Ally Bank vs Varo Money
High-Yield Savings Accounts Comparison
Last Updated: August 1, 2025
We earn a commission if you open an account through some links on this page.
Summary of Ally Bank vs. Varo Bank
As of August 1, 2025 Ally Bank offers an APY of 3.50% for its Savings Account, compared to Varo Bank's 5.00% APY for its High-Yield Savings Account account.
Varo Bank yields $25 more than Ally Bank on a $10,000 balance after one year. Ally Bank pays $350, while Varo Bank pays $375 (with an effective APY of 3.75%) - an APY advantage for Varo Bank.
Ally Bank
Strengths
- Ally Bank offers a competitive APY of 3.50% with no direct deposit requirement.
- Ally Bank has an A+ BBB rating, indicating strong trustworthiness.
- No maintenance fees or minimum balance requirements at Ally Bank.
Potential Drawbacks
- Ally Bank's APY has not changed in the last 30 days.
- Ally Bank lacks a mobile app rating as high as Varo Bank's.
Varo Bank
Strengths
- Varo Bank provides a high APY of 5.00% on deposits up to $5,000.
- Varo Bank has a higher App Store rating of 4.9 compared to Ally Bank.
- Varo Bank is BBB Accredited, with an A- rating.
Potential Drawbacks
- Varo Bank requires a minimum direct deposit of $1,000 per month for the highest APY.
- Varo Bank's lower APY of 2.50% applies to amounts above $5,000.
Summary: Ally Bank offers a solid APY of 3.50% without requiring direct deposits, while Varo Bank provides a higher APY of 5.00% but mandates a $1,000 monthly direct deposit. Ally Bank has a superior A+ BBB rating compared to Varo's A-, although Varo enjoys higher app ratings. Both banks have no maintenance fees and no minimum balance requirements, making them competitive options in the online banking space.
Compare Ally Bank's vs Varo Bank's Savings Accounts
| Ally Bank | Varo Bank | ||
|---|---|---|---|
| Product | Savings Account | vs | High-Yield Savings Account |
| APY | 3.50% (as of 8/1/2025) | 2.50% - 5.00% (as of 8/1/2025) | |
| Bundled Account | No | No | |
| FDIC-insured | Yes | Yes | |
| Online Only | Yes | Yes | |
| Compound Frequency | Daily | Daily | |
| Minimum Deposit | $0 | $0 | |
| Minimum Balance for APY | $0 | $0.01 | |
| Maintenance Fee | $0 | $0 | |
| Direct Deposit Required | No | Yes. Min. $1,000/month | |
| Note | Earn 5.00% APY on up to $5,000 and 2.50% APY on the rest. Direct deposit required. | ||
| App Store Rating | 4.7/5 | 4.9/5 | |
| Google Play Rating | 4.4/5 | 4.7/5 | |
| BBB Rating | A+ | A- |
Comparative Historical APY Insights (Last 6 Months)
| Ally Bank | Varo Bank | ||
|---|---|---|---|
| Product | Savings Account | vs | High-Yield Savings Account |
| Latest APY | 3.50 % | 5.00 % | |
| Trend | Sideways | Sideways | |
| Slope (bps/mo) | -4.7 | 0.0 | |
| Rate Changes / Mo | 0.48 | 0.00 | |
| Days Since Last Change | 46 | 186 | |
| High (-6 m) | 3.80 % | 5.00 % | |
| Low (-6 m) | 3.50 % | 5.00 % | |
| Draw-down from High | -7.9 % | 0.0 % | |
| Volatility (CV) | 0.025 | 0.000 |
APY Insights Glossary
- Latest APY
- Most recent advertised annual-percentage yield.
- Trend
- Direction over the last 6 months (regression slope).
- Slope (bps/mo)
- Average monthly change; 10 bps = 0.10 pp.
- Rate Changes / Mo
- Typical number of APY moves per month.
- Days Since Last Change
- Recency of the latest APY adjustment.
- High (-6 m)
- Highest APY in the last 187 days.
- Low (-6 m)
- Lowest APY in the last 187 days.
- Draw-down from High
- How far today sits below the 6-month peak.
