High-Yield Savings Account Comparison

Betterment vs. Varo Bank

Compare rates, requirements, and features side-by-side to find the best option for you.

Analysis by Aviel Fahl

Updated December 10, 2025

Betterment

Cash Reserve

3.50%

APY

Dec 10, 2025

FDIC InsuredLow MinimumsGreat iOS AppGreat Android App

Show Fine Print & Trends

Min. Deposit	$10
Min. Balance	$0
Maintenance Fee	$0
Compound Freq	N/A
Direct Deposit	Not required
Deposit Insurance	FDIC Insured
Eligibility	United States
Mobile Ratings	iOS:4.8 Android:4.7
BBB Rating	A-(BBB Accredited)

Rate Stability

Rate Adjusted

-0.50%

Since 90 days ago

Read Bank Overview

Varo Bank

High-Yield Savings Account

Up to

5.00%

APY

Dec 10, 2025

FDIC InsuredDirect Deposit ReqChecking BundleNo MinimumsGreat iOS AppGreat Android App

Range: 2.50% – 5.00%

Show Fine Print & Trends

Min. Deposit	$0
Min. Balance	$0.01
Maintenance Fee	$0
Compound Freq	Daily
Direct Deposit	Required (Min. $1,000/month)
Deposit Insurance	FDIC Insured(Cert: 59190)
Eligibility	United States
Mobile Ratings	iOS:4.9 Android:4.6
BBB Rating	A(BBB Accredited)

Important Note

Earn 5.00% APY on up to $5,000 and 2.50% APY on the rest. A Varo bank account & direct deposit required.

Rate Stability

Very StableNo rate changes in last 90 days

Read Bank Overview

Prefer In-Person Banking?

Both of these banks are online-only. If you need physical branch access, check out our list of high-yield accounts with brick-and-mortar locations.

Find Branch Access

Betterment vs. Varo Bank Savings Calculator

Calculations based on current APY for Cash Reserve and High-Yield Savings Account

Initial Deposit

Recurring Deposit

Frequency

Duration

Varo Bank earns $97.3 more than Betterment.

Betterment

Cash Reserve

3.50% APY

Savings Breakdown

Interest Earned
+$2,114.10(10.5%)
Total Contributions
$13,000
Initial Deposit
$5,000

Projected Balance

$20,114.10

Effective APY

3.50%

View Details

Varo Bank

High-Yield Savings Account

5.00% APY

5.00% on first $5,000 and 2.50% thereafter.

Savings Breakdown

Interest Earned
+$2,211.40(10.9%)
Total Contributions
$13,000
Initial Deposit
$5,000

Projected Balance

$20,211.40

Effective APY

3.65%

View Details

The Banksparency Savings Calculator provides estimated savings growth based on user input and our latest data.

Comparison Analysis

Comparing Betterment vs. Varo Bank

Updated: Dec 10, 2025

Why Betterment?

✓No checking account or direct deposit required

Why Varo Bank?

✓Higher potential APY (5.00% vs 3.50%) on balances up to $5,000 (requires checking bundle & direct deposit)

— Key Feature Differences —

Better Returns at $10,000

Varo Bank

Varo Bank's High-Yield Savings Account earns more on smaller deposits (approx. $375 vs $350/yr).

Better Returns at $25,000

Betterment

Betterment's Cash Reserve pulls ahead with larger amounts (approx. $875 vs $750/yr).

Best for Simplicity

Betterment

Betterment's Cash Reserve offers 3.50% APY with no bundling, direct deposit requirement or caps.

Best for All-in-One Banking

Varo Bank

Varo Bank's High-Yield Savings Account pays a superior APY for customers who also open a checking account.

Shared Benefits

Both offer monthly maintenance-free account options Available Nationwide Available to New & Existing Customers

The Bottom Line on APY (Interest Only)

Over a 1-year period, Varo Bank's High-Yield Savings Account pays $25 more interest on a $10,000 balance than Betterment's Cash Reserve.

*This calculation assumes current rates remain consistent for 1 year and does not include temporary bonuses.

BettermentVaro Bank

Automated Data Audit

Executive Summary

Varo Bank's High-Yield Savings Account stands out with a competitive 5.00% APY, significantly higher than Betterment's Cash Reserve, which offers 3.50% APY. However, the Varo account requires a Varo bank account and a minimum direct deposit of $1,000 per month to earn the top rate, and it only applies to the first $5,000; amounts above that earn a lower 2.50% APY. In contrast, Betterment's Cash Reserve has no direct deposit requirement, making it simpler for users, and allows for a minimum deposit of just $10. Both accounts are online-only and have no maintenance fees.

