Lending Club vs. Varo Money
High-Yield Savings Account Comparison
By Aviel Fahl|Last Updated: October 16, 2025
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Summary of LendingClub vs. Varo Bank
Key Metrics at a Glance
| Feature | LendingClub | Varo Bank |
|---|---|---|
| Top Savings APY | 4.20% LevelUp Savings | 5.00% High-Yield Savings Account |
| Minimum to Open | $0 | $0 |
| Minimum Balance for Top APY | $0 | $0.01 |
| Note | The advertised "LevelUp Rate" APY of 4.20% is only available if you deposit $250+ into the account each month. Otherwise the "Standard Rate" of 3.20% applies. | Earn 5.00% APY on up to $5,000 and 2.50% APY on the rest. Direct deposit required. |
LendingClub
Strengths
- LendingClub offers a competitive APY of 4.20% with a minimum deposit of $250 each month.
- LendingClub has no maintenance fees or minimum balance requirements.
- LendingClub has a high App Store rating of 4.8.
Potential Drawbacks
- LendingClub's APY is lower than Varo Bank's 5.00%.
- LendingClub's account requires monthly deposits to achieve the highest APY.
- LendingClub is not BBB accredited, despite its A+ rating.
Varo Bank
Strengths
- Varo Bank offers the highest APY of 5.00% on up to $5,000.
- Varo Bank is BBB accredited with an A- rating.
- Varo Bank has a higher Google Play rating of 4.6.
Potential Drawbacks
- Varo Bank requires a direct deposit of $1,000/month to earn the highest APY.
- Varo Bank's lower APY is 2.50%, significantly lower than its current APY.
- Varo Bank has a minimum balance requirement of $0.01.
→ As of October 16, 2025 LendingClub offers an APY of 4.20% for its LevelUp Savings account, with a minimum balance of $0, compared to Varo Bank's 5.00% APY for its High-Yield Savings Account, with a minimum balance of $0.01.
→ LendingClub yields $45 more than Varo Bank on a $10,000 balance after one year. LendingClub pays $420, while Varo Bank pays $375 (with an effective APY of 3.75%) - an APY advantage for LendingClub.
Calculate Savings Growth for LendingClub vs Varo Bank
LendingClub
Total savings breakdown:
- Interest earned: $2,564.3 (12.47%)
- Total contributions: $13,000 (63.22%)
- Initial deposit: $5,000 (24.31%)
Your total balance
$20,564.30
Total balance: $20,564.3
Earnings: $2,564.3
Bank OverviewVaro Bank
ℹ️You earn 5.00% on the first $5,000 and 2.50% on the rest.
Total savings breakdown:
- Interest earned: $2,211.4 (10.94%)
- Total contributions: $13,000 (64.32%)
- Initial deposit: $5,000 (24.74%)
Your total balance
$20,211.40
Total balance: $20,211.4
Earnings: $2,211.4
Bank OverviewWith a $5,000 initial deposit and $13,000 in total contributions over 5 years, LendingClub's total earnings would be $352.9 higher than Varo Bank's total earnings.
The Banksparency Savings Calculator provides estimated savings growth based on user input and our latest data.
Compare LendingClub's vs Varo Bank's Savings Accounts
| LendingClub | Varo Bank | ||
|---|---|---|---|
| Product | LevelUp Savings | vs | High-Yield Savings Account |
| APY | 3.20% - 4.20% (as of 10/16/2025) | 2.50% - 5.00% (as of 10/16/2025) | |
| 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 | The advertised "LevelUp Rate" APY of 4.20% is only available if you deposit $250+ into the account each month. Otherwise the "Standard Rate" of 3.20% applies. | Earn 5.00% APY on up to $5,000 and 2.50% APY on the rest. Direct deposit required. | |
| App Store Rating | 4.8/5 | 4.9/5 | |
| Google Play Rating | 4.5/5 | 4.6/5 | |
| BBB Rating | A+ | A- |
Comparative Historical APY Insights (Last 10 Months)
| LendingClub | Varo Bank | ||
|---|---|---|---|
| Product | LevelUp Savings | vs | High-Yield Savings Account |
| Latest APY | 4.20 % | 5.00 % | |
| Trend | Sideways | Sideways | |
| Slope (bps/mo) | -4.7 | 0.0 | |
| Rate Changes / Mo | 0.30 | 0.00 | |
| Days Since Last Change | 97 | 301 | |
| High (-10 m) | 4.75 % | 5.00 % | |
| Low (-10 m) | 4.20 % | 5.00 % | |
| Draw-down from High | -11.6 % | 0.0 % | |
| Volatility (CV) | 0.033 | 0.000 |
APY Insights Glossary
- Latest APY
- Most recent advertised annual-percentage yield.
- Trend
- Direction over the last 10 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 (-10 m)
- Highest APY in the last 303 days.
- Low (-10 m)
- Lowest APY in the last 303 days.
- Draw-down from High
- How far today sits below the 10-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.