BMO Alto vs. Varo Bank
Comparing BMO Alto and Varo Bank for high-yield savings: BMO Alto's Savings Account pays 3.15% APY while Varo Bank's High-Yield Savings Account pays 5.00% APY.
Note: Varo Bank caps its top rate at $5,000 and requires a checking account.
See how they compare on rate stability, mobile app ratings, and more below.
The Bottom Line
Who pays more interest on $10,000? Varo Bank pays $60 more than BMO Alto annually ($375 vs $315).
Choose BMO Alto if you want a no-strings-attached account. Choose Varo Bank if getting the best rate matters most, you're an iPhone user (no iOS app for BMO Alto), you're an Android user (no Android app for BMO Alto), or you want Zelle for quick transfers.
Important Considerations
Watch out: Varo Bank's 5.00% APY only applies to the first $5,000. With a $10,000 balance, your effective rate drops to 3.75% APY ($375 annually).
At balances above $19,231, BMO Alto earns more due to Varo Bank's APY cap.
Varo Bank requires a checking account to unlock its top savings rate, while BMO Alto offers its savings account standalone.
| Metric | BMO AltoSavings Account Apr 7, 2026 | Varo BankHigh-Yield Savings Account Apr 6, 2026 |
|---|---|---|
| APY | 3.15% | 2.50% - 5.00% |
Est. Earnings | $5,000+$158 $10,000+$315 $25,000+$788 | $5,000+$250 $10,000+$375 $25,000+$750 |
Min Deposit | $0 | $0 |
Snapshot view. Rates subject to change. | ||
Terms | - | Earn 5.00% APY on up to $5,000 and 2.50% APY on the rest. A Varo bank account & direct deposit required. |
| Features | FDIC InsuredNo MinimumsDaily CompoundingRate Changes Often | FDIC InsuredNo MinimumsGreat iOS AppGreat Android AppZelle® SupportedDirect Deposit ReqChecking BundleDaily CompoundingStable Rate |
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.
Executive Summary
Varo Bank offers a High-Yield Savings Account with a notable 5.00% APY, making it the winner in terms of returns, especially for deposits up to $5,000, while offering 2.50% on balances above that. However, eligibility requires a Varo bank account and a minimum direct deposit of $1,000 per month. In contrast, BMO Alto provides a Savings Account with a competitive 3.15% APY, with no direct deposit requirement or caps, making it a simpler alternative. Both accounts are online-only and have no maintenance fees, but Varo's higher yield positions it as the more lucrative option for eligible customers.
The analysis is based on current Banksparency database records
* This content is provided for informational purposes only; always verify details with the provider.
Why BMO Alto?
- ✓No checking account or direct deposit required
Why Varo Bank?
- ✓Higher potential APY (5.00% vs 3.15%) on balances up to $5,000 (requires checking bundle & direct deposit)
- ✓Higher rated iOS app (4.9 vs 0.0)
- ✓Higher rated Android app (4.5 vs 0.0)
- ✓Fast transfers via Zelle®
— Key Feature Differences —
Better Returns at $10,000
Varo BankVaro Bank's High-Yield Savings Account earns more on smaller deposits (approx. $375 vs $315/yr).
Better Returns at $25,000
BMO AltoBMO Alto's Savings Account pulls ahead with larger amounts (approx. $788 vs $750/yr).
Best for Simplicity
BMO AltoBMO Alto's Savings Account offers 3.15% APY with no bundling, direct deposit requirement or caps.
Best for All-in-One Banking
Varo BankVaro Bank's High-Yield Savings Account pays a superior APY for customers who also open a checking account.
Best Mobile App Experience
Varo BankVaro Bank offers an iOS app rated 4.9 (vs. 0.0) and Android app rated 4.5 (vs. 0.0)
Shared Benefits
Over a 1-year period, Varo Bank's High-Yield Savings Account pays $60 more interest on a $10,000 balance than BMO Alto's Savings Account.
*This calculation assumes current rates remain consistent for 1 year and does not include temporary bonuses.
