Discover Bank vs Varo Money
High-Yield Savings Accounts Comparison
Last Updated: June 16, 2025
Summary of Discover Bank vs. Varo Bank
As of June 16, 2025 Discover Bank offers an APY of 3.60% for its Online Savings Account account, compared to Varo Bank's 5.00% APY for its High-Yield Savings Account account.
Varo Bank yields $15 more than Discover Bank on a $10,000 balance after one year. Discover Bank pays $360, 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 3.60% with no direct deposit requirement.
- Discover Bank has an A+ BBB rating, indicating strong trustworthiness.
- No maintenance fees or minimum balance requirements at Discover Bank.
Potential Drawbacks
- Discover Bank's APY of 3.60% is lower than Varo Bank's 5.00%.
- Discover Bank has a lower Google Play rating of 4.3 compared to Varo's 4.7.
- No branch locations available for Discover Bank customers.
Varo Bank
Strengths
- Varo Bank offers a high APY of 5.00% on savings with a direct deposit of $1,000/month.
- Varo Bank has a strong Google Play rating of 4.7.
- No maintenance fees and low minimum balance of $0.01 required.
Potential Drawbacks
- Varo Bank requires direct deposit to earn the advertised APY.
- Varo Bank's BBB rating is A-, lower than Discover Bank's A+.
- Varo Bank's lower APY of 2.50% applies to amounts over $5,000.
Summary: Discover Bank provides a solid APY of 3.60% without a direct deposit requirement, along with an A+ BBB rating. In contrast, Varo Bank offers a higher APY of 5.00%, but it requires a $1,000 monthly direct deposit and has a slightly lower BBB rating of A-. Both banks have no maintenance fees, but Varo's tiered APY structure may limit earnings on larger balances.
Compare Discover Bank's vs Varo Bank's Savings Accounts
| Discover Bank | Varo Bank | ||
|---|---|---|---|
| Product | Online Savings Account | vs | High-Yield Savings Account |
| APY | 3.60% (as of 6/16/2025) | 2.50% - 5.00% (as of 6/16/2025) | |
| 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 | 3.60 % | 5.00 % | |
| Trend | Sideways | Sideways | |
| Slope (bps/mo) | -4.2 | 0.0 | |
| Rate Changes / Mo | 0.41 | 0.00 | |
| Days Since Last Change | 55 | 145 | |
| High (-5 m) | 3.75 % | 5.00 % | |
| Low (-5 m) | 3.60 % | 5.00 % | |
| Draw-down from High | -4.0 % | 0.0 % | |
| Volatility (CV) | 0.017 | 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 Discover Bank vs Varo Bank
All calculations are based on APY.
Discover Bank
APY: 3.60%
Total savings breakdown:
- Interest earned: $36 (3.47%)
- Total contributions: $0 (0.00%)
- Initial deposit: $1,000 (96.53%)
Your total balance
$1,036.00
Effective APY: 3.60% (based on your deposit and contributions)
Total balance: $1,036
Earnings: $36
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 $14 less than Varo Bank.
More Comparisons
Compare Discover Bank's APY of 3.60% with other banks
| Bank Pair | Best APY | Min Deposit |
|---|---|---|
| Discover Bank vs Ally Bank | 3.60% | $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 | 4.20% | $0 |
| Discover Bank vs Capital One | 3.60% | $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 | 3.60% | $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 Barclays | 4.20% | $0 |
| 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 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 |