Analysis generated based on current Banksparency database records

* AI-generated content provided for informational purposes only. Accuracy is not guaranteed; always verify details with the provider.

ExploreBetterment ExploreVaro Bank

Feature	Betterment	Varo Bank
APY	3.50% Verified: 12/10/2025 ↘︎ 0.50%90d Change	5.00% Range: 2.50% - 5.00% Verified: 12/10/2025 Stable (90d)
Product Name	Cash Reserve	High-Yield Savings Account
Minimum Deposit	$10	$0
Min. Balance for APY	$0	$0.01
Monthly Fee	$0	$0
Branch Access	None	None
Account Type	Online Only	Online Only
Direct Deposit Req.	None	RequiredMin. $1,000/month
Checking Bundle	No	Yes
Mobile Apps	iOS4.8 Android4.7	iOS4.9 Android4.6
BBB Rating	A-	A
Important Notes	-	Earn 5.00% APY on up to $5,000 and 2.50% APY on the rest. A Varo bank account & direct deposit required.
Next Steps	- View Details	- View Details

📈 Compare Savings Rates Over Time

Historical Performance

Last 12 Months Analysis

Metric	Betterment	Varo Bank
	Cash Reserve	High-Yield Savings Account
Current APYMost recent advertised annual-percentage yield.	3.50%	5.00%
TrendDirection over the last 12 months (regression slope).	Stable	Stable
Velocity (bps/mo)Average monthly change; 10 bps = 0.10 pp.	-4.1	0.0
Days Since ChangeRecency of the latest APY adjustment.	39	356
12-Month HighHighest APY in the last 358 days.	4.25%	5.00%
12-Month LowLowest APY in the last 358 days.	3.50%	5.00%
Adjustments / MoTypical number of APY moves per month.	0.25	0.00
Volatility ScoreCoefficient of variation (stdev ÷ mean). Lower is more stable.	0.048	0.000

How to read these metrics(Click to expand)

Trends & Velocity

Trend: The general direction of the rate over the analyzed period. Useful for spotting if a bank is currently aggressive or pulling back.
Velocity (bps/mo): Speed of change. A high positive number means they raise rates quickly. 10 bps = 0.10%.
Adjustments/Mo: "Twitchiness." High frequency means the rate changes constantly; low frequency means it's stable.

Risk & Range

High/Low: The absolute ceiling and floor of the rate during the 358-day window.
Volatility Score: Lower is better for predictability. It indicates how wildly the rate swings relative to its average.
Days Since Change: If this number is high (e.g., >90), the rate is very sticky. If low, it changed recently.

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4.35%

APY

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Comparing against other Bundled Accounts

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Axos BankChecking Bundle

4.31%

APY

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SoFi BankChecking Bundle

4.30%

APY

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4.00%

APY

More Comparisons

Compare Betterment's APY of 3.50% with other banks

Bank Pair	Competitor APY	Min Deposit
Betterment vs Affirm	3.60%	$0
Betterment vs Ally Bank	3.30%	$0
Betterment vs American Express	3.40%	$0
Betterment vs Axos Bank	4.31%	$0
Betterment vs Bank of America	0.01%	$100
Betterment vs Barclays	4.00%	$0
Betterment vs Bask Bank	3.90%	$0
Betterment vs BMO Alto	3.25%	$0
Betterment vs Bread Savings	4.10%	$100
Betterment vs BrioDirect	4.00%	$5,000
Betterment vs Capital One	3.40%	$0
Betterment vs Charles Schwab Bank	0.15%	$0
Betterment vs Chase Bank	0.01%	$0
Betterment vs Chime	3.50%	$0
Betterment vs CIT Bank	3.75%	$100
Betterment vs Citibank	3.30%	$0
Betterment vs Citizens Access™	3.15%	$0.01
Betterment vs Climate First Bank	4.21%	$50
Betterment vs Discover Bank	3.40%	$0
Betterment vs E*TRADE from Morgan Stanley	3.75%	$0
Betterment vs Elevault	4.08%	$0
Betterment vs EverBank	4.05%	$0
Betterment vs Fitness Bank	4.75%	$100
Betterment vs FNBO Direct	3.00%	$1
Betterment vs Forbright Bank	4.00%	$0
Betterment vs FVCbank	3.85%	$500
Betterment vs GO2bank	4.50%	$0
Betterment vs Ivy Bank	4.25%	$2,500
Betterment vs LendingClub	4.20%	$0
Betterment vs Marcus by Goldman Sachs	3.65%	$0
Betterment vs Neighbors Bank	4.30%	$0
Betterment vs Newtek Bank	4.35%	$0.01
Betterment vs Openbank	4.20%	$500
Betterment vs Peak Bank	4.20%	$100
Betterment vs Pibank	4.60%	$0
Betterment vs PNC	3.53%	$0
Betterment vs Presidential Bank	4.00%	$5,000
Betterment vs Quontic Bank	3.75%	$100
Betterment vs Salem Five Direct	3.71%	$10
Betterment vs Sallie Mae Bank	3.90%	$0
Betterment vs Santander Bank	0.01%	$25
Betterment vs SoFi Bank	4.30%	$0
Betterment vs Synchrony Bank	3.65%	$0
Betterment vs TD Bank	2.75%	$0
Betterment vs TIMBR	4.40%	$1,000
Betterment vs UFB Direct	3.71%	$5000
Betterment vs Upgrade	3.05%	$0
Betterment vs Valley Direct	4.10%	$1,000
Betterment vs Vio Bank	4.16%	$100
Betterment vs Wealthfront	4.15%	$0
Betterment vs Wells Fargo	0.05%	$25
Betterment vs Zynlo Bank	4.05%	$10

