This bank account earns 5% interest – with a hold
There are a few things you’ll need to do to qualify for this awesome APY.
- The Varo savings account offers a high APY.
- This rate is available to account holders who meet specific requirements, such as obtaining direct deposits totaling at least $1,000.
- The maximum amount you can have in your account to earn the maximum interest rate is $5,000.
When shopping for a new savings account, the annual percentage yield (APY) is usually one of the deciding factors. The higher the APY, the more your savings will grow, so it makes sense to go for the best deal you can find.
Currently, savings account rates are on the rise, and there are several offering 1.5% to 2%. But one account offers more than double. The Varo savings account, offered by Varo Bank only online, allows you to earn up to 5%. That’s an incredible rate, but there are a few conditions.
How to earn up to 5% interest with Varo Bank
Varo Bank offers a checking account and a savings account, which have no monthly fees or minimum balance requirements. First you need to open his current account, called Varo bank account. After that, you can also open a Varo savings account.
Save: click here to discover a top-notch savings account that can earn you 16 times your bank
More: Check out our best online checking accounts of 2022
The Varo savings account has two separate APYs. Its standard rate is currently 1.2% and its high rate is 5%. To get the high interest rate, you must meet these requirements during the qualifying period:
- Get direct deposits totaling $1,000 or more.
- Have $0 or more in your Varo Bank Account and Varo Savings Account at the end of the qualifying period.
- Make sure your savings account balance does not exceed $5,000 at the end of each business day.
- Meet the minimum average balance to earn interest.
The minimum average balance to earn interest varies depending on whether it is a 30-day month or a 31-day month. In both cases, it is very weak. The minimum to earn the 5% APY right now is $1.25 per 30-day month and $1.21 per 31-day month.
All in all, it is quite easy to earn the maximum APY. The main things you need are at least $1,000 in direct deposits and avoiding having a balance over $5,000.
Eligibility is determined at each reference period. The reference period begins on the first calendar day of the month and lasts until the last working day of the month. Every qualifying period you complete the requirements, you earn high APY. When you don’t, you earn a lower APY.
Is Varo Bank worth it?
There is a clear trade-off between a Varo savings account and other savings account options. You can earn a much higher APY, but only on balances up to $5,000. It’s also a bit trickier, as you have to make sure your balance never ends above $5,000.
If you have up to $5,000 in savings, a Varo savings account is a great choice. As long as you meet the conditions, you will earn a very high savings rate.
If you have more than $5,000 in savings, you may want to consider other savings accounts first. You can always use a Varo savings account for $5,000 to earn the highest possible interest rate, while keeping the rest of your money somewhere else. But for those with plenty of savings, this might be more of a problem than it’s worth.
These savings accounts are FDIC insured and could earn you up to 19x your bank
Many people miss out on guaranteed returns because their money languishes in a big bank savings account earning almost no interest. Our choices of best online savings accounts can earn you more than 19 times the national average savings account rate. Click here to check out the top picks that landed a spot on our shortlist of the best savings accounts for 2022.