Ivy Bank vs. Varo Bank
Comparing Ivy Bank and Varo Bank for high-yield savings: Ivy Bank's High-Yield Savings Account pays 3.85% 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? Ivy Bank pays $10 more than Varo Bank annually ($385 vs $375).
Choose Ivy Bank if you want a no-strings-attached account. Choose Varo Bank if you're an Android user, 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 $9,259, Ivy Bank earns more due to Varo Bank's APY cap.
Varo Bank requires a checking account to unlock its top savings rate, while Ivy Bank offers its savings account standalone.
| Metric | Ivy BankHigh-Yield Savings Account Apr 7, 2026 | Varo BankHigh-Yield Savings Account Apr 6, 2026 |
|---|---|---|
| APY | 0.05% - 3.85% | 2.50% - 5.00% |
Est. Earnings | $5,000+$193 $10,000+$385 $25,000+$963 | $5,000+$250 $10,000+$375 $25,000+$750 |
Min Deposit | $2,500 | $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 InsuredMod. MinimumGreat iOS AppDaily 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 competitive APY of 5.00% on balances up to $5,000, while Ivy Bank's High-Yield Savings Account provides a lower APY of 3.85%. However, Varo requires a bank account and a minimum direct deposit of $1,000 per month to qualify for the higher rate. Ivy Bank, on the other hand, has no direct deposit requirement but is only available to residents of California and U.S. Territories, excluding the District of Columbia. Both accounts are online-only and have no maintenance fees, but Varo's higher yield makes it the preferred option for savers.
The analysis is based on current Banksparency database records
* This content is provided for informational purposes only; always verify details with the provider.
Why Ivy Bank?
- ✓No checking account or direct deposit required
Why Varo Bank?
- ✓Higher potential APY (5.00% vs 3.85%) on balances up to $5,000 (requires checking bundle & direct deposit)
- ✓Higher rated Android app (4.5 vs 3.4)
- ✓Fast transfers via Zelle®
- ✓Available Nationwide
— Key Feature Differences —
Better Returns at $25,000
Ivy BankIvy Bank's High-Yield Savings Account pulls ahead with larger amounts (approx. $963 vs $750/yr).
Best Mobile App Experience
Varo BankVaro Bank offers an iOS app rated 4.9 (vs. 4.6) and Android app rated 4.5 (vs. 3.4)
Shared Benefits
Over a 1-year period, Ivy Bank's High-Yield Savings Account pays $10 more interest on a $10,000 balance than Varo Bank's High-Yield 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
Top Market Contenders
Ivy Bank vs. Varo Bank Savings Calculator
You earn $10 more with Ivy Bank than Varo Bank 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.
Ivy Bank
High-Yield Savings Account
Savings Breakdown
- Interest Earned+$385.00(3.7%)
- Total Contributions$0
- Initial Deposit$10,000
Projected Balance
$10,385.00
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 $374 per year in interest.
Both Ivy Bank and Varo Bank dramatically outperform the typical 0.01% APY at traditional big banks.
| Feature | Ivy Bank | Varo Bank |
|---|---|---|
| APY | 3.85% Range: 0.05% - 3.85% Verified: 4/7/2026 ↘︎ 0.25%90d Change | 5.00% Range: 2.50% - 5.00% Verified: 4/6/2026 Stable (90d) |
| Product Name | High-Yield Savings Account | High-Yield Savings Account |
| Minimum Deposit | $2,500 | $0 |
| Min. Balance for APY | $2,500 | $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 | ||
| 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 Ivy Bank 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 | Ivy Bank | Varo Bank |
|---|---|---|
| High-Yield Savings Account | High-Yield Savings Account | |
Current APY | 3.85% | 5.00% |
Trend | Stable | Stable |
Velocity (bps/mo) | -10.4 | 0.0 |
Days Since Change | 47 | 144 |
5-Month High | 4.25% | 5.00% |
5-Month Low | 3.85% | 5.00% |
Adjustments / Mo | 0.63 | 0.00 |
Volatility Score | 0.038 | 0.000 |
How to read these metrics(Click to expand)
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Compare Ivy Bank's APY of 3.85% with other banks
| Bank Pair | Competitor APY | Min Deposit |
|---|---|---|
| Ivy Bank vs Ally Bank | 3.20% | $0 |
| Ivy Bank vs American Express | 3.20% | $0 |
| Ivy Bank vs Axos Bank | 4.21% | $0 |
| Ivy Bank vs Barclays | 3.85% | $0 |
| Ivy Bank vs Capital One | 3.20% | $0 |
| Ivy Bank vs Chime | 3.00% | $0 |
| Ivy Bank vs CIT Bank | 3.75% | $100 |
| Ivy Bank vs Discover Bank | 3.30% | $0 |
| Ivy Bank vs EverBank | 3.90% | $0 |
| Ivy Bank vs Marcus by Goldman Sachs | 3.65% | $0 |
| Ivy Bank vs Newtek Bank | 4.20% | $0.01 |
| Ivy Bank vs Openbank | 4.00% | $500 |
| Ivy Bank vs Pibank | 4.60% | $0 |
| Ivy Bank vs SoFi Bank | 4.00% | $0 |
| Ivy Bank vs Synchrony Bank | 3.50% | $0 |
| Ivy Bank vs Wealthfront | 4.20% | $0 |