Discover Bank vs Varo Money
High-Yield Savings Accounts Comparison
Last Updated: July 7, 2025
Summary of Discover Bank vs. Varo Bank
As of July 7, 2025 Discover Bank offers an APY of 3.50% for its Online Savings Account account, compared to Varo Bank's 5.00% APY for its High-Yield Savings Account account.
Varo Bank yields $25 more than Discover Bank on a $10,000 balance after one year. Discover Bank pays $350, while Varo Bank pays $375 (with an effective APY of 3.75%) - an APY advantage for Varo Bank.
Discover Bank
Strengths
- Discover Bank offers a competitive APY of 3.50%, though it decreased from 3.60% over the last month.
- No direct deposit requirement for the Online Savings Account at Discover Bank.
- Discover Bank has an A+ BBB rating, indicating a strong trustworthiness.
Potential Drawbacks
- Discover Bank's APY of 3.50% is significantly lower than Varo Bank's 5.00%.
- Discover Bank does not offer any branches for in-person banking.
- The App Store rating for Discover Bank is 4.9, but lower than Varo Bank's 4.9 on Google Play.
Varo Bank
Strengths
- Varo Bank's High-Yield Savings Account offers an APY of 5.00%, unchanged from last month.
- Varo Bank's Google Play rating is higher at 4.7 compared to Discover Bank's 4.3.
- Varo Bank is also BBB Accredited, with an A- rating.
Potential Drawbacks
- Varo Bank requires a minimum direct deposit of $1,000/month to earn the highest APY.
- Varo Bank's APY drops to 2.50% for amounts over $5,000.
- Varo Bank has no physical branches for customer service.
Summary: Discover Bank provides a solid APY of 3.50% without a direct deposit requirement, while Varo Bank offers a higher APY of 5.00% but mandates a $1,000 monthly direct deposit. Both banks lack physical branches, but Discover Bank has a higher BBB rating at A+. Varo Bank's Google Play rating is superior, indicating better user satisfaction. Overall, Varo Bank is more appealing for higher earnings, despite its direct deposit condition.
Compare Discover Bank's vs Varo Bank's Savings Accounts
| Discover Bank | Varo Bank | ||
|---|---|---|---|
| Product | Online Savings Account | vs | High-Yield Savings Account |
| APY | 3.50% (as of 7/7/2025) | 2.50% - 5.00% (as of 7/7/2025) | |
| 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 | N/A | Earn 5.00% APY on up to $5,000 and 2.50% APY on the rest. Direct deposit required. | |
| Visit Bank | Online Savings Account | High-Yield Savings Account | |
| App Store Rating | 4.9/5 | 4.9/5 | |
| Google Play Rating | 4.3/5 | 4.7/5 | |
| BBB Rating | A+ | A- |
Comparative Historical APY Insights (Last 5 Months)
| Discover Bank | Varo Bank | ||
|---|---|---|---|
| Product | Online Savings Account | vs | High-Yield Savings Account |
| Latest APY | 3.50 % | 5.00 % | |
| Trend | Sideways | Sideways | |
| Slope (bps/mo) | -4.3 | 0.0 | |
| Rate Changes / Mo | 0.54 | 0.00 | |
| Days Since Last Change | 11 | 166 | |
| High (-5 m) | 3.75 % | 5.00 % | |
| Low (-5 m) | 3.50 % | 5.00 % | |
| Draw-down from High | -6.7 % | 0.0 % | |
| Volatility (CV) | 0.020 | 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 167 days.
- Low (-5 m)
- Lowest APY in the last 167 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 Discover Bank vs Varo Bank
All calculations are based on APY.
Discover Bank
APY: 3.50%
Total savings breakdown:
- Interest earned: $35 (3.38%)
- Total contributions: $0 (0.00%)
- Initial deposit: $1,000 (96.62%)
Your total balance
$1,035.00
Effective APY: 3.50% (based on your deposit and contributions)
Total balance: $1,035
Earnings: $35
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 Discover Bank would earn you $15 less than Varo Bank.
More Comparisons
Compare Discover Bank's APY of 3.50% with other banks
| Bank Pair | Best APY | Min Deposit |
|---|---|---|
| Discover Bank vs Ally Bank | 3.50% | $0 |
| Discover Bank vs American Express | 3.60% | $0 |
| Discover Bank vs Axos Bank | 4.66% | $0 |
| Discover Bank vs Bank of America | 0.01% | $100 |
| Discover Bank vs Barclays | 4.10% | $0 |
| Discover Bank vs Capital One | 3.50% | $0 |
| Discover Bank vs Chase Bank | 0.01% | $0 |
| Discover Bank vs Chime | 3.75% | $0 |
| Discover Bank vs CIT Bank | 4.00% | $100 |
| Discover Bank vs Fitness Bank | 5.00% | $100 |
| Discover Bank vs Marcus by Goldman Sachs | 3.65% | $0 |
| Discover Bank vs SoFi Bank | 3.80% | $0 |
| Discover Bank 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 | 3.50% | $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 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 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 |