Barclays vs Varo Money
High-Yield Savings Accounts Comparison
Last Updated: June 16, 2025
Summary of Barclays vs. Varo Bank
As of June 16, 2025 Barclays offers an APY of 4.20% for its Tiered Savings account, compared to Varo Bank's 5.00% APY for its High-Yield Savings Account account.
Barclays yields $45 more than Varo Bank on a $10,000 balance after one year. Barclays pays $420, while Varo Bank pays $375 (with an effective APY of 3.75%) - an APY advantage for Barclays.
In addition, Barclays also offers 3.70% APY for the Online Savings account.
Barclays
Strengths
- Barclays offers a Tiered Savings account with an APY of 4.20% for balances over $250,000.
- Barclays has a high App Store rating of 4.8.
- Barclays has no maintenance fees for its accounts.
Potential Drawbacks
- Barclays' Online Savings account APY decreased from 3.80% to 3.70% in the last 30 days.
- Barclays requires a minimum balance of $250,000 for the highest APY.
- Barclays does not offer a direct deposit option.
Varo Bank
Strengths
- Varo Bank offers a competitive APY of 5.00% on balances up to $5,000.
- Varo Bank has a high App Store rating of 4.9.
- Varo Bank has no maintenance fees for its accounts.
Potential Drawbacks
- Varo Bank requires a direct deposit of $1,000/month to earn the highest APY.
- Varo Bank's lower APY is 2.50%, which applies to balances over $5,000.
- Varo Bank has a lower BBB rating of A- compared to Barclays' A+.
Summary: Barclays offers a Tiered Savings account with a 4.20% APY for large balances, while Varo Bank provides a higher 5.00% APY but requires direct deposits. Barclays has no direct deposit requirement and a better BBB rating (A+). However, Varo’s app rating is slightly higher at 4.9. Both banks have no maintenance fees, but Barclays' Online Savings account APY decreased recently, whereas Varo's remained stable.
Compare Barclays' vs Varo Bank's Savings Accounts
| Barclays | Varo Bank | |||
|---|---|---|---|---|
| Product | Tiered Savings | Online Savings | vs | High-Yield Savings Account |
| APY | 4.00% - 4.20% (as of 6/16/2025) | 3.70% (as of 6/16/2025) | 2.50% - 5.00% (as of 6/16/2025) | |
| Bundled Account | No | No | No | |
| FDIC-insured | Yes | Yes | Yes | |
| Online Only | Yes | Yes | Yes | |
| Compound Frequency | Daily | Daily | Daily | |
| Minimum Deposit | $0 | $0 | $0 | |
| Minimum Balance for APY | $250,000 | Enough to earn $0.01 in interest | $0.01 | |
| Maintenance Fee | $0 | $0 | $0 | |
| Direct Deposit Required | No | No | Yes. Min. $1,000/month | |
| Note | The 4.20% APY is only available for balances over $250,000. For lower balances, the APY is 4.00%. | N/A | Earn 5.00% APY on up to $5,000 and 2.50% APY on the rest. Direct deposit required. | |
| Visit Bank | Tiered Savings | Online Savings | High-Yield Savings Account | |
| App Store Rating | 4.8/5 | 4.9/5 | ||
| Google Play Rating | 4.7/5 | 4.7/5 | ||
| BBB Rating | A+ | A- | ||
Comparative Historical APY Insights (Last 5 Months)
| Barclays | Varo Bank | |||
|---|---|---|---|---|
| Product | Online Savings | Tiered Savings | vs | High-Yield Savings Account |
| Latest APY | 3.70 % | 4.20 % | 5.00 % | |
| Trend | Sideways | Falling | Sideways | |
| Slope (bps/mo) | -3.8 | -6.8 | 0.0 | |
| Rate Changes / Mo | 1.03 | 1.03 | 0.00 | |
| Days Since Last Change | 6 | 6 | 145 | |
| High (-5 m) | 4.00 % | 4.50 % | 5.00 % | |
| Low (-5 m) | 3.70 % | 4.20 % | 5.00 % | |
| Draw-down from High | -7.5 % | -6.7 % | 0.0 % | |
| Volatility (CV) | 0.016 | 0.023 | 0.000 | |
APY Insights Glossary
- Latest APY
- Most recent advertised annual-percentage yield.
- Trend
- Direction over the last 5 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 (-5 m)
- Highest APY in the last 145 days.
- Low (-5 m)
- Lowest APY in the last 145 days.
- Draw-down from High
- How far today sits below the 5-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 Barclays vs Varo Bank
All calculations are based on APY.
Barclays
APY: 4.20%
Total savings breakdown:
- Interest earned: $42 (4.03%)
- Total contributions: $0 (0.00%)
- Initial deposit: $1,000 (95.97%)
Your total balance
$1,042.00
Effective APY: 4.20% (based on your deposit and contributions)
Total balance: $1,042
Earnings: $42
Bank DetailsVaro Bank
APY: 5.00%
Total savings breakdown:
- Interest earned: $50 (4.76%)
- Total contributions: $0 (0.00%)
- Initial deposit: $1,000 (95.24%)
Your total balance
$1,050.00
Effective APY: 5.00% (based on your deposit and contributions)
Total balance: $1,050
Earnings: $50
Bank DetailsAfter 1 year Barclays would earn you $8 less than Varo Bank.
More Comparisons
Compare Barclays' APY of 4.20% with other banks
| Bank Pair | Best APY | Min Deposit |
|---|---|---|
| Barclays vs Ally Bank | 3.60% | $0 |
| Barclays vs American Express | 3.60% | $0 |
| Barclays vs Axos Bank | 4.66% | $0 |
| Barclays vs Bank of America | 0.01% | $100 |
| Barclays vs Capital One | 3.60% | $0 |
| Barclays vs Chase Bank | 0.01% | $0 |
| Barclays vs Chime | 3.75% | $0 |
| Barclays vs CIT Bank | 4.00% | $100 |
| Barclays vs Discover Bank | 3.60% | $0 |
| Barclays vs Fitness Bank | 5.00% | $100 |
| Barclays vs Marcus by Goldman Sachs | 3.65% | $0 |
| Barclays vs SoFi Bank | 3.80% | $0 |
| Barclays vs Synchrony Bank | 3.80% | $0 |
Compare Varo Bank's APY of 5.00% with other banks
| Bank Pair | Best APY | Min Deposit |
|---|---|---|
| Varo Bank vs Ally Bank | 3.60% | $0 |
| Varo Bank vs American Express | 3.60% | $0 |
| Varo Bank vs Axos Bank | 4.66% | $0 |
| Varo Bank vs Bank of America | 0.01% | $100 |
| Varo Bank vs Capital One | 3.60% | $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 | 3.60% | $0 |
| Varo Bank vs Fitness Bank | 5.00% | $100 |
| Varo Bank vs Marcus by Goldman Sachs | 3.65% | $0 |
| Varo Bank vs SoFi Bank | 3.80% | $0 |
| Varo Bank vs Synchrony Bank | 3.80% | $0 |