Synchrony Bank vs Varo Money
High-Yield Savings Accounts Comparison
Last Updated: July 7, 2025
Summary of Synchrony Bank vs. Varo Bank
As of July 7, 2025 Synchrony Bank offers an APY of 3.80% for its High Yield Savings account, compared to Varo Bank's 5.00% APY for its High-Yield Savings Account account.
Synchrony Bank yields $5 more than Varo Bank on a $10,000 balance after one year. Synchrony Bank pays $380, while Varo Bank pays $375 (with an effective APY of 3.75%) - an APY advantage for Synchrony Bank.
Synchrony Bank
Strengths
- Synchrony Bank offers a competitive APY of 3.80% with no direct deposit requirement.
- There are no maintenance fees or minimum balance requirements at Synchrony Bank.
- Synchrony Bank has a solid App Store rating of 4.8.
Potential Drawbacks
- Synchrony Bank is not rated by the Better Business Bureau.
- There are no physical branches available for Synchrony Bank customers.
- The APY of 3.80% has not changed in the last 30 days.
Varo Bank
Strengths
- Varo Bank provides a higher APY of 5.00% with a direct deposit requirement.
- Varo Bank is BBB Accredited and has an A- rating, indicating trustworthiness.
- Varo Bank's Google Play rating is slightly higher at 4.7.
Potential Drawbacks
- Varo Bank requires a direct deposit of at least $1,000/month to earn the highest APY.
- The APY drops to 2.50% after $5,000 in the account.
- Varo Bank does not have any physical branches.
Summary: Synchrony Bank offers a solid 3.80% APY with no direct deposit requirements and no fees, but lacks a BBB rating. In contrast, Varo Bank provides a higher 5.00% APY with a direct deposit requirement and is BBB Accredited with an A- rating. Both banks are online-only with no branches, but Varo's APY is contingent on meeting specific conditions, while Synchrony’s remains stable.
Compare Synchrony Bank's vs Varo Bank's Savings Accounts
| Synchrony Bank | Varo Bank | ||
|---|---|---|---|
| Product | High Yield Savings | vs | High-Yield Savings Account |
| APY | 3.80% (as of 7/7/2025) | 2.50% - 5.00% (as of 7/7/2025) | |
| 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 | High Yield Savings | High-Yield Savings Account | |
| App Store Rating | 4.8/5 | 4.9/5 | |
| Google Play Rating | 4.6/5 | 4.7/5 | |
| BBB Rating | Not Rated | A- |
Comparative Historical APY Insights (Last 5 Months)
| Synchrony Bank | Varo Bank | ||
|---|---|---|---|
| Product | High Yield Savings | vs | High-Yield Savings Account |
| Latest APY | 3.80 % | 5.00 % | |
| Trend | Sideways | Sideways | |
| Slope (bps/mo) | -4.4 | 0.0 | |
| Rate Changes / Mo | 0.36 | 0.00 | |
| Days Since Last Change | 34 | 166 | |
| High (-5 m) | 4.10 % | 5.00 % | |
| Low (-5 m) | 3.80 % | 5.00 % | |
| Draw-down from High | -7.3 % | 0.0 % | |
| Volatility (CV) | 0.023 | 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 167 days.
- Low (-5 m)
- Lowest APY in the last 167 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 Synchrony Bank vs Varo Bank
All calculations are based on APY.
Synchrony Bank
APY: 3.80%
Total savings breakdown:
- Interest earned: $38 (3.66%)
- Total contributions: $0 (0.00%)
- Initial deposit: $1,000 (96.34%)
Your total balance
$1,038.00
Effective APY: 3.80% (based on your deposit and contributions)
Total balance: $1,038
Earnings: $38
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 Synchrony Bank would earn you $12 less than Varo Bank.
More Comparisons
Compare Synchrony Bank's APY of 3.80% with other banks
| Bank Pair | Best APY | Min Deposit |
|---|---|---|
| Synchrony Bank vs Ally Bank | 3.50% | $0 |
| Synchrony Bank vs American Express | 3.60% | $0 |
| Synchrony Bank vs Axos Bank | 4.66% | $0 |
| Synchrony Bank vs Bank of America | 0.01% | $100 |
| Synchrony Bank vs Barclays | 4.10% | $0 |
| Synchrony Bank vs Capital One | 3.50% | $0 |
| Synchrony Bank vs Chase Bank | 0.01% | $0 |
| Synchrony Bank vs Chime | 3.75% | $0 |
| Synchrony Bank vs CIT Bank | 4.00% | $100 |
| Synchrony Bank vs Discover Bank | 3.50% | $0 |
| Synchrony Bank vs Fitness Bank | 5.00% | $100 |
| Synchrony Bank vs Marcus by Goldman Sachs | 3.65% | $0 |
| Synchrony Bank vs SoFi 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 | 3.50% | $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 | 4.10% | $0 |
| Varo Bank vs Capital One | 3.50% | $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 Discover Bank | 3.50% | $0 |
| 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 |