Neighbors Bank vs. Varo Bank
Comparing Neighbors Bank and Varo Bank for high-yield savings: Neighbors Bank's Neighbors Savings Account pays 4.20% APY while Varo Bank's High-Yield Savings Account pays 5.00% APY.
Note: Varo Bank 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? Neighbors Bank pays $45 more than Varo Bank annually ($420 vs $375).
Choose Neighbors Bank if getting the best rate matters most, or you value in-person banking. Choose Varo Bank if you're an iPhone 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).
Varo Bank requires a checking account to unlock its top savings rate, while Neighbors Bank offers its savings account standalone.
| Metric | Neighbors BankNeighbors Savings Account Apr 21, 2026 | Varo BankHigh-Yield Savings Account Apr 21, 2026 |
|---|---|---|
| APY | 4.20% | 2.50% - 5.00% |
Est. Earnings | $5,000+$210 $10,000+$420 $25,000+$1,050 | $5,000+$250 $10,000+$375 $25,000+$750 |
Min Deposit | $0 | $0 |
Snapshot view. Rates subject to change. | ||
Terms | Balances up to $250,000 earn 4.20% APY. Anything above will earn 0.05% APY. | 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 MinimumsGreat Android AppIn-Person AccessRate Changes Often | FDIC InsuredNo MinimumsGreat iOS AppGreat Android AppZelle® SupportedDirect Deposit ReqChecking BundleDaily CompoundingStable Rate |
Comparison Analysis
Comparing Neighbors Bank vs. Varo Bank
Executive Summary
Neighbors Bank offers a Neighbors Savings Account with a competitive APY of 4.20% on balances up to $250,000, with no direct deposit requirement and no maintenance fees. In contrast, Varo Bank's High-Yield Savings Account provides a higher APY of 5.00% on balances up to $5,000, but requires a Varo bank account and a minimum direct deposit of $1,000 per month. While Varo's rates are higher for smaller balances, Neighbors Bank allows for larger deposits without a cap on the APY. Both accounts are online-only and FDIC insured, catering to different customer needs.
The analysis is based on current Banksparency database records
* This content is provided for informational purposes only; always verify details with the provider.
Why Neighbors Bank?
- ✓No checking account or direct deposit required
- ✓Physical branch access (One location in Columbia, Missouri)
Why Varo Bank?
- ✓Higher potential APY (5.00% vs 4.20%) on balances up to $5,000 (requires checking bundle & direct deposit)
- ✓Higher rated iOS app (4.9 vs 3.3)
- ✓Fast transfers via Zelle®
- ✓Available Nationwide
— Key Feature Differences —
Better Returns at $10,000
Neighbors BankNeighbors Bank's Neighbors Savings Account earns more on smaller deposits (approx. $420 vs $375/yr).
Better Returns at $25,000
Neighbors BankNeighbors Bank's Neighbors Savings Account pulls ahead with larger amounts (approx. $1050 vs $750/yr).
Best Mobile App Experience
Varo BankVaro Bank offers an iOS app rated 4.9 (vs. 3.3) and Android app rated 4.5 (vs. 4.4)
Shared Benefits
Over a 1-year period, Neighbors Bank's Neighbors Savings Account pays $45 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
Neighbors Bank vs. Varo Bank Savings Calculator
You earn $45 more with Neighbors 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.
Neighbors Bank
Neighbors Savings Account
4.20% on first $250,000 and 0.05% thereafter.
Savings Breakdown
- Interest Earned+$420.00(4.0%)
- Total Contributions$0
- Initial Deposit$10,000
Projected Balance
$10,420.00
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 Neighbors Bank and Varo Bank dramatically outperform the typical 0.01% APY at traditional big banks.
| Feature | Neighbors Bank | Varo Bank |
|---|---|---|
| APY | 4.20% Verified: 4/21/2026 Stable (90d) | 5.00% Range: 2.50% - 5.00% Verified: 4/21/2026 Stable (90d) |
| Product Name | Neighbors Savings Account | High-Yield Savings Account |
| Minimum Deposit | $0 | $0 |
| Min. Balance for APY | $0 | $0.01 |
| Monthly Fee | $0 | $0 |
| Compound Frequency | N/A | Daily |
| Branch Access | Yes | None |
| Account Type | Online & Branches | Online Only |
| Physical Branches | One location in Columbia, Missouri | 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 | Balances up to $250,000 earn 4.20% APY. Anything above will earn 0.05% APY. | 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 Neighbors 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 | Neighbors Bank | Varo Bank |
|---|---|---|
| Neighbors Savings Account | High-Yield Savings Account | |
Current APY | 4.20% | 5.00% |
Trend | Stable | Stable |
Velocity (bps/mo) | -4.6 | 0.0 |
Days Since Change | 96 | 365 |
12-Month High | 4.60% | 5.00% |
12-Month Low | 4.20% | 5.00% |
Adjustments / Mo | 0.25 | 0.00 |
Volatility Score | 0.039 | 0.000 |
How to read these metrics(Click to expand)
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Compare Neighbors Bank's APY of 4.20% with other banks
| Bank Pair | Competitor APY | Min Deposit |
|---|---|---|
| Neighbors Bank vs Ally Bank | 3.10% | $0 |
| Neighbors Bank vs American Express | 3.20% | $0 |
| Neighbors Bank vs Axos Bank | 4.21% | $0 |
| Neighbors Bank vs Barclays | 3.75% | $0 |
| Neighbors Bank vs Capital One | 3.20% | $0 |
| Neighbors Bank vs Chime | 3.00% | $0 |
| Neighbors Bank vs CIT Bank | 3.75% | $100 |
| Neighbors Bank vs Discover Bank | 3.30% | $0 |
| Neighbors Bank vs EverBank | 3.90% | $0 |
| Neighbors Bank vs Marcus by Goldman Sachs | 3.50% | $0 |
| Neighbors Bank vs Newtek Bank | 4.20% | $0.01 |
| Neighbors Bank vs Openbank | 4.00% | $500 |
| Neighbors Bank vs Pibank | 4.40% | $0 |
| Neighbors Bank vs SoFi Bank | 4.00% | $0 |
| Neighbors Bank vs Synchrony Bank | 3.40% | $0 |
| Neighbors Bank vs Wealthfront | 4.20% | $0 |