Non-sponsored link to official site
Non-sponsored link to official site
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BMO Alto vs. Varo Bank Savings Calculator
You earn $60 more with Varo Bank than BMO Alto on a $10,000 initial deposit for 1 year*.
*This calculation assumes that APYs remain unchanged for 1 year, and takes into account known promo rate periods, but does not factor in bonuses. You can see how often these banks have changed their rates in the Compare Savings Rates Over Time section below.
BMO Alto
Savings Account
Savings Breakdown
- Interest Earned+$315.00(3.1%)
- Total Contributions$0
- Initial Deposit$10,000
Projected Balance
$10,315.00
Varo Bank
High-Yield Savings Account
5.00% on first $5,000 and 2.50% thereafter.
Savings Breakdown
- Interest Earned+$375.00(3.6%)
- Total Contributions$0
- Initial Deposit$10,000
Projected Balance
$10,375.00
The Banksparency Savings Calculator provides estimated savings growth based on user input and our latest data.
Still banking with Chase, Bank of America, or Wells Fargo?
On a $10,000 balance, you're missing out on at least $314 per year in interest.
Both BMO Alto and Varo Bank dramatically outperform the typical 0.01% APY at traditional big banks.
| Feature | BMO Alto | Varo Bank |
|---|---|---|
| APY | 3.15% Verified: 4/7/2026 ↘︎ 0.10%90d Change | 5.00% Range: 2.50% - 5.00% Verified: 4/6/2026 Stable (90d) |
| Product Name | Savings Account | High-Yield Savings Account |
| Minimum Deposit | $0 | $0 |
| Min. Balance for APY | $0 | $0.01 |
| Monthly Fee | $0 | $0 |
| Compound Frequency | Daily | Daily |
| Branch Access | None | None |
| Account Type | Online Only | Online Only |
| Physical Branches | None | None |
| Direct Deposit Req. | None | RequiredMin. $1,000/month |
| Checking Bundle | No | Yes |
| Mobile Apps | iOS- Android- | |
| FDIC Insured | YesVerify FDIC | YesVerify FDIC |
| Zelle® Support | Not Supported | Available Requires history of qualifying direct deposits. |
| 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 | Visit SiteVerify at BMO Alto Non-sponsored link to official site | Visit SiteVerify at Varo Bank Non-sponsored link to official site |
📈 Compare Savings Rates Over Time
Historical Performance
| Metric | BMO Alto | Varo Bank |
|---|---|---|
| Savings Account | High-Yield Savings Account | |
Current APY | 3.15% | 5.00% |
Trend | Stable | Stable |
Velocity (bps/mo) | -4.6 | 0.0 |
Days Since Change | 48 | 364 |
12-Month High | 3.70% | 5.00% |
12-Month Low | 3.15% | 5.00% |
Adjustments / Mo | 0.33 | 0.00 |
Volatility Score | 0.051 | 0.000 |
How to read these metrics(Click to expand)
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Compare BMO Alto's APY of 3.15% with other banks
| Bank Pair | Competitor APY | Min Deposit |
|---|---|---|
| BMO Alto vs Ally Bank | 3.20% | $0 |
| BMO Alto vs American Express | 3.20% | $0 |
| BMO Alto vs Axos Bank | 4.21% | $0 |
| BMO Alto vs Barclays | 3.85% | $0 |
| BMO Alto vs Capital One | 3.20% | $0 |
| BMO Alto vs Chime | 3.00% | $0 |
| BMO Alto vs CIT Bank | 3.75% | $100 |
| BMO Alto vs Discover Bank | 3.30% | $0 |
| BMO Alto vs EverBank | 3.90% | $0 |
| BMO Alto vs Marcus by Goldman Sachs | 3.65% | $0 |
| BMO Alto vs Newtek Bank | 4.20% | $0.01 |
| BMO Alto vs Openbank | 4.00% | $500 |
| BMO Alto vs Pibank | 4.60% | $0 |
| BMO Alto vs SoFi Bank | 4.00% | $0 |
| BMO Alto vs Synchrony Bank | 3.50% | $0 |
| BMO Alto vs Wealthfront | 4.20% | $0 |