- Volatility (CV)
- Coefficient of variation = stdev ÷ mean.
Why Track Savings-Account APYs?
- See how quickly a bank reacts to Fed moves or competition.
- Gauge “twitchiness” - frequent moves can annoy savers.
- Spot if you're buying near a peak (draw-down) or riding a rise.
- Slope (bps/mo) shows speed of change.
- Volatility (CV) scales jumps by average level.
Calculate Savings Growth for Ally Bank vs Varo Bank
All calculations are based on APY.
Ally Bank
APY: 3.50%
Total savings breakdown:
- Interest earned: $2,114.1 (10.51%)
- Total contributions: $13,000 (64.63%)
- Initial deposit: $5,000 (24.86%)
Your total balance
$20,114.10
Effective APY: 3.50% (based on your deposit and contributions)
Total balance: $20,114.1
Earnings: $2,114.1
Bank OverviewVaro Bank
APY: 5.00%
ℹ️You earn 5.00% on the first $5,000 and 2.50% on the rest.
Total savings breakdown:
- Interest earned: $2,211.4 (10.94%)
- Total contributions: $13,000 (64.32%)
- Initial deposit: $5,000 (24.74%)
Your total balance
$20,211.40
Effective APY: 3.65% (based on your deposit and contributions)
Total balance: $20,211.4
Earnings: $2,211.4
Bank OverviewWith a $5,000 initial deposit and $13,000 in total contributions over 5 years, Ally Bank's total earnings would be $97.3 lower than Varo Bank's total earnings.
The Banksparency Savings Calculator provides estimated savings growth based on user input and our latest data.
More Comparisons
Compare Ally Bank's APY of 3.50% with other banks
| Bank Pair | Best APY | Min Deposit |
|---|---|---|
| Ally Bank vs American Express | 3.50% | $0 |
| Ally Bank vs Axos Bank | 4.46% | $0 |
| Ally Bank vs Bank of America | 0.01% | $100 |
| Ally Bank vs Barclays | 4.10% | $0 |
| Ally Bank vs Capital One | 3.50% | $0 |
| Ally Bank vs Chase Bank | 0.01% | $0 |
| Ally Bank vs Chime | 3.75% | $0 |
| Ally Bank vs CIT Bank | 4.00% | $100 |
| Ally Bank vs Discover Bank | 3.50% | $0 |
| Ally Bank vs Fitness Bank | 4.85% | $100 |
| Ally Bank vs Marcus by Goldman Sachs | 3.65% | $0 |
| Ally Bank vs Presidential Bank | 4.50% | $5,000 |
| Ally Bank vs SoFi Bank | 3.80% | $0 |
| Ally Bank vs Synchrony Bank | 3.80% | $0 |
| Ally Bank vs UFB Direct | 4.21% | $5000 |
| Ally Bank vs Wells Fargo | 2.51% | $25 |
Compare Varo Bank's APY of 5.00% with other banks
| Bank Pair | Best APY | Min Deposit |
|---|---|---|
| Varo Bank vs American Express | 3.50% | $0 |
| Varo Bank vs Axos Bank | 4.46% | $0 |
| Varo Bank vs Bank of America | 0.01% | $100 |
| Varo Bank vs Barclays | 4.10% | $0 |
| Varo Bank vs Capital One | 3.50% | $0 |
| Varo Bank vs Chase Bank | 0.01% | $0 |
| Varo Bank vs Chime | 3.75% | $0 |
| Varo Bank vs CIT Bank | 4.00% | $100 |
| Varo Bank vs Discover Bank | 3.50% | $0 |
| Varo Bank vs Fitness Bank | 4.85% | $100 |
| Varo Bank vs Marcus by Goldman Sachs | 3.65% | $0 |
| Varo Bank vs Presidential Bank | 4.50% | $5,000 |
| Varo Bank vs SoFi Bank | 3.80% | $0 |
| Varo Bank vs Synchrony Bank | 3.80% | $0 |
| Varo Bank vs UFB Direct | 4.21% | $5000 |
| Varo Bank vs Wells Fargo | 2.51% | $25 |