fees - If you can't find an Allpoint ATM, using out-of-network ATMs could cost up to $2.50 in fees.
- No ATM cash deposit processing - Aspiration cannot process cash deposits at ATMs. Members are asked to purchase a money order, then deposit the money order using the mobile app's check deposit feature.
Varo pros and cons
Pros
- No minimum balance - You don't need minimum cash requirements to open a Varo bank account.
- 2 days early direct deposit - Account holders can receive their direct deposits up to two days earlier via Varo's Early Direct Deposit program.
- No-fee ATMs - All Varo users are offered fee-free access to Allpoint ATMs.
- High APY%s - The Varo savings account has an APY of up to 5.00%.
- Robust savings tools - Use Save Your Change or Save Your Pay to save easier.
- Paper check option - You can select the option to send a paper check via the Varo app.
Cons
- Limited account options - Only two deposit accounts are available.
- No physical branches - Varo doesn't have any physical branches for you to go to.
- Checking account requirement - Before opening up a savings account, Varo customers must open a checking account.
- No joint account - Varo doesn't allow customers to open a joint account.
FAQs
Chime
Is Chime FDIC insured?
Yes! All Chime accounts are FDIC insured up to $250,000 through its partner banks, Stride Bank, N.A. or The Bancorp Bank, Members FDIC.
Does Chime charge any fees?
Chime does not charge a sign-up fee, overdraft fee, monthly maintenance or service fee, transaction fee, or card replacement fee. Only one fee is associated with owning a Chime bank account: Chime charges $2.50 each time a user withdraws cash from an out-of-network ATM or external bank.
When will I receive my Chime Visa Debit Card?
Chime account holders should receive their Chime Visa Debit Card within five to 10 business days of signing up for a Chime Checking Account. Members who do not receive their card within 10 business days can contact Chime’s Member Services team at support@chime.com.
If you still have questions, the Chime website has a blog and FAQ section that may be able to help you out. There’s also an online Help Center available 24/7, just in case you cannot find the answer to your question in the FAQ.
Better banking is here.
- No account fees
- Earn up to 4.20% APY
- Up to 2-day-early-paycheck
- No-fee Overdraft Coverage.
- Do it all in one app.
- Up to $2M of additional FDIC insurance through a network of participating banks.
Aspiration
Is Aspiration a legit bank?
Aspiration is not a bank and does not hold a banking license. Even so, your money is safe as the money is held at Aspiration’s partner banks, which are FDIC-insured.
What kind of card does Aspiration provide?
Aspiration issues a recycled-plastic Mastercard to its members.
Does Aspiration offer direct deposit?
Yes! Aspiration members are asked to download a direct deposit form and fill it out through the company’s website to set up direct deposit. All you need is your routing and account number.
Varo
Is Varo Bank trustworthy?
Yes! Varo Bank is a reputable mobile bank. Varo accounts are FDIC-insured up to $250,000 combined.
How do I deposit cash into Varo?
To deposit cash into a Varo Bank Account, you’ll need to visit a Green Dot location. Varo account holders can also deposit cash by purchasing a Green Dot MoneyPak.
What ATMs can I use with Varo?
Varo account holders have fee-free access to more than 55,000 Allpoint ATMs.
The bottom line
Choosing a banking service requires a bit of digging, and you’ll need to ask yourself what really matters.
Before you begin browsing, ask yourself questions like: “Am I interested in additional services, or do I need a simple checking account sans bells and whistles?”, “Do I need to be able to make seamless wire transfers, or can I use PayPal?” and “Am I focused on budgeting, growing my savings, or both?”
Sure, low fees, fee-free ATMs, and other unique account offers, such as Chime’s SpotMe feature (AKA fee-free overdrafts) or Aspiration’s Plant Your Change program, are nice, but in the end, you’ll need to figure out what works for you and your financial situation. Once you’ve decided on the non-negotiables, finding a banking service that fits your budget and lifestyle shouldn’t be too difficult.
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Writer
Tabitha Britt is a New York-based freelance writer and editor whose work has appeared on INSIDER, the Huffington Post, and Taste of Home. When she's not glued to her computer screen, she can be found walking her beloved pooch, Biscuit.
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