Santander Bank vs. Varo Money
High-Yield Savings Account Comparison
By Aviel Fahl|Last Updated: October 21, 2025
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Summary of Santander Bank vs. Varo Bank
Key Metrics at a Glance
| Feature | Santander Bank | Varo Bank |
|---|---|---|
| Top Savings APY | 0.01% Santander Savings | 5.00% High-Yield Savings Account |
| Minimum to Open | $25 | $0 |
| Minimum Balance for Top APY | $0 | $0.01 |
| Note | Earn 5.00% APY on up to $5,000 and 2.50% APY on the rest. Direct deposit required. |
Santander Bank
Strengths
- Santander Bank has no direct deposit requirement for its savings account.
- Santander Bank has a low minimum deposit of $25 to open a savings account.
- Santander Bank's app ratings are solid with 4.8 on App Store.
Potential Drawbacks
- Santander Bank's APY is only 0.01%, significantly lower than Varo Bank.
- Santander Bank is not BBB accredited, which may affect trust.
- Santander Bank charges a $1 maintenance fee.
Varo Bank
Strengths
- Varo Bank offers a competitive APY of 5.00% on savings up to $5,000.
- Varo Bank has no maintenance fees, making it cost-effective.
- Varo Bank is BBB accredited with an A- rating, indicating reliability.
Potential Drawbacks
- Varo Bank requires a direct deposit of $1,000/month to earn the advertised APY.
- Varo Bank has no physical branches, limiting in-person access.
- Varo Bank's minimum balance requirement is $0.01.
→ As of October 21, 2025 Santander Bank offers an APY of 0.01% for its Santander 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.
→ Varo Bank yields $374 more than Santander Bank on a $10,000 balance after one year. Santander Bank pays $1, while Varo Bank pays $375 (with an effective APY of 3.75%) - an APY advantage for Varo Bank.
Calculate Savings Growth for Santander Bank vs Varo Bank
Santander Bank - Santander Savings
Total savings breakdown:
- Interest earned: $5.7 (0.03%)
- Total contributions: $13,000 (72.20%)
- Initial deposit: $5,000 (27.77%)
Your total balance
$18,005.70
Total balance: $18,005.7
Earnings: $5.7
Bank OverviewVaro Bank - High-Yield Savings Account
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, Santander Bank's total earnings would be $2,205.7 lower than Varo Bank's total earnings.
The Banksparency Savings Calculator provides estimated savings growth based on user input and our latest data.
Compare Santander Bank's vs Varo Bank's Savings Accounts
| Santander Bank | Varo Bank | ||
|---|---|---|---|
| Product | Santander Savings | vs | High-Yield Savings Account |
| APY | 0.01% (as of 10/21/2025) | 2.50% - 5.00% (as of 10/21/2025) | |
| Bundled Account | No | No | |
| FDIC-insured | Yes | Yes | |
| Online Only | No | Yes | |
| Compound Frequency | Daily | Daily | |
| Minimum Deposit | $25 | $0 | |
| Minimum Balance for APY | $0 | $0.01 | |
| Maintenance Fee | $1 | $0 | |
| Direct Deposit Required | No | Yes. Min. $1,000/month | |
| Note | 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 | 4.1/5 | 4.6/5 | |
| BBB Rating | Not Rated | A- |
Comparative Historical APY Insights (Last 9 Months)
| Santander Bank | Varo Bank | ||
|---|---|---|---|
| Product | Santander Savings | vs | High-Yield Savings Account |
| Latest APY | 0.01 % | 5.00 % | |
| Trend | Sideways | Sideways | |
| Slope (bps/mo) | -0.1 | 0.0 | |
| Rate Changes / Mo | 0.11 | 0.00 | |
| Days Since Last Change | 32 | 272 | |
| High (-9 m) | 0.03 % | 5.00 % | |
| Low (-9 m) | 0.01 % | 5.00 % | |
| Draw-down from High | -66.7 % | 0.0 % | |
| Volatility (CV) | 0.232 | 0.000 |
APY Insights Glossary
- Latest APY
- Most recent advertised annual-percentage yield.
- Trend
- Direction over the last 9 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 (-9 m)
- Highest APY in the last 272 days.
- Low (-9 m)
- Lowest APY in the last 272 days.
- Draw-down from High
- How far today sits below the 9-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.