Compare Varo Bank's APY of 5.00% with other banks

Bank Pair	Competitor APY	Min Deposit
Varo Bank vs Affirm	3.60%	$0
Varo Bank vs Ally Bank	3.30%	$0
Varo Bank vs American Express	3.40%	$0
Varo Bank vs Axos Bank	4.31%	$0
Varo Bank vs Bank of America	0.01%	$100
Varo Bank vs Barclays	4.00%	$0
Varo Bank vs Bask Bank	3.90%	$0
Varo Bank vs BMO Alto	3.25%	$0
Varo Bank vs Bread Savings	4.10%	$100
Varo Bank vs BrioDirect	4.00%	$5,000
Varo Bank vs Capital One	3.40%	$0
Varo Bank vs Charles Schwab Bank	0.15%	$0
Varo Bank vs Chase Bank	0.01%	$0
Varo Bank vs Chime	3.50%	$0
Varo Bank vs CIT Bank	3.75%	$100
Varo Bank vs Citibank	3.30%	$0
Varo Bank vs Citizens Access™	3.15%	$0.01
Varo Bank vs Climate First Bank	4.21%	$50
Varo Bank vs Discover Bank	3.40%	$0
Varo Bank vs E*TRADE from Morgan Stanley	3.75%	$0
Varo Bank vs Elevault	4.08%	$0
Varo Bank vs EverBank	4.05%	$0
Varo Bank vs Fitness Bank	4.75%	$100
Varo Bank vs FNBO Direct	3.00%	$1
Varo Bank vs Forbright Bank	4.00%	$0
Varo Bank vs FVCbank	3.85%	$500
Varo Bank vs GO2bank	4.50%	$0
Varo Bank vs Ivy Bank	4.25%	$2,500
Varo Bank vs LendingClub	4.20%	$0
Varo Bank vs Marcus by Goldman Sachs	3.65%	$0
Varo Bank vs Neighbors Bank	4.30%	$0
Varo Bank vs Newtek Bank	4.35%	$0.01
Varo Bank vs Openbank	4.20%	$500
Varo Bank vs Peak Bank	4.20%	$100
Varo Bank vs Pibank	4.60%	$0
Varo Bank vs PNC	3.53%	$0
Varo Bank vs Presidential Bank	4.00%	$5,000
Varo Bank vs Quontic Bank	3.75%	$100
Varo Bank vs Salem Five Direct	3.71%	$10
Varo Bank vs Sallie Mae Bank	3.90%	$0
Varo Bank vs Santander Bank	0.01%	$25
Varo Bank vs SoFi Bank	4.30%	$0
Varo Bank vs Synchrony Bank	3.65%	$0
Varo Bank vs TD Bank	2.75%	$0
Varo Bank vs TIMBR	4.40%	$1,000
Varo Bank vs UFB Direct	3.71%	$5000
Varo Bank vs Upgrade	3.05%	$0
Varo Bank vs Valley Direct	4.10%	$1,000
Varo Bank vs Vio Bank	4.16%	$100
Varo Bank vs Wealthfront	4.15%	$0
Varo Bank vs Wells Fargo	0.05%	$25
Varo Bank vs Zynlo Bank	4.05%	$10