Bank Of America vs. Varo Money
High-Yield Savings Account Comparison
By Aviel Fahl|Last Updated: November 2, 2025
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Summary of Bank of America vs. Varo Bank
Key Metrics at a Glance
| Feature | Bank of America | Varo Bank |
|---|---|---|
| Top Savings APY | 0.01% Advantage Savings | 5.00% High-Yield Savings Account |
| Minimum to Open | $100 | $0 |
| Minimum Balance for Top APY | $0.01 | |
| Note | APY may vary by market. The monthly fee may be waived under some circumstances, such as if you maintain a minimum balance of $500, or are below the age of 25, etc. | Earn 5.00% APY on up to $5,000 and 2.50% APY on the rest. Direct deposit required. |
Bank of America
Strengths
- Bank of America has an A+ BBB rating, indicating strong trustworthiness.
- Bank of America offers a mobile app with a 4.8 App Store rating.
- No direct deposit is required for the Advantage Savings account.
Potential Drawbacks
- The current APY for Bank of America's Advantage Savings is only 0.01%.
- Bank of America charges an $8 monthly maintenance fee unless conditions are met.
- Bank of America has no branches, which may limit in-person banking options.
Varo Bank
Strengths
- Varo Bank offers a high APY of 5.00% on savings up to $5,000.
- Varo Bank has no maintenance fees, making it cost-effective.
- Varo Bank's High-Yield Savings Account requires no minimum deposit.
Potential Drawbacks
- Varo Bank has a lower A- BBB rating compared to Bank of America.
- A direct deposit of $1,000/month is required to earn the highest APY.
- Varo Bank has no physical branches, limiting in-person service.
→ As of November 2, 2025 Bank of America offers an APY of 0.01% for its Advantage Savings account, with a minimum balance of , compared to Varo Bank's 5.00% APY for its High-Yield Savings Account, with a minimum balance of $0.01.
→ Varo Bank yields $374 more than Bank of America on a $10,000 balance after one year. Bank of America pays $1, while Varo Bank pays $375 (with an effective APY of 3.75%) - an APY advantage for Varo Bank.
Calculate Savings Growth for Bank of America vs Varo Bank
Bank of America - Advantage Savings
Total savings breakdown:
- Interest earned: $5.7 (0.03%)
- Total contributions: $13,000 (72.20%)
- Initial deposit: $5,000 (27.77%)
Your total balance
$18,005.70
Total balance: $18,005.7
Earnings: $5.7
Bank OverviewVaro Bank - High-Yield Savings Account
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
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, Bank of America's total earnings would be $2,205.7 lower than Varo Bank's total earnings.
The Banksparency Savings Calculator provides estimated savings growth based on user input and our latest data.
Compare Bank of America's vs Varo Bank's Savings Accounts
| Bank of America | Varo Bank | ||
|---|---|---|---|
| Product | Advantage Savings | vs | High-Yield Savings Account |
| APY | 0.01% (as of 11/2/2025) | 2.50% - 5.00% (as of 11/2/2025) | |
| Bundled Account | No | No | |
| FDIC-insured | Yes | Yes | |
| Online Only | No | Yes | |
| Compound Frequency | Monthly | Daily | |
| Minimum Deposit | $100 | $0 | |
| Minimum Balance for APY | N/A | $0.01 | |
| Maintenance Fee | $8 | $0 | |
| Direct Deposit Required | No | Yes. Min. $1,000/month | |
| Note | APY may vary by market. The monthly fee may be waived under some circumstances, such as if you maintain a minimum balance of $500, or are below the age of 25, etc. | Earn 5.00% APY on up to $5,000 and 2.50% APY on the rest. Direct deposit required. | |
| App Store Rating | 4.8/5 | 4.9/5 | |
| Google Play Rating | 4.6/5 | 4.6/5 | |
| BBB Rating | A+ | A- |
Comparative Historical APY Insights (Last 9 Months)
| Bank of America | Varo Bank | ||
|---|---|---|---|
| Product | Advantage Savings | vs | High-Yield Savings Account |
| Latest APY | 0.01 % | 5.00 % | |
| Trend | Sideways | Sideways | |
| Slope (bps/mo) | -0.0 | 0.0 | |
| Rate Changes / Mo | 0.00 | 0.00 | |
| Days Since Last Change | 277 | 277 | |
| High (-9 m) | 0.01 % | 5.00 % | |
| Low (-9 m) | 0.01 % | 5.00 % | |
| Draw-down from High | 0.0 % | 0.0 % | |
| Volatility (CV) | 0.000 | 0.000 |
APY Insights Glossary
- Latest APY
- Most recent advertised annual-percentage yield.
- Trend
- Direction over the last 9 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 (-9 m)
- Highest APY in the last 278 days.
- Low (-9 m)
- Lowest APY in the last 278 days.
- Draw-down from High
- How far today sits below the 9-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.